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Monday 15 June 2020
Sturgis Man Sentenced on Meth Trafficking ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Sturgis, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on June 9, 2020, by Jeffrey L. Viken, U.S. District Judge.
Dustin Island, age 40, was sentenced to 7 and a half years in federal prison, followed by 4 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Island possessing 119 grams of methamphetamine and a firearm found during a search of Island’s residence in June 2019.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the South Dakota Division of Criminal Investigation, and the Sturgis Police Department. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Island was immediately remanded to the custody of the U.S. Marshals Service.
Stoughton Man Sentenced in Connection with Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Stoughton man was sentenced today in federal court in Boston for conspiring to distribute and possess with intent to distribute cocaine, crack cocaine, heroin, and marijuana.
Joseph Greene, 22, of Stoughton, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to time served (approximately one month in prison) and three years of supervised release. On May 9, 2020, Greene pleaded guilty to one count of conspiracy to distribute 100 grams or more of heroin, 400 grams or more of fentanyl, cocaine, cocaine base, oxycodone, and marijuana. Greene was charged by criminal complaint and arrested on Nov. 1, 2018 and then indicted in December 2018. Greene enrolled in the Court-run RISE program, which he successfully completed.
In 2018, federal and state law enforcement began investigating members of a drug trafficking organization in and around the Boston area, allegedly led by Djuna Goncalves. The investigation revealed that Goncalves allegedly worked with several others to distribute heroin, fentanyl, cocaine, crack cocaine, and marijuana from a base of operations in Brockton. Over the course of the investigation, other members of Goncalves’ drug cell were identified, including Greene. Greene purchased crack and powder on multiple occasions from Goncalves in October 2018.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Emanuel Gomes; John Gibbons, United States Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy Cruz made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Alathea Porter of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
The details contained in the criminal complaint are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Statement by U. S. Attorney John F. Bash in Observance of the 15th Annual World Elder Abuse Fraud Awareness DayRead the Press Release
Today United States Attorney John F. Bash joined Attorney General William P. Barr and the entire Department of Justice in observing the 15th Annual World Elder Abuse Awareness Day. On the day dedicated to recognizing our seniors, the Department of Justice sends a strong message that the fight to keep seniors safe continues to be a top priority. The Department echoes voices around the world condemning elder abuse, neglect and exploitation.
“There are many fraudsters and other criminals who seek to take advantage of the elderly. I am exceptionally proud of the work that our office has done to bring them to justice,” stated U.S. Attorney Bash.
Every day our seniors are targeted with fraudulent robocalls, spam emails, and other unsolicited messages seeking to exploit seniors and to steal their hard-earned life savings. Fraud schemes include:
- Lottery phone scams where callers convince seniors that a fee or tax must be paid in order to receive lottery winnings;
- Grandparent scams where callers convince seniors that their grandchildren have been arrested and need bail money;
- Romance scams where victims are lulled into believing that their romantic interest needs funds for a visit to the United States or for some other purpose;
- Government employee imposter scams where callers pose as an IRS agent or other government representative claiming that the victim owes back taxes or that there is an issue with the victim’s government benefits;
- Money Mules who receive scam proceeds from victims and then quickly transfer the money into bank accounts controlled by fraudsters; and,
- Tech Support scams where scammers offer assistance with computer viruses or malware they claim were detected on the victim’s computer.
The Western District of Texas has prosecuted multiple defendants for elder fraud-related offenses in the past several years. In the past calendar year alone, the District has brought and sentenced elder fraud-related charges in San Antonio and Austin. Those cases include:
- Olumide Bankole Morakinyo (A19-CR-200): The Defendant hired others to launder funds from various fraud schemes using stolen personally identifiable information (PII). The fraud schemes included stealing from the Texas Employee Retirement System and redirecting money from retired Texas employees. It also included a multimillion-dollar tax refund fraud scheme. Morakinyo is currently awaiting sentencing.
- Akinbobola Akinmadeyemi and Clarence Barefield (A18-CR-333): Two Defendants from an eight-defendant indictment schemed to steal over $250 million from elderly Americans via a sweepstakes scam. The defendants then laundered the proceeds from that offense as well as the proceeds from a multimillion-dollar tax refund scheme. Akinmadeyemi was sentenced to 120 months of imprisonment. Barefield was sentenced to 96 months of imprisonment. The remaining defendants await sentencing or extradition from other countries.
- Paola Gallego (A18-CR-272): The Defendant was a banker in Austin, Texas who stole millions from an elderly married couple who were her clients at the bank by deceiving them into transferring funds into accounts she controlled. Gallego was sentenced to 60 months imprisonment and ordered to pay restitution.
- Robert Wayne Boling, Jr., et al. (SA19-CR-524): Defendants, based in the U. S. and in the Philippines, carried out an identity theft and fraud scheme that targeted thousands of older U. S. Military service members and veterans. The defendants gained access to a Department of Defense Portal and stole millions of dollars from military members’ bank accounts.
In addition, the U. S. Attorney’s Office helped coordinate interviews of money mules by federal, state, and local law enforcement agencies. Money mules are often unknowing victims of criminals. The money mules fall victim to romance or work-from-home schemes and then are tricked into receiving funds from other victims and sending those funds to criminals perpetuating the scheme. By identifying and personally interceding with the money mules, law enforcement diminishes the ability of the fraudsters to profit from their scams.
Earlier this year Attorney General Barr declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities. The Justice Department and its law enforcement partners have undertaken a series of steps to identify and hold accountable those who take advantage of the elderly to include:
- Establishment of a National Elder Fraud Hotline (833-FRAUD-11) so victims can report fraud activity and receive information about available services to help them;
- Formation of the Transnational Elder Fraud Strike Force to combat foreign elder fraud schemes;
- The Annual Elder Justice Sweep was conducted in March of this year. It was the largest coordinated sweep of elder fraud cases in department history;
- Money Mule Initiative that involves law enforcement concentrating efforts around the world to disrupt, investigate, and prosecute those who facilitate financial fraud schemes on senior citizens; and
- Focusing on foreign-based perpetrators as in the Boling case mentioned above.
For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.
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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.
St. Louis Man Sentenced to 60 Months in Prison for Possessing with Intent to Distribute Methamphetamine and FentanylRead the Press Release
St. Louis, Missouri – United States District Judge E. Richard Webber sentenced Justin Moore, 31, of St. Louis, to 60 months in prison for possessing with the intent to distribute methamphetamine and possessing with the intent to distribute fentanyl.
According to the plea agreement, Moore was driving a silver Infiniti SUV when officers of the St. Louis County Special Operations/Special Response Unit noticed that plates on the vehicle belonged to a Chevrolet vehicle. Officers attempted to conduct a traffic stop but Moore attempted to conduct evasive maneuvers, and then sped off at a high rate of speed. Officers followed the Infiniti when it drove down a dead-end street. After coming to a stop at a concrete barrier, Moore jumped out of the car, ran into a wooded area, and was apprehended. Officers detained a female passenger, Moore’s girlfriend, after she attempted to start the Infiniti and drive off. A child was in the back seat.
A search of the Infiniti revealed a plastic baggie of fentanyl in the driver’s door handle. On the driver’s side floorboard, police found a leather satchel, which contained 33 capsules of fentanyl, Oxycodone, four baggies of marijuana and Moore driver’s license. He was searched and found in possession of a clear baggie with methamphetamine and some marijuana, which was found during the search of his person.
A search of the female passenger revealed a large plastic baggie with methamphetamine. Both Moore and Moore’s girlfriend told police that the drugs found in the car belonged to him, including the methamphetamine found on his girlfriend’s person. His girlfriend had taken the methamphetamine from defendant in an attempt to hide it from police. Moore admitted that he intended to sell some of the drugs to another person.
The St. Louis County Police Department investigated this case, with assistance from the Drug Enforcement Administration. Assistant United States Attorney Paul D’Agrosa handled this case for the U.S. Attorney’s Office.
South Dakota Woman Sentenced for Meth Trafficking ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Dimock, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on May 18, 2020, by U.S. District Judge Karen E. Schreier.
Jacqueline Ann Muhs, age 45, was sentenced to 120 months in federal custody, followed by 5 years of supervised release. She was also ordered to pay $100 to the Federal Crime Victims Fund.
Muhs was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on January 7, 2020. She pled guilty on February 24, 2020.
Beginning at an unknown date and continuing until on or about January 7, 2020, in the District of South Dakota and elsewhere, Muhs, knowingly and intentionally combined, conspired, confederated, and agreed together, with others known and unknown, to knowingly and intentionally distribute a mixture and substance containing 500 grams or more of methamphetamine.
This case was investigated by the U.S. Postal Inspection Service, Drug Enforcement Administration, Sioux Falls Police Department, Minnehaha County Sheriff’s Office, and the Department of Criminal Investigation. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Muhs was immediately remanded to the custody of the U.S. Marshals Service.
Six Former eBay Employees Charged with Aggressive Cyberstalking Campaign Targeting Natick CoupleRead the Press Release
BOSTON – Six former employees of eBay, Inc. have been charged with leading a cyberstalking campaign targeting the editor and publisher of a newsletter that eBay executives viewed as critical of the company. The alleged harassment included sending the couple anonymous, threatening messages, disturbing deliveries – including a box of live cockroaches, a funeral wreath and a bloody pig mask – and conducting covert surveillance of the victims.
James Baugh, 45, of San Jose, Calif., eBay’s former Senior Director of Safety & Security, was arrested today and charged by criminal complaint with conspiracy to commit cyberstalking and conspiracy to tamper with witnesses.
David Harville, 48, of New York City, eBay’s former Director of Global Resiliency, was arrested this morning in New York City on the same charges and will make an initial appearance via videoconference in U.S. District Court in the Southern District of New York.
In addition the following defendants were charged in an Information unsealed today: Stephanie Popp, 32, of San Jose, eBay’s former Senior Manager of Global Intelligence; Stephanie Stockwell, 26, of Redwood City, Calif., the former manager of eBay’s Global Intelligence Center (GIC); Veronica Zea, 26, of San Jose, a former eBay contractor who worked as an intelligence analyst in the GIC; and Brian Gilbert, 51, of San Jose, a former Senior Manager of Special Operations for eBay’s Global Security Team. They are each charged with conspiracy to commit cyberstalking and conspiracy to tamper with witnesses and will make appearances in federal court in Boston at a later date.
According to the charging documents, the victims of the cyberstalking campaign were a Natick couple who are the editor and publisher of an online newsletter that covers ecommerce companies, including eBay, a multinational ecommerce business that offers platforms for consumer-to-consumer and business-to-consumer transactions. Members of the executive leadership team at eBay followed the newsletter’s posts, often taking issue with its content and the anonymous comments underneath the editor’s stories.
It is alleged that in August 2019, after the newsletter published an article about litigation involving eBay, two members of eBay’s executive leadership team sent or forwarded text messages suggesting that it was time to “take down” the newsletter’s editor.
In response, Baugh, Harville, Popp, Gilbert, Zea, Stockwell, and others allegedly executed a three-part harassment campaign. Among other things, several of the defendants ordered anonymous and disturbing deliveries to the victims’ home, including a preserved fetal pig, a bloody pig Halloween mask, a funeral wreath, a book on surviving the loss of a spouse, and pornography – the last of these addressed to the newsletter’s publisher but sent to his neighbors’ homes.
As part of the second phase of the campaign, some of the defendants allegedly sent private Twitter messages and public tweets criticizing the newsletter’s content and threatening to visit the victims in Natick. The documents allege that Baugh, Gilbert, Popp and another eBay security employee planned these messages to become increasingly disturbing, culminating with “doxing” the victims (i.e., publishing their home address). It is alleged that the very same group intended then to have Gilbert, a former Santa Clara police captain, approach the victims with an offer to help stop the harassment that the defendants were secretly causing, in an effort to promote good will towards eBay, generate more favorable coverage in the newsletter, and identify the individuals behind the anonymous comments.
The third phase of the campaign allegedly involved covertly surveilling the victims in their home and community. According to the complaint, Harville and Zea registered for a software development conference to explain their trip to Boston on Aug. 15, 2019. Baugh, Harville, and Zea (and later Popp) allegedly drove to the victims’ home in Natick several times, with Harville and Baugh intending at one point to break into the victims’ garage and install a GPS tracking device on their car. As protection in the event they were stopped by local police, Baugh and Harville allegedly carried false documents purporting to show that they were investigating the victims as “Persons of Interest” who had threatened eBay executives. The victims spotted the surveillance, however, and notified the Natick police, who began to investigate. The police learned that Zea had rented one of the cars used by the defendants and reached out to eBay for assistance.
