Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 5 June 2020
Bay Area Hospitality and Automotive Executive Charged with FraudRead the Press Release
SAN FRANCISCO – Geoffrey M. Palermo was charged in a criminal complaint with wire fraud and making false statements in a loan application in connection with multiple schemes to defraud spanning from 2013 to 2020, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and U.S. Small Business Administration (SBA) Office of the Inspector General (OIG) Western Region Special Agent in Charge Weston King.
“What is particularly galling about the conduct alleged in the complaint is that while Geoffrey Palermo was wrongfully receiving PPP funds, he was not paying required payroll taxes for his employees, making it difficult or impossible for his employees to obtain the benefits to which they were rightfully entitled,” said U.S. Attorney Anderson. “PPP funds are intended to protect the many, not to enrich the few. The fraud alleged in the indictment reversed Congressional intent by depriving employees and enriching Palermo.”
"The FBI, along with our federal partners, will actively pursue this type of criminal behavior—especially of those seeking to fraudulently profit from the current health crisis,” said FBI Special Agent in Charge Bennett. “This case exemplifies how collaboration with our federal partners is vital to these investigations.”
“Our office will aggressively investigate any false statements made to gain access to SBA’s programs,” said SBA OIG Special Agent in Charge King. “OIG and its law enforcement partners are poised to root out fraud in SBA’s programs and bring wrongdoers to justice.”
According to the complaint, Palermo, 56, of Novato, Calif., is alleged to have orchestrated multiple schemes to defraud his victims. While working as the manager of the San Francisco Hilton hotel between 2013 and 2016, Palermo allegedly embezzled large sums of money, including through capital improvement kickback schemes. One contractor frequently hired by Palermo for projects at the hotel is suspected of paying Palermo approximately $1.5 million in kickbacks between March 2013 and June 2016. Palermo allegedly ensured that the contractor’s inflated or fraudulent invoices were paid by Justice Investors, LP, the owner of the hotel. After depositing Justice Investor checks to his business banking account, the contractor transferred funds into an illegitimate living trust bank account and then wrote checks back to Palermo or entities associated with Palermo.
After leaving the Hilton in 2016, Palermo worked for GMP Cars, a set of collision and auto repair centers in the Bay Area that he owned and operated. The complaint alleges that Palermo used GMP Cars funds to pay for lavish expenditures, including a Ferrari racing car and personal travel. The complaint explains that Palermo’s reliance on the company’s funds to finance his personal expenditures left the company in financial distress.
Then, in 2019, Palermo applied to an SBA Preferred Lender for two loans to GMP Cars for a total of approximately $5 million. The SBA guaranteed 75% of the loans. According to the complaint, Palermo made several material omissions and false statements during the 2019 loan application process. For example, Palermo failed to disclose that in September 2019—during the loan application process—he had overdrawn his business bank accounts by more than $700,000. Palermo also misrepresented amounts he owed German Motors Corporation in connection with GMP Cars’ acquisition of a collision center in San Francisco, going so far as to submit an altered promissory note to the Preferred Lender.
Most recently, in April 2020, Palermo made false and misleading statements when he applied for and received approximately $1.7 million through the SBA’s Paycheck Protection Program (PPP). The PPP is a relief program offered through participating lenders to aid small businesses during the COVID-19 pandemic. In the PPP application, Palermo falsely certified that GMP Cars had employees for whom it paid salaries and payroll taxes. The criminal complaint includes an internal GMP Cars spreadsheet showing that Palermo had decided not to pay required payroll taxes since at least mid-2019. According to the complaint, laid-off GMP Cars employees have had difficulty in recent months collecting their full unemployment benefits due to GMP Cars’ failure to pay payroll taxes and accurately report employee wages to California’s Employment Development Department (EDD).
In sum, the complaint alleges that the investigation is ongoing and that, to date, the evidence has established that since 2013 Palermo fraudulently obtained at least $8 million through his illegal conduct.
Palermo is charged with honest services wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346; wire fraud, in violation of 18 U.S.C. § 1343; and making a false statement in a loan application to an FDIC-insured lender, in violation of 18 U.S.C. § 1014. The wire fraud charges each carry maximum statutory penalties of up to 20 years in prison and a $250,000 fine, while the false statement charge carries a maximum of 30 years in prison and a $1,000,000 fine. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Palermo is scheduled to make his initial appearance in federal court on June 10, 2020 before U.S. Magistrate Judge Laurel Beeler.
The case is being prosecuted by the Corporate Fraud Strike Force of the U.S. Attorney’s Office. The case is being investigated by the FBI and SBA OIG.
Arrest Made for the Arson of Fayetteville’s Historic Market HouseRead the Press Release
RALEIGH, N.C. – A Fayetteville man was arrested today for taking part in the arson of Fayetteville’s Market House after an otherwise peaceful demonstration over the death of George Floyd in Minneapolis, Minnesota, turned violent, Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina announced.
Charles Anthony Pittman, of Fayetteville was arrested by special agents of the ATF and is charged by complaint with one count of maliciously damaging property owned or possessed by an institution receiving federal financial assistance. Pittman will make his initial appearance June 8, 2020, by videoconference before U.S. Magistrate Judge Robert T. Numbers, II.
According to the complaint, on May 30, 2020, an otherwise peaceful protest in downtown Fayetteville turned violent when several individuals set fire to the Market House. A local television crew caught Pittman on camera showing a red gasoline container to the crowd below before he poured its contents throughout the floor of the second story. Pittman ran out of the Market House as the floor caught on fire with other individuals, including an employee, still inside. As a result of the fire, the Market House sustained charring and mass wood loss to the second story floor.
Earlier that same day, Pittman broadcasted a Facebook Live video while he drove around the Market House traffic circle. Pittman claimed to be scoping out the scene, as he discussed whether the Market House should come down. After noting the inaction of the peaceful protesters, saying they would just “barbeque and mildew,” Pittman promised the Facebook Live audience that he would be back. Pittman wore the same shirt in the Facebook Live video that he wore later at the Market House fire.
The count charged in the criminal complaint carries a statutory mandatory minimum term of imprisonment of seven (7) years, a maximum potential penalty of forty (40) years in prison, and a maximum fine of $250,000.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina credited the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Fayetteville Police Department (FPD) with the investigation leading to today’s arrest. Assistant U.S. Attorneys Chad Rhoades and J.D. Koesters of the U.S. Attorney’s Office’s Criminal Division are representing the government.
The charges and allegations contained in the complaint are merely accusations, and the 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.
Arkansas Inmate Indicted for Threatening to Kidnap and Kill Federal JudgesRead the Press Release
LITTLE ROCK, Arkansas – A 36-year-old Arkansas Department of Corrections inmate has been indicted for federal violations in the Eastern District of Arkansas, announced Eastern District of Texas U.S. Attorney Stephen J. Cox today.
Jeffrey S. Williams was indicted by a federal grand jury in Little Rock, AR, on June 4, 2020 and charged with mailing threatening communications.
According to the indictment, in March 2018, Williams is alleged to have mailed a letter to the federal courthouse in Memphis, TN, in which he threatened a U.S. District Judge. Then in May 2018, February 2019, and March 2020, Williams is alleged to have mailed letters to the federal courthouse in Little Rock in which he threatened two U.S. District Judges and an Assistant U.S. Attorney. Each threatening letter was mailed in violation of the laws of the United States.
Williams is currently an inmate in the Arkansas Department of Corrections as a result of a robbery and theft conviction in the Pulaski County Circuit Court.
If convicted, Williams faces up to 40 years in federal prison.
This case is being investigated by the Little Rock office of the U.S. Postal Inspection Service and prosecuted by Eastern District of Texas Assistant U.S. Attorney Jonathan R. Hornok.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Androscoggin and York Counties 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 $58,008 each to Androscoggin County and York County 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. This program allows eligible state, local and tribal governments to apply immediately for these critical funds. Since the program’s launch in early April, OJP has awarded over $753 million to 1,367 state, local and tribal agencies and organizations. Fifteen Maine jurisdictions have received a total of $4.2 million.
“Androscoggin and York counties are among the areas in Maine most deeply affected by the coronavirus pandemic,” said U.S. Attorney Frank. “I hope the funds the Department of Justice is able to provide through these grants assist the dedicated public safety professionals in those counties.”
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.
Alaska Neurology Center LLC and Its Owner to Pay $2 Million to Settle False Claims Act Allegations Regarding Fraudulent Medical BillingRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Anchorage-based Alaska Neurology Center LLC and its owner, Franklin Ellenson, M.D., have agreed to pay $2 million to resolve False Claims Act allegations that the medical practice knowingly submitted false billing claims to federal healthcare programs. Contemporaneous with the civil settlement, Alaska Neurology Center LLC and Dr. Ellenson agreed to a three-year Integrity Agreement with the U.S. Department of Health and Human Services.
“Healthcare providers who submit false bills hurt honest providers and the nation’s taxpayers,” said U.S. Attorney Schroder. “I commend the collaborative efforts of our federal partners to use all available remedies, both civil and criminal, to address waste and abuse in the healthcare market. I am particularly pleased that the public healthcare programs will be made whole, which will help ensure their continued vitality for future generations.”
The settlement resolves allegations that, from March 2013 through June 2018, Alaska Neurology Center LLC engaged in multiple fraudulent billing schemes, including: (1) submitting claims with false dates of service in order to obtain reimbursement beyond program caps, (2) submitting claims for infusion services provided by an unqualified medical assistant, (3) submitting claims for physical therapy when the service provided was non-reimbursable massage therapy, (4) submitting claims using multiple, unbundled billing codes, rather than a single required billing code, to obtain overpayment for the service, (5) submitting claims with false names of performing and/or referring medical providers, and (6) re-submitting claims with false service or diagnosis information, and without consulting a medical provider, after an original claim was rejected.
The allegations stem from a lawsuit filed under the whistleblower, or qui tam, provision of the False Claims Act, which allows private parties to bring suit on behalf of the government and to share in any recovery. The whistleblower will receive approximately $380,000 of the settlement.
The government’s pursuit of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the U.S. Department of Health and Human Services at 1-800-HHS-TIPS (800-447-8477) or https://oig.hhs.gov/fraud/report-fraud.
The settlement was the result of an investigation conducted by the Civil Division of the U.S. Attorney’s Office for the District of Alaska, in conjunction with the U.S. Department of Health and Human Services Office of Inspector General. Investigative support was also provided by the Defense Health Agency, U.S. Office of Personnel Management, U.S. Department of Veterans Affairs, and the Federal Bureau of Investigation.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit is captioned United States of America ex rel. Thomas Fidler v. Alaska Neurology Clinic, LLC [sic], et al., No. 3:18-cv-00057-HRH (D. Alaska).
Additional Violations of the Clean Water Act Filed Against Former Greenfield Township Sewer Authority ManagerRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Bruce Evans, Sr., age 67, former Greenfield Township Sewer Authority Manager, Greenfield Township, Pennsylvania, was charged on May 28, 2020, in a thirty-six count superseding indictment by the federal grand jury with additional violations of the Clean Water Act.
According to United States Attorney David J. Freed, Evans, Sr. and his son, Bruce Evans, Jr., age 38, both of Greenfield Township, were previously charged in an initial indictment returned in January 2019. The superseding indictment alleges that at times material to the charges, Evans, Sr. was a Greenfield Township Supervisor, a Greenfield Township Sewer Authority Board Member, Manager of the Greenfield Township Sewer Authority, and the Township’s “roadmaster.” Evans, Jr. was an employee of both Greenfield Township and the Greenfield Township Sewer Authority. It is alleged that on various dates between April 2013 and December 2017, Evans, Sr. and Evans, Jr. failed to operate and manage the municipality’s waste water treatment plant in accordance with regulations and limitations specified in a permit issued by the Pennsylvania Department of Environmental Protection (PADEP) and the Environmental Protections Agency (EPA). The permit requires that the permittee at all times maintain in good working order, and properly operate and maintain all facilities and systems, which were installed and used by the permittee to achieve compliance with the terms and conditions of the permits. It is also alleged that as a result of such failures, pollutants were discharged in violation of the permit.
