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Thursday 11 June 2020
Fifteen Defendants Plead Guilty to Racketeering Conspiracy in International Cyber Fraud SchemeRead the Press Release
Fifteen defendants have pleaded guilty to-date for their roles in a transnational and multi-million dollar scheme to defraud American victims through online auction fraud.
Four of the guilty pleas took place in the past 24 days before U.S. Magistrate Judge Matthew A. Stinnett of the U.S. District Court for the Eastern District of Kentucky.
Bogdan-Stefan Popescu, 30, of Romania, pleaded guilty on June 11, 2020, to one count of RICO conspiracy. According to plea documents, Popescu operated a car wash in Bucharest, Romania, where he managed coconspirators in the RICO enterprise. From at least December of 2013, Popescu oversaw an operation whereby he knowingly negotiated fraudulently obtained Bitcoin. He did so in many ways. For example, he would sometimes receive cryptocurrency from coconspirators who obtained the funds through online fraud scams, transfer the cryptocurrency to other conspirators such as codefendant Vlad-Călin Nistor. He would then direct that Nistor exchange the cryptocurrency for fiat currency, and deposit the fiat currency into bank accounts held in the names of various employees and family members. According to court documents, in addition to providing money laundering services, Popescu also coordinated the dissemination of tools used to defraud American-based victims, such as the language and photographs for fake advertisements as well as usernames and passwords for IP address anonymizing services. Popescu also assisted members of the RICO conspiracy by connecting them with other members who could provide call center services—that is, who would impersonate eBay customer service representatives over the phone.
Liviu-Sorin Nedelcu, 34, of Romania, pleaded guilty on June 11, 2020, to one count of RICO conspiracy. According to court documents, Nedelcu worked in conjunction with others to post advertisements for goods online. To maintain the appearance of legitimacy, Nedelcu created fictitious entities through which he purported to sell vehicles. Once Nedelcu and his coconspirators convinced victims to purchase falsely advertised goods, they sent the victims invoices for payment that appeared to be from legitimate sellers, such as eBay Motors. Upon receiving payment, Nedelcu and his coconspirators engaged in a sophisticated money laundering scheme to convert the victim payment into Bitcoin.
Vlad-Călin Nistor, 33, of Romania, pleaded guilty on May 19, 2020, to one count of RICO conspiracy. According to plea documents, Nistor was the founder and owner of the Romania-based Bitcoin exchange Coinflux Services SRL. He exchanged cryptocurrency into local fiat currency on behalf of the Romania-based members of the conspiracy, knowing that the Bitcoin represented the proceeds of illegal activity. According to plea documents for example, Nistor exchanged over $1.8 million worth of Bitcoin for co-defendant Bogdan Popescu.
Beniamin-Filip Ologeanu, 30, of Romania, pleaded guilty on May 19, 2020, to one count of RICO conspiracy. According to court documents, Ologeanu worked in conjunction with others in the conspiracy to post advertisements for goods to auction websites, including eBay, and sales websites, including Craigslist. Once Ologeanu or his coconspirators convinced victims to purchase and provide payment for falsely advertised items, Ologeanu reached out to U.S.-based conspirators to convert the victim payment into other forms of payment and transfer part of it to Ologeanu in Bitcoin. Ologeanu also purchased fraud proceeds from other coconspirators, typically in the form of prepaid debit cards, to be laundered by U.S.-based coconspirators.
“Today’s modern cybercriminals rely on increasingly sophisticated techniques to defraud victims, often masquerading as legitimate businesses,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “These guilty pleas demonstrate that the United States will hold accountable foreign and domestic criminal enterprises and their enablers, including crooked bitcoin exchanges that swindle the American public.”
“The guilty pleas announced today are a direct result of the extraordinary cooperation and partnership among law enforcement agencies at the local, state, federal, and international levels,” said U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky. “These partnerships helped dismantle a sophisticated organized crime group who preyed upon victims across the United States. I commend the exceptional work conducted by our law enforcement partners and trial team members who worked diligently to hold these defendants accountable.”
“Through the use of digital currencies and trans-border organizational strategies, this criminal syndicate believed they were beyond the reach of law enforcement,” said Assistant Director Michael D’Ambrosio, U.S. Secret Service, Office of Investigations. “However, as this successful investigation clearly illustrates, with sustained, international cooperation, we can effectively hold cyber criminals accountable for their actions, no matter where they reside. I commend the hard work and perseverance of all those who joined together in this investigation and prosecution. This includes our partners in Europe, as well as those closer to home.”
“Today’s guilty pleas serve as a reminder that IRS-CI special agents will uncover illegal activity here and abroad, pierce the perceived veil of anonymity provided by cryptocurrencies, and bring those responsible for unlawful acts to justice,” said Special Agent in Charge Jonathan Larsen of the IRS-Criminal Investigation (IRS-CI) New York Field Office. “We will continue to push the agency to the forefront of complex cyber investigations and work collaboratively with our law enforcement partners to ensure the United States financial system is protected.”
“These are scam artists who hide behind a wall of technology which allows them to prey upon innocent victims throughout the United States,” said Kentucky State Police Commissioner Rodney Brewer. “The dismantling of this criminal enterprise was made possible because of the incredible level of cooperation between the law enforcement community here in Kentucky.”
According to court documents, the defendants participated in a criminal conspiracy that engaged in a large-scale scheme of online auction fraud. Specifically, Romania-based members of the conspiracy posted false advertisements to popular online auction and sales websites—such as Craigslist and eBay—for high-cost goods (typically vehicles) that did not actually exist. Members of the conspiracy would convince American victims to send money for the advertised goods by crafting persuasive narratives, for example, by impersonating a military member who needed to sell the advertised item before deployment.
According to court documents, members of the conspiracy created fictitious online accounts to post these advertisements and communicate with victims, often using the stolen identities of Americans to do so. They also delivered invoices to the victims bearing trademarks of reputable companies in order to make the transaction appear legitimate. Members of the conspiracy also set up call centers, impersonating customer support, to address questions and alleviate concerns over the advertisements.
Once victims were convinced to send payment, the conspiracy participants engaged in a complicated money laundering scheme wherein domestic associates would accept victim funds, convert these funds to cryptocurrency, and transfer proceeds in the form of cryptocurrency to foreign-based money launderers.
The 15 defendants who have pleaded guilty in this case have yet to be sentenced. Two other defendants in the case are scheduled for trial starting on Sept. 14, 2020, before the Honorable Robert E. Wier of the U.S. District Court for the Eastern District of Kentucky. Three others are fugitives.
In addition to pleading guilty in this case, on Jan. 13, 2020, Adrian Mitan pleaded guilty in a related money laundering conspiracy, arising from online schemes, including a credit card phishing and brute-force attack scheme, designed to steal money from Americans. According to court documents, Mitan phished for payment card information of U.S. customers, hacked into the electronic systems of American businesses, and then conducted a brute-force attack on their point-of-sale systems for the purpose of stealing the remaining payment card information. Mitan then directed American money launderers to create clone payment cards with the stolen information, which were used to extract money from the customers’ accounts. These fraudulent proceeds were then returned to Mitan in the form of Bitcoin.
The investigation was conducted by the U.S. Secret Service, Kentucky State Police, Lexington Police Department, IRS Criminal Investigation, and U.S. Postal Inspection Service, and supported by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and the International Organized Crime Intelligence and Operations Center (IOC-2). Assistance was provided by the Romanian National Police (Service for Combating Cybercrime) and the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime). The Criminal Division’s Money Laundering and Asset Recovery Section provided significant support and the Criminal Division’s Office of International Affairs provided significant support in securing and coordinating the arrests and extraditions from Romania of more than a dozen defendants.
This case is being prosecuted by Senior Trial Attorney Timothy C. Flowers and Senior Counsel Frank H. Lin of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Kathryn M. Anderson and Kenneth R. Taylor of the U.S. Attorney’s Office for the Eastern District of Kentucky.
Individuals believing they may be victims of the advanced fee and online auction fraud or brute-force attack schemes described herein are encouraged to visit the following website to obtain more information: https://justice.gov/usao-edky/information-victims-large-cases. Tips to avoid becoming a victim of online auction fraud can be found here on the U.S. Secret Service’s website.
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.
Felon Sentenced to 66 Months for Possessing Loaded FirearmRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jamohn Barney, 25, Madison, Wisconsin was sentenced today by U.S. District Judge James D. Peterson to 66 months in federal prison, followed by a three-year term of supervised release, for unlawfully possessing a loaded firearm as a felon. Barney pleaded guilty to this charge on February 5, 2020.
On August 10, 2019, Barney was passed out behind the wheel of his car, which was running, at a McDonald’s in Monona. He had an open bottle of champagne between his legs. He resisted law enforcement requests to cooperate with sobriety tests, so he was placed in handcuffs. While placing him in handcuffs, officers saw a bag of “white rock-like substance” on the driver's floorboard. Based on their training and experience, they believed the substance was crack cocaine. The car was lawfully searched and in the center console was a loaded Taurus 9mm pistol, wrapped in a blue bandana.
The Bureau of Alcohol, Tobacco, Firearms and Explosives traced the firearm and found that it had been purchased by Lidia Molina on July 12, 2019. Further investigation led to the prosecution of Molina for the purchase of numerous firearms for her boyfriend, a felon (“straw purchases”). In this instance, he sold the Taurus pistol to Barney, who is a friend and associate. Molina is scheduled to be sentenced July 18, 2020.
Barney was convicted of robbery with use of force in 2014, and battery by prisoners in 2015. He was serving a term of extended supervision in Dane County Circuit Court when he unlawfully possessed the Taurus.
The charge against Barney was the result of an investigation conducted by the Monona Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
Felon Sentenced for Illegal Possession and Manufacture of Machine Guns and SilencersRead the Press Release
A 30-year-old Tulsa man was sentenced in U.S. District Court today for firearms charges, including illegally possessing and manufacturing machine guns and silencers, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Christopher Joseph Kiss to 37 months in federal prison to be followed by three years of supervised release. On Jan. 13, 2020, Kiss pleaded guilty to being a felon in possession of a firearm and ammunition, illegal possession of a machine gun, making unregistered machine guns and silencers, and possession of unregistered silencers.
“The availability of illegal guns all too often leads to violent crime. My office along with our partners at the ATF will continue to target illegal gun manufacturers like Christopher Kiss in order to keep these dangerous firearms off the streets,” said U.S. Attorney Trent Shores.
“Manufacture of unregistered NFA devices is illegal. Possession of unregistered NFA devices is illegal. Manufacture, transfer and possession of any firearm or ammunition by a previously convicted felon is illegal,” stated ATF Special Agent in Charge Jeffrey C. Boshek II. “Mr. Kiss is a trifecta in disregard of the law.”
In his plea agreement, Kiss, a felon, admitted that he possessed, manufactured, and modified multiple firearms. Kiss possessed a .25 auto caliber pistol and a container with a sampling of 95 pounds of ammunition. He also possessed a homemade Glock-style .22 caliber pistol equipped with a Glock switch that enabled the pistol to fire in fully-automatic mode. In addition, investigators discovered an AR-15 style short-barreled 9 mm rifle that Kiss modified to fire in fully-automatic mode. The defendant further illegally manufactured at least four silencers and possessed a total of 26 silencers. In his statement, Kiss agreed that he failed to properly register these machine guns and silencers in the National Firearms Registration and Transfer Record.
Kiss will remain in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant U.S. Attorney Mark R. Morgan prosecuted the case.
The case was prosecuted as part of the Justice Department’s Project Guardian, a nationwide initiative leveraging critical law enforcement partnerships to enforce federal firearms laws. Project Guardian is the Department’s signature initiative to reduce gun violence and enforce federal firearms laws. Project Guardian draws upon the Justice 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). This includes taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Federal Inmate Sentenced to 30 Months for Possessing a Weapon in Butner PrisonRead the Press Release
RALEIGH, N.C. – An inmate housed at the Federal Correctional Complex in Butner, North Carolina (“FCC Butner”) was sentenced yesterday to 30 months of incarceration for possessing weapons inside the federal prison.
According to court documents, Gerald Wayne Timms, 59, was found by Federal Bureau of Prisons (“BOP”) staff to be in possession of multiple homemade sharpened objects on two separate occasions in May, 2019 and again in September, 2019. BOP staff found the weapons inside Timms’ assigned cell during routine searches. Timms was charged by way of a two count indictment for violation of 18 U.S.C. § 1791, possession of contraband in prison. On February 19, 2020, a jury found Timms guilty of both counts. Timms received 30 months on each count to be served concurrently.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. BOP Special Investigative Services investigated the case and Special Assistant U.S. Attorneys Mallory Brooks Storus, Genna D. Petre, and Michael Bredenberg prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00428-FL.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Fairbanks Woman Sentenced to Federal Prison for Bank Fraud and Identity TheftRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Fairbanks woman has been sentenced to federal prison for multiple crime sprees involving identify theft, mail theft, bank fraud, and credit card fraud.