Aware that the police were investigating, the defendants allegedly sought to interfere with the investigation by lying to the police about eBay’s involvement while pretending to offer the company’s assistance with the harassment, as well as by lying to eBay’s lawyers about their involvement. At one point, for example, Baugh, Gilbert, Popp, and Stockwell allegedly plotted to fabricate another eBay “Person of Interest” document that could be offered to the police as a lead on some of the harassing deliveries. As the police and eBay’s lawyers continued to investigate, the defendants allegedly deleted digital evidence that showed their involvement, further obstructing what had by then become a federal investigation.
The charges of conspiracy to commit cyberstalking and conspiracy to tamper with witnesses each carry a sentence of up to five years in prison, three years of supervised release, a fine of up to $250,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Natick Chief of Police James G. Hicks made the announcement today. eBay provided valuable assistance and cooperation with the federal investigation. Assistant U.S. Attorneys Seth B. Kosto and David J. D’Addio of Lelling’s Securities, Financial and Cyber Fraud Unit are prosecuting the case.
The details contained in charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sioux Falls Man Sentenced on Federal Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by Prohibited Person was sentenced on June 1, 2020, by U.S. District Judge Karen E. Schreier.
Awuar Tadeo Amaya, age 29, was sentenced to 27 months in federal custody, followed by 3 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Amaya was indicted for Possession of a Firearm by Prohibited Person by a federal grand jury on September 4, 2019. He pled guilty on March 2, 2020.
On or about July 29, 2019, in the District of South Dakota, Awuar Tadeo Amaya, knowing he had previously been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a firearm which had been shipped and transported in interstate commerce.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sioux Falls Police Department. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Amaya was immediately turned over to the custody of the U.S. Marshals Service.
Sacramento Man Sentenced for Impersonating an FBI AgentRead the Press Release
SACRAMENTO, Calif. — A Sacramento man was sentenced today by U.S. District Judge Kimberly J. Mueller to eight months in prison for impersonating an FBI agent, U.S. Attorney McGregor W. Scott announced.
“By pretending to be a FBI agent, Mr. Arushanov boldly exploited the trusted relationship the FBI has with the communities we serve,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “All FBI agents carry badges and credentials to aid identification and a call can be placed to the FBI or their local law enforcement agency to verify a claim that a person is a FBI agent on official business. Most importantly, please call 911 immediately if you feel you are in danger.”
According to court documents, on Feb. 11, Daniel Arushanov, 27, entered a Red Roof Inn in Sacramento and identified himself to the hotel clerk as a special agent with the FBI. Arushanov claimed to be involved in an investigation into underage prostitution and demanded to see a guest list for the hotel. When asked to show his badge, Arushanov refused and instead told a hotel employee to call the FBI. Arushanov left after the hotel employee called the FBI to report the incident. One of the hotel employees later identified Arushanov as the individual who posed as an FBI agent. Arushanov was arrested for impersonating a peace officer.
This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Shea J. Kenny prosecuted the case.
Rochester Man Charged with Arson of Minneapolis Pawn ShopRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal criminal complaint against MONTEZ TERRIEL LEE, 25, charging him with arson. LEE, who was arrested today in Rochester, Minnesota, will make his initial appearance on Tuesday, June 16, 2020, before a Magistrate Judge in U.S. District Court.
According to the allegations in the complaint, on June 8, 2020, investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) received from an anonymous source video footage from an arson that took place on May 28, 2020, at a pawn shop located in Minneapolis, Minnesota. The video shows a masked man, later identified as LEE, pouring liquid from a metal container throughout the pawn shop. A second video shows LEE standing in front of the burning pawn shop and LEE can be heard saying, “[expletive] this place. We’re gonna burn this [expletive] down.”
The ATF and FBI urge the public to report suspected arson, use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information specifically related to business fires in the Twin Cities can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com. In addition to fires, the FBI is looking for people who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALLFBI (800-225-5324) or visit tips.fbi.gov.
This case is the result of an investigation conducted jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the Minneapolis Police Department, the Rochester Police Department, and the Minnesota State Fire Marshal Division.
This case is being prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
MONTEZ TERRIEL LEE, 25
Rochester, Minn.
Charges:
- Arson, 1 count
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Registered Nurse Pleads Guilty to Drug Diversion ChargeRead the Press Release
BOSTON – A Haverhill nurse pleaded guilty today in federal court in Boston to tampering with patients’ morphine.
Brianna Duffy, 32, pleaded guilty to one count of tampering with a consumer product and one count of acquiring a controlled substance by fraud or deception. U.S. District Court Judge William G. Young scheduled sentencing for Sept. 14, 2020. Duffy was indicted in July 2019.
On March 17 and 18, 2019, while working as a registered nurse at Hunt Nursing and Rehab in Danvers, Duffy tampered with morphine sulfate prescribed to an 89-year old hospice patient. In an attempt to avoid detection, she replaced the extracted medication with another liquid, diluting the morphine to just 26% of the prescribed concentration. The hospice patient received the diluted morphine and suffered unnecessary pain.
From December 2016 until July 2017, while working as a registered nurse at Maplewood Care and Rehabilitation Center in Amesbury, Duffy diverted morphine from two bottles that were prescribed to a 68-year old patient. Duffy removed morphine from the bottles and diluted the remaining morphine with another liquid, leaving only 1.2%-2.5% of the declared concentration of morphine. Duffy tested positive for morphine on July 18, 2017.
The charges provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office on Investigations; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorneys Elysa Wan and Patrick Callahn of Lelling’s Health Care Fraud Unit are prosecuting the case.
Registered Nurse Charged with Drug DiversionRead the Press Release
BOSTON – A Dighton registered nurse was charged today in federal court in Boston with drug tampering.
Marietta Strickland, 61, was charged by information with one count of tampering with a consumer product, specifically the Schedule II controlled substance oxycodone, which is used for pain relief.
According to court documents, while working as a registered nurse at Dighton Care and Rehabilitation Center, Strickland tampered with three blister card packages of oxycodone prescribed to an 89-year-old hospice patient who suffered from Alzheimer’s disease, severe dementia and breast cancer. To avoid detection, Strickland replaced the stolen oxycodone pills with other prescription drugs disguised to look like oxycodone. As a result of Strickland’s tampering, the victim was deprived of her prescribed oxycodone for more than two months and ingested at least 77 unnecessary prescription tablets.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Elysa Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.
The details contained in the information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law
Previously Convicted Felon Admits Three Felon in Possession of Firearm Charges, One in Connection with a ShootingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted being a felon in possession of three different firearms on three different days in April and May 2019, and to using one of the firearms in a shooting, U.S. Attorney Craig Carpenito announced.
Samaad Kelly, a/k/a “Spud,” 33, of Newark, New Jersey, pleaded guilty by videoconference before U.S. District Judge Esther Salas to an information charging him with two counts of being a felon in possession of a firearm and one count of being a felon in possession of ammunition.
According to documents filed in this case and statements made in court:
On April 24, 2019, officers from the Essex County Sheriff’s Office received information that Kelly was driving in Newark in a silver BMW with a temporary registration and was in possession of a firearm. The officers observed the BMW, which had a fictitious registration, and conducted a stop. Kelly, who was driving the BMW, could not provide the officers with any identification, registration, or proof of insurance. After conducting a search of the BMW, the officers located a Taurus semi-automatic 9 millimeter handgun in the glove box. The officers arrested Kelly, and Kelly remained in custody until May 2, 2019, when he was released on bail.
On May 7, 2019, officers from the Newark Police Department responded to a report of gun shots near Astor Street in Newark. Upon their arrival, they found one 9 millimeter discharged shell casing and one 9 millimeter round of live ammunition. The officers obtained video footage from surveillance cameras located nearby, which showed Kelly point and fire a black handgun in the direction of another individual.
On May 10, 2019, detectives from the Newark Police Department were patrolling a section of Newark in the vicinity of Astor Street and Brunswick Street. One of the detectives observed Kelly wearing a fanny pack that appeared to be heavily weighed down. When the detectives approached Kelly, he immediately fled on foot. While running away from the detectives, Kelly unclipped the fanny pack and attempted to throw it over a fence. The detectives apprehended Kelly, recovered the fanny pack, and found inside of it a Ruger 9 millimeter semi-automatic pistol, loaded with 10 rounds of ammunition. The detectives arrested Kelly.
Kelly has numerous prior felony convictions, including one for attempted aggravated assault in 2008 and one for possessing a firearm as a convicted felon in 2010. Each felon in possession of a firearm and ammunition charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 20, 2020.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division with the investigation leading to today’s guilty plea. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sherriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their work on the case.
The government is represented by Assistant U.S. Attorney Christopher D. Amore of the Government Fraud Unit in Newark.
Peoria Street Gang Member Sentenced to Life in Prison for RICO Gang Violence, MurderRead the Press Release
PEORIA, Ill. – U.S. District Judge James E. Shadid today sentenced Eugene Haywood, 26, to serve life plus 10 years in federal prison for his role in a Peoria street gang known as “Bomb Squad” that operated as a criminal enterprise to commit murder and engage in gun violence in Peoria for years. Haywood was convicted, along with fellow gang members, in December 2019, of participating in the racketeering conspiracy. In addition, Haywood was convicted for the murder of Eric Brown, Jr., on June 23, 2013, and Tyrann Chester on July 15, 2013.
“This sentence should send a message to others that violent behavior in our communities will not be tolerated. We will use all available resources and continue to work with our law enforcement partners to identify, investigate and prosecute those who commit violent acts,” said U.S. Attorney John Milhiser. “There is no higher priority than keeping our communities safe.” Milhiser commended the coordination in this case by the ATF, DEA, Peoria Police Department, Illinois State Police and the U.S. Marshals Service who worked together to get this dangerous individual off the street and successfully prosecuted.
In the murder of Eric Brown, Jr., the jury found that Haywood personally fired the gun that killed Brown, and that Brown was murdered in a cold, calculated, and pre-meditated manner. Haywood felt that he had been ‘disrespected’ by rival gang members on June 24, 2013, and later that day, he fired multiple shots at Brown as he was standing on a porch in the 1800 block of West Ketelle St., in Peoria. Brown was taken to the hospital where he died approximately 90 minutes later. In the murder of Tyrann Chester, Haywood was one of three men whom police officers observed running from the scene after a car in which Chester was a backseat passenger was fired upon and Chester was shot in the head and died at the scene, in the 3000 block of West Seibold St., in Peoria.
Haywood is the first to be sentenced of 13 members of the street gang who were convicted in December 2019 following seven weeks of trial. Sentencing hearings for Haywood’s co-defendants are scheduled to continue this week and next week.
Haywood has remained in the custody of the U.S. Marshals Service since the charges were returned by the grand jury in June 2018. He will be transferred to the federal Bureau of Prisons to serve his sentence of life plus 10 years.
Haywood and his co-defendants were convicted of federal racketeering conspiracy under the Racketeer Influenced and Corrupt Organizations Act (RICO). Under the RICO statute, the jury found, that from 2013 to the present, members and associates of Bomb Squad engaged in acts of violence, including murder, attempted murder, assault; and arson, to protect itself, its members, and associates from rival gangs and to protect the standing and reputation of Bomb Squad.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Peoria Police Department conducted the investigation with assistance from the Drug Enforcement Administration and Illinois State Police. Assistant U.S. Attorneys Ronald L. Hanna, Adam W. Ghrist, and Douglas F. McMeyer represent the government in the investigation and prosecution of the case in the Peoria Division, Central District of Illinois.
The charges are the result of an ongoing investigation by an Organized Crime Drug Enforcement Task Force (OCDETF), a partnership of federal, state and local law enforcement agencies working together to identify, disrupt and dismantle drug trafficking organizations and violent street gangs.
In addition, this case is prosecuted under Project Safe Neighborhoods (PSN), a federal program designed to bring together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The program was reinvigorated in 2017 as part of the Department of Justice’s renewed focus on targeting each community’s most violent criminals.