The superseding indictment charges Evans, Sr. with additional violations of the Clean Water Act specifically related to the Greenfield Township Sewer Authority’s pump station located at State Route 106. It is alleged that Evans, Sr., rather than the licensed operator hired by the Authority to operate the treatment plant, managed and operated the sewer lines and pump stations. It is alleged that Evans, Sr. was not certified by the PADEP to operate or manage the pump stations. The violations associated with the State Route 106 pump station involve multiple unlawful bypasses of sewage, sanitary sewage overflows, and Evans, Sr.’s failure to report the same to the PADEP. It is also alleged that Evans, Sr. failed to notify the PADEP of the actual amount of hauled-in waste dumped directly into the State Route 106 pump station by an outside hauler, all in violation of the PADEP permit issued to the Authority. The PADEP learned that the Greenfield Township Sewer Authority was accepting hauled-in waste when it received complaints about odors and sewage overflows at that location, and started to investigate.
The superseding indictment further alleges that Evans, Sr. engaged in a scheme to defraud the Greenfield Township Sewer Authority by fraudulently converting funds and property of the Sewer Authority for his own personal benefit and for the benefit of a family member, including unlawful payments for a personal cell phone and internet service, fueling of personal vehicles, educational expenses, and unlawful use of Greenfield Township Sewer Authority labor. Evans, Sr. is also charged with obstructing U.S. Mail correspondence.
“When citizens elect officials at any level, we put our trust in them to act on behalf of their constituents – not against their interests,” said U.S. Attorney Freed. “Theft, fraud, self-dealing and nepotism are not part of the job description. And what makes this case worse is the environmental damage inflicted on top of the other crimes. I commend and appreciate the hard work of our state and local partners in this case and look forward to presenting our case in court.”
“It's a problem when a municipal employee views their job as not just a paycheck, but a personal piggy bank,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “The fraud and serious environmental violations alleged here indicate both a disdain for the rule of law and a clear-cut case of greed. The FBI stands ready to investigate and hold accountable anyone engaged in such criminal activity.”
“Proper operation of sewage treatment plants is essential to protect human health and the environment”, said Special Agent in Charge Jennifer Lynn of the EPA Criminal Investigations Division in Pennsylvania. “The EPA holds those accountable for their conduct which puts our communities infrastructure at risk.”
The charges stem from an investigation jointly conducted by the Environmental Protection Agency, the Pennsylvania Department of Environmental Protection, and the Federal Bureau of Investigation. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the Clean Water Act violations are punishable by up to 3 years’ imprisonment and a sliding scale for fines of $5,000 to $25,000 per violation, per day. The maximum penalty under the Wire Fraud statute is 20 years’ imprisonment and a $250,000 fine. The maximum penalty under the Obstruction of Correspondence statute is 5 years’ imprisonment and a $250,000 fine. Each crime also carries a term of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Nancy D. Freudenthal sentenced MEGA LESTARI SETIYANINGSIH (a.k.a. Mega Lestari Black, Mega L. Schlautmann, Candy), 33, of Gillette, Wyoming on June 1, 2020 for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Setiyaningsih was arrested in Gillette, Wyoming. She received one hundred eighty 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 $200.00 special assessment. The Wyoming Division of Criminal Investigation and the Campbell County Sheriff’s Office investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced BRIAN LEE EDWARDS, 50, of Sheridan, Wyoming on June 2, 2020 for failure to register as a sex offender. Edwards was arrested in Sheridan, Wyoming. He received twelve months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $100.00 special assessment. The Sheridan County Sheriff’s Office and the United States Marshals Service investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced RIGOBERTO VENTURA-LEMUS (a.k.a. Victor Angel Demayuga-Luna), 33, of Copala, Guerrero, Mexico on June 3, 2020 for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine and heroin and aiding and abetting. Ventura-Lemus was arrested in Cheyenne, Wyoming. He received one hundred twenty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay community restitution in the amount of $400.00 and a $200.00 special assessment. The Wyoming Highway Patrol and the U.S. Drug Enforcement Administration investigated this case.
Thursday 4 June 2020
Winnebago Man Charged with ManslaughterRead the Press Release
United States Attorney Joe Kelly announced the unsealing of a criminal complaint charging Jonathan Daniel Rooney, age 25, of Winnebago, Nebraska with Manslaughter occurring in Indian Country for the death of Kozee Decorah. Rooney’s arrest occurred on June 1, 2020. The maximum punishment for the offense is 15 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Rooney appeared before United States Magistrate Judge Susan M. Bazis on June 3, 2020. A preliminary hearing and a detention hearing will be held at a date to be determined. As this matter concerns an ongoing investigation, the United States Attorney’s Office is unable to provide additional comment at this time.
This case was investigated by the Winnebago Police Department, the Nebraska State Fire Marshal, and the Federal Bureau of Investigation.
A complaint is a formal accusation of conduct, not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Welcomes HIDTA Designation for Eau Claire CountyRead the Press Release
MADISON, WIS. – Scott. C. Blader, United States Attorney for the Western District of Wisconsin, announced today that Eau Claire County has been designated as a High Intensity Drug Trafficking Area (HIDTA) by the White House’s Office of National Drug Control Policy. The designation means Eau Claire County will receive more resources to coordinate federal, state, and local governments’ efforts to fight drug trafficking and abuse.
“This designation will result in the expansion of law enforcement efforts to combat deadly drugs such as methamphetamine and heroin in northwest Wisconsin by providing critical federal support and funding to state and local agencies,” said U.S. Attorney Blader. “These additional resources will be used to disrupt the flow of drugs in northern Wisconsin and hold distribution networks accountable for the deaths and addictions they cause.”
“The Drug Enforcement Administration has been a long time partner with law enforcement agencies in Eau Claire County to fight the scourge of drug trafficking and the violence associated with it. This HIDTA designation will provide much needed support in our efforts to keep the communities in and around Eau Claire County safe from violent drug trafficking organizations,” said DEA Milwaukee District Office Assistant Special Agent in Charge Paul E. Maxwell, Jr.
To secure this designation, the U.S. Attorney’s Office partnered with the Eau Claire County Sheriff’s Department, the West Central Drug Task Force, the St. Croix Valley Drug Task Force, the Eau Claire County District Attorney’s Office and the Drug Enforcement Administration. In addition, all these agencies will continue to partner with the Eau Claire County Alliance for Drug Endangered Children to respond to children who are endangered by caregivers who use, manufacture, or distribute drugs.
Created by Congress in 1988, the High Intensity Drug Trafficking Areas (HIDTA) Program coordinates and assists federal, state, local, and tribal law enforcement agencies to address regional drug threats with the purpose of reducing drug trafficking and drug production in the United States. The HIDTA program oversees regional HIDTAs in all 50 states, Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.
U.S. Attorney Keefe and FBI Warn That Those Inciting Violence and Crime Will Face Federal ChargesRead the Press Release
TALLAHASSEE, FLORIDA – Attorney General William P. Barr has directed federal law enforcement
actions aimed at apprehending and charging violent criminal agitators who have taken over peaceful
protests and are engaging in violations of federal law. While to date, communities within the
Northern District of Florida have not encountered the level of unrest seen in other parts of the
state and nation, United States Attorney Lawrence Keefe and the Federal Bureau of Investigation
(FBI) are employing the FBI’s Joint Terrorism Task Force (JTTF) to identify any criminal organizers
and instigators, coordinate federal resources with state and local partners, and seek federal
prosecutions.“Citizens across the Northern District of Florida are exercising their right to protest guaranteed
by the Constitution, and we will do everything possible to ensure that they are allowed to do so in
a safe, secure environment,” U.S. Attorney Keefe said. “However, we cannot condone – and will not
tolerate – agitators who attempt to hijack peaceful rallies in order to incite violence and
criminal behavior. Working with our federal, state, and local partners, we will stop them, arrest
them, and prosecute them whenever and wherever necessary.”“A duty and privilege of the FBI is to protect citizens as they exercise their First Amendment
rights," said Rachel Rojas, Special Agent in Charge of the FBI Jacksonville Division. "While we
fully support the rights of peaceful protestors, when people abuse those rights to invoke violence,
federal law will be enforced. We will continue to work with our local, state, and federal partners
to apprehend and charge violent instigators, and coordinate with the U.S. Attorney’s offices to
address any federal violations. We advise individuals taking part in protest activities to remain
aware of their immediate surroundings and to report any suspicious activity to law
enforcement.”Attorney General Barr’s May 31 statement is available here:
https://www.justice.gov/opa/pr/attorney-general-william-p-barrs-statement-riots-and-domestic-terrorism.For more information on the FBI Joint Terrorist Task Force, go to
https://www.fbi.gov/investigate/terrorism/joint-terrorism-task-forces.The United States Attorney's Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. To access
available public court documents online, please visit the U.S. District Court for the Northern
District of Florida website. For more information about the United States Attorney’s Office,
Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.U.S. Attorney Brady Announces HIDTA Designation for Westmoreland CountyRead the Press Release
PITTSBURGH – United States Attorney Scott W. Brady announced today that Westmoreland County has been officially designated as a High Intensity Drug Trafficking Area (HIDTA) by the White House’s Office of National Drug Control Policy. Westmoreland joins three other southwestern Pennsylvania counties - Allegheny, Beaver and Washington - in receiving dedicated federal resources to coordinate federal, state and local governments to fight drug trafficking and abuse.
"Law enforcement across western Pennsylvania will be strengthened through this HIDTA designation," said U.S. Attorney Brady. "Westmoreland County will be able now to access critical funding to decrease the availability of illicit drugs, to investigate and prosecute the leaders of drug trafficking organizations, and to significantly reduce the violence that results from illegal drug trafficking."
According to U.S. Attorney Brady, drug trafficking organizations from multiple cities from New York to Chicago utilize Westmoreland County and its throughways to facilitate illegal drug trafficking. Those throughways include Interstate 76 (the Pennsylvania Turnpike) and Interstate 70, as well as U.S. Routes 22, 119, 66, and 30, along with numerous state routes which serve as connectors between Westmoreland County and other local and out of state source areas for heroin, fentanyl, cocaine and methamphetamine.
"With the presence of major highways in Westmoreland County, drug traffickers from outside our county have easy access to our communities," said Westmoreland County District Attorney John Peck. "HIDTA funds will be a great resource to fight the ever-challenging efforts of drug traffickers."
"Too many families in southwestern Pennsylvania have been tragically affected by the opioid epidemic," said Congressman Guy Reschenthaler (PA-14). "Our law enforcement officers are on the front lines battling this epidemic every day, working to keep our communities safe. I was proud to support Westmoreland’s HIDTA designation request, and am grateful to U.S. Attorney Scott Brady and Westmoreland County District Attorney John Peck, as well as the Trump Administration, for ensuring our region has the resources necessary to combat this crisis and save lives."
"The Pennsylvania State Police is a strong partner with all of the law enforcement agencies who are working daily to combat drug trafficking, and this HIDTA designation will help expand our efforts," added Major Stephen Eberle of the Pennsylvania State Police.
"The designation of Westmoreland County as a HIDTA county will bring federal funding, increased sharing of intelligence, analytical support, enhanced training opportunities, and a cooperative effort between the local, state and federal partners," said Derek M. Siegle, Executive Director of the Ohio HIDTA.