Natascha Sabrina Clark, 36, of Fairbanks, was sentenced today by U.S. District Judge Ralph R. Beistline to serve 68 months in prison, followed by five years of supervised release, after previously pleading guilty to one count of bank fraud, two counts of aggravated identity theft, and one count of fraudulent transactions with an access device. As part of her sentence, Clark was also ordered to pay $10,429.21 in restitution to the victims, as well as costs associated with credit monitoring services.
According to court documents, on May 25, 2017, Clark made several fraudulent transactions using a stolen credit card, including a $2,439.90 purchase at Evolve Skateboards. The investigation revealed that Clark had stolen C.B.’s credit card from his mailbox, ordered a skateboard online using C.B.’s name, billing address, and credit card, and subsequently pawned the skateboard in order to purchase illegal narcotics.
Clark’s illegal activity continued in November 2018, when she stole checks for an Alaska USA Federal Credit Union account from M.P.’s mailbox and created a counterfeit identification document bearing M.P.’s name, address, and driver’s license number, but with Clark’s photograph. Using M.P.’s stolen checks, Clark then began executing fraudulent transactions at Ulta Salon and other businesses.
The investigation further revealed that, from November 2018 to January 2019, using a Hawaiian Airlines credit card belonging to business R.C.C., which she had previously stolen from a mailbox, Clark made 61 fraudulent transactions totaling $4,854.14. The majority of these transactions occurred at three Holiday Gas Stations in Fairbanks.
The Federal Bureau of Investigation (FBI), the Fairbanks Police Department (FPD), the Alaska State Troopers (AST), and the North Pole Police Department (NPPD) conducted the investigation leading to successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Ryan D. Tansey of the U.S. Attorney’s Office for the District of Alaska.
Erie Man Sentenced to Nine Years’ Imprisonment for Firearms ViolationRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 10, 2020, Ted Johnson, Jr., age 38, of Erie, Pennsylvania, was sentenced by U.S. District Court Judge Matthew W. Brann to 108 months’ imprisonment for discharging a firearm during a crime of violence.
According to United States Attorney David J. Freed, Johnson pleaded guilty to using a firearm during a crime of violence in connection with a January 2017 armed robbery of a Unimart in State College, PA. The robbery consisted of two co-conspirators entering the store and firing their weapons while Johnson acted as a lookout and getaway driver.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ferguson Township Police Department. Assistant United States Attorney Geoffrey W. MacArthur prosecuted.
This case was 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 the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Dominican National Sentenced for Illegal Possession of a Firearm and Illegal ReentryRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for illegal possession of a firearm and ammunition and illegal reentry.
Twaldo Baez was sentenced by U.S. District Court Chief Judge F. Dennis Saylor to 15 months in prison and three years of supervised release. Upon completion of his sentence, Baez will be placed into removal proceedings and deported to the Dominican Republic. In February 2020, Baez pled guilty to being an alien in possession of a firearm and ammunition and illegal reentry.
Baez was first encountered by immigration officials in 2006 while he was serving a sentence for domestic assault and battery and breaking and entering. Upon completion of his sentence, Baez was deported to the Dominican Republic on Aug. 5, 2007.
Sometime after his 2007 removal, Baez illegally reentered the United States. In March 2019, Baez was encountered by law enforcement officers following a high-speed vehicle chase. The vehicle Baez was operating was eventually stopped. During a subsequent search of the vehicle, law enforcement recovered a 9mm semi-automatic firearm and 8 rounds of ammunition. Baez was charged with by the state with possession of the firearm and ammunition. His prints were later obtained and found to match the prints on his 2007 removal. Baez appeared in the Lawrence District Court and was held on bail. In September 2019, Baez posted bail, was then released to ICE, and has been in federal custody since.
United States Attorney Andrew E. Lelling; Todd Lyons, Acting Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Lawrence Police Chief Roy Vasque; and Essex County District Attorney Jonathan W. Blodgett made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
District Man Charged in Federal Court for Vandalizing the Lincoln Memorial During ProtestsRead the Press Release
WASHINGTON – Micah Avery, 26, of Washington, D.C., was arraigned today in federal court on charges of destruction of federal property, resisting a federal officer, and obstructing a law enforcement officer during a civil disorder, announced Acting U.S. Attorney Michael R. Sherwin and Acting Chief of the United States Park Police (USPP) Gregory T. Monahan.
The complaint alleges that on the afternoon of May 30, 2020, officers with the U.S. Park Police witnessed Avery graffiti the words “Yall not tired yet?” with black spray paint on the Lincoln Memorial (see photo below). Avery fled as the officers approached him. After a chase, officers apprehended and handcuffed Avery. Officers attempted to put the defendant into a patrol car, but he resisted their attempts. A crowd converged on the officers and began pushing and striking the officers. During this melee, Avery broke free and ran away. One of the officers sustained an injury to his hand. A look-out was broadcast, and Avery was located shortly thereafter by other officers back at the Lincoln Memorial, still wearing the handcuffs.
The defendant was arraigned today before United States Magistrate Robin M. Meriweather in the United States District Court for the District of Columbia. Judge Meriweather released Avery pending trial, but ordered that he stay away from the Lincoln Memorial. A Criminal Complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
“The United States Attorney’s Office for the District of Columbia is dedicated to protecting the vital First Amendment right of individuals who choose to peacefully protest the horrific killing of George Floyd in Minneapolis last month. Moreover, as the prosecution of Avery illustrates, the United States Attorney’s Office will not tolerate those who under the guise of the First Amendment exploit peaceful demonstrations to break the law, deface our national monuments, and threaten the safety and security of our nation’s capital. In its commitment to protect the rule of law, this Office will not leave unchecked any criminal activity, whether committed by civilians or law enforcement, that infringes on the fundamental civil rights and ability of any person to be free of violence or fear,” said Acting U.S. Attorney Michael R. Sherwin.
“The defacing of the Lincoln Memorial, one of our national icons, could not be tolerated. We are committed to safeguarding the First Amendment rights of those who come to the District of Columbia to peacefully demonstrate. This crime shows how the actions of one individual can distort and tarnish a message through vandalism and other crimes of opportunity. This case is an example of excellent police work, under challenging conditions, and meets one of the core missions of the United States Park Police,” said Gregory T. Monahan, Acting Chief of the United States Park Police.
In announcing the charges, Acting U.S. Attorney Sherwin and Acting Chief Monahan commended the work of the USPP officers who apprehended Avery and are investigating the incident. The case is being prosecuted by Assistant U.S. Attorney James B. Nelson of the U.S. Attorney’s Office for the District of Columbia.
Department of Justice awards more than $2 million in COVID-19 emergency supplemental funding to New Mexico cities and countiesRead the Press Release
ALBUQUERQUE, N.M. – U.S. Attorney John C. Anderson announced today the Department of Justice has awarded a combined $2,044,990 to the City of Albuquerque, the City of Espanola, the City of Gallup, the City of Rio Rancho, the County of Santa Fe and the County of San Juan as part of the Office of Justice Program’s Coronavirus Emergency Supplemental Funding Program.
“The COVID-19 pandemic continues to present many public safety challenges for New Mexico,” said U.S. Attorney Anderson. “The grant funds awarded to these cities, counties, and law enforcement agencies will assist them in meeting the specific needs of their communities. I am thankful to the Office of Justice Programs for making these urgently needed resources available to our state.”
City of Albuquerque – $1,644,717
City of Espanola – $70,596
City of Gallup – $94,413
City of Rio Rancho – $50,098
County of Santa Fe – $58,008
County of San Juan – $127,158
Coronavirus Emergency Supplemental Funding Program has dedicated $850 million nationally to assist eligible states, local units of government, and tribes in preventing, preparing for, and responding to the coronavirus. The New Mexico Department of Public Safety received a $6 million grant last month.
Allowable projects and purchases include overtime, equipment (including law enforcement and medical personal protective equipment), hiring, supplies (such as gloves, masks, sanitizer), training, travel expenses, and addressing the medical needs of inmates in state, local, and tribal prisons, jails, and detention centers.
Dayton Man Pleads Guilty to Methamphetamine and Fentanyl TraffickingRead the Press Release
ASHLAND, Ky. - A Dayton, Ohio man, Robert Amos, 33, pled guilty in federal court on Tuesday, before U.S. District Judge David Bunning, to possession with intention to distribute 50 grams of more of methamphetamine and fentanyl.
In his guilty plea, Amos admitted that, when was stopped by law enforcement, he was in possession of 50 grams or more of methamphetamine and a quantity of fentanyl for distribution.
Amos was indicted in March 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and J.T. Scott, Special Agent in Charge, DEA Louisville Field Division, jointly announced the guilty plea.
The investigation was conducted by DEA and the FADE Drug Task Force. The United States was represented by Assistant U.S. Attorney Cynthia Rieker.
Amos is scheduled to be sentenced on September 14, 2020. He faces a minimum of five years in prison and a maximum of 40 years in prison. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Craig M. Young sentenced to71 months in prison in $11 million Ayudando Guardians financial fraud schemeRead the Press Release
ALBUQUERQUE, N.M. – A federal judge in Santa Fe, New Mexico sentenced Craig M. Young, 55, of Albuquerque to 71 months in federal prison today for conspiracy and conspiracy to commit money laundering in connection with the operation of Ayudando Guardians, Inc., a non-profit corporation based in Albuquerque that previously provided guardianship, conservatorship, and financial management to hundreds of people with special needs.
Young pleaded guilty on Nov. 12, 2019. In his plea agreement, he admitted committing these crimes while employed as a guardian for Ayudando. Young used a business American Express card to pay personal expenses. He knew that Sharon Moore, 64, of Albuquerque, who served as co-owner and chief finance officer at Ayudando, paid his American Express bill each month from at least 2010 to June 2017 using funds from Ayudando’s client reimbursement and petty cash accounts.
Young further admitted acting with Moore and his mother, Susan K. Harris, 73, of Albuquerque, who was the of 95% owner and president of Ayudando, to write and endorse numerous checks from Ayudando accounts to themselves, to cash, and to family members and to other payees for their own benefit. Young admitted paying his monthly mortgage in this manner. Young further admitted selling a motor home purchased with proceeds from the fraud scheme because he believed federal investigators could seize the motor home as proceeds of criminal activity.
Young must serve a 3-year term of supervised release following imprisonment. He must also pay approximately $6.8 million in restitution to the victims of the fraud scheme.
Moore pleaded guilty on July 9, 2019, to conspiracy, mail fraud, aggravated identity theft, money laundering, and conspiracy to commit money laundering. She is currently serving a 20-year prison sentence.
Harris pleaded guilty on July 11, 2019, to conspiracy, mail fraud, aggravated identity theft, money laundering, and conspiracy to commit money laundering. Young’s stepfather, William S. Harris, 59, of Albuquerque, who also worked as a guardian, pleaded guilty on June 25, 2019, to conspiracy and conspiracy to commit money laundering.
Susan and William Harris are currently in custody awaiting sentencing. The U.S. Marshals Service arrested them in Shawnee, Oklahoma on April 15 after they fled New Mexico and failed to appear for sentencing on March 2.
The Complex Assets Unit of the U.S. Marshals Service is continuing to work to locate assets and funds that can be seized and returned to victims through the forfeiture and restitution process. Additionally, the VA and SSA are working to provide reimbursement of stolen government benefits to those Ayudando clients that received benefits from those agencies, consistent with federal law and regulations.
The Albuquerque offices of the FBI and IRS Criminal Investigation conducted the investigation, which resulted in the charges in the indictment, and are leading the continuing investigation. The Complex Assets Unit and the Albuquerque office of the USMS, the Criminal Investigations Division of the Department of Veterans Affairs Office of Inspector General, and the Dallas Field Division of the Social Security Administration Office of Inspector General are assisting in the investigation. Assistant U.S. Attorneys Jeremy Peña and Brandon L. Fyffe are prosecuting the case.
Corvallis Man Accused of Fraud Scheme Falsely Claiming to Support Christian Missionaries and OrganizationsRead the Press Release
EUGENE, Ore.—U.S. Attorney Billy J. Williams announced today that a Corvallis, Oregon, man has been charged with defrauding members of his church, coworkers, and others by soliciting investments under the false pretense of supporting Christian missionaries and organizations.
A federal grand jury in Eugene has returned an 8-count indictment charging Erik J. Hass, 50, with wire fraud, mail fraud, and money laundering.
According to court documents, in January 2013, Hass is alleged to have founded Simply Gains, Inc., an organization he claimed supported Christian missionaries and organizations while offering significant returns for investors. Hass solicited personal acquaintances to invest in the organization via self-directed retirement and cash accounts. In exchange, he gave investors unsecured promissory notes and promised “monthly interest rate gain around 1.5-2% compounding to approximately 25%-30% per year.”
Hass also claimed that he would only profit from the investment scheme if monthly returns were higher than 2%. Yet, from the start, Hass began taking a salary drawn from investors’ funds, using the proceeds to pay for his own personal expenses. Throughout the scheme, Hass sent investors email statements reflecting their monthly interest gained and account balance. He also sent investor’s false IRS 1099-INT forms.