Pennsylvania Man Pleads Guilty to Engaging in Illicit Sexual Conduct with Minors in the Republic of KenyaRead the Press Release
A Lancaster County, Pennsylvania man pleaded guilty today to engaging in illicit sexual conduct in a foreign place.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania and Special Agent in Charge Michael Driscoll of the FBI’s Philadelphia Field Office made the announcement.
Gregory Dow, 61, pleaded guilty to four counts of engaging in illicit sexual conduct in a foreign place, before U.S. District Court Judge Edward G. Smith. Sentencing is set for Sept. 29, 2020.
According to the plea agreement, Dow, an American citizen, traveled to the Republic of Kenya in 2008 to start an orphanage which came to be known as the Dow Family Children’s Home. While running the orphanage with his wife, he sexually abused, on multiple occasions, four minor girls between October 2013 and September 2017. During this time period, he maintained ties to the United States.
The FBI’s Philadelphia Field Office conducted the investigation with assistance from Kenyan authorities and local law enforcement in Lancaster County, Pennsylvania. Trial Attorneys Lauren S. Kupersmith and Lauren E. Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Timothy M. Stengel of the Eastern District of Pennsylvania are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
On World Elder Abuse Awareness Day, U.S. Attorney Urges Seniors to Report Fraud to the National Elder Fraud HotlineRead the Press Release
MACON, Ga. – Today, U.S. Attorney Charlie Peeler joined Attorney General William P. Barr and the entire Department of Justice (DOJ) in observing the 15th Annual World Elder Abuse Awareness Day, condemning elder abuse, neglect and exploitation. As the COVID-19 pandemic continues, the DOJ is also urging senior citizens to be aware of scams targeting the elderly, like fake COVID-19 testing kits and stimulus check fraud.
“It’s atrocious that fraudsters are preying on our elderly citizens at a time when so many have been isolated from family and friends due to the COVID-19 pandemic. Let me be clear that we will prosecute these criminals to the fullest extent allowed by law,” said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. “I urge all senior citizens who suspect they have been a victim of fraud to call the National Elder Fraud Hotline at 1-833-FRAUD-11. It’s important to report these crimes, so law enforcement can stop fraudsters from harming more people.”
The COVID-19 pandemic has created unprecedented challenges for our country and the world, but among those most severely affected by the threat of the novel virus are our senior citizens. During this time when seniors are most vulnerable and isolated from their families and loved ones by social distancing and quarantine restrictions, bad actors have immediately exploited this international tragedy to prey on the elderly through a whole host of scam and fraud schemes. As the world takes this day to remember the elderly during these uncertain times, the Department of Justice remains relentlessly committed, through its department-wide Elder Justice Initiative, to prevent and prosecute fraud on America’s seniors.
The Department will aggressively prosecute fraudsters exploiting the COVID-19 pandemic and targeting seniors offering them fake testing kits and fake help obtaining stimulus and Paycheck Protection Program Funds. Earlier this year, Attorney General Barr declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities.
Major strides have already been made to that end:
National Elder Fraud Hotline: Earlier this year, Attorney General Barr launched the National Elder Fraud Hotline 1-833-FRAUD-11. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.
Transnational Elder Fraud Strike Force: Established in June 2019 to combat foreign elder fraud schemes, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Since its inception, prosecutors in Strike Force districts brought cases against more than 140 sweep defendants.
Annual Elder Justice Sweep: In March of this year, the Attorney General announced the largest coordinated sweep of elder fraud cases in department history. The Department, together with every U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through fraud schemes that largely affected seniors.
Money Mule Initiative: Since October 2018, the Department and its law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute money mule activity used to facilitate fraud schemes, especially those victimizing senior citizens. In 2019 actions were taken to halt the conduct of more than 600 domestic money mules, exceeding a similar effort against approximately 400 mules in the previous year.
Holding foreign-based perpetrators and those that flee the United States accountable: Transnational criminal organizations are targeting our elder population in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams.
For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Office for Victims of Crime Awards Nearly $2 Million to Respond to Elder FraudRead the Press Release
The Department of Justice announced that the Office of Justice Programs’ Office for Victims of Crime (OVC) has awarded nearly $2 million for law enforcement training and technical assistance to improve the identification of elder fraud victims and connect victims to available resources. The department makes this announcement as communities around the world commemorate World Elder Abuse Awareness Day.
“America’s seniors lose billions of dollars every year to fraud and financial scams, in many cases watching helplessly as their entire life savings disappear before their eyes,” said Office of Justice Programs (OJP) Principal Deputy Assistant Attorney General Katharine T. Sullivan. “We are fully committed to helping our law enforcement partners better recognize and combat these reprehensible crimes, bring the perpetrators to justice and begin to repair the damage and restore victims.”
The National White Collar Crime Center will receive $1,940,738 to work with the International Association of Chiefs of Police to identify current training, tools and practices being used to address elder fraud. The project will specifically study current resources available and responses to elder fraud in a rural and an urban jurisdiction in two of the Transnational Elder Fraud Strike Force districts and will develop and deliver trainings for law enforcement to improve the response to elder fraud tailored to the particular needs of different types of jurisdictions. The trainings will be tested, evaluated, and revised as needed and then made available to rural and urban law enforcement agencies nationwide. The Transnational Elder Fraud Strike Force brings together the resources and expertise of the Justice Department’s Consumer Protection Branch, the U.S. Attorneys’ Offices for six federal districts, the FBI, the U.S. Postal Inspection Service, and other law enforcement personnel.
To further combat elder fraud and prevent harm to vulnerable victims, on March 3, 2020, the Justice Department launched the National Elder Fraud Hotline, managed by the OVC, providing services to all adults ages 60 and older who may be victims of financial fraud. Case managers on the hotline assess the needs of the callers and provide information to help them report fraud or may connect them directly with the appropriate agency. Since its inception, the National Elder Abuse Hotline has received more than 1,724 calls.
“Financial fraud is the most common form of abuse suffered by seniors in our country, affecting about one in 10 older Americans,” said OVC Director Jessica Hart. “I am confident that our investment in this effort, and our collaboration with these organizations, will lead to better identification of the victims of these deplorable crimes and greater justice for those victims.”
World Elder Abuse Awareness Day was launched by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations. Its purpose is to raise awareness of the cultural, social, economic, and demographic processes affecting the abuse and neglect of older persons in communities around the world.
For more information on how OVC responds to the right and needs of older victims of elder abuse and financial exploitation, please visit: https://www.justice.gov/elderjustice/mdt.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Norris Man Sentenced for Domestic Assault by Habitual OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Norris, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on June 15, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Alvin Bear Heels, Jr., age 45, was sentenced to 36 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bear Heels was indicted by a federal grand jury on March 9, 2020. He pled guilty on March 26, 2020.
The conviction stemmed from an incident that occurred on February 20, 2020, wherein Bear Heels assaulted his daughter at their home in Norris, by brandishing a knife at her. At the time of this incident, Bear Heels had two prior convictions in Rosebud Sioux Tribal Court for Domestic Abuse, and a prior conviction in U.S. District Court for Assault With a Dangerous Weapon against his spouse.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Bear Heels was immediately turned over to the custody of the U.S. Marshals Service.
Newark Man Charged with Drug Trafficking in Newark’s Pilgrim Baptist Village Housing ComplexRead the Press Release
NEWARK, N.J. – A Newark man who was indicted in connection with his role in the distribution of heroin – some of which contained fentanyl – and cocaine base (crack) in an affordable housing complex and a nearby senior living community in Newark will make his initial court appearance today, U.S. Attorney Craig Carpenito announced.
Elijah Kane, a/k/a “Bang,” a/k/a “G5,” 28, and his brother Joshua Kane, a/k/a “WildOut,” 24, were indicted by a federal grand jury on May 29, 2020, on charges of conspiring to distribute cocaine base, possession of heroin and cocaine base with intent to distribute, and maintaining a drug-involved premises. Elijah Kane is scheduled to appear by videoconference today before U.S. Magistrate Judge Edward S. Kiel. Joshua Kane was arraigned on the indictment before U.S. District Judge Susan D. Wigenton on June 10, 2020. Elijah and Joshua Kane were both charged previously by criminal complaint.
Four other members and conspirators have been charged by complaint with one count each of conspiring to distribute cocaine base: Ahmad Beyah, a/k/a “Goon,” 18, Sherrod Richardson, a/k/a “Drama,” 19; Yusef Ellis, a/k/a “Tweeze,” 39; and Reuben Howard, a/k/a “Ahmeer,” 38, all of Newark. Richardson is also charged with possession of heroin and cocaine base on Dec. 5, 2019, with intent to distribute. Beyah is also charged with possession of heroin and cocaine base on Mar. 4, 2020, with intent to distribute. Richardson, Ellis, and Howard appeared on April 9, 2020, by telephone conference before U.S. Magistrate Judge James B. Clark III. Beyah appeared on April 16, 2020, by videoconference before U.S. Magistrate Judge Leda Dunn Wettre.
According to the documents filed in this case and statements made in court:
The charges and arrests resulted from an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the U.S. Attorney’s Office, in conjunction with numerous federal, state, and local law enforcement partners. Pilgrim Baptist Village Housing Complex, Site II (Pilgrim Village), is a privately owned, affordable housing complex in the vicinity of Avon and Jelliff avenues in Newark. It consists of 46 buildings, each with four units, which are accessible via exterior entrances as well as an interior stairwell leading from each apartment to a common hallway that connects multiple buildings and semi-subterranean garages for those buildings. The buildings are clustered around internal courtyards and pedestrian walkways, and the complex is accessible on foot from Avon Avenue or Jelliff Avenue and by car from one of four driveways leading to the semi-subterranean garages. Because its location and layout make it difficult for law enforcement to surveil, Pilgrim Village is the site of an open-air illegal drug market. Since at least November 2018, law enforcement has been investigating the organization that controls this market.
Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical and electronic surveillance, and analysis of telephone call detail records, law enforcement officials determined that the defendants distributed and conspired to distribute heroin and cocaine base in and around Pilgrim Village from at least June 2019 through April 2020.
The counts of conspiracy to distribute at least 28 grams of cocaine base each carry a minimum penalty of five years in prison, a maximum penalty of 40 years in prison, and a fine of at least $5 million. The counts of distribution and possession with intent to distribute heroin and cocaine base each carry a maximum penalty of 20 years in prison and a fine of $1 million. The counts of maintaining a drug-involved premises each carry a maximum penalty of 20 years in prison and a fine of $500,000.
U.S. Attorney Carpenito credited special agents and task force officers of ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; and members of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to the charges.
He also thanked the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; the FBI, under the direction of Acting Special Agent in Charge Douglas Korneski; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; and the U.S. Marshals Service, under the direction of Marshal Juan Mattos Jr. He also thanked the Belleville Police Department; the Nutley Police Department; the Bloomfield Police Department; the Verona Police Department; and the Orange Police Department for their assistance with this case.
The case was investigated as part of the Violent Crime Initiative (VCI). The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Angelica M. Sinopole of the Organized Crime & Gangs Unit of the U.S. Attorney’s Office in Newark.
The charges and allegations against the defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
New Orleans Hotel Owner Charged with Conspiracy to Defraud First NBC BankRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that ARVIND “MIKE” VIRA (“VIRA”), age 74, a resident of New Orleans, Louisiana, was charged today with conspiracy to defraud First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to the Bill of Information, from in or around April 2010 through April 2017, VIRA had a banking relationship with First NBC Bank, individually and through his companies. During that time, Bank President A acted as VIRA’S de facto loan officer and ensured that VIRA received beneficial interest rates on savings accounts, checking accounts, and loans. In return, VIRA agreed to make loans to Bank President A. VIRA agreed to keep these loans to Bank President A concealed from employees of First NBC Bank at the direction of Bank President A. Bank President A likewise concealed this relationship from others at First NBC Bank and from Federal Deposit Insurance Corporation (FDIC) examiners.
The Bill of Information also alleges that, at the direction of Bank President A, VIRA inflated his own assets on financial statements that he submitted to First NBC Bank in support of his loans. As a result, VIRA and Bank President A were able to defraud First NBC Bank by using nominee loans to funnel money to Bank President A without bank or regulatory scrutiny.
VIRA is charged in the Bill of Information with one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 371 and 1344. The maximum penalties that may be imposed upon conviction are five years in prison, a $250,000.00 fine, up to three years of supervised release, and a mandatory $100 special assessment.