U.S. Attorney Brady thanked Pennsylvania’s United States Senators Pat Toomey and Robert Casey, Governor Tom Wolf, Rep. Guy Reschenthaler, Westmoreland County District Attorney John Peck, the Department of Homeland Security/Homeland Security Investigations, the Pennsylvania State Police, the Drug Enforcement Administration, the US Postal Inspection Service, the Federal Bureau of Investigation, as well as local law enforcement who supported and worked in concert to receive this designation.
Westmoreland County is the second largest county in the Western District of Pennsylvania, covering over 1,027 square miles with a population of 350,611. The County joins the program’s Ohio HIDTA region, which includes Ohio, Western Pennsylvania and Northern Kentucky.
Two Wisconsin Men Charged with Illegally Possessing Firearm During Madison ProtestsRead the Press Release
MADISON, WIS. – Two men have been charged with federal firearms crimes in complaints filed today in U.S. District Court for the Western District of Wisconsin. According to United States Attorney Scott C. Blader, the two defendants have been charged with being a felon in possession of a firearm after allegedly being found with a firearm during Madison protests. The cases are not related.
“It is important to speak plainly and give fair warning to those who might consider using legitimate protesters as ‘cover’ for criminal conduct. Every American has a right for their voice to be heard, especially during these challenging times, and my office defends the right of individuals to speak, assemble, and protest,” said U.S. Attorney Blader. “However, public safety is a necessary prerequisite for the free exercise of First Amendment rights. My office will prosecute those who exploit legitimate protests to commit federal crimes.”
Kyle C. Olson, also known as Kyle Charles Quade, 28, Edgerton, Wisconsin, is charged with being a felon in possession of a .45 caliber handgun. The affidavit accompanying the complaint alleges that at approximately 11:00 p.m. on Sunday, May 31, 2020, police officers stationed in the area of 220 West Gilman Street to respond to the civil unrest occurring in downtown Madison observed an individual later identified as Olson remove a handgun from the trunk of his car and place the handgun in his back waistband.
Anthony R. Krohn, 36, Madison, is charged with being a felon in possession of a .22 caliber handgun. The affidavit accompanying this complaint alleges that at approximately 2:12 a.m. on Monday, June 1, 2020, police officers were dispatched to the area of South Fairchild and West Doty Streets in Madison in reference to a person with a gunshot wound, and found a person later identified as Krohn bleeding from a wound in his leg with a gun on the ground next to him. The affidavit further alleges that Krohn told a law enforcement officer that he had shot himself.
Olson and Krohn are currently in custody at the Dane County Jail. Their initial appearances in federal court have not been scheduled and will take place by videoconference.
If convicted, Olson and Krohn each face a maximum penalty of 10 years in federal prison. The charges against them are the result of investigations by the Madison Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey C. Stephan is handling the prosecution of these cases.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Three Men Face Federal Arson Charges for Setting Fire to Police Patrol Vehicle During Protest in Downtown Las VegasRead the Press Release
LAS VEGAS, Nev. — Three men were arrested Wednesday and charged today for conspiring to and setting fire to a Las Vegas Metropolitan Police Department patrol vehicle during a protest in Las Vegas, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Special Agent in Charge Aaron C. Rouse of the Federal Bureau of Investigation (FBI).
Tyree Walker (23), Devarian Haynes (23), and Ricardo Densmore (24), all of Las Vegas, were each charged in a federal criminal complaint with one count of conspiracy to commit arson and one count of arson. The defendants are scheduled to make their initial appearance before U.S. Magistrate Judge Brenda Weksler on June 5, 2020.
“Agitators who are using the camouflage of lawful protests to commit violence against law enforcement will be prosecuted,” said U.S. Attorney Trutanich. “Violence places protesters, first responders, and bystanders in danger, and steals focus away from the messages that peaceful protesters are striving to deliver.”
“Any individual that is engaging in an act of arson is engaging in extremely dangerous behavior,” said Special Agent in Charge Gorman for ATF. “In addition to the destruction of property, acts of arson put the lives of the public at great risk. ATF takes these acts of violence very seriously and is working alongside our local, state, and federal law enforcement partners to protect the public and uphold the rule of law. We will continue to work diligently to ensure the safety of the community and prevent incidents like this from occurring.”
The criminal complaint alleges that, shortly after midnight on May 31, 2020, Las Vegas Fire & Rescue responded to a fire involving a Las Vegas Metropolitan Police Department (LVMPD) patrol vehicle. The patrol vehicle was parked near the intersection of South Ninth St. and East Carson Avenue, during protests relating to Mr. Floyd’s death. A social media video captured the event, leading LVMPD investigators to Walker, Haynes, and Densmore. The video, which was filmed by Densmore, showed Haynes pouring a flammable liquid from a gas can through a broken or missing front passenger side window of the patrol vehicle. Walker lit an object to ignite the liquid, and then Haynes dropped the gas can into the patrol vehicle. All three defendants fled when they heard sirens from an approaching LVMPD vehicle.
If convicted, Walker, Haynes, and Densmore each face: (a) a mandatory minimum sentence of five years; (b) a mandatory maximum sentence of 20 years in prison; and (c) up to a $250,000 fine. The minimum and maximum statutory sentences are prescribed by Congress, and are provided here for informational purposes only. If convicted of any offense, the sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. Every defendant is presumed innocent unless and until proven guilty in a court of law.
This case was the product of an investigation by the ATF, the Las Vegas Metropolitan Police Department, Las Vegas Fire & Rescue, and the FBI-led Criminal Apprehension Team in conjunction with the Joint Terrorism Task Force. Assistant U.S. Attorneys Lisa Cartier-Giroux and Stephanie Ihler are prosecuting the case.
###
Three Men Charged in Separate and Unrelated Bank Robbery CasesRead the Press Release
OKLAHOMA CITY – Three men have been charged in separate and unrelated bank robbery cases, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.
On June 3, 2020, a federal grand jury indicted Keith Lamar Carter, 37, of Oklahoma City, for bank robbery. The indictment alleges that on December 23, 2019, Carter entered Credit Union One of Oklahoma, located at 3300 N. Lincoln Boulevard, Oklahoma City, Oklahoma, and handed a demand note to a teller, who provided money to Carter. He then fled on a BMX style bicycle. After bank surveillance photos were published in the media and additional investigation was conducted, law enforcement received information that pointed to Carter. On February 13, 2020, he was charged by criminal complaint and arrested on February 25, 2020. If convicted, Carter faces a maximum penalty of twenty years in prison, three years of supervised release, a fine of up to $250,000, and restitution. Assistant U.S. Attorneys Ashley Altshuler and Stanley West are prosecuting the case.
On June 3, 2020, a federal grand jury indicted Brandon Scott Newberry, 39, of Ada, of bank robbery. The indictment alleges that on May 12, 2020, Newberry entered City National Bank and Trust, located at 9011 NE 23rd Street, Oklahoma City, Oklahoma and that he handed a demand note to a teller, who provided money to Newberry. On May 15, 2020, law enforcement arrested Newberry based on an arrest warrant that arose out of a criminal complaint. If convicted, Newberry faces a maximum penalty of twenty years in prison, three years of supervised release, a fine of up to $250,000, and restitution. Assistant U.S. Attorney Stanley West is prosecuting this case.
On June 3, 2020, a federal grand jury indicted John Scott Brooks, 36, of Lawton, for bank robbery. The indictment alleges that on March 23, 2020, Brooks robbed the Southwest Oklahoma Federal Credit Union (SOFCU), located at 6714 West Gore Boulevard, Lawton, Oklahoma, and that he used a fake bomb during the robbery. Law enforcement had previously arrested Brooks on April 2, 2020 for the robbery. If convicted on Count 1, Brooks faces a maximum penalty of twenty years in prison, three years of supervised release, a fine of up to $250,000, and restitution. In Count 2 of the indictment, Brooks is charged with conveying a bomb threat during the robbery. If convicted on Count 2, Brooks faces a maximum penalty of up to a 10-year sentence, three years of supervised release, and a fine of up to $250,000. Assistant U.S. Attorney Edward J. Kumiega is prosecuting the case.
These cases are the result of investigations by the Federal Bureau of Investigation Oklahoma City Field Office, the Lawton Police Department, and the Oklahoma City Police Department.
Reference is made to court filings for further information. An indictment is only a charge and is not evidence of guilt. Each defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt. To download a photo of U.S. Attorney Downing, click here.
The Department of Justice Files Sexual Harassment Lawsuit Against Owners of Rental Properties in Muskegon, MichiganRead the Press Release
The Department of Justice announced today that it has filed a lawsuit alleging that the owners of rental properties in Muskegon, Michigan, violated the Fair Housing Act by subjecting female tenants to sexual harassment and retaliation.
The lawsuit, filed in the U.S. District Court for the Western District of Michigan, alleges that Darrell Jones sexually harassed female tenants of rental properties that he owned from at least 2008 to 2018. According to the complaint, Jones made repeated and unwelcome sexual comments, touched female tenants’ bodies without their consent, requested sexual favors, offered reduced or free rent in exchange for sex, and retaliated against female tenants who refused his sexual advances. The lawsuit also names as defendants Fatima Jones and Jones Investing LLC, co-owners of several of the rental properties where the harassment occurred.
“No woman should be forced to suffer sexual harassment to keep her home,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department will vigorously pursue those who engage in such reprehensible and illegal conduct.”
“My office looks forward to vindicating the rights of these tenants,” said U.S. Attorney Andrew Birge for the Western District of Michigan. “I would like all tenants in West Michigan to know that we are here to help if they experience sexual harassment by a landlord or property manager. No one should have to choose between housing and freedom from sexual harassment.”
Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties to vindicate the public interest, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The Attorney General recently reaffirmed this commitment by directing the Justice Department to deploy all available enforcement tools against anyone who tries to capitalize on the COVID-19 crisis by sexually harassing people in need of housing. The goal of the initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. As part of the initiative, the Justice Department developed a public service announcement and formed a joint task force with HUD to combat sexual harassment in housing. Since launching the Initiative in October 2017, the Department of Justice has filed 15 lawsuits alleging a pattern or practice of sexual harassment in housing.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by the Joneses or Jones Investing, LLC, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select option number 91 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at [email protected]
The Department of Justice Files Sexual Harassment Lawsuit Against Owners of Rental Properties in Muskegon, MichiganRead the Press Release
GRAND RAPIDS, MICHIGAN – The Department of Justice announced today that it has filed a lawsuit alleging that the owners of rental properties in Muskegon, Michigan, violated the Fair Housing Act by subjecting female tenants to sexual harassment and retaliation.
The lawsuit, filed in the U.S. District Court for the Western District of Michigan, alleges that Darrell Jones sexually harassed female tenants of rental properties that he owned from at least 2008 to 2018. According to the complaint, Jones made repeated and unwelcome sexual comments, touched female tenants’ bodies without their consent, requested sexual favors, offered reduced or free rent in exchange for sex, and retaliated against female tenants who refused his sexual advances. The lawsuit also names as defendants Fatima Jones and Jones Investing LLC, co-owners of several of the rental properties where the harassment occurred.
"No woman should be forced to suffer sexual harassment to keep her home," said Assistant Attorney General Eric Dreiband of the Civil Rights Division. "The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department will vigorously pursue those who engage in such reprehensible and illegal conduct."
"My office looks forward to vindicating the rights of these tenants," said U.S. Attorney Andrew Birge. "I would like all tenants in West Michigan to know that we are here to help if they experience sexual harassment by a landlord or property manager. No one should have to choose between housing and freedom from sexual harassment."
Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties to vindicate the public interest, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The Attorney General recently reaffirmed this commitment by directing the Justice Department to deploy all available enforcement tools against anyone who tries to capitalize on the COVID-19 crisis by sexually harassing people in need of housing. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. As part of the Initiative, the Justice Department developed a public service announcement and formed a joint Task Force with HUD to combat sexual harassment in housing. Since launching the Initiative in October 2017, the
Department of Justice has filed 15 lawsuits alleging a pattern or practice of sexual harassment in housing.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by the Joneses or Jones Investing, LLC, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select option number 91 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at [email protected].
###
Statement from United States Attorney Russell ColemanRead the Press Release
LOUISVILLE, Ky. – These last few months have been tough for Kentuckians, particularly those who call Louisville home. From fears of the virus’ impact on loved ones, to lost jobs and shuttered businesses, to nauseating images of death in Minneapolis, to recent confusing loss of life here at home, the term “Commonwealth” seems anything but to many of our neighbors.
In recent days, many in Louisville have gathered to voice their anger, confusion, and frustration; protest activity so sacred as to be present in our country’s founding document. Those cries of protest continue and must be protected by those of us who have taken an oath to do so. Sadly, there are individuals who are undermining the efforts of these peaceful protestors and placing citizens and police at risk, who are inciting violence and destroying the very physical infrastructure of our city.
Over the last six nights in Louisville two groups have emerged: those forcefully and peacefully demanding that their voices be heard, and simply put, criminals. These criminals have been using the cover of the protests to burglarize drug stores for their controlled substances and gun shops seeking firearms, loot almost half a dozen ATMs, carjack vehicles, and shoot at police. This is violence and mayhem, not constitutionally-protected protest.
Working with our state and local law enforcement partners, federal law enforcement here will be seeking out those that put peaceful protestors and Louisville itself in harm’s way. Looting pharmacies for drugs, breaking into businesses seeking guns, shooting at police, carrying a firearm as a convicted felon, or committing arson, have nothing to do with justice or honoring the lives of others. As Attorney General Barr stated earlier today, “When the rule of law breaks down, the promise of America does too.”
####
Springfield Man Sentenced to 12 Years for Meth Trafficking, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man has been sentenced in federal court for methamphetamine trafficking and illegally possessing firearms.
Tyler J. Brown, 29, was sentenced by U.S. District Judge M. Douglas Harpool on Wednesday, June 3, to 12 years in federal prison without parole.
On Sept. 11, 2019, Brown pleaded guilty to possessing methamphetamine with the intent to distribute and to possessing firearms in furtherance of a drug-trafficking crime.
Brown was arrested on Dec. 25, 2017, when Springfield police officers found him passed out in the driver’s seat of a Pontiac Grand Am. The vehicle was parked, with the engine running, at the intersection of North Grant Avenue and West Calhoun Street. Officers found two firearms in the car with Brown.
A loaded Pioneer Arms 7.62mm semi-automatic pistol was sitting muzzle-end down, in the passenger floorboard, with the handle of the firearm leaning toward the driver’s seat. Brown’s right hand rested next to the firearm, with his last two fingers touching the end of the firearm. While removing the first firearm, an officer saw a loaded Smith and Wesson 9mm semi-automatic pistol resting near Brown’s right side.
Officers were able to wake Brown up and place him under arrest. Brown was in possession of $2,666 and had a plastic baggie in his pocket that contained 1.45 grams of methamphetamine. He was wearing body armor beneath his shirt. Officers searched the car and found a black backpack in the front passenger seat. Inside the backpack was a glass jar that contained 71.44 grams of methamphetamine, a distributive amount, and a black and silver box that contained 3.46 grams of methamphetamine.
This case was prosecuted by Assistant U.S. Attorneys Nhan D. Nguyen and Josephine L. Stockard. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Springfield, Mo., Police Department.
OCDETF
This case is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.Serial Bank Robber Sentenced to 11 Years in Federal PrisonRead the Press Release
PORTLAND, Ore.—A serial bank robber with three prior bank robbery convictions was sentenced today to federal prison after robbing three additional Pacific Northwest banks and making threats by mail.
Stanley Carl Green, 57, transient, and formerly a resident of Washington state, was sentenced to 140 months in federal prison and three years’ supervised release. United States District Court Judge Ann Aiken also ordered Green to pay $11,570 in restitution.
According to court documents, in December 2015, while on escape status from supervision, Green robbed a Federal Savings Bank in Olympia, Washington of $4,897. He was arrested for the robbery six months later and charged in Thurston County, Washington. Released on bond, Green again fled and a warrant was issued for his arrest.
In November 2017, Green mailed threatening letters to two people who had restraining orders against him.
In December 2017, Green robbed a Rogue Federal Credit Union in Port Orford, Oregon. With his face partially masked by a towel, Green brandished a box cutter and ordered the bank tellers to kneel on the floor. He fled with $3,833.
Later the same month, Green robbed a Columbia Bank in Waldport, Oregon. His face was again partially covered and he brandished and displayed to the tellers what appeared to be a handgun. Green fled with $2,840.
On January 17, 2018, investigators located and arrested Green at a campground in Curry County, Oregon. They seized $848 and BB ammunition. Green admitted to the three robberies and a fourth in Salem, Oregon. He told investigators that the gun used in the Waldport robbery was a BB gun he purchased at Walmart.
On November 27, 2018, Green pleaded guilty to one count of bank robbery and two counts of armed bank robbery. Prior to being sentenced today, Green pleaded guilty to one count of transmitting a communication containing a threat to injure.
This case was investigated by FBI, USMS, Port Orford Police Department, Bandon Police Department, Coos County Sheriff’s Office, Lincoln County Sheriff’s Office, Tumwater Police Department and the Lewis County Sheriff’s Office, and was prosecuted by Jeffrey Sweet, Assistant U.S. Attorney for the District of Oregon and the Lewis County Prosecuting Attorney’s Office, the Thurston County Prosecuting Attorney’s Office, the Lincoln County District Attorney’s Office and the Curry County District Attorney’s Office.
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.
Rochester Man Indicted on Fraud Charges for Allegedly Operating a Medical Equipment Reseller Business that Defrauded Victims of More Than $250,000Read the Press Release
SPRINGFIELD, Ill. – A federal grand jury has indicted a Rochester, Ill., man, Chase Brown, 20, of the 1000 block of Heathrow Lane, Rochester, Ill., on fraud charges for allegedly operating a medical equipment reseller business that defrauded businesses from various states of more than $250,000. Brown was previously arrested and charged in a criminal complaint filed in March 2020. Brown was arrested on March 10, 2020, in the Middle District of Florida and made his initial appearance in federal court in Tampa, Fla. Brown has been transferred to the Central District of Illinois and has been ordered to remain detained in the custody of the U.S. Marshals Service.
The indictment alleges Brown established a business known as Midwest Surgical, LLC, in May 2019, purportedly to engage in the purchase and resale of medical equipment. As part of the scheme, in December 2018, seven months after forming the business, Brown applied for an aviation credit card. In the application, the indictment alleges that Brown falsely stated that Midwest’s annual revenue was more than $18 million and that it employed 26 employees. After obtaining the credit card, Brown incurred more than $200,000 in charges for fuel, private charter flights and plane maintenance, including approximately $4,500 from an aviation company in Springfield, Ill.
Brown allegedly made repeated false and fraudulent promises and representations to various persons and businesses throughout the country that he would buy or sell medical equipment that he had no intention or ability to sell or purchase. After falsely representing that he would sell medical equipment, Brown used the buyers’ credit card information for personal purchases for himself and one or more of his friends but never provided the equipment to the buyer, Similarly, after falsely representing to a seller that he would purchase medical equipment, Brown provided false or fraudulent payment information, knowing that he had no intention or ability to legitimately fund the purchases.
As alleged in the indictment, Brown contacted and defrauded victim businesses in Pennsylvania, Illinois, Texas and Idaho, including in October 2019, when Brown entered into a consignment agreement with an Illinois hospital to liquidate its equipment. As part of the agreement, Brown was required to make two payments of $375,000 to the hospital. Although Brown received the equipment, the $375,000 check he provided bounced and he falsely represented that he submitted a separate $375,000 wire transfer that never occurred. Brown ultimately returned most of the equipment to the hospital but retained approximately $10,000 worth of equipment for which he made no payment.
The indictment alleges Brown used another victim’s credit card information to purchase a used Jeep Wrangler, a set of tires for the vehicle, to pay a bill at a Springfield sports bar, payment to a law firm, and the purchase of a second vehicle for a friend.
The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General and the Springfield Police Department conducted the investigation. Assistant U.S. Attorney Timothy A. Bass represents the government in the prosecution.
If convicted, the statutory penalty for each count of wire fraud (two counts) is up to 30 years in prison; for access device fraud, the penalty is up to 10 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Page Man Charged with Threatening to Burn Page Magistrate CourtRead the Press Release
PHOENIX, Ariz. – Loren Reed, 26, of Page, Arizona, was arrested on Tuesday, June 2, and charged in a complaint with a violation of Title 18, United States Code, Section 844(e) for using the internet and telephone to willfully threaten to unlawfully damage or destroy a building by fire. Reed appeared on the charges today before United States Magistrate Judge Camille Bibles of the District of Arizona.
According to the complaint:
On May 30, a concerned citizen called the Page Police Department and reported that Loren Reed had created a private Facebook chat group. In the chat, Reed was trying to convince people to join a meet up at the Page Courthouse and participate in a riot. Page Police Department officers then began monitoring the chat group in response to this report.
Between May 30 and June 2, Reed sent numerous messages in the chat group related to burning government buildings, including the Page Magistrate Courthouse and Page Police Department office. Reed suggested June 2 at 9:00pm as the date and time for carrying out the plan. Reed encouraged others in the chat group to bring gas and other flammables. He also discussed the use of Molotov cocktails.
Reed was arrested on June 2, at approximately 7:00 p.m. on the charge outlined in the complaint.
A conviction for using the internet and telephone to willfully threaten to unlawfully damage or destroy a building by fire carries a maximum penalty of ten years in prison, a $250,000 fine, or both.
A criminal complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The charges resulted from an investigation by the Page Police Department and the Federal Bureau of Investigation. The prosecution is being handled by Assistant U.S. Attorneys Todd Allison and David Pimsner, District of Arizona, Phoenix.
CASE NUMBER: 20-4089MJ
RELEASE NUMBER: 2020-55_Reed# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Natchez Man Sentenced to 21 Months in Federal Prison under Project EJECT for Possessing a Short-Barreled Machine GunRead the Press Release
Jackson, Miss. – Jamarhi Raheem Lucas, 23, of Natchez, was sentenced today by Senior U.S. District Judge David C. Bramlette, III to 21 months in federal prison, followed by three years of supervised release, for possessing a machine gun, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Lucas was also ordered to pay a $1,500 fine.
On September 22, 2018, Jamarhi Raheem Lucas, who was one of two men standing outside of a residence on Ouachita Street in Natchez, attempted to flee from law enforcement officers as they approached him. Officers detained him and while they were identifying him, they observed a short-barreled, fully automatic rifle, commonly-known as a machine gun, in a car that belonged to him. Officer seized the short-barreled machine gun.
On March 5, 2020, Jamarhi Raheem Lucas pleaded guilty to illegally possessing the machine gun.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorneys Bert Carraway and Glenda Haynes.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Michigan Real Estate Developer Indicted for Tax and Bank FraudRead the Press Release
A federal grand jury in Grand Rapids, Michigan, returned an indictment yesterday charging a Michigan businessman with tax evasion, filing false documents with the Internal Revenue Service (IRS), making false statements to IRS Criminal Investigation (IRS-CI) agents, and mortgage fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Andrew B. Birge for the Western District of Michigan.