Hass continued accepting investments well into 2018, knowing he could not honor his investment claims. Instead, these new investments were used as Ponzi payments to older investors who had requested withdrawals from their accounts. In total, at least 20 investors lost more than $1,000,000 investing in Hass’ scheme.
Hass will make his initial appearance in federal court on July 1, 2020 before a U.S. Magistrate Judge.
This case was investigated by the FBI and the Oregon Division of Financial Regulation. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Convicted Felon Sentenced to Prison for Illegal Re-Entry, False Representation of Social Security NumberRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of OLGA MARINA FRANCO DEL-CID, 35, to 24 months in prison for illegal re-entry after removal and false representation of social security account number. FRANCO DEL-CID, who pleaded guilty on February 3, 2020, was sentenced earlier today before Judge Susan Richard Nelson in U.S. District Court, in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, FRANCO DEL-CID was previously removed from the United States on May 4, 2016, following a felony conviction on August 8, 2008, in Lyon County, for criminal vehicular homicide. On November 26, 2019, FRANCO DEL-CID was found in the United States in violation of the previous removal. FRANCO DEL-CID also admitted to falsely representing a social security number on an Employment Eligibility Verification Form I-9.
This case was the result of an investigation conducted by U.S. Immigration and Customs Enforcement.
Assistant U.S. Attorney Laura M. Provinzino prosecuted the case.
Defendant Information:
OLGA MARINA FRANCO DEL-CID, 35
Inver Grove Heights, Minn.
Convicted:
- Illegal re-entry after removal, 1 count
- False representation of social security account number, 1 count
Sentenced:
- 24 months in prison
- Two years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Convicted Felon Arrested for Federal Firearm OffenseRead the Press Release
Ocala, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Malcolm Jerome Straughter (34, Ocala) with possessing a firearm as a convicted felon. If convicted, Straughter faces a maximum penalty of 10 years in federal prison. Federal agents arrested Straughter yesterday.
According to court records, on March 19, 2020, officers from the City of Ocala Police Department conducted a traffic stop on Straughter’s vehicle, during which officers found Straughter in possession of a loaded 9mm firearm and multiple small bags of marijuana. The firearm had an obliterated serial number and was later confirmed to be stolen.
Straughter has prior state felony convictions for possession of cocaine, possession of a short-barreled shotgun, and robbery with a firearm. Because of his prior felony convictions, he is prohibited from possessing firearms or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Tyrie Boyer.
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 and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
City Officials Admit to Accepting BribesRead the Press Release
A former Calexico City, California councilman along with a former commissioner on the city’s Economic Development and Financial Advisory Commission, pleaded guilty in federal court today to corruption charges, admitting that they accepted cash bribes in exchange for promises of official action by the city.
David Romero and Bruno Suarez Soto entered their pleas before U.S. Magistrate Judge Bernard G. Skomal, who set sentencing for Sept. 4, 2020, before U.S. District Judge Cathy Ann Bencivengo. Romero and Soto, who were charged in federal court in May, were allowed to remain free on $10,000 personal appearance bonds secured by their own signatures.
According to their plea agreements, Romero and Soto accepted $35,000 in cash bribes from an undercover FBI agent who they believed represented investors seeking to open a cannabis dispensary in Calexico. In return, Romero and Soto guaranteed the rapid issuance of a city permit for the dispensary, and to revoke or hinder other applicants if necessary to ensure that the bribe payer’s application was successful. Both men admitted they had taken bribes from others in the past. Referring to this $35,000 payment, they told the undercover agent, “This isn’t our first rodeo.”
In addition to being a councilman, Romero served as Calexico’s mayor pro tem, meaning he was set to become Mayor in July 2020. Soto recently resigned from the city commission responsible for promoting business and community growth and coordinating with prospective developers to help them invest in the City of Calexico. Romero resigned from office on June 8, 2020.
The charges filed in the case also allege that both men lied to the FBI when interviewed by agents at the conclusion of a January 30 meeting. Romero falsely denied being part of any agreement with the undercover agent, and denied that anyone had made any “guarantees” to the agent. Similarly, Soto falsely denied making any “guarantees” to the undercover agent and denied receiving any prior payments from the agent.
The FBI investigated the case. Trial Attorney Joshua Rothstein with the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Nicholas Pilchak of the Southern District of California prosecuted 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.
Chicago and Tennessee Man Sentenced to 101 Months’ Imprisonment for Veteran’s Unemployment Compensation FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Earl Lafayette Hall, III, age 38, previously of Chicago and Arlington, Tennessee, was sentenced to 101 months’ imprisonment and ordered to pay $96,431 in restitution on June 9, 2020, by U.S. District Court Judge Sylvia H. Rambo for veteran’s unemployment compensation fraud.
According to U.S. Attorney David J. Freed, Hall was convicted in November 2019 by a federal jury on two counts of conspiracy, 12 counts of mail fraud, 10 counts of money laundering, and 4 counts of aggravated identity theft.
The evidence presented during the trial and the sentencing hearing, showed that Hall applied for and received $96,431 in unemployment compensation benefits under the Unemployment Compensation for Ex-Service Members Program, commonly known as “The UCX Program,” under the assumed identities (first name, last name, date of birth and Social Security Number) of eleven other individuals.
The UCX Program is a federally funded, U.S. Department of Labor program administered by the States. The jury found that Hall fraudulently obtained the benefits paid on 7 false UCX claims submitted to Pennsylvania, 3 false UCX claims submitted in Utah, and another false identity UCX claim submitted to Hawaii in 2013 and 2014.
“On behalf of the investigative team, we are very pleased with the serious sentence and restitution order imposed in this case,” said U.S. Attorney Freed. “As I said at the time of conviction, it takes an especially devious and brazen criminal mind to defraud a program established to benefit those who have sacrificed so much for their fellow citizens. Fortunately the Defense Criminal Investigation Service, the United States Department of Labor Office of Inspector General, the United States Postal Inspection Service and numerous other federal, state and local partners were on the case.”
“The UCX Program, which provides unemployment benefits for eligible unemployed former service members following their separation from the military, is extremely important," stated Special Agent in Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service (DCIS) Northeast Field Office. "The sentencing announced today marks the conclusion of a successful joint investigation and confirms the DCIS' ongoing commitment to work with its law enforcement partners and the U.S. Attorney's Office, Middle District of Pennsylvania, to protect the integrity of DoD programs and the men and women who serve in our Armed Forces."
“Earl Lafayette Hall III schemed to defraud the Unemployment Compensation for Ex-Service Members Program in order to personally enrich himself at the expense of former military service members and tax payers,” said Derek Pickle Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General. “We will continue to aggressively pursue prosecution of those who seek to defraud our nation’s veterans and the DOL programs that support them.”
The investigation was conducted by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering & Fraud Investigations, the U.S. Defense Criminal Investigative Service, and the U.S. Postal Inspection Service in Harrisburg. The investigation was assisted by the Pennsylvania Department of Labor and Industry, Internal Audits Division, the Pennsylvania Department of Labor and Industry, Office of Unemployment Compensation Benefits and Policy, and the Pennsylvania Department of Treasury, Office of Unemployment Compensation Disbursements. Assistant U.S. Attorney Kim Douglas Daniel prosecuted the case.
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CEO and CFO of Lexington Medical Companies Plead Guilty to Defrauding the United StatesRead the Press Release
LEXINGTON, Ky. - Ann Sonderman Giles, 56, and Lu Anne Wallace, 66, both of Lexington, pled guilty on Thursday, before U.S. District Judge Karen Caldwell, to conspiring to defraud the United States.
According to their plea agreements, from January 2014 through July 2017, Wallace and Giles served as the Chief Executive Officer and Chief Financial Officer, respectively, for multiple healthcare-related companies registered in Kentucky. Giles and Wallace admitted to conspiring to defraud the United States by failing to pay over IRS mandated trust fund taxes for the companies. Additionally, the companies run by Giles and Wallace failed to pay over their required matching portions of Social Security and Medicare taxes. In total, Giles and Wallace conspired to defraud the United States out of tax revenue in the amount of approximately $1,595,726.
Giles and Wallace were indicted in June 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Milton Goff III, Senior Advisor Criminal Investigations, U.S. Department of Labor; Rod Owens, Special Agent-in-Charge, SSA Office of the Inspector General, Atlanta Field Division—Nashville; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation; jointly announced the guilty plea.
The investigation was conducted by the Department of Labor, Social Security Administration, and IRS. The United States was represented by Assistant U.S. Attorney Will Moynahan.
Giles and Wallace are scheduled to be sentenced on September 21, 2020. They face a maximum of five years in prison and a fine of not more than $250,000, or twice the amount of loss. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Billings woman admits transporting persons for prostitutionRead the Press Release
BILLINGS – A Billings woman accused of taking three people to the bus station in Billings for a trip to Georgia to engage in commercial sexual activity pleaded guilty to charges today, U.S. Attorney Kurt Alme said.
Destiny Lachelle Nilsen, also known as "Diamond", 26, pleaded guilty to transportation of a person with intent to engage in prostitution. Nilsen faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Nilsen was released pending further proceedings.
Court records filed by the prosecution said the evidence showed that in August 2019 Nilsen was affiliated with a co-defendant and was aware that the co-defendant was involved in commercial sex in Billings and elsewhere, including other states.
In August 2019, Nilsen drove the co-defendant and two women, identified as Jane Does, to the bus station. The co-defendant and the two Jane Does were going to Georgia to engage in commercial sex. Prostitution is illegal in Georgia. In a subsequent jail call, Nilsen admitted her participation.
Assistant U.S. Attorneys Zeno Baucus and Bryan Dake are prosecuting the case, which was investigated by the FBI.
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Baltimore Businessman Facing Federal Charges for Using a Phone and the Internet to Promote a Prostitution BusinessRead the Press Release
Baltimore, Maryland – Charles “Chuck” Nabit, age 64, of Baltimore, Maryland, has been charged by federal criminal complaint for using a phone and the Internet to promote a prostitution business. Specifically, the criminal complaint alleges that Nabit arranged for commercial sex workers to be brought to his office in Baltimore to engage in commercial sex acts in exchange for payments made to the man who allegedly trafficked the women. Nabit, who owns the Westport Group, LLC, located on Commerce Street in Baltimore, was arrested on June 10, 2020, and had his initial appearance in U.S. District Court in Baltimore. U.S. Magistrate Judge Beth P. Gesner ordered that Nabit be released under the supervision of U.S. Pretrial Services, after posting a property bond.
The criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI), Baltimore Field Office; and Chief Lisa Myers of the Howard County Police Department.
“We will investigate and prosecute those who participate in the crime of sex trafficking, whether through trafficking commercial sex workers or by paying traffickers for commercial sex from vulnerable victims,” said U.S. Attorney Robert K. Hur.
According to the affidavit filed in support of the criminal complaint, as part of a federal sex trafficking investigation which led to the indictment of alleged sex trafficker, Deangelo Johnson, commercial sex workers whom Johnson trafficked described their interactions with Nabit. One victim stated that Nabit would use a GoPro camera to record the sex acts and described Nabit as having a “fetish for young females.” The affidavit alleges that Nabit used a cash app to pay Johnson directly for commercial sex acts performed by the women who worked for Johnson. The affidavit documents 52 transactions between Nabit’s cash app and Johnson beginning in March 2019. Further, the affidavit alleges that Nabit engaged in commercial sex acts with at least four commercial sex workers, using his office in downtown Baltimore and his vehicle to facilitate the activity. The affidavit alleges that there are numerous transactions on Nabit’s cash app beginning August 28, 2018 and continuing through May 12, 2020 involving various females, including four alleged sex trafficking victims. The payments made by Nabit for commercial sex during that time frame total more than $90,000.
If convicted, Nabit faces a maximum sentence of five years in federal prison for use of an interstate facility to promote a prostitution business. 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.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended HSI and Howard County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Mary W. Setzer and Ayn B. Ducao, who are prosecuting the case.
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Assistant Attorney General Eric Dreiband Sends Letter to Montgomery County Maryland Executives Expressing First Amendment Concerns Regarding County OrdersRead the Press Release
The Justice Department today announced that Assistant Attorney General for Civil Rights Eric Dreiband sent a letter to Montgomery County Maryland executives expressing First Amendment concerns regarding county orders. The letter urges county Executive Elrich and the County Council to ensure that the county’s executive orders and enforcement of them respect both the right of residents to assemble and practice their faith.
The letter applauds Montgomery County for allowing gatherings for political protest, but urges the county to allow gatherings for religious exercise on equal terms. The letter specifically references Montgomery County’s Executive Order No. 070-20, which banned all gatherings larger than 10 persons, County Executive Elrich’s June 1, 2020 statement supporting freedom of assembly and public safety, which nevertheless committed the County to providing a protected environment for peaceful protests. The letter notes that the executive order would have prohibited the protest held in Bethesda, Maryland, on June 2 that reportedly involved hundreds of people packed into a library and urged the County to amend its order to protect its residents’ First Amendment rights. In doing so, the letter cautioned that the County should treat religious gatherings no less favorably than similar secular gatherings.