The U.S. Attorney’s Office stated that a Bill of Information is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation; the Federal Deposit Insurance Corporation, Office of Inspector General; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General. Assistant U.S. Attorneys Sharan E. Lieberman, Matthew R. Payne, Nicholas D. Moses, and J. Ryan McLaren are in charge of the prosecution.
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NKC Woman Sentenced for Repeatedly Embezzling from Her EmployersRead the Press Release
KANSAS CITY, Mo. – A North Kansas City, Missouri, woman was sentenced in federal court today for embezzling from her employer in what was her fourth scheme to steal from a local company.
Tonya A. Topel, 42, was sentenced by U.S. Chief District Judge Beth Phillips to two years and nine months in federal prison without parole. The court also ordered Topel to pay $142,606 in restitution. Today’s sentence must run consecutively to Topel’s eight-year sentence imposed on April 16, 2018.
On Jan. 21, 2020, Topel pleaded guilty to wire fraud. Topel admitted that she embezzled $116,367 from her employer, SunSource Homes.
SunSource Homes Fraud
After pleading guilty to embezzling from two local companies, according to court documents, Topel was hired by SunSource. She immediately abused her position of trust as the office manager and accountant in order to unjustly enrich herself yet again. Topel began working for SunSource as the office manager and accountant in October 2016. She started stealing from them a month later, and continued to embezzle from SunSource while she awaited sentencing for her conviction in another federal case in which she embezzled from another employer, Construction Benefits Audit Corporation (CBAC).
Topel made unauthorized purchases on company credit cards, totaling $47,665. She issued unauthorized checks to herself using one of the owner’s signature stamps, totaling $40,955. She claimed fraudulent expense reimbursements, totaling $19,713, which she added to her legitimate paychecks. Topel created $5,287 in unauthorized paychecks to herself and cashed an unauthorized check from SunSource for $2,745.
Topel used the money she embezzled from SunSource to travel to the Bahamas, Boston, Florida, and Arizona. She paid for retail purchases, restaurants, vehicles, and overdraft fees. She paid the attorney representing her in the prior federal case for embezzling from CBAC. She also presented a $20,000 check, which she fraudulently obtained from SunSource, to pay restitution in that earlier scheme to defraud CBAC. This caused management at SunSource to examine their accounting and books and discover Topel’s other thefts from their company.
Preferred Contracting Systems Fraud
Topel’s first fraud scheme occurred from October 2011 to January 2012, while Topel worked at Preferred Contracting Systems in Leawood, Kansas. In the course of those few months, she stole more than $24,000 from her employer. She was charged with five felony counts in April 2012 in Johnson County, Kansas.
Construction Benefits Audit Corporation Fraud
Topel’s second fraud scheme began she was hired as a senior auditor for CBAC, a non-profit corporation in Kansas City, Missouri, a few months later, on June 11, 2012. Topel began stealing from CBAC soon thereafter, starting on Oct. 18, 2012, while her criminal case was still pending in Kansas. She paid her criminal defense lawyer using CBAC’s credit card on Dec. 4, 2012, and she paid her restitution in Kansas on March 6, 2014, using a combination of legitimate and stolen money. She was then discharged early from probation in Kansas.
Topel continued to embezzle from CBAC, using five separate fraud schemes until she was caught in May 2016. Over the almost four years she embezzled from CBAC, Topel caused a loss of $295,677. After her embezzlement was discovered, Topel claimed she stole the money to pay for cancer treatments. In fact, Topel spent the money she embezzled on travel to the Bahamas, Hawaii, Dallas, and Boston; restaurants; entertainment such as Royals and Chiefs tickets, golf, and spas; a 2014 Ford Mustang, which she put in her daughter’s name after being caught in 2016; jewelry; and other personal spending such as clothing, dance classes, iPads, etc. Topel’s financial records showed no payments for medical treatments of any kind. Topel pleaded guilty on Sept. 18, 2017, to wire fraud and aggravated identity theft and was later sentenced to eight years in federal prison without parole.
U.S. Real Estate Equity Builder Fraud
Topel’s third fraud scheme occurred in between working for CBAC and SunSource. Topel worked at U.S. Real Estate Equity Builder (USREEB) from July 11, 2016, to Oct. 7, 2016. Topel has not been criminally charged for that fraud scheme. At today’s sentencing hearing for the SunSource fraud conviction, the court found by a preponderance of evidence that Topel’s $26,238 theft from USREEB constitutes relevant conduct in determining today’s sentence.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI.
Morehead Man Sentenced to 144 Months for Distribution of Child PornographyRead the Press Release
ASHLAND, Ky. - A Morehead, Kentucky man, Ranger Lacy, 43, was sentenced to 144 months in federal prison on Monday, by U.S. District Judge David Bunning, for distribution of child pornography.
In his guilty plea agreement, Lacy admitted that, between November 2, 2012 and December 19, 2012, he made sexually explicit images of minors available for sharing and the images were shared with other users. A subsequent search of Lacy’s laptop and computer equipment uncovered more than 10,000 images depicting minors engaged in sexually explicit conduct. Lacy also admitted that his computer had been set up to share files through a sharing network.
Lacy pleaded guilty in November 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Division; and Rodney Brewer, Commissioner of the Kentucky State Police, jointly made the announcement.
The investigation was directed by the FBI and Kentucky Internet Crimes Against Children Taskforce. The United States was represented by Assistant U.S. Attorney Wade Napier.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Mid-State Securities Broker Charged with Stealing from Elderly ClientsRead the Press Release
NASHVILLE, Tenn – June 15, 2020 – A former Investments Vice President at Raymond James & Associates, Inc. (Raymond James), has been charged with stealing $933,500 from two elderly clients, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
A criminal Information charged Fredrick M. Stow, 65, of Franklin, Tennessee, with securities fraud, wire fraud, and aggravated identity theft. In a separate action, the U.S. Securities and Exchange Commission (SEC) on Friday filed a civil action against Stow, alleging violations of the antifraud provisions of the Securities Exchange Act of 1934.
“The conduct alleged here is detestable,” said U.S. Attorney Cochran. “Protecting our senior citizens from fraudsters like this is one of our highest priorities. Today marks the 15th annual World Elder Abuse Awareness Day and now more than ever, we remain steadfast in condemning elder abuse, neglect and exploitation and remain committed to preventing and prosecuting fraud on America’s seniors.”
According to the charging documents, beginning in 1982, Stow acted as the registered representative for three brokerage accounts owned by a client who was a retired airline pilot and WWII era veteran. Stow changed firms numerous times and the client elected to move his accounts with Stow each time, ultimately transferring his accounts to Raymond James when Stow joined the firm in 2013. Over time, Stow inserted himself into the personal and financial affairs of this client and in the later years of the client’s life, he frequently visited him at his home, where he lived alone but received full-time nursing care.
In October 2015, Stow began misappropriating funds from this client’s IRA account by forging wire transfer letters of authorization to permit transfers from the client’s IRA account to a SunTrust Bank account that Stow owned jointly with his wife. Stow also began selling securities in the client’s IRA account and transferring the proceeds to Stow’s own bank account.
At the time of this client’s death at the age of 98 in March 2018, Stow had made 74 unauthorized transfers and had stolen more than $900,000 from him. The charging documents also allege that within weeks of this client’s death, Stow stole $32,000 from another elderly brokerage customer, by transferring money from the customer’s brokerage account to another SunTrust bank account that Stow owned.
If convicted, Stow faces up to 20 years in prison and a fine of up to $5 million. The government also seeks a monetary judgment and the forfeiture of any property derived from the proceeds of the criminal conduct.
This case was investigated by the United States Secret Service and the SEC. Assistant U.S. Attorney Stephanie Toussaint is prosecuting the case.
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Meridian Man Sentenced to Almost Two Years in Prison Under Project EJECT for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – Corey Douglas Burt, 28, of Meridian, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to 21 months in federal prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Burt was also ordered to pay a $1,500.00 fine.
On April 18, 2019, the Meridian Police Department was called to a motel located on South Frontage Road in Meridian. An officer responded to the scene and learned that motel staff were attempting to clean a room, but the door was locked and the person inside the room would not answer the door despite insistent knocking and verbal requests. The MPD officer was eventually able to get the occupant, Corey Burt, to answer the door.
Burt, who is member of the Latin Kings criminal street gang, was not the guest registered in the room and he was unable or unwilling to tell the officer how he had gained access to the room or who had rented the room. There was no one else in the room. The officer noticed a .380 caliber pistol on a bedside table as he was checking the room. Burt told the officer that he had gotten the gun from a friend. A check of the firearm revealed that it was reported stolen in 2017. Further investigation revealed that Burt had a prior conviction for burglary in Lauderdale County and was prohibited from possessing a firearm.
On July 24, 2019, Burt was indicted by a federal grand jury for being a felon in possession of a firearm. He pled guilty before Judge Jordan on November 7, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Charles W. Kirkham.
Member of the Mescalero Apache Tribe pleads guilty to federal assault charge in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Edmond Andrew Yahnahki Shanta, 22, of Mescalero, New Mexico pleaded guilty in federal court in Las Cruces on June 4 to assault resulting in serious bodily injury in Indian Country.
According to his plea agreement, Shanta assaulted the victim on July 13, 2019 in Otero County, New Mexico within the boundaries of the Mescalero Apache Reservation. Shanta struck the victim in the face with a rock causing a deep cut and several fractures. The victim was transported to a hospital where the victim needed surgery and four days of medical care for the victim’s injuries. Shanta is an enrolled member of the Mescalero Apache Tribe.
Shanta is currently in custody pending sentencing. He faces three years in prison under the terms of his plea agreement.
The FBI investigated this case. Assistant U.S Attorney Aaron O. Jordan is prosecuting the case.
Marvin Smith Pleads Not Guilty to Postal TheftRead the Press Release
The United States Attorney for the District of Vermont announced that Marvin Smith, 57, a former resident of Whitingham who now lives in Florida, pleaded not guilty today in United States District Court in Burlington to charges that he stole money from the U.S. Postal Service. U.S. Magistrate Judge John M. Conroy released Smith on conditions pending trial, which has not been scheduled.
In March, the government filed an information charging Smith with two counts of misdemeanor theft of government property. The first count charges that between 2012 and 2017, Smith defrauded the Postal Service of $1000 or less by submitting falsified travel reimbursement claims in connection with his official business. The second count alleges that between 2016 and 2019, Smith stole money from his cash register drawer at the Brattleboro Post Office.
The United States Attorney emphasizes that the charges in the information are merely accusations and that Smith is presumed innocent unless and until he is proven guilty.
If convicted, Smith faces up to one year of imprisonment and a fine of up to $100,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Inspector General’s Office of the Postal Service.
Smith is represented by Assistant Federal Public Defender Elizabeth Quinn. The prosecutor is Assistant U.S. Attorney Gregory Waples.
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.
Marion Man Who Stole over $100,000 from his Grandmother Sentenced to Federal prisonRead the Press Release
A man who drained his grandmother’s checking account, living trust account, and money market savings account of $118,107.80 was sentenced today to 21 months in prison.
Andrew Garrett, age 32, from Marion, Iowa, received the prison term after a January 10, 2020 guilty plea to a one count charging him with wire fraud.
In a plea agreement, Garrett admitted his grandmother was unable to care for herself due to memory issues including Alzheimer’s disease and dementia. Garrett used a debit card belonging to his grandmother to spend her funds for his personal benefit. Garrett concealed his scheme to defraud by claiming the expenses were related to repairs at his grandmother’s condominium.
Garrett was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Garrett was sentenced to 21 months’ imprisonment and ordered to repay 118,107.80 in restitution. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Garrett was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Matthew J. Cole and investigated by the Marion Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2-CJW
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Man from Porcupine Sentenced for Assault on Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Porcupine, South Dakota, man convicted of Assault on a Federal Officer was sentenced by Jeffrey L. Viken, U.S. District Judge.
Frank Yellow Boy, age 43, was sentenced on June 9, 2020, to 6 months in federal prison, followed by 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Yellow Boy was indicted by a federal grand jury in June 2019. The charge related to Yellow Boy physically resisting and punching an Oglala Sioux Tribe Department of Public Safety officer after being arrested on March 24, 2019, at Porcupine. The assault resulted in the officer’s glasses being knocked from his face and his nose, and mouth being bloodied.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Yellow Boy was immediately turned over to the custody of the U.S. Marshals Service.