According to the indictment, Scott Allan Chappelle, of Okemos and East Lansing, Michigan, was an attorney and former Certified Public Accountant who operated Terra Management Company LLC, Strathmore Development Company Michigan LLC, and Terra Holding LLC, companies involved in real estate development and property management. Chappelle allegedly failed to pay over to the IRS employment taxes that were withheld from the wages of the companies’ employees. After the IRS attempted to collect the unpaid taxes, from 2010 through 2019, Chappelle allegedly evaded the payment of more than $830,000 in unpaid taxes by making false statements to the IRS about his and his companies’ assets and income, failing to disclose his vacation house on Lake Michigan, and purchasing real property in nominee names instead of his own.
Chappelle is also charged with making false statements to IRS-CI agents during its criminal investigation. As alleged, Chappelle told investigators that he had not personally purchased any real estate during the last three years when in fact he had purchased both a condominium in East Lansing and a house in Powell, Ohio, during that time. The indictment further alleges that Chappelle falsely told investigators that the condominium was for his son and paid for with student loan funds. Chappelle is also charged with filing a tax return for Terra Holdings on which he falsely claimed that the company had no employees and paid no wages.
The indictment also charges that Chappelle made false statements and submitted fraudulent documents to a bank when refinancing his lake house mortgage. Chappelle allegedly falsely represented that he was not a party to a lawsuit or owed any federal debt when in fact, Chappelle was a party to at least two lawsuits and had outstanding tax liabilities. Chappelle is also alleged to have submitted fraudulent bank statements that showed a substantially higher balance in an account than the account actually had at that time.
If convicted, Chappelle faces a maximum term of imprisonment of five years for tax evasion and making a false statement, three years for filing a false document with the IRS, and 30 years for bank fraud. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Birge commended agents of IRS-CI, who investigated the case, and Trial Attorney Melissa S. Siskind of the Tax Division and Assistant U.S. Attorney Timothy P. VerHey, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Michigan Real Estate Developer Indicted for Tax and Bank FraudRead the Press Release
Lansing-Area Real Estate Developer Lied and Hid Income and Assets
GRAND RAPIDS, MICHIGAN – A federal grand jury in Grand Rapids, Michigan returned an indictment today charging a Michigan businessman with tax evasion, filing false documents with the Internal Revenue Service (IRS), making false statements to IRS Criminal Investigation (IRS-CI) agents, and mortgage fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Andrew B. Birge for the Western District of Michigan.
According to the indictment, Scott Allan Chappelle, of Okemos and East Lansing, Michigan, was an attorney and former Certified Public Accountant who operated Terra Management Company LLC, Strathmore Development Company Michigan LLC, and Terra Holding LLC, companies involved in real estate development and property management. Chappelle allegedly failed to pay over to the IRS employment taxes that were withheld from the wages of the companies’ employees. After the IRS attempted to collect the unpaid taxes, from 2010 through 2019, Chappelle allegedly evaded the payment of more than $830,000 in unpaid taxes by making false statements to the IRS about his and his companies’ assets and income, failing to disclose his vacation house on Lake Michigan, and purchasing real property in nominee names instead of his own.
Chappelle is also charged with making false statements to IRS-CI agents during its criminal investigation. As alleged, Chappelle told investigators that he had not personally purchased any real estate during the last three years when in fact he had purchased both a condominium in East Lansing and a house in Powell, Ohio during that time. The indictment further alleges that Chappelle falsely told investigators that the condominium was for his son and paid for with student loan funds. Chappelle is also charged with filing a tax return for Terra Holdings on which he falsely claimed that the company had no employees and paid no wages.
The indictment also charges that Chappelle made false statements and submitted fraudulent documents to a bank when refinancing his lake house mortgage. Chappelle allegedly falsely represented that he was not a party to a lawsuit or owed any federal debt when in fact, Chappelle was a party to at least two lawsuits and had outstanding tax liabilities. Chappelle is also alleged to have submitted fraudulent bank statements that showed a substantially higher balance in an account than the account actually had at that time.
If convicted, Chappelle faces a maximum term of imprisonment of five years for tax evasion and making a false statement, three years for filing a false document with the IRS, and 30 years for bank fraud (the mortgage fraud scheme). He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Birge commended agents of IRS-CI, who investigated the case, and Trial Attorney Melissa S. Siskind of the Tax Division and Assistant U.S. Attorney Timothy P. VerHey, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
###
Man Charged in Federal Court with Illegally Possessing Loaded Handgun in ChicagoRead the Press Release
CHICAGO — A man has been charged with a federal firearm offense for allegedly illegally possessing a loaded semiautomatic handgun in Chicago this past weekend.
ADAM WALTON was arrested early Monday morning near the 11700 block of South Marshfield Avenue after Chicago Police officers observed him exit a store through a broken window, according to a criminal complaint filed in U.S. District Court in Chicago. He was later taken into custody while in possession of a loaded semiautomatic handgun and a case of .22-caliber long-rifle ammunition, the complaint states. A city of Chicago curfew took effect at 9:00 p.m. Sunday, and Walton was arrested more than three hours later.
Walton, 40, of Chicago, is charged with one count of illegal possession of a firearm by a convicted felon. Walton was previously convicted of multiple criminal felonies, including two firearm-related offenses, and was not lawfully allowed to possess a firearm. An initial appearance in federal court in Chicago has not yet been scheduled.
The federal charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Cook County State’s Attorney’s Office in bringing this charge. The government is represented by Assistant U.S. Attorney Paul Mower.
Holding gun offenders accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategies. Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, including by prosecuting individuals who illegally possess firearms.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Illegal possession of a firearm by a convicted felon is punishable by up to ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Lecompte Man Sentenced to Two Years in Federal Prison for Stealing over $100,000 from Alexandria Medical Services CompanyRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that William Britt Harvey, 45, of Lecompte, Louisiana, was sentenced on June 3, 2020, by Senior U.S. District Judge Donald E. Walter to serve two years in federal prison and three years of supervised release following his prison term for stealing over $100,000 from a medical services company. Judge Walter also ordered Harvey to pay $114,738.77 in restitution. Harvey pled guilty on January 22, 2020, to one count of wire fraud.
William Harvey was employed by LA Imaging (“LAI”), a medical services company based in Alexandria that preformed mobile imaging services throughout the state of Louisiana. Harvey was employed by LAI to maintain and repair x-ray equipment used by LAI in its medical imaging business. In order to perform his duties, which included purchasing equipment and supplies to maintain LAI’s imaging equipment, Harvey had access to LAI’s credit card and bank account information. Between December 2012 and October 2014, Harvey embezzled company funds from LAI through a scheme in which he illicitly transferred money to himself using numerous PayPal accounts, including accounts under the fictitious names of “Global Imaging” and “CFA.” In order to support his scheme, Harvey presented fake invoices to LAI from Global Imaging and CFA.
While working at LAI, between September 2013 and October 2015, Harvey also defrauded LAI by opening a rival imaging company called Southern Elite Imaging. Through Southern Elite, Harvey contracted with Cenla Occupational Medicine Services and leased older x-ray equipment owned by LAI to Cenla, without LAI’s consent. The x-rays taken with that equipment were then sent to a radiologist for interpretation. Harvey billed Cenla for the radiologist “read fees” and also collected lease fees from Cenla for LAI’s imaging equipment. Harvey used false invoices and caused LAI to pay the radiologists’ interpretation fees, while keeping the “read fees” and lease equipment fees paid by Cenla for his own personal use.
The United States Secret Service investigated the case. Assistant U.S. Attorney Robert C. Abendroth 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.
Kyle Man Sentenced to Life in Prison for First Degree MurderRead the Press Release
United States Attorney Ron Parsons announced that a Kyle, South Dakota, man convicted of First Degree Murder was sentenced on June 2, 2020, by Jeffrey L. Viken, U.S. District Judge.
Clarence Yellow Hawk, age 30, was sentenced to a term of the remainder of his life in federal prison, a $200 special assessment to the Federal Crime Victims Fund, and ordered to pay restitution in an amount to be determined at a later date based on evidence presented at Tuesday’s hearing.
Yellow Hawk was indicted by a federal grand jury on June 14, 2017. He was found guilty of First Degree Murder and Discharge of a Firearm During a Crime of Violence following a jury trial in federal court which concluded on May 3, 2019.
The conviction stemmed from a homicide that occurred on May 27, 2017, on the Pine Ridge Reservation. Scott Benson, Jamie Shoulders, and Clarence Yellow Hawk travelled to a driveway approach off the highway, just north of Sharps Corner where Benson was planning on meeting a man named Christopher Janis and another person. While Benson was in Janis’ vehicle speaking with him, Shoulders approached the driver’s side door and fired several bullets at Christopher Janis. Yellow Hawk then took the same gun and fired additional shots at Janis, killing him, before fleeing the scene.
Scott Benson later pleaded guilty to Accessory After the Fact and was sentenced on May 24, 2018, to 10 years in federal prison. Jamie Shoulders later pleaded guilty to Second Degree Murder and was sentenced to 25 years in federal prison.
This case was investigated by the Federal Bureau of Investigation and Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Kathryn N. Rich and Gregg Peterman prosecuted the case.
KCK Man Arrested for Attacking Officers at Protest Charged with Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Kansas, man who initially was arrested after throwing water bottles at police officers during protests at the Country Club Plaza was charged in federal court today with illegally possessing a firearm.
“Hijacking a peaceful protest by attacking police officers engaged in their duty to protect the public carries significant consequences in this district,” said U.S. Attorney Tim Garrison. “Illegally carrying a loaded handgun to a public demonstration multiplies those consequences with federal penalties. I have no tolerance for anyone who hides behind the lawful exercise of constitutional rights as cover for their criminal acts. We are working alongside our local law enforcement partners to protect the public and maintain order.”
Matthew E. Madden, 22, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Missouri, with one count of being a drug user in possession of a firearm.
Today’s criminal complaint alleges that Madden, who is a habitual user of, or addicted to, marijuana, was in possession of a Glock .40-caliber semi-automatic handgun on June 2, 2020.
According to an affidavit filed in support of the federal criminal complaint, Madden traveled from Kansas City, Kansas, to participate in the protests at the Country Club Plaza in Kansas City, Missouri, on Tuesday, June 2. During the protests over the previous five days, police officers who monitored the crowd and participated in crowd control reported some violent protesters threw bottles and rocks at them, causing injury to officers and damage to personal and public property. On Tuesday, law enforcement officers observed Madden throwing water bottles at officers who were providing security in the area of 47th Street and J.C. Nichols Parkway. Later the same evening, officers observed Madden throwing waters bottles from the southwest corner of Mill Creek Park (located at 47th Street and J.C. Nichols Parkway).
Police officers approached Madden as he walked away from the crowd and asked him to stop so they could talk to him. Madden immediately ran away through the park, but officers captured him near a tree line on the east side of the park. During the pursuit, an officer saw Madden discard the black fanny pack that he had been previously observed carrying over his shoulder. Officers recovered the fanny pack, which contained a .40-caliber semiautomatic handgun loaded with 15 round of ammunition, another magazine containing an additional 27 rounds of ammunition, and 1.23 grams of marijuana.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Justice Department Resolves Fair Housing Act Lawsuit Against Guam's Government for Racial and National Origin DiscriminationRead the Press Release
The U.S. Department of Justice announced today an agreement with the Government of Guam, as well as the Chamorro Land Trust Commission (CLTC) and its Administrative Director, to resolve claims that Guam’s Chamorro Land Trust Act (CLTA) discriminated against non-Chamorros on the basis of race and national origin in the allocation of Government of Guam land.