“During a crisis it is important for people of faith to be able to exercise their religion,” said Assistant Attorney General for Civil Rights Eric Dreiband. “Montgomery County has shown no good reason for not trusting congregants who promise to use care in worship the same way it trusts political protesters to do the same. The Department of Justice will continue to take action if states and localities infringe on the free exercise of religion or other civil liberties.”
Alien Indicted on Illegal Reentry Charges and Illegal and Unlawful Alien in Possession of a FirearmRead the Press Release
GREENVILLE, N.C. – A federal grand jury returned an indictment today charging Erik Daniel Gonzalez-Ramirez, age 30, of Mexico, with illegal reentry and alien in possession of a firearm.
Therefore, if convicted, Gonzalez-Ramirez, previously deported three times and found in Brunswick County, would face a maximum imprisonment term of twelve years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the case.
A copy of this press release is located on our website.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Activity in the United States Attorney's OfficeRead the Press Release
Chief Federal District Court Judge Scott W. Skavdahl sentenced PEYTONN M. SUCHOR, 31, of Rozet, Wyoming on June 5, 2020 for retaliation against an informant. Suchor was arrested in Gillette, Wyoming. He received forty-two months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay community restitution in the amount of $500.00. The Gillette Police Department and the Wyoming Division of Criminal Investigation investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced AMBER DAWN BUNDY, 23, of Bridgeport, Nebraska on June 5, 2020 for possession of stolen firearms and aiding and abetting. Bundy appeared via writ. She received twenty-seven months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay community restitution in the amount of $500.00 and a $100.00 special assessment. The Cheyenne Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.
Federal District Court Judge Alan B. Johnson sentenced KEVIN RICHARD VALLEE, 39, of Cheyenne, Wyoming on June 8, 2020 for possession with intent to distribute methamphetamine and carrying a firearm during and in relation to a drug trafficking crime. Vallee was arrested in Laramie County, Wyoming. He received one hundred twenty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $200.00 fine. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced RICHARD MOISES PENA-BERTHO, 36, of Mexico on June 10, 2020 for illegal re-entry of a previously deported alien into the United States. Pena-Bertho was arrested in Gillette, Wyoming. He received time served plus ten days to allow for deportation proceeding and ordered to pay a $100.00 special assessment. Pena-Bertho had been previously deported from the United States to Mexico in October of 2016. The U.S. Immigration and Customs Enforcement investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced JACOB LEE DAVIS, 54, of Fort Collins, Colorado on June 9, 2020 for violating asbestos work practice standards. Davis appeared on a summons. He received a $9,000.00 fine and was ordered to pay a $100.00 special assessment with restitution to be determined within ninety days. Davis will serve thirty-six months of supervised probation. The Environmental Protection Agency investigated this case.
Federal District Court Judge Alan B. Johnson sentenced MICHAEL ANGELO PEREZ, 37, of Casper, Wyoming on June 9, 2020 for conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Perez was arrested in Cheyenne, Wyoming. He received one hundred eighty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $200.00 special assessment. The Casper Police Department, Mills Police Department, and the Wyoming Division of Criminal Investigation investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced LAWRENCE SAUNDERS, Sr. a/k/a Larry Saunders, 68, of Riverton, Wyoming on June 10, 2020 for two counts of abusive sexual contact. Saunders was arrested in Lander, Wyoming. He received thirty months of imprisonment, to be followed by one hundred twenty months of supervised release. The Federal Bureau of Investigation investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced LISA DANETTE KRUSE, a/k/a Lisa Danette Stobert , 46, of Roseburg, Oregon on June 1, 2020 for conspiracy to distribute methamphetamine. Kruse was arrested in Cheyenne, Wyoming. She received forty-six months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay community restitution in the amount of $200.00 and a $100.00 special assessment. The Wyoming Highway Patrol, Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration investigated this case.
Wednesday 10 June 2020
Woman Who Embezzled More Than $800,000 from Her Employer Pleads GuiltyRead the Press Release
A woman pleaded guilty today in U.S. District Court for embezzling $823,714 from her Tulsa employer. Leslie Michelle Clark, 53, of Tulsa, pleaded guilty to one count of bank fraud.
“Leslie Clark exploited her position of trust to personally pocket more than $800,000 of ill-gotten gains,” said U.S. Attorney Trent Shores. “She created a fake consulting company and issued fraudulent billing invoices as part of her criminal scheme. Our white collar prosecution team is to be commended for their excellent work on this case.”
Clark was hired as a financial controller at a Tulsa company in 2014. As controller, she supervised all financial matters for the company. In July 2018, Clark created a fictitious consulting company called “Alliance Consulting.” She also opened an account at Arvest Bank for the fictitious company and caused checks to be paid from her employers customer account at Wells Fargo to Alliance Consulting for fabricated services never rendered. Clark falsely and fraudulently told colleagues at the company that the payments were for consulting services and presented false and fraudulent invoices from Alliance Consulting in support of her scheme.
As part of her plea agreement, Clark agreed to pay $823, 714 in restitution. U.S. District Judge Gregory K. Frizzell will make the final restitution determination at her sentencing hearing set for Sept. 16, 2020.
The FBI conducted the investigation. Assistant U.S. Attorney Richard M. Cella is prosecuting the case.
West Bloomfield Doctor Charged with Illegal Distribution of Prescription Drugs Resulting in Death of PatientRead the Press Release
An indictment was returned today charging a doctor with illegally prescribing controlled substances, resulting in the death of a patient. The doctor was also charged in twenty-two separate counts of illegally prescribing prescription drug controlled substances to several different patients, U.S. Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Special Agent in Charge Keith Martin, U.S. Drug Enforcement Administration (DEA).
Charged in the indictment is Dr. Scott Henry Cooper, 58, of West Bloomfield, Michigan.
The indictment alleges that from March 31, 2014 to December 31, 2018, Dr. Scott Cooper wrote more than 20,000 prescriptions for controlled substances, totaling over 800,000 dosage units. The street value of the pills prescribed by the defendant was in excess of $5.5 million. The defendant is alleged to have knowingly prescribed prescription drug controlled substances outside the course of legitimate medical practice and for no legitimate medical purpose, in furtherance of the scheme, and in combinations that were known to be dangerous and medically unnecessary.
The indictment further alleges that Dr. Cooper often prescribed with cursory examinations, or without bothering to examine the patient at all. As a result of this practice, he allegedly authorized monthly controlled substance prescriptions for one patient while that patient was incarcerated for almost two years. It is not known who actually received and filled that patient’s prescriptions while he was in custody.
The indictment alleges that Dr. Cooper prescribed dangerous combinations of controlled drugs, including multiple central nervous system (CNS) depressants such as oxycodone, Xanax and Soma. This sought-after combination is referred to on the street as the “trinity.” The defendant is alleged to have ignored warning signs that his patients were addicted or selling the drugs, and frequently failed to take commonly accepted steps such as requiring drug screens or checking MAPS before prescribing.
One of Dr. Cooper’s patients did not survive. Dr. Cooper is charged with prescribing this patient a prescription for 478 methadone 10 mg pills on June 17, 2015. The patient died of a methadone overdose in the early morning hours of June 18, 2015.
“Doctors who provide prescription drugs to people for no legitimate medical reason are fueling the opioid epidemic in Michigan,” stated United States Attorney Matthew Schneider. “This case should serve as a message to doctors who choose profit over their pledge to do no harm – we are focusing our law enforcement attention on you and we will do everything we can to bring you to justice.”
“Prescription drug misuse and abuse leads to addiction, suffering, and in too many unfortunate occasions death,” said DEA Special Agent in Charge Keith Martin. “While the vast majority of doctors provide legitimate health care, some choose to violate their oath and the law. DEA and our law enforcement partners will continue to identify and investigate medical professionals who engage in the criminal distribution of prescription drugs.”
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Wellsville Man Charged with Sending Messages Threatening to Kill Another IndividualRead 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 Jonathan Kemp, 21, of Wellsville, NY, was arrested and charged by criminal complaint with interstate communication threatening to injure a person. The charge carries a maximum penalty of five years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that according to the complaint, in November 2018, an individual (Victim) told the New York State Police that the defendant had previously physically assaulted the Victim on many different occasions. On one occasion, Kemp allegedly choked and threatened the Victim with a pocket knife if the Victim didn’t shut up. The victim stated that Kemp asked “if I wanted him to kill me.” The victim also stated that Kemp began sending threatening text messages on the morning of November 5, 2018. One message stated: “I WILL ACTUALLY KILL YOU.”
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and was released on conditions.
The complaint is the result of an investigation by the New York State Police, under the direction of Major James Hall, and the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Robert Guyton.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Washington County Man Charged with Distributing and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Scott Eckrote, age 36, of Granville, New York, appeared in federal court this week on charges that he distributed and possessed child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to a criminal complaint, between January 28, 2020 and March 9, 2020, Eckrote distributed images of child pornography through a group messaging application on his phone. An examination of his phone revealed that it contained numerous files depicting child pornography, as well as text messages with another individual arranging for Eckrote to meet and have sex with a person he believed to be a 12-year-old girl. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Eckrote had a detention hearing yesterday before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending further proceedings.
If convicted, Eckrote faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police and Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
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/.
U.S. Files Civil Forfeiture Complaint in COVID-19 Fraud CaseRead the Press Release
ROANOKE, Va. – The United States filed a civil complaint here today to recover more than $543,000 from individuals based in China who purported to sell face masks and N-95 respirators at inflated prices but never shipped the products.
According to court documents, a number of fraudulent websites were established to purportedly sell N-95 respirators and other protective facemasks in February and March of 2020, just as the number of COVID-19 cases were rising in the United States and the demand for this type of equipment was increasing. The websites were a fraud.
“It is unconscionable that anyone would exploit the increased demand for personal protective equipment brought on by the COVID-19 international pandemic,” First Assistant United States Attorney Daniel P. Bubar said today. “Today’s complaint demonstrates our Office’s commitment to aggressively pursue those who attempt to defraud individuals and entities during this public health crisis. I am proud of Coronavirus Fraud Task Force and the way we have worked together across Virginia to hold fraudsters accountable.”
Payments for the masks were made through four separate PayPal accounts, all associated with telephones numbers and internet protocol addresses based in China. Law enforcement in the United States became aware of these websites when customers began to notice irregularities with their orders. Some customers simply never received the masks they ordered. Other customers, instead of receiving masks or respirators, received toys or rhinestone necklaces. Victims of the fraud include individuals in the Western District of Virginia, a Florida municipality, and a Wisconsin sheriff’s office.
“The Virginia Coronavirus Fraud Task Force is committed to identifying and pursuing fraudsters seeking to exploit this pandemic,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “As today’s action shows, we will continue to use all available tools to disrupt overseas criminals who defraud our citizens as they try to protect themselves and their families.”
Today’s filing will forfeit $205,242 from one account, $128,868 from another, $194,982 from a third, and $13,923 from a fourth account. All of these PayPal accounts were associated with the fraudulent websites.
“Criminals have taken advantage of the COVID crisis for months to steal money from unsuspecting victims,” said David W. Archey, Special Agent in Charge of the FBI’s Richmond Division. “Investigation by the Virginia Coronavirus Fraud Task Force (VCFTF) identified several fraudulent websites that marketed protective equipment at high mark-up but then never shipped the goods to customers. The forfeiture complaint filed today by the U.S. Attorney will prevent these fraudsters from profiting from the pandemic, as well as provide restitution to their victims. The FBI encourages anyone who suspects fraud or has been victimized to report those events to the FBI’s Internet Crime Complaint Center (www.IC3.gov).”
“The fraud perpetuated by these entities is unacceptable and put countless lives at stake during the height of the COVID-19 pandemic,” said Virginia Secretary of Public Safety and Homeland Security Brian Moran. “I am proud of the fact that our state and federal public safety partners had the foresight to recognize the potential for foreign and domestic entities to prey on Virginians during a worldwide crisis. Due to the quick and effective actions by law enforcement and the U.S. Attorney’s Office, these fraudulent entities will be now held responsible for their harmful, deceptive practices.”
Mr. Bubar thanked the Department of Justice’s COVID-19 Hoarding and Price Gouging Task Force. Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by Craig Carpenito, United States Attorney for District of New Jersey, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs.
The investigation of the case was conducted by the FBI’s Richmond Division. Assistant U.S. Attorneys Krista Consiglio Frith and Michael Baudinet are litigating the case.
The Virginia Coronavirus Fraud Task Force:
https://www.justice.gov/usao-wdva/covid-19-fraud
Western Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Michael Baudinet, [email protected] or 540-278-1494.
Eastern Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Kaitlin G. Cooke, [email protected] or 804-819-5416.
To report a COVID-19 fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) at http://justice.gov/disastercomplaintform.
FBI at: https://www.ic3.gov or 804-261-1044.
To report fraudulent activity to the Virginia State Police, Virginians can contact the Virginia Fusion Center (VFC) at [email protected].