MSC Gayane Crew Member Pleads Guilty to Cocaine Trafficking Stemming from One of the Largest Drug Seizures in U.S. HistoryRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Vladimir Penda, 27, of the country of Montenegro, entered a plea of guilty before United States District Court Judge Harvey Bartle III on charges of conspiracy to possess with intent to distribute 5 kilograms or more of cocaine on a vessel subject to the jurisdiction of the United States.
In 2019, Penda, a crew member who worked on board the shipping vessel MSC Gayane as the ship’s fourth engineer, conspired with others to engage in bulk cocaine smuggling. On multiple occasions during the MSC Gayane’s voyage at sea, crew members, including Penda, helped load bulk cocaine onto the vessel from speedboats that approached under cover of darkness, traveling at high speeds. Crew members used the Gayane’s crane to hoist cargo nets full of cocaine onto the vessel and then stashed the drugs in various shipping containers.
On June 17, 2019, federal, state, and local law enforcement agents boarded the MSC Gayane when it arrived at Packer Marine Terminal in Philadelphia and seized approximately 20 tons of cocaine on the ship, with a street value of over $1 billion. This was one of the largest drug seizures in U.S. history.
“Federal agents found nearly 20 tons of cocaine hidden on this ship when it arrived in the port of Philadelphia in June 2019,” said U.S. Attorney McSwain. “Over the past year, prosecutors in my Office, in conjunction with our partner agencies, have been working non-stop to pursue justice in this case in order to protect our district and our country. We want to send a strong message to criminals around the world that Philadelphia is not a safe harbor for their deadly drug trafficking.”
“Mr. Penda’s guilty plea is a testament to Homeland Security Investigations commitment to holding all those involved in the transnational drug smuggling investigation aboard the MSC Gayane accountable,” said Brian A. Michael, Special Agent in Charge for HSI Philadelphia. “HSI, in collaboration with CBP, the Coast Guard, and our other federal, state and local law enforcement partners, are committed to the detection and disruption of transnational drug smuggling, and will continue to work in concert with the U.S. Attorney’s Office for the Eastern District of Pennsylvania to keep our communities safe.”
“Mr. Penda’s plea agreement reinforces the notion that there are severe consequences for trafficking large amounts of dangerous drugs, such as this record-breaking cocaine seizure, into our communities,” said Casey Durst, CBP’s Director of Field Operations in Baltimore. “Customs and Border Protection remains steadfast on our nation’s borders, and arm-in-arm with our federal, state and local law enforcement partners, to protect our communities.”
The defendant faces a maximum possible sentence of lifetime imprisonment.
The case is being investigated by Homeland Security Investigations and the United States Customs and Border Protection, together with a multi-agency team of federal, state, and local partners.
Loan Officer and Real Estate Developer Sentenced for Conspiracy to Make False Statements to BanksRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Jonathan Marmol (41, Odessa) to 15 months in federal prison and Mordechai Boaziz (67, Miami Beach) to 90 days in federal prison for conspiracy to make false statements to financial institutions.
Marmol and Boaziz had pleaded guilty to the offenses in November 2019.
According to court documents, beginning around the summer of 2006, and continuing through August 2008, Boaziz and Marmol conspired with others to execute a scheme to influence the credit decisions of financial institutions in connection with the sale of condominium units at The Preserve at Temple Terrace, a 392-unit condominium complex located in Temple Terrace, Florida. Boaziz was a real estate developer converting The Preserve from an apartment complex into a condominium complex. Boaziz, the leader and organizer of the fraud scheme, hired Marmol to market the condominium units at the complex.
In order to recruit and entice otherwise unqualified buyers to purchase units at The Preserve, the conspirators offered to pay the prospective buyers’ down payments (“cash-to-close”). The conspirators then intentionally concealed the cash-to-close payments from the financial institutions that originated and funded the related mortgage loans.
In particular, the HUD-1 Settlement Statements submitted to the financial institutions falsely stated that the buyers brought their own cash-to-close funds to purchase the units, which influenced the financial institutions’ mortgage loan approval decisions. In reality, Boaziz funded the buyers’ cash-to-close and routed the payments through Marmol and others. Boaziz caused approximately $5.36 million in losses, and Marmol caused approximately $330,000 in losses to the victim financial institutions who financed the units at The Preserve.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Federal Bureau of Investigation. It was prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay L. Hoffer.
Lima man charged as a felon in possession of firearmRead the Press Release
Justin E. Herdman, U.S. Attorney for the Northern District of Ohio, announced today that a federal grand jury in Cleveland, Ohio has returned a one-count indictment charging Dominic Wright, 25, of Lima, Ohio with felon in possession of a firearm and ammunition.
According to court documents filed in this matter, On October 16, 2019, Wright possessed a Hi-Point 380 caliber pistol and ten (10) rounds of ammunition. He was prohibited from possessing firearms or ammunition because of a 2016 conviction in Lucas County Common Pleas Court for unlawful sexual conduct with a minor.
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 records, 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 Bureau of Alcohol, Tobacco and Firearms. The case is being prosecuted by Assistant U.S. Attorneys Deyana Unis and Matthew D. Simko.
Lancaster Man Sentenced for His Role in Heroin ConspiracyRead 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 Kevin Hinca, 28, of Lancaster, NY, who was convicted of conspiracy to distribute heroin, was sentenced to serve 32 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Charles J. Volkert, Jr., who handled the case, stated that between December 2015 and June 2016, the defendant conspired with others to distribute heroin in the Western District of New York. Hinca was identified as a heroin dealer during a 2016 DEA investigation into a larger drug-trafficking network operating in the Buffalo area.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan.
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Lancaster Man Pleads Guilty to Charges of Sexually Abusing Children in a Kenyan OrphanageRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Gregory Dow, 61, of Lancaster, PA entered a plea of guilty before United States District Court Judge Edward G. Smith on four counts of engaging in illicit sexual conduct with a minor in a foreign place, stemming from his operation of an orphanage in Kenya.
In early 2008, Dow and his family traveled from Lancaster County to the Republic of Kenya to start an orphanage. The orphanage, which came to be known as the Dow Family Children’s Home, was established in Bomet County, Kenya around April 2008. The defendant purported to be a Christian missionary who cared for these children and asked them to call him “Dad.” But instead of being a father figure, he preyed on their youth and vulnerability. The Dow Family Children’s Home remained in operation until September 2017, at which time Kenyan authorities suspected that Dow had sexually abused children in his care. Dow fled Kenya when the allegations came to light, returning to Lancaster County.
Acting on a tip, the Federal Bureau of Investigation (FBI) investigated the allegations and determined that Dow had sexually abused at least four teenage girls between October 2013 and September 2017. Two of the girls were as young as 11 years old when the abuse began. The defendant’s wife even transported the victims to a medical clinic to have birth control devices implanted into their arms so that Dow could perpetrate his crimes without fear of impregnating his victims. In July 2019, he was charged in a four count Indictment. Today, the defendant pleaded guilty to all counts.
“Gregory Dow hid behind his supposed faith on the other side of the world, hoping no one in the U.S. would know or care about the children he abused. He was wrong,” said U.S. Attorney McSwain. “Holding those accountable who sexually abuse children, no matter where their crimes occur, will continue to be a top priority of my Office and the entire Department of Justice.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The investigation was conducted by the FBI with assistance from Kenyan authorities, the Lancaster City Bureau of Police and the East Hempfield Township Police Department. The case is being prosecuted by Assistant United States Attorney Timothy Stengel of the Eastern District of Pennsylvania and Department of Justice Trial Attorneys Lauren Britsch and Lauren Kupersmith of the Child Exploitation and Obscenity Section (CEOS).
Justice Department Observes 15th Annual World Elder Abuse Awareness DayRead the Press Release
MADISON, WIS. – Today, U.S. Attorney Scott C. Blader joined Attorney General William P. Barr and the entire Department of Justice in observing the 15th Annual World Elder Abuse Awareness Day. The Department echoes voices around the world condemning elder abuse, neglect and exploitation.
The COVID-19 pandemic has created unprecedented challenges for our country and the world, but among those most severely affected by the threat of the novel virus are our senior citizens. During this time when seniors are most vulnerable and isolated from their families and loved ones by social distancing and quarantine restrictions, bad actors have immediately exploited this international tragedy to prey on the elderly through a whole host of scam and fraud schemes. As the world takes this day to remember the elderly during these uncertain times, the Department of Justice remains relentlessly committed, through its department-wide Elder Justice Initiative, to prevent and prosecute fraud on America’s seniors.
The Department will aggressively prosecute fraudsters exploiting the Covid-19 pandemic and targeting seniors offering them fake testing kits and fake help obtaining stimulus and Paycheck Protection Program Funds. On this day dedicated to recognizing our seniors, the Department of Justice sends a strong message that we continue the fight to keep seniors safe a top priority.
“Crimes against the elderly target some of the most vulnerable individuals in our communities,” said U.S. Attorney Blader. “My office will continue to work with our local, state, and federal law enforcement partners to bring those who prey on the elderly to justice, especially those who take advantage of the pandemic to engage in fraud schemes.”
U.S. Attorney Blader noted two recent elder fraud prosecutions as examples of the types of cases that his office has made a priority. In December 2019, Jamie Smith, a coin broker from Baldwin, Wisconsin, was sentenced 54 months for liquidating his clients’ coins and using the funds for his personal expenses. In May 2020, Emmanual Odiah, a Nigerian national, was sentenced to 54 months for assisting an international fraud scheme by opening bank accounts in the United States to launder the proceeds of the scheme. Many of Smith’s and Odiah’s victims were elderly individuals.
Earlier this year Attorney General Barr declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities. Major strides have already been made to that end:
• National Elder Fraud Hotline (833-FRAUD-11) - Earlier this year Attorney General Barr launched a National Elder Fraud Hotline. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.
• Transnational Elder Fraud Strike Force: Established in June 2019 to combat foreign elder fraud schemes, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Since its inception, prosecutors in Strike Force districts brought cases against more than 140 sweep defendants.
• Annual Elder Justice Sweep: In March of this year, the Attorney General announced the largest coordinated sweep of elder fraud cases in department history. The Department, together with every U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through fraud schemes that largely affected seniors.
• Money Mule Initiative: Since October 2018, the Department and its law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute money mule activity used to facilitate fraud schemes, especially those victimizing senior citizens. In 2019 actions were taken to halt the conduct of more than 600 domestic money mules, exceeding a similar effort against approximately 400 mules in the previous year.
• Holding foreign-based perpetrators and those that flee the United States accountable: Transnational criminal organizations are targeting our elder population in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams.
For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.
Justice Department Files Civil Action to Support Major Expansion of Arlington National CemeteryRead the Press Release
The Department of Justice filed today a civil action on behalf of the Department of the Army for the taking of roadways owned or operated by Arlington County, Virginia, by eminent domain for the purpose of expanding Arlington National Cemetery. The taking and relocation of these roadways, together with future planned acquisitions from the Commonwealth of Virginia, will establish a single, contiguous parcel of land south of the existing cemetery. The incorporation of this land into the cemetery will create a 49-acre contiguous parcel available for cemetery development.
When completed, the Arlington National Cemetery Southern Expansion Project will provide for approximately 60,000 additional burial sites, including an above ground columbarium. The expansion will extend the timeline for Arlington National Cemetery to continue as an active military cemetery. The total project cost, including the related Defense Access Roads Project, is estimated at $420 million, and Congress already has appropriated $280 million in Project-related funding.
The expansion project will benefit Arlington County and its residents by, among other things, burying overhead power lines and incorporating the Air Force Memorial and surrounding vacant land into Arlington National Cemetery. The project will transform Columbia Pike from South Oak Street to Washington Boulevard by re-aligning and widening it. The project includes street-scape zones with trees on both sides of Columbia Pike, adding a new dedicated bike path, and widening pedestrian walkways. The project also provides for the construction of a new South Nash Street.
“Earlier this month, we recognized the 76th anniversary of D-Day and we remembered the heroism, service, and sacrifice of American servicemen and women in the defense of freedom,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “But every day the ultimate sacrifice of America’s men and women is commemorated at Arlington National Cemetery, our nation’s most hallowed ground. With today’s civil action, we are proud to assist with this important expansion of Arlington Cemetery, which may now continue to serve as a burial ground for America’s fallen well into the future.”