The department’s lawsuit, filed in 2017, alleged that the CLTC, which is part of the Government of Guam and controls approximately 15 percent of Guam’s total land area, violated the Fair Housing Act through its program of granting 99-year residential leases for one-acre tracts, at a cost of one dollar per year, solely to “native Chamorros.”
Under the terms of the settlement agreement, Guam has agreed to stop taking race and national origin into account in awarding the land leases. The CLTA will be amended to award leases based on whether individuals lost land or use of land, including during World War II and its aftermath, instead of whether an applicant is a “native Chamorro.” The CLTC will also be required to collect information to verify eligibility based on the new, race-neutral criteria. Finally, the agreement prohibits future housing-related discrimination, mandates training on the requirements of the Fair Housing Act, and requires record keeping and reporting so that the Justice Department can ensure compliance with the settlement agreement.
“The Department of Justice is committed to fighting race and national origin discrimination through vigorous enforcement of the Fair Housing Act,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This settlement will ensure that Guam does not discriminate on the basis of race or national origin against non-Chamorros in the administration of its land lease program.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination may call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected], or contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at www.hud.gov.
Jacksonville Man Indicted for Defrauding A Religious Organization and Filing False Income Tax ReturnsRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Charles Jon David (57, Jacksonville) with three counts of wire fraud and four counts of tax fraud. If convicted, David faces a maximum penalty of 20 years in federal prison for each wire fraud count and up to 3 years’ imprisonment for each tax fraud count. The indictment also notifies David that the United States intends to forfeit at least $273,500, as well as to two parcels of real property, which are alleged to be the proceeds of the wire fraud.
According to the
indictment , from at least May 2012 and continuing through late 2018, David was employed as the Director of Construction of Business Operations for a Jacksonville religious organization that provided services to more than 140,000 members through numerous churches in the Northeast Florida area. The organization owned many parcels of real property, some of which David was tasked with selling on behalf of the organizationDespite his fiduciary duties to work in the best financial interests of the religious organization, David, along with three other individuals, engaged in a scheme to defraud the organization in connection with the sales by offering two of the individuals exclusive opportunities to purchase the religious organization’s property at below market-value prices. In exchange, the two individuals agreed to pay kickbacks to David. The kickbacks (totaling at least $204,500) were paid to David by check, from one of the two individuals, on at least five occasions.
The indictment further alleges that the scheme also included a transaction with a third individual in which David fraudulently represented to the religious organization that the third individual was a bona fide purchaser of the organization’s property. In fact, at the time the religious organization sold the piece of property to the third individual, David had also arranged for a second purchaser to buy the real property from the third individual at a higher price, with the two sales closing on the same day. After the two sales closed, David received a check for $44,000 from the third individual.
David did not include kickback payments from the first two individuals, or money he received from the third individual, as income on his federal income tax returns for tax years 2015, 2016, and 2018. Additionally, David falsely underreported his income on his tax year 2013 return.
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 Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the St. Johns County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Jackson Man Sentenced for Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Charles Jones, 27, of Jackson, was sentenced yesterday by U.S. District Judge Henry T. Wingate to 41 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michele Sutphin with the Federal Bureau of Investigation in Mississippi. Jones was also ordered to pay a $1,500 fine.
On April 27, 2019, officers with the Jackson Police Department stopped Jones after he had been identified causing a disturbance at a residence. Officers recovered a firearm from his person during a search incident to his arrest. It is illegal for Jones to possess a firearm as he has felony convictions in Hinds County for armed robbery and vehicle burglary in 2011 and for another vehicle burglary in 2012. He pled guilty before Judge Wingate on March 5, 2020.
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Lynn Murray.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Indictments Charge Two Men in Separate Cases for Alleged Attempted Child Sex CrimesRead the Press Release
URBANA, Ill. – The grand jury has returned indictments against two men in separate, unrelated cases resulting from FBI Springfield Field Office undercover operations.
A four-count indictment charges James Russian, 55, of the 400 block of north Niles Avenue, Tuscola, Ill., with attempted enticement of a child to engage in illegal sexual activity; attempted sexual exploitation of children; attempted sex trafficking of minors; and, attempted receipt of child pornography. Russian was previously arrested and charged in a criminal complaint on April 24, 2020, and was ordered detained in the custody of the U.S. Marshals Service.
In a separate case, a three-count indictment charges Caleb Hickman, 45, of Granger, Ind., with attempted enticement of a minor; attempted sexual exploitation of children; and, attempted receipt of child pornography from Feb. 14 to May 26, 2020, in Kankakee and Champaign counties. Hickman was previously charged in a criminal complaint and was arrested on May 26, 2020, in Indiana. Hickman made an initial appearance on May 29, 2020, in the Northern District of Indiana. Hickman deferred his detention hearing to the Central District of Illinois and was remanded to the custody of the U.S. Marshals Service for transfer to Central Illinois.
According to the affidavits filed in support of the criminal complaints, each of the men allegedly used social media applications to contact and engage with FBI online covert employees. Russian allegedly communicated with an adult who purported to have access to an eight-year-old girl, and offered to pay to have sex with the minor. Hickman communicated with an FBI online covert employee who was posing as a 14-year-old minor and allegedly made arrangements for the minor to travel from Champaign, Ill., to South Bend, Ind., to engage in sexual activity.
The cases were investigated by the FBI Springfield Field Office. The FBI Indianapolis Field Office assisted in the investigation of Hickman. Assistant U.S. Attorney Elly M. Peirson is representing the government in the case prosecutions.
If convicted, for the offense of attempted enticement of a minor, the statutory penalty is 10 years and up to life in prison; for attempted sexual exploitation of a child, the penalty is 15 to 30 years in prison. Sex trafficking of minors carries a penalty of 15 years to life for a minor under 14 years of age. Attempted receipt of child pornography carries a penalty of five years to 20 years in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
These cases were brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Hot Springs Man Sentenced to 10 Years in Federal Prison for Drug Trafficking and Firearms PossessionRead the Press Release
Hot Springs, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced today that Terry Gibbons, age 43, of Hot Springs, Arkansas, was sentenced to a total of 120 months in federal prison followed by four years of supervised release on one count of Possession with Intent to Distribute Methamphetamine and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
In November 2018, a Hot Springs Police Officer conducted a traffic stop on a vehicle operated by Gibbons. While speaking with Gibbons, the officer observed a firearm in the storage compartment of the driver’s door. A check of the firearm determined that it had been reported stolen. Gibbons was placed under arrest and searched, at which time the officer located several baggies of methamphetamine and drug paraphernalia.
The suspected methamphetamine was submitted to the Arkansas State Crime lab for testing and tested positive for methamphetamine with a total weight of 219.4 grams.
Gibbons was indicted by a federal grand jury in June of 2019, and entered a guilty plea in October of 2019.
This case was investigated by the Hot Springs Police Department. Assistant United States Attorney Bryan Achorn prosecuted the case for the Western District of Arkansas.
Henderson Heroin Trafficker SentencedRead the Press Release
RALEIGH, N.C. – A Henderson man was sentenced to 78 months in prison for trafficking heroin in Vance County.
According to court documents, Reginald Lamont Lewis, 31, was involved in the distribution of heroin from February 2017 until December 2018. During that time, law enforcement investigated the drug trafficking activities of Lewis by conducting undercover purchases of narcotics; over 300 individual doses of heroin were purchased in total. The execution of a search warrant led to the seizure of approximately $25,600 in U.S. currency.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Henderson Police Department; the North Carolina State Bureau of Investigation; the Vance County Sheriff’s Office; and the Virginia State Police Department investigated the case and Assistant U.S. Attorney Nick J. Miller prosecuted the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:18-cr-00518-D-1.
Grand Jury Indicts Former Administrator, Supervisor of Illinois Secretary of State Department of Vehicle Services for Alleged Fraud SchemeRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury has returned an indictment that charges Candace Faye Wanzo, 57, of Centralia, Ill., with defrauding the Illinois Secretary of State’s Office and the Illinois Department of Revenue of nearly $350,000. During the time of the alleged fraud, from March 2015 to April 2017, Wanzo was employed at the Illinois Secretary of State’s Office as administrator and supervisor of Vehicle Services. In this capacity, Wanzo was responsible for operation of the Public Service Center located in the Howlett Building, in Springfield, Ill., where, among other services, vehicle owners may pay title and registration fees, apply and pay for license plates, and make sales tax payments related to the sale of vehicles.
The indictment alleges that Wanzo stole title and registration fees and sales tax payments. Wanzo allegedly concealed the theft of title and registration fees by replacing stolen funds with title and registration fees from other vehicle owners. Wanzo also allegedly used the United Parcel Service (UPS) rather than the U.S. Mail to deliver license plates to conceal the delay caused by Wanzo having to locate and use other funds to replace stolen funds.
According to the indictment, from March 2015 to April 2017, Wanzo misapplied approximately $303,649 in title and registration fees to conceal title and registration fees that she had previously stolen. In October 2015, without superiors’ permission or knowledge, Wanzo allegedly changed the SOS policy of not accepting cash for sales tax payments and directed staff to begin accepting cash for the sales tax payments. Staff were directed to deliver the cash to her at the end of the day in a yellow envelope. Wanzo also directed her staff to submit any customer complaints directly to her in order to conceal the complaints from her superiors.
In addition to the $303,649 in misapplied title and registration fees, the indictment alleges that Wanzo stole approximately $40,102 in sales tax payments from December 2008 to April 2017.
If convicted, the statutory penalty for each count of mail fraud (three counts) is not more than 20 years in prison and not more than three years of supervision. For the offenses of intentional misapplication of Secretary of State fees (one count) and for theft of Illinois Department of Revenue sales tax payments (one count), the penalty is not more than 10 years in prison and not more than three years of supervision.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Illinois Secretary of State Inspector General’s Office which referred the matter to federal law enforcement. Assistant U.S. Attorney Gregory K. Harris is representing the government in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Grand Jury Indicts Former Administrator, Supervisor of Illinois Secretary of State Department of Vehicle Services for Alleged Fraud SchemeRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury has returned an indictment that charges Candace Faye Wanzo, 57, of Centralia, Ill., with defrauding the Illinois Secretary of State’s Office and the Illinois Department of Revenue of nearly $350,000. During the time of the alleged fraud, from March 2015 to April 2017, Wanzo was employed at the Illinois Secretary of State’s Office as administrator and supervisor of Vehicle Services. In this capacity, Wanzo was responsible for operation of the Public Service Center located in the Howlett Building, in Springfield, Ill., where, among other services, vehicle owners may pay title and registration fees, apply and pay for license plates, and make sales tax payments related to the sale of vehicles.
The indictment alleges that Wanzo stole title and registration fees and sales tax payments. Wanzo allegedly concealed the theft of title and registration fees by replacing stolen funds with title and registration fees from other vehicle owners. Wanzo also allegedly used the United Parcel Service (UPS) rather than the U.S. Mail to deliver license plates to conceal the delay caused by Wanzo having to locate and use other funds to replace stolen funds.
According to the indictment, from March 2015 to April 2017, Wanzo misapplied approximately $303,649 in title and registration fees to conceal title and registration fees that she had previously stolen. In October 2015, without superiors’ permission or knowledge, Wanzo allegedly changed the SOS policy of not accepting cash for sales tax payments and directed staff to begin accepting cash for the sales tax payments. Staff were directed to deliver the cash to her at the end of the day in a yellow envelope. Wanzo also directed her staff to submit any customer complaints directly to her in order to conceal the complaints from her superiors.