For continuing information on the COVID-19 virus and the federal response, check https://www.cdc.gov/coronavirus/2019-ncov/index.html
FiledCivilComplaintU.S. Attorney’s Office Launches Project Safe Neighborhoods Grant ProgramRead the Press Release
ROANOKE, Va. – United States Attorney Thomas T. Cullen announced today his office’s plan to make available $178,759 in grant funds to help improve offender intervention and rehabilitation efforts in three areas of the Western District of Virginia. The grant money is part of the Department of Justice’s Project Safe Neighborhoods [PSN] a nationwide program designed to create and foster safer neighborhoods through a sustained reduction in violent crime by, among other means, addressing criminal gangs and the illegal use of firearms. More information regarding the U.S. Attorney’s Office PSN program, the available grant funds, and the grant-application process can be found at www.vachiefs.org/psn-wdva.
“Community-focused prevention, outreach, and rehabilitation efforts play an important role in reducing violent crime and gang-related activity,” U.S. Attorney Cullen stated today. “I am excited that my friend and former U.S. Attorney Tim Heaphy has agreed to oversee our grant-selection process and am confident that he will deploy these resources wisely.”
The PSN Grant Program is eligible to nonprofits, community organizations and services providers, faith-based groups, and units of local or state governments that operate or have the ability to serve one of the three PSN target enforcement areas for the Western District of Virginia- the City of Danville, the City of Lynchburg, and the Roanoke County/Roanoke City region.
In recent years, violent crime has risen in Roanoke, Danville, and Lynchburg. For example, in 2016 the homicide rate in Danville spiked from an average of four murders per year to 16 total. Per capita, this homicide rate exceeded that of major Virginia urban areas like Richmond and Hampton Roads. Intelligence and evidence attributes this violence to increased street gang activity, which is consistent with statewide crime trends.
In response, the United States Attorney’s Office for the Western District of Virginia implemented PSN. Called Project Community Justice, the backbone of PSN is the collaboration of community organizations as well as federal, state, and local law-enforcement agencies to build evidence-based and intelligence-led approaches to identifying the most violent gangs and offenders in each community and deploying their combined resources not only to prevent violent crimes but also, through offender intervention and rehabilitation efforts, to help break the cycle of violence by addressing its underlying causes. The Grants Program is just one component of multiple concerted efforts the U.S. Attorney’s Office has implemented in Danville, Roanoke, and Lynchburg.
The United States Attorney’s Office recognizes that local government leaders, social service providers, neighborhood leaders, and members of the faith community are an essential part of a successful PSN program, especially those focused on at-risk youth and gang intervention efforts, and hopes that the available grant funds will enable local entities and nonprofits to further their missions of crime prevention and offender intervention and rehabilitation.
Under the program, $178,759 is available to eligible entities in the Western District of Virginia. Those funds will be divided between Danville, Roanoke, and Lynchburg.
In order to administer its PSN grant funds, the United States Attorney’s Office has selected community members to serve as members of an independent Grants Committee. The Committee is chaired by Timothy J. Heaphy, a former United States Attorney for the Western District of Virginia and the current General Counsel for the University of Virginia, and is composed of community-outreach experts, grant experts, community leaders, and former law-enforcement personnel. None of the members are current federal employees, and no member will be eligible to apply for or receive PSN funding. This Grants Committee has selected the Virginia Association of Chiefs of Police and Foundation, Inc. (VACP) to serve as its Fiscal Agent for these funds.
Complete applications should be submitted to [email protected] by 5:00 p.m., on July 17, 2020.
U.S. Attorney Bill Powell announces $58,008 award to address COVID-19 pandemic in Ohio CountyRead the Press Release
WHEELING, WEST VIRGINIA – U.S. Attorney Bill Powell of the Northern District of West Virginia today announced that Ohio County received $58,008 in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grant, awarded to Ohio County is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. Those jurisdictions can find out if they are eligible and apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.
“Ohio County was once designated a hot spot by the Governor, and though the number of positive tests have dropped, this funding will allow the county to continue to effectively address public health during this pandemic,” said Powell.
The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Trio Charged in Conspiracy to Defraud U.S. Department of AgricultureRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Ghasan Awad (58, Safety Harbor); Ahmad Al Saleh (56, Tampa); and Bassam Al Saleh (63, Tampa) with conspiracy to defraud the United States Department of Agriculture (“USDA”) and making false statements to the USDA regarding the Supplemental Nutrition Assistance Program (“SNAP”). The indictment also charges Awad alone with three counts of wire fraud and three counts of obtaining SNAP benefits in violation of federal law and USDA regulations, and Ahmad Al Saleh and Bassam Al Saleh each with three counts of making certain false statements to the USDA. If convicted, each individual faces up to 5 years in federal prison for the conspiracy offenses. Awad also faces up to 5 years in prison for each of the charged SNAP benefits violations, and up to 20 years’ imprisonment on each wire fraud count, and Ahmad Al Saleh and Bassam Al Saleh each face a maximum of 5 years in prison for each false statement count. The indictment notifies the defendants that the United States is seeking a money judgment as to the proceeds of the charged criminal conduct.
According to the
indictment , Awad was the former owner of Express Meat Market, a grocery store in St. Petersburg, Florida that accepted SNAP benefits. After his disqualification from SNAP, Awad conspired with the other defendants to fraudulently transfer ownership of the store to Ahmad Al Saleh, so that Awad could conceal his ongoing, active role in the store’s operations. The indictment further alleges that, after the fraudulent transfer, Awad unlawfully violated SNAP by paying cash to store customers in exchange for their SNAP benefits, in violation of federal statutes and the USDA regulations governing SNAP. The indictment also includes allegations that the conspirators made a number of false and fraudulent statements to the USDA to effect the fraudulent transfer of the store’s ownership.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the USDA-Office of Inspector General and the Department of Homeland Security, with assistance from the St. Petersburg Police Department. It will be prosecuted by Assistant United States Attorney Jay L. Hoffer.
Three Individuals Indicted in June 2020 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the June 2020 Federal Grand Jury.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
DONALD RAY LOGSDON, JR., age 39, of McAlester, Oklahoma
Felon In Possession Of Firearm & Ammunition
The Indictment alleges that on or about March 5, 2020, in the Eastern District of Oklahoma, the defendant, DONALD RAY LOGSDON, JR., having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of such conviction, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Pittsburg County Sheriff’s Office and the United States Marshals Service - Violent Crimes Fugitive Taskforce.
Assistant United States Attorney Dean Burris
DERRICK LERON JORDAN, age 49, of Okmulgee, Oklahoma
Failure To Register As Sex Offender
The Indictment alleges that from on or about December 14, 2018, until on or about March 24, 2020, in the Eastern District of Oklahoma, and elsewhere, the defendant, DERRICK LERON JORDAN, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Oklahoma on or about April 22, 1999, for Rape First Degree and Oral Sodomy, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Okmulgee Police Department and the United States Marshals Service.
Assistant United States Attorney Nalani Ching
KENNETH ROY NESTER, age 26, of Okmulgee, Oklahoma
Possession With Intent To Distribute Methamphetamine
Possession Of Firearm In Furtherance Of Drug Trafficking Crime
Felon In Possession Of Firearm And Ammunition (2 counts)The Indictment alleges that on or about December 30, 2019, in the Eastern District of Oklahoma, the defendant, KENNETH ROY NESTER, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, a fine up to $1,000,000.00, or both.
The Indictment further alleges that on or about December 30, 2019, in the Eastern District of Oklahoma, the defendant, KENNETH ROY NESTER, did knowingly possess a firearm, to wit: one Herman Weirach, Model Arminius HW 38, .38 Special caliber, revolver, serial number 402323, in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine as alleged in Count One, in violation of Title 18, United States Code, Section 924(c), punishable by not less than 5 years to run consecutive to any other term of imprisonment imposed, a fine up to $250,000.00, or both.
The Indictment further alleges that on or about December 30, 2019, in the Eastern District of Oklahoma, the defendant, KENNETH ROY NESTER, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of such conviction, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment further alleges that on or about January 22, 2020, in the Eastern District of Oklahoma, the defendant, KENNETH ROY NESTER, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Okmulgee Police Department and the Federal Bureau of Investigation.
Special Assistant United States Attorney David Youll
Third Individual Arrested and Charged with Arson of St. Paul Health and Nutrition StoreRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal criminal complaint against MCKENZY ANN DEGIDIO DUNN, 19, charging her with conspiracy to commit arson. DUNN made her initial appearance earlier today before Magistrate Judge Hildy Bowbeer in U.S. District Court in St. Paul, Minnesota. DUNN’s co-conspirators, SAMUEL ELLIOTT FREY and BAILEY MARIE BALDUS, have also been charged with one count each of conspiracy to commit arson.
According to the allegations in the complaints, on May 28, 2020, a health and nutrition store located in St. Paul, Minnesota, sustained damage due to vandalism and fire. On June 3, 2020, investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) examined the store and determined that the fire and smoke damage was caused by arson. ATF investigators obtained video surveillance footage from inside the store on the night of the arson. Following ATF’s public request for tips and identifying information, investigators were able to identify DUNN, FREY and BALDUS in the surveillance video footage. FREY can be seen pouring flammable hand sanitizer onto a shelving unit and lighting it on fire. DUNN can be seen standing near the shelving unit holding a bottle of flammable hand sanitizer.
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 St. Paul Police Department, the St. Paul Fire Department, and the Minnesota State Fire Marshal Division.
This case is being prosecuted by Assistant U.S. Attorneys Matthew S. Ebert and Joseph S. Teirab.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
MCKENZY ANN DEGIDIO DUNN, 19
Rosemount, Minn.
Charges:
- Conspiracy to commit arson, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The Department of Justice and the Department of Homeland Security Propose Rule on Procedures for Asylum and Withholding of RemovalRead the Press Release
The Department of Justice and the Department of Homeland Security (collectively, the Departments) submitted to the Federal Register for publication a notice of proposed rulemaking (NPRM) that would amend multiple provisions of the Departments’ regulations to create more efficient procedures for the adjudication of claims for asylum, withholding of removal, and protection under the Convention Against Torture (CAT) regulations. The NPRM is now available for public inspection and is expected to publish in the Federal Register in the near future.
The NPRM proposes to make the following changes to the Departments’ regulations:
- Amend the regulations governing credible fear determinations so that individuals found to have such a fear will have their claims for asylum, withholding of removal, or protection under the CAT adjudicated by an immigration judge in streamlined proceedings, rather than in immigration court proceedings conducted under section 240 of the Immigration and Nationality Act (INA);
- Permit immigration judges to pretermit asylum applications without a hearing if the application does not demonstrate prima facie eligibility for relief;
- Clarify when an application is “frivolous”;
- Clarify standards for the adjudication of asylum and withholding claims including amendments to the definitions of the terms “particular social group,” “political opinion,” “persecution,” and “firm resettlement”;
- Outline factors for adjudicators to consider when making discretionary determinations;
- Clarify the standard for determining the acquiescence of a public official or other person acting in an official capacity under the CAT regulations;
- Raise the burden of proof for the threshold screening of withholding and CAT protection claims from “significant possibility” to a “reasonable possibility” standard;
- Apply bars to asylum and withholding when making credible fear determinations; and
- Clarify the requirement to protect certain information contained in asylum applications.
Overall, the NPRM, consistent with the INA, would allow the Departments to more effectively separate baseless claims from meritorious ones. This would better ensure groundless claims do not delay or divert resources from deserving claims. The Departments will consider written comments regarding the NPRM that are submitted per the instructions in the publication.
St. Louis Man Pleads Guilty to Meth Trafficking, Discharging FirearmRead the Press Release
SPRINGFIELD, Mo. – A St. Louis, Missouri, man who shot a law enforcement officer before shooting himself pleaded guilty in federal court today to drug trafficking and illegally discharging a firearm in Joplin, Missouri.
E.F. Fitchpatrick, Jr., 46, pleaded guilty before U.S. District Judge M. Douglas Harpool to one count of conspiracy to distribute methamphetamine and one count of discharging a firearm during a drug-trafficking crime.
By pleading guilty today, Fitchpatrick admitted that he participated in a conspiracy to distribute 50 grams or more of methamphetamine from Feb. 18 to March 1, 2017. Fitchpatrick, who had been released from federal prison a few months earlier, was traveling back and forth to Texas to pick up methamphetamine in the weeks before his arrest. He picked up nearly a pound of methamphetamine in February 2017, which he distributed to several individuals in Joplin.
On March 1, 2107, law enforcement officers executed a search warrant at the Econolodge Inn and Suites at 3510 S. Rangeline Road in Joplin. After several failed attempts to open the room door with the hotel key card, officers attempted to ram the door, but were not able to get the door open. An Ozarks Drug Enforcement Team (ODET) detective used the battering ram to knock out the hotel room window. Another ODET detective reached in the window to move the curtain, and Fitchpatrick, who was standing in the bathroom doorway, shot the detective in the left side of his body before retreating to the bathroom and barricading himself inside.
Joplin police officers, utilizing a robot, were able to see that the bathroom door was closed with towels stuffed at the bottom of the door. After a couple of hours and numerous attempts and tactics, Fitchpatrick was taken into custody. Fitchpatrick had flushed the remaining drugs and shot himself in the face while barricaded inside the bathroom.