“As part of the Expansion Project, the Department of the Army and others worked to realign roads and real estate to ensure a much needed expansion of Arlington National Cemetery so that this space can continue being a hallowed resting ground for our nation’s service members,” said U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia. “As someone whose grandfather will forever reside at ANC with so many of his friends, brothers, and sisters of the greatest generation, it is particularly meaningful to assist in facilitating this expansion and seek court approval for just compensation for Arlington County.”
June 15, 2020 marks the 156th anniversary of Arlington National Cemetery, which was established as a military cemetery in 1864 during the American Civil War.
Congress authorized the Department of the Army to acquire land, including acquisition by condemnation, if necessary, for the expansion of Arlington National Cemetery. Congress gets its authority from the U.S. Constitution that allows the taking of public county property for a public use. In turn, the government must pay just compensation for the property. Acquisition by condemnation is an open and transparent process that assures fair treatment for landowners and taxpayers alike. The government here is providing just compensation in the form of substitute facilities, including a realigned and redesigned Columbia Pike and the construction of a new South Nash Street.
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.
Jefferson County Man Sentenced to 78 years in Federal Prison for Arson and Insurance Fraud SchemeRead the Press Release
BEAUMONT, Texas – A 52-year-old Groves, Texas man has been sentenced to 78 years in federal prison for violations related to an arson and insurance fraud scheme in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Patrick Wayne Bronnon was found guilty on Oct. 21, 2019 of 40 charges including conspiracy to commit mail fraud and use of a fire in commission of a felony. Bronnon was sentenced to 940 months in federal prison today by U.S. District Judge Marcia A. Crone.
Breakdown: 16 counts of mail fraud and conspiracy to commit mail fraud—100 months on each count to run concurrently.
First count of Use of a Fire in commission of mail fraud (Arson)—120 months consecutive to the 100 months above.
Second count of Use of a Fire in commission of mail fraud—240 months consecutive to the 220 months above
Third count of Use of a Fire in commission of mail fraud—240 more months consecutive to the 460 months above
For a total of 940 months.
“This sentence is deserved not only because of the tremendous loss to insurance companies, but also in light of the danger Bronnon imposed on our first responders every time he set a fire,” said U.S. Attorney Stephen J. Cox. “That he put his own greed ahead of the lives of others has cost him his freedom for a long time.”
According to information presented in court, beginning in 2011, Bronnon, and others, began executing a scheme to defraud various insurance companies through fraudulent claims on homes and vehicles. The scheme involved identifying a low value property and purchasing it through a co-defendant straw purchaser. Within a few weeks of a down payment being made, Bronnon or an associate would intentionally damage the home, typically by fire or water, in order to collect insurance proceeds. In total, nine fraudulent fire claims, three fraudulent water damage claims, and two fraudulent theft claims were filed with various insurance companies on nine different addresses, totaling approximately $1.7 million in fraudulent payments. The properties were located in Port Arthur, Port Neches, Beaumont, and Sugarland, Texas.
This case was investigated by the U.S. Postal Inspection Service, National Insurance Crime Bureau and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
Jasper County Brothers Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – Two Buna, Texas brothers have been sentenced to federal prison for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
James Joseph Fabela, 41, and Benjamin Jason Fabela, 36, each pleaded guilty on Nov. 15, 2019, to conspiracy to distribute and to possess with intent to distribute methamphetamine and were each sentenced to 135 months in federal prison today by U.S. District Judge Marcia A. Crone today. Ownership of their residence in Buna, Texas was also forfeited.
According to information presented in court, from as early as July 2016, the defendants have been involved in a drug trafficking enterprise trafficking methamphetamine in the Buna, Texas area. James Fabela and Benjamin Fabela have supervised, managed and controlled the drug trafficking organization with personal knowledge of the distribution of methamphetamine. In total, the organization sold more than 700 grams of methamphetamine in the Southeast Texas area. The defendants were indicted by a federal grand jury on Sep. 5, 2018.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Six other defendants have been convicted and sentenced for their roles in the conspiracies.
This case was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety, the Jefferson County Sheriff’s Office and the Jasper County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Christopher Rapp.
In Announcing the Observation of the 15th Annual World Elder Abuse Awareness Day, United States Attorney William D. Hyslop and the Department of Justice Call Upon the Community to Help Stop Elder Abuse and Elder FraudRead the Press Release
Spokane – Today, United States Attorney William D. Hyslop and the Department of Justice announced the observation of the 15th Annual World Elder Abuse Awareness Day. The Department echoes voices around the world condemning elder abuse, neglect and exploitation.
United States Attorney William D. Hyslop stated, “Today is World Elder Abuse Awareness Day. But every day should be a day we all work together to stop elder abuse and elder fraud. These are serious crimes that prey upon our most vulnerable citizens. They should be honored and respected for their years. We cannot allow fraudsters and others to take advantage of them.”
“This is everyone’s responsibility to report elder abuse and elder fraud when you see it. This is everyone’s duty to help protect our senior members of our community. During the COVID-19 pandemic, this is more important than ever,” United States Attorney William D. Hyslop said.
The COVID-19 pandemic has created unprecedented challenges for our country and the world, but among those most severely affected by the threat of the novel virus are our senior citizens. During this time when seniors are most vulnerable and isolated from their families and loved ones by social distancing and quarantine restrictions, bad actors have immediately exploited this international tragedy to prey on the elderly through a whole host of scam and fraud schemes. As the world takes this day to remember the elderly during these uncertain times, the Department of Justice remains relentlessly committed, through its department-wide Elder Justice Initiative, to prevent and prosecute fraud on America’s seniors.
The Department of Justice and the United States Attorneys will aggressively prosecute fraudsters exploiting the COVID-19 pandemic and targeting seniors offering them fake testing kits and fake help obtaining stimulus and Paycheck Protection Program Funds. On this day dedicated to recognizing our seniors, the Department of Justice sends a strong message that we continue the fight to keep seniors safe a top priority.
Over the last year, the United States Attorney’s Office for the Eastern District of Washington obtained convictions in elder fraud and elder abuse related cases brought before the United States District Court, such as the following:
• On September 12, 2019, Michelle Susan Ferrell, age 59, of Spokane Valley, was sentenced on a federal wire fraud conviction to 3 years of imprisonment, 3 years of court supervision, and to pay $99,871 restitution and forfeiture. According to information disclosed during court proceedings (No. 2:19-cr-0029-RHW), Ferrell worked as a bookkeeper for Greater Spokane County Meals on Wheels (Meals on Wheels) between May 2013 and April 2018. Meals on Wheels, which is part of the nationwide Meals on Wheels America organization operating throughout the United States, relies on government funding and private donations to provide over 1,000 meals each day to elderly and disabled residents of Spokane County. While employed at Meals on Wheels, Ferrell used the organization’s funds and bank accounts to pay for unauthorized personal expenses, including mortgage, utility, and property tax payments on her residence, and to electronically transfer funds to herself and her businesses. Ferrell concealed her thefts by making false and misleading accounting entries, creating the appearance that she was paying legitimate operating expenses of the organization. Over five years, Ferrell stole in excess of $99,000 in Meals on Wheels funds. As part of her scheme, Ferrell also defrauded the IRS by withholding Meals on Wheels payroll taxes and not remitting all the taxes to the IRS, failing to file certain quarterly payroll tax returns, and making false accounting entries.
• On July 9, 2019, Nazir Bolajoko Hamza, age 48, of Arlington, Texas, was sentenced on a federal money laundering conviction to 5 years of probation with 30 days of intermittent confinement, $98,000 in restitution, and an $11,000 money judgment. According to information disclosed during court proceedings (No. 2:18-cr-0081-RMP), the case involved a Nigerian e-mail compromise fraud scheme that targeted an elderly Spokane resident who was getting ready to close on the purchase of a house. The elderly victim was deceived by fake wire instructions into wiring what the victim believed was $98,000 for the closing on the house. Hamza was involved in the laundering of the wired funds by removing the funds from the account.
The preceding cases were prosecuted by Dan Fruchter, Tyler H.L. Tornabene and Brian Donovan, Assistant United States Attorneys for the Eastern District of Washington.
Earlier this year, Attorney General Barr declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities. Major strides have already been made to that end:
• National Elder Fraud Hotline: 833-FRAUD-11
Earlier this year Attorney General Barr launched a National Elder Fraud Hotline. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.
• Transnational Elder Fraud Strike Force: Established in June 2019 to combat foreign elder fraud schemes, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Since its inception, prosecutors in Strike Force districts brought cases against more than 140 sweep defendants.
• Annual Elder Justice Sweep: In March of this year, the Attorney General announced the largest coordinated sweep of elder fraud cases in department history. The Department, together with every U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through fraud schemes that largely affected seniors.
• Money Mule Initiative: Since October 2018, the Department and its law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute money mule activity used to facilitate fraud schemes, especially those victimizing senior citizens. In 2019 actions were taken to halt the conduct of more than 600 domestic money mules, exceeding a similar effort against approximately 400 mules in the previous year.
• Holding foreign-based perpetrators and those that flee the United States accountable: Transnational criminal organizations are targeting our elder population in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams.
For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.
Illegal Alien Sentenced to 5 Years for Firearm and Cocaine TraffickingRead the Press Release
MEMPHIS, TN – After a three-day trial in February 2020, and jurors having deliberated for less than 40 minutes, a federal jury found Carlos Landeros-Salcedo, 26, guilty of being a prohibited person (alien) in possession of a firearm, possession of cocaine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. Carlos Landeros-Salcedo has now been sentenced to 60 months in federal prison. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on March 29, 2016, Memphis Police Department Organized Crime Unit detectives were called to a residence regarding a drug complaint. The homeowner and the defendant were informed of the complaint. The homeowner gave verbal and written consent for law enforcement to search the residence.
The defendant informed officers that he had a gun and powder in his bedroom. He then showed officers his room, where a gray Tanfoglio 10mm caliber pistol on the defendant’s bed was in plain view. The firearm was loaded with approximately 10 rounds of ammunition. Additionally, detectives recovered 21 small bags containing powder cocaine inside a jar in a dresser drawer, an assortment of baggies, and a black digital scale. The defendant provided a written statement admitting to possession of the drugs.
In May of 2016, when federal agents interviewed the defendant, he admitted to being a citizen of Mexico and illegally present in the United States. After being indicted in September 2016 on federal charges, the defendant avoided capture until August 2019. At the time of his arrest, the defendant was in possession of fake immigration documents.
On June 10, 2020, U.S. District Court Judge Sheryl H. Lipman sentenced Carlos Landeros-Salcedo to 60 months in federal prison. The defendant will be subject to deportation and removal upon completion of his federal custodial sentence.
U.S. Attorney D. Michael Dunavant said, "Criminal aliens not only threaten the sovereignty of our nation, but also threaten the safety of our communities. The U.S. Attorney’s Office has prioritized and renewed our commitment to immigration enforcement, and this case demonstrates our focus on those violent and dangerous criminal aliens who continue to violate our laws after illegal entry. We commend the outstanding investigative work of HSI and ICE in this case."
The Department of Homeland Security Investigations – Immigration and Customs Enforcement investigated this case.
Assistant U.S. Attorney Marques Young prosecuted this case on behalf of the government.
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Hindman Man Sentenced to 120 Months for Armed Methamphetamine TraffickingRead the Press Release
PIKEVILLE, Ky. - A Hindman, Kentucky man, Gary Amburgey, 46, was sentenced to 120 months in federal prison on Monday, by U.S. District Judge Robert Wier, for conspiracy to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to his plea agreement, Amburgey admitted that, from December 2018 through February 2019, he conspired with others to distribute 50 grams or more of methamphetamine. Specifically, Amburgey admitted that, through an agreement, he obtained approximately five ounces of methamphetamine to distribute and that law enforcement searches uncovered more than 59 grams of methamphetamine, paraphernalia consistent with drug trafficking, a stolen handgun, and a semi-automatic assault rifle. Amburgey also admitted that he purchased a firearm to avoid being robbed, and he knew he was prohibited from possessing a firearm based on a prior felony conviction.
Amburgey pleaded guilty in February 2020.
Under federal law, Amburgey must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for four years, following his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Division; and Commissioner Rodney Brewer, Kentucky State Police, jointly announced the guilty plea.