In addition to the $303,649 in misapplied title and registration fees, the indictment alleges that Wanzo stole approximately $40,102 in sales tax payments from December 2008 to April 2017.
If convicted, the statutory penalty for each count of mail fraud (three counts) is not more than 20 years in prison and not more than three years of supervision. For the offenses of intentional misapplication of Secretary of State fees (one count) and for theft of Illinois Department of Revenue sales tax payments (one count), the penalty is not more than 10 years in prison and not more than three years of supervision.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Illinois Secretary of State Inspector General’s Office which referred the matter to federal law enforcement. Assistant U.S. Attorney Gregory K. Harris is representing the government in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Four Defendants Charged in Two Separate Indictments for Their Roles in Incidents of Violence Associated with Civil Unrest in BuffaloRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr., announced today that a federal grand jury has returned an indictment charging Deyanna Davis, 30, Semaj Pigram, 25, and Walter Stewart, 28, all of Buffalo, NY, with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison.
Assistant U.S. Seth T. Molisani, who is handling that case, stated that according to the indictment, on June 1, 2020, all three defendants were in possession of a semi-automatic 9mm handgun despite previous felony convictions. Davis was previously been convicted in March 2010, in Erie County Court; Pigram was previously convicted in June 2016, in Erie County Court; and Stewart was previously convicted in July 2012, also in Erie County Court. As a result of these convictions, the defendants are legally prohibited from possessing a firearm.
The firearm that the defendants are each charged with unlawfully possessing was discovered inside a vehicle in which the trio were travelling on June 1, 2020. The vehicle was stopped shortly after it is alleged to have struck and injured both a Buffalo Police Officer and a New York State Trooper in the vicinity of Bailey Avenue.
In addition, the federal grand jury has returned a separate indictment charging Courtland Renford, 20, of Buffalo, NY, with arson of a building, Buffalo City Hall, used in interstate commerce, which is punishable by a mandatory minimum penalty of five years in prison, and a maximum of 20 years.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that according to the indictment and a previously filed complaint, on May 30, 2020, during a gathering of protesters in Niagara Square in Buffalo, an individual, later identified as the defendant, was captured on video approaching Buffalo City Hall, carrying a green laundry basket that contained a fire. Renford then threw the burning laundry basket into a window of Buffalo City Hall, causing a fire inside. Buffalo Fire Department personnel extinguished the fire, which destroyed and/or damaged items inside. News cameras captured the defendant throwing his hands up after he had thrown the flaming laundry basket into City Hall. Investigators identified Renford after sending out an alert. He was taken into custody at his Buffalo residence on June 1, 2020.
“This Office will continue to work with federal, state, and local law enforcement to continue to do everything in our power to deliver justice to our community,” states United States Attorney Kennedy. “We will continue to work seamlessly together in order to deliver the strongest and clearest message possible to those who might be considering engaging in or inciting violence and mayhem in our community that such acts will not be tolerated.”
The indictments are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, the New York State Police, under the direction of Major James Hall, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
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.
# # # #
Former employee admits to stealing nearly $10 millionRead the Press Release
HOUSTON – A 65-year-old Texas man has pleaded guilty to wire fraud in his connection to stealing millions from a Deer Park oil corporation, announced U.S. Attorney Ryan K. Patrick.
James Arthur Camp, New Braunfels, admitted that from April 1998 through November 2017, he defrauded Lubrizol Corporation of $9,256,712.54. During the scheme, Camp submitted fraudulent invoices for laboratory services from two companies he owned, knowing they had not been performed.
Specifically, Camp admitted that one of those fraudulent laboratory charges included one from his company Bay Area Analytical in the amount of $2,774.06. Camp inputted the data into Lubrizol’s accounting system, causing it to be transmitted electronically from Deer Park to company headquarters in Wycliffe, Ohio. That fraudulent charge was then bundled with other similar charges and paid via electronic funds transfer to Bay Area Analytical’s bank account at J P Morgan Chase Bank in the amount of $12,294.23.
U.S. District Judge Nancy Atlas accepted the plea and set sentencing for August. At that time, Camp faces up to 20 years in federal prison and a possible $250,000 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Former President of First Mortgage Company Charged with 24 Counts of Financial FraudRead the Press Release
OKLAHOMA CITY – Yesterday, a federal grand jury returned a 24-Count Indictment charging Ronald J. McCord, 69, of Oklahoma City, Oklahoma, with defrauding two locally-based banks, Fannie Mae, and others, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma. The charges include bank fraud, money laundering, and making a false statement to a financial institution.
McCord was the former President of First Mortgage Company, LLC ("FMC"), an Oklahoma City-based mortgage lending and loan servicing company. The Indictment alleges a broad range of fraudulent conduct spanning approximately three years.
McCord is charged in Counts 1 through 7 with defrauding Spirit Bank ("Spirit") and Citizens State Bank ("Citizens")—two state-chartered financial institutions—as well as their respective residential mortgage subsidiaries, American Southwest Mortgage Corporation ("Mortgage Corp.") and American Southwest Mortgage Funding Corporation ("Funding Corp."). According to the Indictment, in approximately June 2016, an independent audit discovered that McCord had sold more than $14,100,000.00 in Spirit/Mortgage Corp. and Citizens/Funding Corp. loans "out of trust" by failing to repay Spirit/Mortgage Corp. when certain Spirit/Mortgage Corp.-initiated loans were refinanced or otherwise paid off. At the time of this discovery, FMC carried outstanding balances of about $200,000,000.00 and $140,000,000.00 on the Spirit/Mortgage Corp. and Citizens/Funding Corp. lines of credit, respectively.
According to the Indictment, this discovery prompted further internal review. An internal audit revealed that McCord had misappropriated additional Spirit/Mortgage Corp. and Citizens/Funding Corp. loans by: (1) using FMC’s warehouse line of credit with (i.e., obtaining mortgage loans from) Spirit/Mortgage Corp. or Citizens/Funding Corp., selling those Spirit/Mortgage Corp. or Citizens/Funding Corp. loans to Fannie Mae, then resubmitting the loan documents to Spirit/Mortgage Corp. or Citizens/Funding Corp. to receive additional money from the Spirit/Mortgage Corp. or Citizens/Funding Corp. line of credit; (2) using FMC’s warehouse line of credit with Spirit/Mortgage Corp. or Citizens/Funding Corp. to refinance the resulting loans without repaying Spirit/Mortgage Corp. or Citizens/Funding Corp. the originally loaned funds; (3) using FMC’s Spirit/Mortgage Corp. or Citizens/Funding Corp. line of credit to fund mortgages to borrowers, receiving payments from those borrowers, but never repaying Spirit/Mortgage Corp. or Citizens/Funding Corp.; (4) obtaining funds from Spirit/Mortgage Corp. or Citizens/Funding Corp. for loans that never closed, then failing to return the funds to Spirit/Mortgage Corp. or Citizens/Funding Corp.; and (5) using FMC’s warehouse lines of credit with Spirit/Mortgage Corp. and Citizens/Funding Corp. to "double fund" loans by obtaining funds from both financial institutions to fund the same loans. The Indictment alleges that McCord’s actions involved Spirit/Mortgage Corp. and Citizens/Funding Corp. loans that totaled approximately $40,000,000.00, in addition to the more than $14,100,000.00 in Spirit/Mortgage and Citizens/Funding Corp. loans that McCord had sold out of trust.
The Indictment further alleges that, upon learning of McCord’s conduct, Spirit/Mortgage Corp. and Citizens/Funding Corp. terminated future warehouse lending to FMC, and instituted new notification requirements that required McCord to assign FMC-funded mortgages to Spirit/Mortgage Corp. and Citizens/Funding Corp., to ensure that the title companies handling those mortgages sent payoffs directly to the banks. Though McCord filed the assignments as required, his employees contacted the title companies handling the mortgages and directed payments to FMC, not Spirit/Mortgage Corp. and Citizens/Funding Corp. McCord continued to collect loan payoffs without repaying Spirit/Mortgage Corp. and Citizens/Funding Corp. He then signed releases on the assigned mortgages after receiving the payoffs, subjecting the properties to potential foreclosure should Spirit/Mortgage Corp. or Citizens/Funding Corp. try to collect payments on the mortgages, to which they held title.
According to Count 8 of the Indictment, Spirit/Mortgage Corp. and Citizens/Funding Corp.’s refusal to fund new FMC mortgages prompted McCord to seek out a new warehouse lender. In early 2017, McCord began negotiating with CapLOC, LLC, a North Carolina-based mortgage lending business, and offered to sell FMC’s mortgage lending business in exchange for quick funding from CapLOC. In the course of those negotiations, McCord made false statements and representations to obtain CapLOC funds. McCord then used the money to repay Spirit/Mortgage Corp. part of his outstanding $40,000,000.00 debt.
Finally, the Indictment alleges that, in 2017, FMC serviced approximately 12,000 loans worth a total of approximately $1,800,000,000.00 for the Federal National Mortgage Association ("Fannie Mae"). Counts 9 through 24 of the Indictment allege that McCord defrauded Fannie Mae by diverting escrow monies intended to pay homeowners’ taxes, insurance, principal, and interest, to cover FMC’s operating expenses. As a result, McCord bounced checks to more than sixty taxing authorities, and borrowers throughout the Oklahoma City area and elsewhere missed making their tax payments. The Indictment further alleges that McCord laundered the stolen escrow monies by using the funds to write himself checks, pay more than half the purchase price of his son’s $900,000.00 Oklahoma City home, and build a custom vacation home in Colorado.
With regard to the bank fraud and false statement to a financial institution charges in the Indictment, McCord faces up to 30 years in prison and a fine of up to $1,000,000.00 on each count. He also faces up to 10 years in prison and a $250,000 .00 fine on to each of the money laundering counts. Furthermore, the Indictment seeks forfeiture from McCord in the amount of the proceeds of the fraudulent schemes and in the amount of the property involved in the offenses.
This case is the result of an investigation by the Federal Housing Finance Agency Office of the Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, and the Federal Bureau of Investigation Oklahoma City Field Office. It is being prosecuted by Assistant U.S. Attorney Julia E. Barry.
Reference is made to the Indictment and other public filings for further information. An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt. To download a photo of U.S. Attorney Downing, click here.
Former Police Officer Sentenced to Prison Term for Possession of Child PornographyRead the Press Release
Fort Lauderdale, Florida – A federal judge sentenced Gabriel Albala, 45, of Margate, Florida to 30 months in prison followed by five years of supervised release for possessing child pornography that included images of children under age 12 engaged in sex acts. On Albala’s release from prison, he must register as a sex offender. Albala worked as a police officer with the Boynton Beach Police Department prior to his arrest.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, make the announcement.
According to court records, law enforcement learned of Albala following the arrest of a man who sold child pornography on the internet. Review of the seller’s records included financial transaction and other information that led law enforcement to Albala. Officers executed a search warrant at Albala’s home. They found a desktop computer in his bedroom that contained multiple images of children engaged in sexual activity. Some of the pornographic videos involved children under 12. Law enforcement also found child pornography on Albala’s cellular telephone. On January 17, 2020, Albala pled guilty to possessing child pornography.
U.S. Attorney Fajardo Orshan commends the investigative efforts of FBI and, in particular, the FBI’s Child Exploitation and Human Trafficking Task Force. She also commends the Boynton Beach Police Department and Margate Police Department for their assistance. Special Assistant U.S. Attorney M. Kathleen Koontz prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Federal charges filed from incident during Saturday’s protest/riotingRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, Antonio Wooden, 23, Indianapolis, was charged today with Unlawful Possession of a Firearm by a Fugitive from Justice and Unlawful Possession of a Firearm by an Unlawful User of a Controlled Substance.