Inside the hotel room, officers found the Hi-Point .380-caliber semi-automatic handgun used in the shooting, drug paraphernalia, and items with methamphetamine residue.
Under federal statutes, Fitchpatrick is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Jessica R. Keller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ozarks Drug Enforcement Team, and the Joplin, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.South Korean Engineering Company Pleads Guilty to Defrauding U.S. Army, Agrees to Pay $68.4 MillionRead the Press Release
SK Engineering & Construction Co. Ltd. (SK), one of the largest engineering firms in the Republic of Korea, pleaded guilty today to one count of wire fraud, in connection with a fraudulent scheme to obtain U.S. Army contracts through payments to a U.S. Department of Defense contracting official and the submission of false claims to the U.S. government.
SK entered the plea, pursuant to a plea agreement with the United States, before U.S. District Judge Thomas L. Parker in the Western District of Tennessee, who sentenced SK to pay $60,578,847.08 in criminal fines, the largest fine ever imposed against a criminal defendant in the Western District of Tennessee, pay $2,601,883.86 in restitution to the U.S. Army, and serve three years of probation, during which time SK agreed not to pursue U.S. federal government contracts. The U.S. Army previously suspended SK by order dated Nov. 17, 2017, from future contracting throughout the executive branch of the U.S. Government.
As part of SK’s plea agreement, SK agreed to, among other things, cooperate fully with the United States in all matters relating to the conduct covered by the plea agreement and other conduct under investigation by the United States, to report violations of U.S. federal law, and to continue to implement a compliance and ethics program designed to effectively detect and deter violations of U.S. federal law throughout its operations. Separately, SK has entered into a False Claims Act settlement with the United States, under which it is obligated to pay $5,200,000 in civil penalties to the United States, which the department credited against SK’s criminal fine.
“SK paid millions of dollars to secure contracts with the Army and submitted false claims to conceal those illicit payments,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s guilty plea and substantial criminal penalty sends a clear message: companies who voluntarily self-disclose misconduct, cooperate, and remediate will receive appropriate credit for their efforts. But companies like SK – which withheld and destroyed documents, attempted to persuade a witness not to cooperate, and failed to discipline any responsible employees – will pay a price.”
“This settlement demonstrates our commitment to root out corrupt practices that harm our military and American taxpayers, and to hold contractors accountable for their corruption,” said Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division.
“Protecting the U.S. Treasury and the interests of the federal government abroad is a top priority of this office, and this guilty plea and sentence shows our commitment to hold foreign actors accountable for major fraud committed against the United States,” said U.S. Attorney D. Michael Dunavant of the Western District of Tennessee. “The scheme committed by the defendant in this case is a serious crime of dishonesty and deceit that strikes at the very heart of those national interests and will not be tolerated. The Army-CID, the FBI, and DCIS are to be commended for their diligent investigative work in uncovering and exposing this fraud, and I am pleased that we have achieved justice by holding the defendant legally and financially accountable.”
“American contracts are not for sale in the United States, nor abroad,” said Paul Delacourt, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “This case should send a message to companies and officials domestically and overseas that the FBI and our partners will hold accountable those who threaten the integrity of our military operations and who abuse their position to profit personally at the expense of American taxpayers.”
“This plea demonstrates the great cooperation among our federal investigators and prosecutors,” said Director Frank Robey of the U.S. Army Criminal Investigation Command's (CID) Major Procurement Fraud Unit. “It also holds SK responsible for their actions and sends a strong message that this type of conduct will not be tolerated.”
“This sort of abhorrent behavior is a serious threat to the integrity of the DoD acquisition process and a gross betrayal of the public trust” said Special Agent in Charge Stan Newell of the Defense Criminal Investigative Service (DCIS), Transnational Operations Field Office. “The special agents of the DCIS, along with our partner agencies, will vigorously investigate and bring to justice those who pilfer taxpayer dollars and shamelessly enrich themselves through corruption and deceit.”
According to plea documents, SK obtained a large U.S. Army construction contract at Camp Humphreys, South Korea in 2008 worth hundreds of millions of dollars. SK paid millions of dollars to a fake Korean construction company named S&Teoul, which subsequently paid that money to a contracting official with the U.S. Army Corps of Engineers. In order to cover approximately $2.6 million in payments to S&Teoul, and ultimately to the contracting official, SK submitted false documents to the U.S. Army.
SK also admitted that its employees obstructed and attempted to obstruct federal criminal investigations of the fraud and bribery scheme. SK admitted that, in April 2015, its employees burned large numbers of documents related to U.S. Army contracts, in order to hamper U.S. and Korean investigators. Further, SK admitted that, in the fall of 2017, its employees obstructed a federal criminal proceeding by attempting to persuade an individual not to cooperate with U.S. authorities.
A number of relevant considerations contributed to the United States’ criminal resolution with SK, including that SK frustrated the United States’ investigation by withholding requested documents and information, destroying documents relevant to a pending federal investigation, and attempting to persuade a potential witness not to cooperate with the investigation. In addition, SK did not discipline any employees responsible for the misconduct, either through direct participation or failure in oversight, or those with supervisory authority over the area in which the criminal activity occurred, and failed to retain business records and otherwise failed to prohibit the improper destruction and deletion of business records.
In November 2018, two SK employees, Hyeong-won Lee and Dong-Guel Lee, were indicted by a federal grand jury in the Western District of Tennessee on charges of conspiracy, major fraud against the United States, wire fraud, money laundering conspiracy, and obstruction of justice for their alleged roles in the scheme.
The indictment is only an accusation, and the defendants are presumed innocent unless and until found guilty by a court of law. The case is U.S. v. Lee (2:18-cr-20378-TLP). Hyeong-won Lee and Dong-Guel Lee are currently fugitives of justice.
Army-CID, DCIS, and the FBI’s Los Angeles Field Office investigated this case. Assistant Chief Justin Weitz and Trial Attorney Danny Nguyen of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Tony Arvin of the Western District of Tennessee prosecuted the case. Trial Attorney Andrew Steinberg of the Civil Division’s Fraud Section represented the government in the civil case. The Criminal Division’s Office of International Affairs and Public Integrity Section and the Korean National Police Agency provided assistance in connection with 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.
South Florida Resident Sentenced to 71 Months in Prison After Stealing about $2 million from Texas School DistrictRead the Press Release
Key West, Fl. – Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Matthew J. DeSarno, Special Agent in Charge, FBI, Dallas Field Office, announced that Donald Howard Conkright, 63, a resident of the Florida Keys, was sentenced to 71 months in prison for laundering about $2,000,000 of a school district’s money.
Conkright was sentenced after a Key West jury found him guilty on March 4, 2020, of conspiring to commit money laundering and money laundering. At trial, the government proved that through an elaborate business email compromise, the defendant obtained about $2,000,000 from a Texas School District intended for the ongoing construction of a new elementary school. Based on the fraudulent emails, the victim sent the $2,000,000 to the Defendant’s bank account. As soon as the victim’s money hit the Defendant’s bank account, the Defendant began to spend and conceal the money. He purchased Rolex watches, Apple products, and even a $128,000 BMW, among other transactions. The Defendant also withdrew tens of thousands of dollars from the account and wired hundreds of thousands of dollars out of the country. In addition, he sent $70,000 worth of computers to Nigeria. The evidence at trial also demonstrated that the Defendant had laundered and attempted to launder other victims’ money as part of the same conspiracy between 2017 and 2019.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI. Assistant U.S. Attorneys Lindsey Lazopoulos Friedman and Yisel Valdes prosecuted the case. AUSA Nicole Grosnoff handled asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
South Bend, Indiana Man Re-Sentenced to 43 Years in PrisonRead the Press Release
SOUTH BEND - Derek Fields, 30, of South Bend, Indiana was re-sentenced before United States District Court Judge Robert Miller, Jr, announced U.S. Attorney Kirsch. This re-sentencing was necessary following the Seventh Circuit’s opinion vacating the district court’s previous sentence.
Fields was re-sentenced to 516 months in prison following his trial and subsequent guilty verdict on November 16, 2016 of kidnapping, extortion, felon in possession and using a firearm in a crime of violence. Fields was also ordered to pay restitution of $193,384.98 for lost wages of the victim and medical expenses.
“Crimes of violence, like those committed by Fields, will not be tolerated. As a result of Fields’ conduct, an individual suffered permanent injury. Crime is not victimless. Crime victims deserve to be protected from criminals like Fields, and I am grateful to the law enforcement agents and officers in bringing Fields to justice,” said U.S. Attorney Kirsch.
According to documents filed in this case, Fields and his codefendants unlawfully confined or kidnapped an individual against his will and demanded a ransom for that individual from his family. A firearm was discharged, hitting the victim, and caused permanent injuries to the victim. Two co-defendants, Lindani Mzembe and Ivan Brazier were also convicted in separate trials of similar offenses, and were sentenced to 524 months and 444 months respectively.
Fields’ original sentencing was announced in a February of 2017 press release.
This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Federal Bureau of Investigation; South Bend Police Department and the St. Joseph County Metro Homicide. This case was prosecuted by Assistant United States Attorneys John M. Maciejczyk and Joel Gabrielse.
Somerset County Man Charged with Online Enticement of Minor and Traveling Overseas to Engage in Criminal Sexual ConductRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man made his initial court appearance by videoconference today on charges that he enticed a minor over the internet to engage in sexual activity and traveled to the Philippines to engage in sex with the minor, U.S. Attorney Craig Carpenito announced.
James A. Diggs, 44, of Somerville, New Jersey, is charged by complaint with one count of online enticement of a minor to engage in sexual activity and one count of foreign travel to engage in criminal sexual activity. He made his initial appearance by videoconference before U.S. Magistrate Judge Leda Dunn Wettre and was detained.
According to documents filed in this case and statements made in court:
Between September 2018 and February 2019, Diggs used an online messaging application to persuade, induce, entice, and coerce “Minor Victim-1,” who was located in the Philippines, to engage in sexual activity. During the communications, Diggs solicited Minor Victim-1 to engage in sexual acts with him in return for money or material objects. Diggs encouraged Minor Victim-1 to keep their relationship secret because Minor Victim-1 was underage. In October 2018, Diggs traveled from New Jersey to the Philippines to meet and engage in sexual activity with Minor Victim-1.
Diggs used an online messaging application to entice and coerce three other minor victims in the Philippines to engage in unlawful sex acts. Between February 2015 and February 2019, Diggs traveled to the Philippines on at least seven occasions.
The online enticement of a minor charge carries a maximum potential penalty of life in prison, a mandatory minimum prison sentence of 10 years, and a $250,000 fine. The foreign travel to engage in criminal sexual activity charge carries a maximum potential penalty of 30 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, Cherry Hill Office, under the direction of Special Agent in Charge Jason Molina, with the investigation leading to the charges. He also thanked agents of the U.S. Customs and Border Protection, John F. Kennedy International Airport, for their assistance.
The government is represented by Assistant U.S. Attorney Patricia Astorga of the Opioid Abuse Prevention and Enforcement Unit of the U.S. Attorney’s Office in Newark.
The charges and allegations contained in the criminal complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Sanford and Waterville Awarded Funds to Address COVID-19 PandemicRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that the Department of Justice’s Office of Justice Programs (OJP) has awarded $56,996 to the City of Sanford and $41,186 to the City of Waterville to address the public safety challenges posed by the outbreak of COVID-19.
OJP awarded the grants as part of $850 million available under the Coronavirus Emergency Supplemental Funding program, authorized by the stimulus legislation President Trump signed in March. Since the program’s launch in early April, OJP has awarded over $825 million to 1,739 state, local and tribal agencies and organizations. Seventeen Maine jurisdictions have received a total of $4.3 million.
“The coronavirus continues to affect the entire state of Maine,” said U.S. Attorney Frank. “The Department of Justice is committed to supporting our law enforcement partners as they keep us safe during this unprecedented time.”
The Coronavirus Aid, Relief and Economic Security, or CARES, Act gives jurisdictions considerable latitude in the use of funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment and distributing resources to hard-hit areas. Grant recipients may also use funds to help correctional facilities cover costs related to COVID-19, including, but not limited to, sanitation, contagion prevention and measures designed to address the related medical needs of inmates, detainees and correctional personnel.
OJP, 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 is at www.ojp.gov.
South Korean Engineering Company Pleads Guilty to Defrauding U.s. Army, Agrees to Pay $68.4 MillionRead the Press Release
MEMPHIS, TN– SK Engineering & Construction Co. Ltd. (SK), one of the largest engineering firms in the Republic of Korea, pleaded guilty today to one count of wire fraud, in connection with a fraudulent scheme to obtain U.S. Army contracts through payments to a U.S. Department of Defense contracting official and the submission of false claims to the U.S. government.
SK entered the plea, pursuant to a plea agreement with the United States, before U.S. District Judge Thomas L. Parker in the Western District of Tennessee, who sentenced SK to pay $60,578,847.08 in criminal fines, the largest fine ever imposed against a criminal defendant in the Western District of Tennessee, pay $2,601,883.86 in restitution to the U.S. Army, and serve three years of probation, during which time SK agreed not to pursue U.S. federal government contracts. The U.S. Army previously suspended SK by order dated Nov. 17, 2017, from future contracting throughout the executive branch of the U.S. Government.