The investigation was conducted by ATF and KSP. The United States was represented by Assistant U.S. Attorney Jason Parman.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian
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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Harrison County man sentenced for failing to update his sex offender registrationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Gordon Eugene Mays, Jr., of Reynoldsville, West Virginia, was sentenced today to 12 months incarceration for a sex offender charge, U.S. Attorney Bill Powell announced.
Mays, age 55, pled guilty to one count of “Failure to Update Sex Offender Registration.” Mays, a person required to register as a sex offender, admitted to failing to update his registration in September 2018.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The United States Marshal Service investigated.
U.S. District Judge Thomas S. Kleeh presided.
Greenup County Man Sentenced to 120 Months for Possession of Firearm by Convicted FelonRead the Press Release
ASHLAND, Ky. - A Greenup, Kentucky man, Justin Huffman, 32, was sentenced to 120 months in federal prison on Monday, by U.S. District Judge David Bunning, for possession of a firearm by a convicted felon.
Huffman admitted that, on September 21, 2019, he went to a victim’s residence in Greenup County, with a juvenile, and struck a victim in the face while in possession of a firearm, in order to retrieve some property. Prior to being stopped by officers, Huffman admitted to giving the firearm to the juvenile, to conceal it from police. The firearm was recovered by law enforcement, who then confirmed the firearm was stolen. Huffman admitted that he knowingly possessed the firearm and that he was prohibited from possessing it, as a convicted felon.
Huffman pleaded guilty in February 2020. Huffman was previously convicted, in 2013, of Second Degree Robbery, in Boyd County Circuit Court.
Under federal law, Huffman must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Division; Commissioner Rodney Brewer, Kentucky State Police; Sheriff Matt Smith, Greenup County Sheriff’s Department; and Chief Scott Gillum, Flatwoods Police Department, jointly announced the sentence.
The investigation was conducted by ATF ,KSP, Greenup County Sheriff’s Department, and Flatwoods Police Department. The United States was represented by Assistant U.S. Attorney Francisco Villalobos II.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Former Sacramento Resident Extradited from UK to Face Federal ChargesRead the Press Release
SACRAMENTO, Calif. — Following three and a half years of extradition litigation before courts in the United Kingdom, a former Sacramento resident was arraigned today in the Eastern District of California, U.S. Attorney McGregor W. Scott announced.
On June 12, 2020, Brian Arthur Dempsey, 48, was extradited from the United Kingdom to the United States to stand trial on charges that he made false statements to an agent of the Federal Bureau of Investigation concerning his travel to Syria. He was first arrested in the United Kingdom on Jan. 18, 2017, and has been in custody since that date.
On June 23, 2016, a grand jury, sitting in the Eastern District of California, returned an indictment charging Dempsey with a single count of making false statements in a matter involving an international terrorism investigation. The indictment alleges that on or about Aug. 22, 2013, during an interview with an FBI agent at the Fiumicino International Airport in Rome, Italy, Dempsey did knowingly and willfully make and cause to be made materially false, fictitious, and fraudulent statements and representations in a matter involving international terrorism. The false statements were related to the nature of his travel to Syria in July 2013.
This case is the product of an investigation by the FBI. The Department of Justice acknowledges and expresses its appreciation of the significant assistance provided by the UK authorities. The Office of International Affairs of the Department of Justice’s Criminal Division provided significant support in securing and coordinating Dempsey’s arrest and extradition. Assistant U.S. Attorney Heiko Coppola is prosecuting the case.
If convicted, Dempsey faces a maximum statutory penalty of eight years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Oklahoman Pleads Guilty to Money Laundering for His Role in a Nigerian Fraud SchemeRead the Press Release
A New York man pleaded guilty today in U.S. District Court for his role as a money launderer in a Nigerian romance scam that defrauded multiple victims, including elderly victims, across the United States and netted at least $1.5 million, announced U.S. Attorney Trent Shores.
Oluwaseun John Ogundele, 30, formerly of Norman, Oklahoma, pleaded guilty to conspiracy to commit money laundering before U.S. District Court Judge Gregory K. Frizzell.
“United States Attorney General William Barr directed U.S. Attorneys to hold accountable the vast criminal element targeting America’s seniors. My office heard him loud and clear and worked with the FBI to take down a Nigerian romance fraud scheme. It is fitting that Mr. Ogundele’s conviction comes today as we recognize World Elder Abuse Awareness Day,” said U.S. Attorney Trent Shores. “Con artists who cheat elder Americans out of their life savings will get a one way ticket to federal prison. I encourage victims to speak up and report these crimes to help us stop these fraudsters.”
“Mr. Ogundele and his co-conspirators used online romance scams to prey upon dozens of victims across the country, many of whom experienced significant financial loss. Today's guilty plea demonstrates the FBI and our law enforcement partners will not tolerate criminals who defraud innocent Americans," said FBI Special Agent in Charge Melissa Godbold of the Oklahoma City Field Office.
In his plea agreement, Ogundele admitted that between 2015 and November 2019, together with co-conspirators, he knowingly concealed the proceeds of a romance scam operation by moving money between and among multiple bank accounts that were opened under various aliases using fake passports and other fraudulent identification documents to obscure the source of the funds and the identities of the co-conspirators. Thereafter, Ogundele took further steps to conceal the source of the funds, took a commission for himself, and directed the remainder of the funds back to the online romance scammers in Nigeria, including in the form of vehicles and vehicle parts.
Ogundele coordinated with overseas co-conspirators who had assumed false identities on online dating websites and social media platforms with the intent to defraud victims. Ogundele opened multiple accounts using fraudulent identities then provided the account and routing numbers to the overseas co-conspirators. The overseas co-conspirators told victims they were U.S. residents working abroad. In fact, the investigation revealed that these overseas co-conspirators were located in Nigeria. As these online “relationships” continued, the overseas co-conspirators’ requests would develop into increasingly larger sums of money, with the claimed purpose that the funds were needed to complete business projects or to return to the United States. The victims were directed by the overseas co-conspirators to send funds to Ogundele and others’ bank accounts, assuring the victims that he would allocate the money as needed.
Ogundele was charged along with nine co-defendants, including: Afeez Olajide Adebara, 35, U.S. citizen residing in Norman; Joshua Naandom Ditep, 25, Nigerian citizen and lawful permanent resident of the United States residing in Norman; Paul Usoro, 25, Nigerian citizen and lawful permanent resident of the United States residing in Norman; Chibuzo Godwin Obiefuna, Jr., 26, U.S. citizen residing in Long Beach, California; Tobiloba Kehinde, 28, Nigerian citizen residing in Norman; Jamiu Ibukun Adedeji, 24, Nigerian citizen, residing in Norman; First and last name unknown #1, who maintained an address in Brooklyn, New York; First and last name unknown #2, who maintained an address in Dallas, Texas; and First and last name unknown #3, who maintained an address in Dallas, Texas. Adebara, Ditep, Usoro, Obiefuna, Kehinde, and Adedeji await trial while the three additional co-defendants remain fugitives. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is part of an ongoing national effort by the Department of Justice to address online fraud schemes often based out of Nigeria that target U.S. citizens. The public is encouraged to report potential online fraud activity or scams to the FBI at https://www.ic3.gov/.
The FBI’s Oklahoma City Field Office conducted the investigation with assistance from the FBI’s San Francisco, Los Angeles and New York Field Offices. Trial Attorneys Babasijibomi Moore and David Stier of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher Nassar of the Northern District of Oklahoma 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.
Former CEO Pleads Guilty to Embezzling $8M Intended for Injured ChildrenRead the Press Release
ALEXANDRIA, Va. – A former Arlington business executive pleaded guilty today to embezzling nearly $8 million that was intended to settle claims by children who alleged they were victims of medical malpractice.
According to court documents, Joseph E. Gargan, 59, of Round Hill, was the Chief Executive Office of the Pension Company, Inc., an Arlington business that would execute settlement agreements entered into between civil litigants. Specifically, the Pension Company was hired to transfer money from civil defendants to plaintiffs and to purchase annuities on behalf of minor plaintiffs.
The United States government entered into settlement agreements with plaintiffs in six separate matters. Each of these cases involved children who either claimed to be injured as a result of medical malpractice or who suffered the loss of a parent through alleged medical negligence that occurred at a hospital or clinic operated or insured by the federal government. The settlement agreements required the United States to pay the plaintiff a sum of money and to purchase an annuity on behalf of the injured child. From December 2015 to August 2019, the United States transferred a total of $15,925,000 to the Pension Company to purchase the annuities and execute the six settlement agreements. Gargan embezzled $6,925,000 of this money.
In addition, Gargan embezzled money from a hospital located in New York that was part of a civil settlement with a minor child. The settlement called for, among other things, $3,825,000 to be paid by the hospital to a trust to pay for the care and ongoing medical treatment of the child. The settlement agreement also provided that a portion of the $3,825,000 be paid to a structured settlement broker who would then purchase an annuity which would generate future income for the trust. The Pension Company was retained as the structured settlement broker. From October 2018 to March 2020, the hospital paid the Pension Company a total of $1,032,750 to fund the purchase of an annuity on behalf of the trust. Gargan embezzled all $1,032,750.
In some cases, Gargan attempted to conceal his criminal activity by creating false documents purporting to show that he had purchased the annuities when, in fact, he had embezzled and converted that money to his own use. Gargan also made payments to the plaintiffs falsely claiming the payments were proceeds from an annuity, when, in fact, the payments were made only to conceal his criminal conduct.
The total amount embezzled by Gargan is $7,957,750.
Gargan pleaded guilty to embezzlement of government funds and wire fraud and faces a maximum penalty of 30 years in prison when sentenced on September 23. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea. Assistant U.S. Attorney William Fitzpatrick is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-110.
Executions Scheduled for Four Federal Inmates Convicted of Murdering ChildrenRead the Press Release
Attorney General William P. Barr today directed the Federal Bureau of Prisons (BOP) to schedule the executions of four federal death-row inmates who were convicted of murdering children in violation of federal law and who, in two cases, raped the children they murdered.
In July 2019, Attorney General Barr directed the BOP to revise the Federal Execution Protocol to provide for the use of a single-drug, pentobarbital — similar to protocols used in hundreds of state executions and repeatedly upheld by federal courts, including the Supreme Court, as consistent with the Eighth Amendment. A district court’s preliminary injunction prevented BOP from carrying out executions under the revised protocol, but the U.S. Court of Appeals for the D.C. Circuit vacated that injunction — clearing the way for the federal government to resume capital punishment after a nearly two-decade hiatus.
“The American people, acting through Congress and Presidents of both political parties, have long instructed that defendants convicted of the most heinous crimes should be subject to a sentence of death,” said Attorney General William P. Barr. “The four murderers whose executions are scheduled today have received full and fair proceedings under our Constitution and laws. We owe it to the victims of these horrific crimes, and to the families left behind, to carry forward the sentence imposed by our justice system.”
In accordance with 28 C.F.R. Part 26, the BOP has scheduled executions for the following death-sentenced inmates:
- Daniel Lewis Lee, a member of a white supremacist group, murdered a family of three, including an eight-year-old girl. After robbing and shooting the victims with a stun gun, Lee covered their heads with plastic bags, sealed the bags with duct tape, weighed down each victim with rocks, and threw the family of three into the Illinois bayou. On May 4, 1999, a jury in the U.S. District Court for the Eastern District of Arkansas found Lee guilty of numerous offenses, including three counts of murder in aid of racketeering, and he was sentenced to death. Lee’s execution is scheduled to occur on July 13, 2020.
- Wesley Ira Purkey violently raped and murdered a 16-year-old girl, and then dismembered, burned, and dumped the young girl’s body in a septic pond. He also was convicted in state court for using a claw hammer to bludgeon to death an 80-year-old woman who suffered from polio and walked with a cane. On November 5, 2003, a jury in the U.S. District Court for the Western District of Missouri found Purkey guilty of kidnapping a child resulting in the child’s death, and he was sentenced to death. Purkey’s execution is scheduled to occur on July 15, 2020.
- Dustin Lee Honken shot and killed five people — two men who planned to testify against him, and a single, working mother and her ten-year-old and six-year-old daughters. On October 14, 2004, a jury in the U.S. District Court for the Northern District of Iowa found Honken guilty of numerous offenses, including five counts of murder during the course of a continuing criminal enterprise, and he was sentenced to death. Honken’s execution is scheduled to occur on July 17, 2020.