As part of SK’s plea agreement, SK agreed to, among other things, cooperate fully with the United States in all matters relating to the conduct covered by the plea agreement and other conduct under investigation by the United States, to report violations of U.S. federal law, and to continue to implement a compliance and ethics program designed to effectively detect and deter violations of U.S. federal law throughout its operations. Separately, SK has entered into a False Claims Act settlement with the United States, under which it is obligated to pay $5,200,000 in civil penalties to the United States, which the department credited against SK’s criminal fine.
"SK paid millions of dollars to secure contracts with the Army and submitted false claims to conceal those illicit payments," said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. "Today’s guilty plea and substantial criminal penalty sends a clear message: companies who voluntarily self-disclose misconduct, cooperate, and remediate will receive appropriate credit for their efforts. But companies like SK – which withheld
and destroyed documents, attempted to persuade a witness not to cooperate, and failed to discipline any responsible employees – will pay a price."
"This settlement demonstrates our commitment to root out corrupt practices that harm our military and American taxpayers, and to hold contractors accountable for their corruption," said Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division.
"Protecting the U.S. Treasury and the interests of the federal government abroad is a top priority of this office, and this guilty plea and sentence shows our commitment to hold foreign actors accountable for major fraud committed against the United States," said U.S. Attorney D. Michael Dunavant of the Western District of Tennessee. "The scheme committed by the defendant in this case is a serious crime of dishonesty and deceit that strikes at the very heart of those national interests and will not be tolerated. The Army-CID, the FBI, and DCIS are to be commended for their diligent investigative work in uncovering and exposing this fraud, and I am pleased that we have achieved justice by holding the defendant legally and financially accountable."
"American contracts are not for sale United States, nor abroad," said Paul Delacourt, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "This case should send a message to companies and officials domestically and overseas that the FBI and our partners will hold accountable those who threaten the integrity of our military operations and who abuse their position to profit personally at the expense of American taxpayers."
"This plea demonstrates the great cooperation among our federal investigators and prosecutors," said Director Frank Robey of the U.S. Army Criminal Investigation Command's (CID) Major Procurement Fraud Unit. "It also holds SK responsible for their actions and sends a strong message that this type of conduct will not be tolerated."
"This sort of abhorrent behavior is a serious threat to the integrity of the DoD acquisition process and a gross betrayal of the public trust" said Special Agent in Charge Stan Newell of the Defense Criminal Investigative Service (DCIS), Transnational Operations Field Office. "The special agents of the DCIS, along with our partner agencies, will vigorously investigate and bring to justice those who pilfer taxpayer dollars and shamelessly enrich themselves through corruption and deceit."
According to plea documents, SK obtained a large U.S. Army construction contract at Camp Humphreys, South Korea in 2008 worth hundreds of millions of dollars. SK paid millions of dollars to a fake Korean construction company named S&Teoul, which subsequently paid that money to a contracting official with the U.S. Army Corps of Engineers. In order to cover approximately $2.6 million in payments to S&Teoul, and ultimately to the contracting official, SK submitted false documents to the U.S. Army.
SK also admitted that its employees obstructed and attempted to obstruct federal criminal investigations of the fraud and bribery scheme. SK admitted that, in April 2015, its employees burned large numbers of documents related to U.S. Army contracts, in order to hamper U.S. and Korean investigators. Further, SK admitted that, in the fall of 2017, its employees obstructed a
federal criminal proceeding by attempting to persuade an individual not to cooperate with U.S. authorities.
A number of relevant considerations contributed to the United States’ criminal resolution with SK, including that SK frustrated the United States’ investigation by withholding requested documents and information, destroying documents relevant to a pending federal investigation, and attempting to persuade a potential witness not to cooperate with the investigation. In addition, SK did not discipline any employees responsible for the misconduct, either through direct participation or failure in oversight, or those with supervisory authority over the area in which the criminal activity occurred, and failed to retain business records and otherwise failed to prohibit the improper destruction and deletion of business records.
In November 2018, two SK employees, Hyeong-won Lee and Dong-Guel Lee, were indicted by a federal grand jury in the Western District of Tennessee on charges of conspiracy, major fraud against the United States, wire fraud, money laundering conspiracy, and obstruction of justice for their alleged roles in the scheme.
The indictment is only an accusation, and the defendants are presumed innocent unless and until found guilty by a court of law. The case is U.S. v. Lee (2:18-cr-20378-TLP). Hyeong-won Lee and Dong-Guel Lee are currently fugitives of justice.
Army-CID, DCIS, and the FBI’s Los Angeles Field Office investigated this case. Assistant Chief Justin Weitz and Trial Attorney Danny Nguyen of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Tony Arvin of the Western District of Tennessee prosecuted the case. Trial Attorney Andrew Steinberg of the Civil Division’s Fraud Section represented the government in the civil case. The Criminal Division’s Office of International Affairs and Public Integrity Section and the Korean National Police Agency provided assistance in connection with 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.
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Putnam County Man Sentenced to 10 Years in Federal Prison for Child Pornography OffenseRead the Press Release
HUNTINGTON, W.Va. – A Hurricane man was sentenced to federal prison for a child pornography offense, announced United States Attorney Mike Stuart. Christopher Charles Hirst, 26, was sentenced to 10 years in prison for receipt of child pornography. Following his release from prison, Hirst will serve a term of 20 years on supervised release and will be required to register as a sex offender.
“Predators like Hirst are a parent’s worst nightmare,” United States Attorney Mike Stuart said. “My team and our federal, state and local law enforcement partners are committed to protecting West Virginia’s children. We will bring the full force of the law against child sex offenders.”
Hirst previously admitted that beginning in approximately August 2018 he began a relationship with a 14-year-old girl from Putnam County. During the course of that relationship, Hirst repeatedly asked the minor to send him sexually explicit photographs via the Snapchat app. When the minor ultimately sent the images, Hirst preserved those images without the minor’s knowledge. Hirst also admitted to taking several sexually explicit images of the minor in person, including one depicting them engaged in a sexual act.
The Putnam County Sheriff’s Department and the U.S. Department of Homeland Security-Homeland Security Investigations conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald handled the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Follow us on Twitter: SDWVNews and USAttyStuart
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President’s Commission on Law Enforcement and the Administration of Justice Continues Hearing on Community EngagementRead the Press Release
Yesterday, the President’s Commission on Law Enforcement and the Administration of Justice continued its hearing on community engagement. The hearing was conducted via teleconference and featured expert witnesses who provided testimony and answered questions from the commissioners.
The commission received testimony from Glen Gilzean, President and CEO of the Central Florida Urban League; Norman Reimer, Executive Director of the National Association of Criminal Defense Lawyers, and; Deena Hayes-Greene, Managing Director, Trainer, and Organizer of the Racial Equity Institute.
The panelists discussed the role of community engagement in the criminal justice system. Mr. Gilzean testified to the importance of building trust between the African American community and law enforcement and provided a number of examples of programs that have demonstrated success in fostering dialogue between the two communities. Ms. Hayes-Greene testified to the systemic disparities that exist for African Americans across all professional fields, but particularly throughout the criminal justice system. Mr. Reimer’s testimony provided many recommendations for reforms for law enforcement, one in particular, he argued, is the need for law enforcement to be subject to certification and de-certification like other professional fields, such as lawyers, social workers, doctors, etc. The prospect of losing one’s certification could serve as a deterrent to wrongdoing and abuse, he said.
For more information on the commission, please visit: https://www.justice.gov/ag/presidential-commission-law-enforcement-and-administration-justice. Audio recordings and transcripts of the hearings will be posted online once available.
Portland Home Healthcare Company and Owner Settle False Claims Act AllegationsRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank today announced that a Portland home healthcare company and its owner have agreed to pay $111,200.46 to settle allegations that they violated the False Claims Act.
The civil settlement agreement with the United States and the State of Maine resolves allegations that Noble Home Health Care, Inc. (“Noble”) and its owner Mohamed A. Hassan (“Hassan”), submitted false claims to MaineCare (Maine’s Medicaid program) from May 2016 through September 2016. MaineCare is primarily funded by the United States, which pays approximately two-thirds of all reimbursed claims.
As alleged in a civil complaint filed today, Noble and Hassan submitted false claims for reimbursement to MaineCare for services provided to children with mental health diagnoses despite the fact that Noble did not hold the necessary mental health licensure to bill for such services. The United States and Maine contended that Maine Department of Health and Human Services (“Maine DHHS”) officials informed Hassan several times that Noble could neither provide nor bill for mental health services for its clients. Despite this, for nearly five months Noble and Hassan sought and received MaineCare funds for non-reimbursable, unlicensed services provided to 45 MaineCare members with mental health diagnoses. Hassan subsequently admitted to Maine DHHS that he had to pay MaineCare back for the services Noble had provided without a license.
The U.S. Department of Health & Human Services, Office of Inspector General; the U.S. Attorney’s Office for the District of Maine; and the Office of the Maine Attorney General investigated the case. The civil action is docketed United States & State of Maine v. Noble Home Health Care, Inc. et al., 20-cv-00204-GZS (D. Me.).
Philadelphia Man Sentenced to over Four Years in Prison for Illegally Possessing a FirearmRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Khalil Key, 32, of Philadelphia, PA was sentenced to 52 months of imprisonment and three years of supervised release by United States District Judge Jeffrey L. Schmehl.
Key pleaded guilty in November 2019 to charges of being a felon in possession of a firearm, specifically a loaded Glock .40 caliber semi-automatic pistol. In March 2019, Key was approached by Amtrak Police at the Lancaster train station after he departed a train originating from Philadelphia. Key dropped a backpack on the floor of the station and ran from the officers. Police recovered the backpack and found the loaded weapon and Key’s personal identification inside. Key has previously been convicted of, and served terms of imprisonment for, weapons offenses.
“Reducing violent crime is a top priority of my Office and the Department of Justice,” said U.S. Attorney McSwain. “Firearms in the hands of convicted felons pose a serious threat to public safety. We are committed to working with our law enforcement partners to address this threat, whether it be on the streets of large cities, in small towns or anywhere in between -- including on public transportation.”
“This case is a reflection of our incredible working relationships with our local, state and federal law enforcement partners,” said Acting Special Agent in Charge John Schmidt, ATF Philadelphia Field Division. “Any time we can get a firearm out of the hands of a prohibited person, especially one with a history of weapon offenses, is a good day.”
“Amtrak Police appreciates the strong partnerships that we have with our Federal, state and local agencies, which all assist with keeping our system safe and secure,” said Amtrak Police Department Chief Neil Trugman.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Amtrak Police. The U.S. Marshals Service assisted in Key’s arrest. The case is being prosecuted by Assistant United States Attorney Paul L. Gray.
Pharmacist Indicted for Presenting Forged Prescriptions for Opioid and Anti-Malaria PrescriptionRead the Press Release
St. Louis, MO – Tamara Jo Nyachira, 40, of Pittsburg, Kansas, was indicted today with three felony charges of obtaining anti-malaria and narcotic opioid prescription drugs with forged prescriptions.
According to the Indictment, Nyachira was a pharmacist for a large pharmacy chain, and worked at various pharmacies throughout Missouri, including one in Farmington, Missouri. During March of 2020, Nyachira used several forged prescriptions to obtain two drugs, amoxicillin clavulanate potassium (sometimes marketed as Augmentin®) and hydroxychloroquine sulfate (sometime marketed as Plaquenil®). Hydroxychloroquine sulfate (sometime marketed as Plaquenil®) has been approved by the U.S. Food and Drug Administration (“FDA”) to treat malaria, lupus, and rheumatoid arthritis, and can also be used on an emergency basis for hospitalized COVID-19 patients.
Further, the Indictment alleges that Nyachira used a forged prescription to fraudulently obtain Codeine/butalbital/acetaminophen/caffeine (sometimes marketed as Fioricet® with Codeine), which is an opioid drug and Schedule III controlled substance.
“Nyachira is charged with forging prescriptions and fraudulently obtaining opioids and other drugs, thereby limiting availability of medications to patients legitimately reliant on these drugs,” said Curt L. Muller, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We are dedicated to working with local, state, and federal officials to hold accountable individuals who engage in such illegal activities.”
If convicted, the anti-infection prescription drug charges each carry a maximum penalty of 3 years in prison and a $250,000 fine, while the controlled substance charge carries a maximum penalty of 4 years. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Pittsburg, Kansas Police Department, the Branson, Missouri Police Department, and the Farmington Police Department, with assistance from the Office of Inspector General for the U.S. Department of Health and Human Services, the Drug Enforcement Administration, the Missouri Pharmacy Board, the Eastern District of Missouri OPIOID Task Force, and the Eastern District of Missouri COVID-19 Task Force, a multi-agency working group committed to fighting COVID-19 frauds and scams that is operated under the leadership of the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the U.S. Secret Service.
Charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Operators of California Charity Plead Guilty to Mail Fraud Conspiracy and Tax EvasionRead the Press Release
A California couple pleaded guilty yesterday to conspiring to commit mail fraud and tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert S. Brewer, Jr. for the Southern District of California.
According to court documents and statements made in court, married couple Geraldine Hill and Clayton Hill operated On Your Feet (OYF), also known as Family Resource Center, a tax-exempt charitable organization whose stated mission was to provide assistance to low income families and individuals in need. From 2011 through 2016, the Hills fraudulently obtained more than $1.35 million in donated clothing and other items by falsely representing to the donors that the items would be given to needy recipients. In fact, the Hills made charitable donations of only about $13,000, sold the remaining donated items, and used the proceeds to financially enrich themselves and others. To conceal their conduct from the Internal Revenue Service (IRS), the Hills filed false charitable tax returns for OYF and false personal tax returns that did not report the income they received from their scheme.
“The Hills not only evaded their taxes, but they did so by abusing their company’s tax-exempt charitable status and thereby cheated not only the public fisc but the donors and intended beneficiaries of the donations,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “As the guilty pleas make clear, this conduct will not go unpunished.”
“I am committed to using the resources of the U.S. Attorney’s Office in the Southern District of California to aggressively pursue fraudsters and tax cheats,” said U.S. Attorney Robert S. Brewer Jr. for the Southern District of California. “The conduct by Geraldine and Clayton Hill is particularly offensive because they used the benefits afforded by the 501(c)(3) status of their charity to defraud donors and conceal their profits. By abusing the generosity of companies and individuals who put their faith in the promises made by the Hills, the defendants threatened to undermine the trust and integrity underpinning charitable giving.”
“Geraldine Hill and Clayton Hill exploited the public trust and charitable giving by using their charity to solicit over $16 million in goods from hardworking businesses and falsely promising to donate those goods to assist low income families and individuals in need,” said Ryan L. Korner, Special Agent in Charge of the IRS Criminal Investigation Division. “Instead, the Hills resold the goods and profited over $1.34 million which they spent on vehicles, vacations, and entertainment, as well as personal expenses for their family members. The Hills concealed their fraud by filing false tax returns on behalf of the charity and failing to report their illicit income to the IRS. Their guilty pleas evidence the hard work of IRS Criminal Investigation Special Agents to bring to justice those that defraud businesses in the name of charity, and who benefit themselves instead of serving those most in need.”
“While fraud is always wrong, the theft of charitable donations that were to be used to help San Diego’s low income families is particularly disheartening,” said Acting FBI Special Agent in Charge Omer Meisel. “This type of fraud and deceit for personal gain simply cannot be tolerated. The FBI is committed to ensuring that white collar predators don’t prevent those less fortunate from receiving all the benefits that generous donors provide to seemingly legitimate non-profit organizations.”
U.S. District Judge Dana M. Sabraw scheduled the sentencing for Aug. 28, 2020. At sentencing, the Hills face a maximum sentence of five years in prison for each mail fraud conspiracy and tax evasion. The Hills also face a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Brewer commended special agents of the IRS-Criminal Investigation Division and the FBI, who conducted the investigation, and Trial Attorney Valerie Preiss of the Tax Division and Assistant U.S. Attorney Rebecca Kanter, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Operation Mad Hatter Leads to Multiple Arrests in Pine BluffRead the Press Release
LITTLE ROCK—Twelve defendants are in custody after a DEA operation led to several arrests this morning as part of a federal drug investigation. Operation Mad Hatter has resulted in the identification of multiple drug traffickers and the seizure of large quantities of cocaine, ecstasy, methamphetamine, and heroin.
Operation Mad Hatter, run by the Organized Crime Drug Enforcement Task Force, is an ongoing DEA Domestic Cartel Initiative investigation. Today’s arrests follow the unsealing of indictments of 13 individuals who were charged by a federal grand jury on March 3, 2020. Of those, eight were taken into custody this morning, three were already in police custody, and one has made arrangements to turn herself in.
The investigation was initiated in June 2018 to target violent drug trafficking organizations operating in central Arkansas and, in particular, Pine Bluff. The investigation revealed that the Stuttgart Police Department was responding to drug and violence caused by a local gang organization called Porter Block Mafia, or PBM. Detectives reported this particular organization was responsible for several shootings and other violent crimes in Stuttgart. The organization was also known for selling crack cocaine, marijuana and illegally-obtained pills. Stuttgart police reported there have been several drug robberies in their city suspected to be carried out by the PBM organization.
The Pine Bluff Police Department and Jefferson County Sheriff’s Office advised investigators that the main violent gang organization in their community is known as Murder Gang and Murder MOB, or MOB. Local investigators advised that these violent organizations were responsible for three to four shootings a night in their community as well as several murders. Both agencies advised that the killings were related to narcotics and gang rivalries. Additionally, over 120 firearms had been stolen from a pawn shop in Pine Bluff, and police advised that they suspected MOB has been using these stolen weapons to commit crimes in their community.
In response to the drug and gun violence in Pine Bluff and Stuttgart, DEA launched Operation Mad Hatter in 2019. In February 2019, DEA made the first arrests related to the operation, and in August 2019, additional arrests resulted from activity uncovered during the ongoing investigation. Today’s arrests mark the third phase of the operation, which has resulted in a total of 43 arrests to date.
On March 3, 2020, the grand jury for the Eastern District of Arkansas returned an indictment charging Kendrick Thorn and 11 codefendants in a conspiracy to distribute methamphetamine, as well as firearms offenses. Thorn and three codefendants are charged with enhanced penalties based on prior convictions for drug trafficking and crimes of violence. Four additional defendants are indicted with drug trafficking and firearm offenses in separate indictments.
During the course of Operation Mad Hatter, investigators have seized 29 kilograms of methamphetamine, four kilograms of cocaine, one kilogram of MDMA (commonly known as ecstasy), 1.5 kilograms of heroin, 82 grams of fentanyl, over 200 diverted prescription pills, more than $107,000 in assets, and seven firearms. During today’s arrests, officers recovered an additional 600 grams of methamphetamine, approximately one pound of marijuana, three firearms, and approximately $6,000 in U.S. currency.
“Today’s arrests demonstrate that law enforcement is working hard to eradicate drugs and violence from our communities,” stated Cody Hiland, United States Attorney for the Eastern District of Arkansas. “This third phase of Operation Mad Hatter is an example of the continued pressure we will apply to drug trafficking organizations. We appreciate the efforts of our many law enforcement partners who were instrumental in carrying out this investigation.”
Shirley Washington, Mayor of Pine Bluff, stated, “The City of Pine Bluff is committed to revitalizing our community and making this a place of destination for families, students, and businesses to thrive. We support all efforts to make this a safe environment for such progress to grow and flourish.”
“Nothing is more important than the safety and security of our communities. This Domestic Cartel Initiative operation is a powerful attack against a violent drug trafficking organization and will have an immediate impact in this region of Arkansas and beyond,” DEA Assistant Special Agent in Charge Justin King said. “The resulting arrests demonstrate the combined strength local, state, and federal law enforcement agencies bring to bear in the fight against these domestic cartels and strike a substantial blow to their drug trafficking operations. By working together, we are leveraging our respective resources to achieve results that we could not accomplish on our own.”
“These arrests represent a lengthy investigation and send a clear message to drug traffickers. The U.S. Postal Inspection Service will defend the nation’s mail system from illegal use, and stopping the flow of dangerous drugs to our cities is a high priority,” said D. Glen Henderson, Acting Inspector in Charge of the Fort Worth Division. “Removing drugs from the streets and taking guns from criminals is always a victory for the community. We thank the U.S. Attorney’s Office, the Drug Enforcement Administration, and all county, state and local law enforcement officers who worked together with Postal Inspectors to make this investigation a success.”
Operation Mad Hatter is a joint investigation with participation from the DEA Little Rock District Office; FBI; United States Postal Inspection Service; United States Marshals Service; Bureau of Alcohol, Tobacco, Firearms, & Explosives; Arkansas State Police; Pine Bluff Police Department and the Narcotics Unit; Little Rock Police Department; North Little Rock Police Department; Benton Police Department; Jefferson County Sheriff’s Office; Pulaski County Sheriff’s Office; Saline County Sheriff’s Office; Central Arkansas Drug Task Force; and Arkansas Community Corrections.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Oneida County Felon Pleads Guilty to Possessing Firearms and AmmunitionRead the Press Release
SYRACUSE, NEW YORK – Joseph W. Cromp, Sr., age 46, of Blossfield, New York, pled guilty today to possessing two firearms and over 100 rounds of ammunition as a convicted felon, announced United States Attorney Grant C. Jaquith, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and New York State Police Superintendent Keith Corlett.
As part of his guilty plea today, Cromp admitted that he possessed a Rohm .22 caliber revolver and an Izhmash SAIGA 7.62 x 39 mm AK-47 style semiautomatic rifle, as well as 113 rounds of rifle ammunition that were seized pursuant to a search warrant by New York State Police from the defendant’s home in Blossfield, New York, on October 2, 2019. Cromp was previously convicted of the felony offense of Attempted Assault in the Second Degree in Oneida County Court on February 9, 2001. The search warrant followed a confrontation Cromp had with another man earlier in the evening.
At sentencing on October 27, 2020, Joseph W. Cromp, Sr. faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. As part of his guilty plea, Cromp will forfeit both firearms and all ammunition seized during the execution of the search warrant at his residence. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Richard Southwick, with assistance from the Oneida County District Attorney’s office.
Prosecution of this case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
New Iberia Man Caught During Foot Chase Sentenced for Illegally Possessing a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced today that David Youman, 29, was sentenced by U.S. District Judge Michael J. Juneau, to serve five years in federal prison followed by three years of supervised release, for possession of a firearm in furtherance of a drug trafficking crime. Youman pled guilty on January 23, 2020.
On January 4, 2018, a Broussard Police officer was conducting a traffic patrol on Highway 90 westbound and observed the driver of a green Dodge Stratus commit several traffic violations. As the officer proceeded to catch up to the vehicle, it switched lanes into the left lane and then into the turn lane of Ambassador Caffery Parkway. The officer activated his lights to stop the vehicle. The vehicle continued on Ambassador Caffery then appeared to turn right and stop but continued and pulled into the driveway of a residence. At that point, Youman exited the vehicle and fled on foot. As he was running, the officer observed him throwing a backpack in the yard. A Louisiana State Police trooper assisting with the stop observed the defendant flee and apprehended him in the backyard of the residence. Youman told the officers that he ran because he has warrants for his arrest.
During their encounter, the officers detected the smell of marijuana coming from Youman and asked him if he had any marijuana on his person. Youman stated that he had a sack of week hidden in his underwear. Approximately 21 grams of marijuana was in the bag removed from Youman’s underwear. Officers also found approximately 238 grams of marijuana, a black digital scale, and a Kahr .45 caliber handgun with six rounds of ammunition in Youman’s backpack. Youman admitted to possessing the marijuana with the intent to distribute it and that he was in possession of the firearm to further his drug trafficking crimes.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Broussard Police Department, and Louisiana State Police conducted the investigation. Assistant U.S. Attorney David J. Ayo prosecuted the case.
This case was brought as part of the Project Safe Neighborhoods (PSN) initiative. PSN is a program that has been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. PSN plays a major role in the Department of Justice’s violent crime reduction strategy. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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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.
Midland Man Sentenced to Statutory Maximum of 80 Years in Federal Prison on Child Pornography ChargesRead the Press Release
In Midland today, a federal judge sentenced 32-year-old Christopher Ernest Martinez to a statutory-maximum 80 years in federal prison for producing and distributing child pornography, announced U.S. Attorney John F. Bash.
In addition to the prison term, U.S. District Judge David Counts ordered that Martinez be placed on supervised release for a period of ten years after completing his prison term. On December 19, 2019, Martinez pleaded guilty to two counts of production of child pornography and one count of distribution of child pornography.
On March 4, 2020, Judge Counts sentenced co-defendant, 23-year-old Kelsey Renee Hubbard of Midland, to 40 years in federal prison followed by ten years of supervised release after pleading guilty to one count of aiding and abetting production of child pornography and one count of distribution of child pornography.
According to court records, a local business contacted the Midland Police Department (MPD) on September 30, 2019, about a computer sold to them by Hubbard. The computer contained several images of children engaged in sexually explicit conduct. The business contacted MPD when Hubbard appeared the next day attempting to sell jewelry. Officers arrived on the scene and detained Hubbard. Hubbard admitted to investigators that she attempted to clear the computer’s memory before selling it. She also consented to allow MPD to search her cell phone. A forensics exam of her phone revealed several text messages in September 2019 in which Hubbard and Martinez exchanged approximately 60 images of child pornography, most of them produced by Hubbard at the request of Martinez.
“Today a child predator is off the streets for good. The 80-year sentence sends a powerful signal about our seriousness in fighting the scourge of child abuse,” stated U.S. Attorney Bash.
The Midland Police Department investigated this case. Assistant U.S. Attorney Monica Daniels and former Assistant U.S. Attorney Austin Berry prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the 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, 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.
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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.