- Keith Dwayne Nelson kidnapped a 10-year-old girl rollerblading in front of her home, and in a forest behind a church, raped her and strangled her to death with a wire. On October 25, 2001, Nelson pled guilty in the U.S. District Court for the Western District of Missouri to the kidnapping and unlawful interstate transportation of a child for the purpose of sexual abuse which resulted in death, and he was sentenced to death. Nelson’s execution is scheduled to occur on August 28, 2020.
Each of these inmates has exhausted appellate and post-conviction remedies, and no legal impediments prevent their executions, which will take place at U.S. Penitentiary Terre Haute, Indiana. Additional executions will be scheduled at a later date.
Deputy Attorney General Jeffrey A. Rosen Issues Further Update to Memo on the Applicability of the Wire Act to Non-Sports GamblingRead the Press Release
In the June 11, 2020 memorandum to all U.S. Attorneys, Assistant Attorneys General, and the FBI, the Deputy Attorney General extended the grace period until December 1, 2020, on implementing the Office of Legal Counsel's (OLC) 2018 opinion finding that all but one of the prohibitions of the Wire Act, 18 U.S.C. § 1084, apply to non-sports gambling. During the grace period, federal prosecutors should not apply the Wire Act to non-sports-related betting or wagering. The Deputy Attorney General also directed that, to ensure continuity across the country, any Wire Act charges must be reviewed and approved by the Criminal Division’s Organized Crime and Gang Section.
Department of Justice observes the 15th Annual World Elder Abuse Awareness DayRead the Press Release
HONOLULU, Hawaii – Today, U.S. Attorney Kenji M. Price joined Attorney General William P. Barr and the entire Department of Justice in observing the 15th Annual World Elder Abuse Awareness Day. The Department echoes voices around the world condemning elder abuse, neglect and exploitation.
The COVID-19 pandemic has created unprecedented challenges for our country and the world, but among those most severely affected by the threat of the novel virus are our senior citizens. During this time when seniors are most vulnerable and isolated from their families and loved ones by social distancing and quarantine restrictions, bad actors have immediately exploited this international tragedy to prey on the elderly through a whole host of scam and fraud schemes. As the world takes this day to remember the elderly during these uncertain times, the Department of Justice remains relentlessly committed, through its department-wide Elder Justice Initiative, to prevent and prosecute fraud on America’s seniors.
The Department will aggressively prosecute fraudsters exploiting the Covid-19 pandemic and targeting seniors offering them fake testing kits and fake help obtaining stimulus and Paycheck Protection Program Funds. On this day dedicated to recognizing our seniors, the Department of Justice sends a strong message that we continue the fight to keep seniors safe a top priority.
Earlier this year Attorney General Barr declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities.
Major strides have already been made to that end:
- National Elder Fraud Hotline: 833-FRAUD-11
- Earlier this year Attorney General Barr launched a National Elder Fraud Hotline. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.
- Transnational Elder Fraud Strike Force: Established in June 2019 to combat foreign elder fraud schemes, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Since its inception, prosecutors in Strike Force districts brought cases against more than 140 sweep defendants.
- Annual Elder Justice Sweep: In March of this year, the Attorney General announced the largest coordinated sweep of elder fraud cases in department history. The Department, together with every U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through fraud schemes that largely affected seniors.
- Money Mule Initiative: Since October 2018, the Department and its law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute money mule activity used to facilitate fraud schemes, especially those victimizing senior citizens. In 2019 actions were taken to halt the conduct of more than 600 domestic money mules, exceeding a similar effort against approximately 400 mules in the previous year.
- Holding foreign-based perpetrators and those that flee the United States accountable: Transnational criminal organizations are targeting our elder population in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams.
For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.
Department of Justice Observes the 15th Annual World Elder Abuse Awareness DayRead the Press Release
Anchorage, Alaska – Today, U.S. Attorney Bryan Schroder joined Attorney General William P. Barr and the entire Department of Justice in observing the 15th Annual World Elder Abuse Awareness Day. The Department echoes voices around the world condemning elder abuse, neglect and exploitation.
The COVID-19 pandemic has created unprecedented challenges for our country and the world, but among those most severely affected by the threat of the novel virus are our senior citizens. During this time when seniors are most vulnerable and isolated from their families and loved ones by social distancing and quarantine restrictions, bad actors have immediately exploited this international tragedy to prey on the elderly through a whole host of scam and fraud schemes. As the world takes this day to remember the elderly during these uncertain times, the Department of Justice remains relentlessly committed, through its department-wide Elder Justice Initiative, to prevent and prosecute fraud on America’s seniors.
“Schemes that target or disproportionately affect older Americans, are reprehensible and will not be tolerated,” said U.S. Attorney Schroder. “The U.S. Attorney’s Office is committed to bringing swift action against those who attempt to enrich themselves by stealing from our country’s most respected citizens. On World Elder Abuse Awareness Day, I encourage Alaskans to report fraud schemes and spread the word among families and friends.”
Earlier this month, the Alaska U.S. Attorney’s Office and FBI’s Anchorage Field Office partnered with AARP in a statewide telephone town hall, to help prevent senior Alaskans from falling victim to scams and other schemes attempting to exploit the COVID-19 pandemic. Through various platforms, the event reached a total of 591 listeners throughout Alaska.
The Department will aggressively prosecute fraudsters exploiting the COVID-19 pandemic and targeting seniors offering them fake testing kits and fake help obtaining stimulus and Paycheck Protection Program Funds. On this day dedicated to recognizing our seniors, the Department of Justice sends a strong message that we continue the fight to keep seniors safe a top priority.
Attorney General Barr declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s top priorities.
Major strides have already been made to that end:
- National Elder Fraud Hotline: 833-FRAUD-11. Earlier this year Attorney General Barr launched a National Elder Fraud Hotline. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.
- Transnational Elder Fraud Strike Force: Established in June 2019 to combat foreign elder fraud schemes, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Since its inception, prosecutors in Strike Force districts brought cases against more than 140 sweep defendants.
- Annual Elder Justice Sweep: In March of this year, the Attorney General announced the largest coordinated sweep of elder fraud cases in department history. The Department, together with every U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through fraud schemes that largely affected seniors.
- Money Mule Initiative: Since October 2018, the Department and its law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute money mule activity used to facilitate fraud schemes, especially those victimizing senior citizens. In 2019 actions were taken to halt the conduct of more than 600 domestic money mules, exceeding a similar effort against approximately 400 mules in the previous year.
- Holding foreign-based perpetrators and those that flee the United States accountable: Transnational criminal organizations are targeting our elder population in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams.
For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.
- National Elder Fraud Hotline: 833-FRAUD-11. Earlier this year Attorney General Barr launched a National Elder Fraud Hotline. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.
Department of Justice Observes the 15th Annual World Elder Abuse Awareness DayRead the Press Release
Montgomery, Alabama – Today, United States Attorney Louis V. Franklin, Sr., joins Attorney General William P. Barr and the entire Department of Justice in observing the 15th Annual World Elder Abuse Awareness Day. The Department echoes voices around the world condemning elder abuse, neglect and exploitation.
The COVID-19 pandemic has created unprecedented challenges for our country and the world, but among those most severely affected by the threat of the novel virus are our senior citizens. During this time when seniors are isolated from their families and loved ones by social distancing and quarantine restrictions, bad actors have immediately exploited this international tragedy to prey on the elderly through a whole host of scam and fraud schemes. As the world takes this day to remember the elderly during these uncertain times, the Department of Justice remains relentlessly committed, through its department-wide Elder Justice Initiative, to prevent and prosecute fraud on America’s seniors.
“Fraud and abuse against the elderly are despicable crimes that target some of the most vulnerable people in our society,” stated U.S. Attorney Louis V. Franklin, Sr., from the Middle District of Alabama. “Criminals often take advantage of victims because of advanced age or illness, especially during times of crisis, and they are working overtime to stir up the health and financial fears we all are experiencing. I encourage everyone to remain diligent to avoid being victimized, and to check in on at-risk family members and friends regularly. Early detection of fraudulent activity provides the best chance of mitigating losses and identifying the perpetrator.”
In a recent case prosecuted in the Middle District of Alabama, Montreal Holley, a former Regions Bank employee, was sent to prison for taking advantage of an elderly customer and convincing her to trust only him to handle her money. In just a few months, he managed to swindle her out of over $300,000. Thankfully, bank investigators quickly identified the criminal activity and worked with federal agents to bring him to justice. In February of this year, Holley was sentenced to 37 months in prison and was ordered to pay restitution to Regions Bank, which had credited all the stolen funds back into the customer’s account.
The Department will aggressively prosecute fraudsters exploiting the Covid-19 pandemic and targeting seniors offering them fake testing kits and fake help obtaining stimulus and Paycheck Protection Program Funds. On this day dedicated to recognizing our seniors, the Department of Justice sends a strong message that we continue the fight to keep seniors safe a top priority.
Earlier this year Attorney General Barr declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities.
Major strides have already been made to that end:
- National Elder Fraud Hotline: 833-FRAUD-11
Earlier this year Attorney General Barr launched a National Elder Fraud Hotline. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.
- Transnational Elder Fraud Strike Force: Established in June 2019 to combat foreign elder fraud schemes, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Since its inception, prosecutors in Strike Force districts brought cases against more than 140 sweep defendants.
- Annual Elder Justice Sweep: In March of this year, the Attorney General announced the largest coordinated sweep of elder fraud cases in department history. The Department, together with every U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through fraud schemes that largely affected seniors.
- Money Mule Initiative: Since October 2018, the Department and its law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute money mule activity used to facilitate fraud schemes, especially those victimizing senior citizens. In 2019 actions were taken to halt the conduct of more than 600 domestic money mules, exceeding a similar effort against approximately 400 mules in the previous year.
- Holding foreign-based perpetrators and those that flee the United States accountable: Transnational criminal organizations are targeting our elder population in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams.
For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.
- National Elder Fraud Hotline: 833-FRAUD-11
Department of Justice Observes the 15th Annual World Elder Abuse Awareness DayRead the Press Release
BIRMINGHAM, Ala. – Today, U.S. Attorney Jay E. Town joined Attorney General William P. Barr and the entire Department of Justice in observing the 15th Annual World Elder Abuse Awareness Day. The Department echoes voices around the world condemning elder abuse, neglect and exploitation.
“Elder abuse is a serious crime against some of our most vulnerable citizens. Our seniors deserve our best efforts to prosecute those who profit from their vulnerabilities,” Town said. “We remain committed to protecting and pursuing justice for North Alabama’s seniors.”
The COVID-19 pandemic has created unprecedented challenges for our country and the world, but among those most severely affected by the threat of the novel virus are our senior citizens. During this time when seniors are most vulnerable and isolated from their families and loved ones by social distancing and quarantine restrictions, bad actors have immediately exploited this international tragedy to prey on the elderly through a whole host of scam and fraud schemes. As the world takes this day to remember the elderly during these uncertain times, the Department of Justice remains relentlessly committed, through its department-wide Elder Justice Initiative, to prevent and prosecute fraud on America’s seniors.
The Department will aggressively prosecute fraudsters exploiting the Covid-19 pandemic and targeting seniors offering them fake testing kits and fake help obtaining stimulus and Paycheck Protection Program Funds. On this day dedicated to recognizing our seniors, the Department of Justice sends a strong message that we continue the fight to keep seniors safe a top priority.
Earlier this year Attorney General Barr declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities.
Major strides have already been made to that end:
- National Elder Fraud Hotline: 833-FRAUD-11
Earlier this year Attorney General Barr launched a National Elder Fraud Hotline. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.
- Transnational Elder Fraud Strike Force: Established in June 2019 to combat foreign elder fraud schemes, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Since its inception, prosecutors in Strike Force districts brought cases against more than 140 sweep defendants.
- Money Mule Initiative: Since October 2018, the Department and its law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute money mule activity used to facilitate fraud schemes, especially those victimizing senior citizens. In 2019 actions were taken to halt the conduct of more than 600 domestic money mules, exceeding a similar effort against approximately 400 mules in the previous year.
- Holding foreign-based perpetrators and those that flee the United States accountable: Transnational criminal organizations are targeting our elder population in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams.
For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.
- National Elder Fraud Hotline: 833-FRAUD-11