“Freedom of speech and the right to protest are freedoms that all American have. Illegally possessing a firearm and firing at police are not.” said Minkler. “Mr. Wooden was not peaceably protesting, he was terrorizing and endangering the lives of those that were, including the police officers”
On May 31, 2020 Detectives the Indianapolis Metropolitan Police Department (IMPD), Crime Gun Intelligence Center (CGIC) learned a male, who was positively identified by IMPD investigators as Antonio Wooden, was firing an AR-15 style rifle during the protest/riots in downtown Indianapolis on Saturday May 30, 2020.
IMPD investigators located a video which shows Wooden raising a rifle, pointing the rifle in the direction of IMPD officers in the area of N Pennsylvania Ave and Market St., and firing at least one round. Wooden then lowered the rifle and moved farther east towards the IMPD Officers on Market St. Before the video ended, more gun shots can be heard.
Further investigation determined that Wooden has an active arrest warrant issued from the State of Ohio for Failure to Appear to face a charge of Drug Abuse, which was issued in Mason Municipal Court on May 12, 2020. Wooden was convicted of Battery Resulting in Bodily Injury in Marion County (Indiana) Superior Court on August 22, 2019 and is currently on probation in that case. Wooden also has an outstanding Protective Order against him.
On June 2, 2020, Wooden was arrested by IMPD a short distance from his residence during a traffic stop. A search warrant was also served at Wooden’s residence at 7311 E 19th St. Detectives located Wooden’s American Tactical .223 caliber rifle, a small amount of marijuana, along with sixty (60) live .223 rounds and two rifle magazines. They also located the goggles and distinct facemask that Wooden had on his person the night of the protest/riots.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Crime Gun Intelligence Center, and the Indianapolis Metropolitan Police Department.
According to Assistant United States Attorney Barry Glickman, who is prosecuting this case for the government, Wooden faces up to 10 years’ imprisonment, 3 years of supervised release, and a maximum fine of $250,000.
A charge is not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to prosecute trigger pullers involved in illegal acquisition and possession of crime guns in the district. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.4.
Federal Inmate Charged with Illegally Possessing a Cell PhoneRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Moshannon Valley Correctional Center in Philipsburg, Pa., was indicted by a federal grand jury in Johnstown on a charge of possession of a prohibited object in prison, United States Attorney Scott W. Brady announced today.
The Indictment named Victor Soto, 40, as the sole defendant.
According to the Indictment presented to the court, on April 17, 2020, Soto possessed a cellular telephone.
The law provides for a maximum sentence of one year in prison and a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation leading to the Indictment of Soto.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Grand Jury Indicts Former Urbana University High School Teacher, Girls' Cross Country Coach on Child Pornography ChargesRead the Press Release
URBANA, Ill. – A federal grand jury has returned an indictment that charges a former physical education teacher at Urbana’s University High School with distribution and possession of child pornography. Douglas O. Mynatt, 56, of the 100 Block of Dropseed Ave., Savoy, Ill., also previously served as the coach of the school’s girls’ cross country program.
Mynatt was previously arrested and charged by criminal complaint on April 3, 2020. Mynatt has remained in the custody of the U.S. Marshals Service since his arrest.
The indictment charges Mynatt with three counts of distribution of child pornography in January 2020 and possession of child pornography on April 2, 2020.
According to the affidavit filed in support of the criminal complaint, on March 20, 2020, the Champaign County Sheriff’s Office received a CyberTip referral that was made by the National Center for Missing and Exploited Children (NCMEC) to the Internet Crimes Against Children (ICAC) division of the Illinois Attorney General’s Office. An instant messaging application, Application A, self-reported to NCMEC that one of its online social media users possessed content believed to be images and movies of child pornography. Application A reported several IP addresses for logins by the user, identified as Mynatt, including from his home address in Savoy and at the University of Illinois in Champaign / Urbana.
Assistant U.S. Attorney Elly M. Peirson is representing the government in the prosecution. U.S Immigration and Customs Enforcement Homeland Security Investigations, the Champaign County Sheriff’s Office, and the Urbana Police Department are conducting the investigation.
If convicted, each count of distribution of child pornography carries a statutory penalty of at least five years to 20 years in prison; for possession of child pornography, the penalty is up to 10 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a Department of Justice initiative led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), to marshal federal, state and local resources to 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.
Federal Court Enters Injunction Against Herbal Drug Manufacturer for Selling Misbranded and Unapproved Drugs in Violation of the Federal Food, Drug, and Cosmetic ActRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Stacy Amin, Chief Counsel for the U.S. Food and Drug Administration (“FDA”), announced today that the United States District Court for the Southern District of New York has entered an injunction against defendants RAHSAN A. HAKIM (“Hakim”) and ADONIIAH A. RAHSAN (“Rahsan”) (collectively, the “Defendants”) for repeated violations of the Food, Drug, and Cosmetic Act. HAKIM and RAHSAN do business as Sundial Herbal Products (“Sundial”).
U.S. Attorney Geoffrey S. Berman said: “If you threaten the public health by selling unapproved or misbranded drugs, we will stop you. There is no place for modern-day snake oil salesmen.”
FDA Chief Counsel Stacy Amin said: “Americans expect and deserve medical treatments that have been scientifically proven to be safe and effective. Making claims that unproven drugs can cure or prevent diseases places consumers’ health at risk. We remain committed to pursuing and taking swift action against those who attempt to subvert the regulatory functions of the FDA by repeatedly disregarding the law and distributing unapproved products.”
The Complaint
According to the Government’s complaint, Defendants manufactured and sold various herbal products – often referred to as “tonics” and “herbal teas” – that constitute unapproved new drugs. Defendants claimed that these products cure, treat, and/or prevent numerous diseases and conditions, including HIV, cancer, syphilis, diabetes, high blood pressure, arthritis, asthma, and heart disease. None of Defendants’ products had been tested or approved by the FDA for safety or effectiveness. These products were also “misbranded” in that they failed to include instructions for their safe use. Defendants’ sale of such products pose a threat to public health because the products’ disease treatment claims may cause consumers to delay appropriate medical care for these serious medical issues. Sundial had been inspected by the FDA multiple times, including during the pendency of the lawsuit, and, despite repeated promises to do so, Defendants failed to correct their violations of the Food, Drug, and Cosmetic Act (“FDCA”).
The United States filed this lawsuit seeking to enjoin Defendants from manufacturing and selling drugs in violation of the FDCA.
The District Court’s Findings
On May 26, 2020, the District Court found that Defendants have repeatedly violated the law by distributing unapproved new and misbranded drugs. Among other things, the Court concluded that:
- “The labels that the FDA collected . . . indisputably establish that Defendants claimed that their products were intended for use in diagnosing, curing, mitigating, treating, and/or preventing a wide variety of diseases.”
- The drugs sold by Defendants were “unapproved new drugs” because, among other things, they are “not generally recognized as safe and effective” and have not been approved by the FDA.
- Defendants’ drugs were “misbranded” because “the record shows that many of Defendants’ drugs are intended for treating serious diseases or conditions such as HIV, cancer, and Ebola, all of which require diagnosis and management by a physician . . . . As such, they are only safe for use under the supervision of a physician, which brings them within the definition of prescription drugs.” Furthermore, “Defendants’ drugs are also misbranded because they lack adequate instructions for lay use.”
- “Defendants’ past violations are also egregious, as they made claims that their products could cure cancer, HIV, and Ebola, among other serious diseases,” and “absent injunctive relief, nothing prevents Defendants from returning to their old ways.”
Permanent Injunction
After finding that Defendants had committed “egregious” violations of the law, the Court entered a permanent injunction prohibiting Defendants from manufacturing or selling these products or any drug unless and until either: (1) a new drug application is approved for their drugs; or (2) they meet various requirements demonstrating compliance with the FDCA. Such requirements include that Defendants must:
- Remove all claims in labels, promotional material, websites, and social media pages that these herbal remedies diagnose, cure, mitigate, treat, or prevent disease.
- Recall and destroy, at their own cost, under the FDA’s supervision, all drugs manufactured, packed, labeled, held, and distributed from 2014 through the present.
- Retain, at their own cost, a qualified, trained, and experienced drug labeling expert to review and report to the FDA on Defendants’ compliance with the issued injunction and FDCA.
- Arrange for annual audits by an independent third-party to confirm ongoing compliance.
* * *
Mr. Berman thanked the investigators and attorneys of the FDA for their valuable assistance on this matter.
This case was handled by the Environmental Protection Unit of the Office’s Civil Division. Assistant U.S. Attorney Emily Bretz is in charge of this case.
- “The labels that the FDA collected . . . indisputably establish that Defendants claimed that their products were intended for use in diagnosing, curing, mitigating, treating, and/or preventing a wide variety of diseases.”
Federal Complaint Charges Peoria Man with Using Internet to Incite Rioting in PeoriaRead the Press Release
PEORIA, Ill. – A Peoria, Ill., man, Ca’Quintez Gibson, 26, has been arrested and charged by criminal complaint with using the internet to incite rioting in Peoria beginning on May 31 and ending June 1, 2020. Peoria police officers arrested Gibson last night and he appeared in federal court this afternoon via videoconference before U.S. Magistrate Judge Jonathan E. Hawley. Gibson was ordered to remain detained in the custody of the U.S. Marshals Service pending a detention hearing scheduled on June 8, 2020.
“The alleged actions by this defendant are an orchestrated effort to incite riots, incite looting, and cause general mayhem. Thanks to the coordinated effort of the Peoria Police Department and the FBI, he was quickly identified and safely apprehended,” said U.S. Attorney John Milhiser. “We will use all available resources to identify bad actors and get them off the streets to keep our communities safe.”
“The freedom to gather and peacefully protest is a right afforded to all Americans under the 1st Amendment to the Constitution. At the FBI, we take an oath to uphold the Constitution of the United States and Protect the American People. When individuals attempt to use the freedoms as a shield to commit acts of violence in our communities, those acts are not protected expressions,” said Sean M. Cox, FBI Special Agent in Charge, Springfield Division. “We are committed to working with our law enforcement partners to ensure those rights and our communities are protected. I want to commend and thank the Peoria Police Department and the U.S. Attorney’s Office, with whom we have worked in this instance, to hold this individual accountable for his alleged actions.”
Peoria Police Chief Loren Marion III stated, “Between May 31 and June 1, Peoria Police responded to several looting incidents throughout the City of Peoria. Detectives identified Gibson as an actor in those events. As I mentioned at the press conference, these actions will not be tolerated. I requested the FBI assist us in this investigation. I will continue to use any and all available resources to keep our community safe. I’d like to thank the FBI for their assistance in this investigation.”
According to the affidavit filed in support of the complaint, Gibson appeared in four Facebook Live videos posted on May 31, beginning at 5:15 p.m., with a four minute, 21 second video in which he references 50 gathering at 9:00 p.m.at Northwoods Mall in Peoria. During the video, Gibson is quoted as saying, “Y’all gonna see me there. And we ain’t with that peaceful s---.” and, “I’m not watchin’ no other city on … TV. They sent that b--- up. … Let’s send our s--- up.”
Gibson allegedly posted three additional Facebook Live videos in which he appears using another person’s Facebook account. The videos were posted at approximately 9:10 p.m.; 9:18 p.m.; and, 9:35 p.m. In the videos, Gibson is seen encouraging people to meet at Landmark Recreation Center, in Peoria. The 10 minute, 27 second video posted at 9:35 p.m. is of Gibson, asking numerous times where everyone is as he pans to the parking lot of the recreation center. In the video, Gibson states he needs 50 people to come to the Landmark as he tells the camera this is everyone’s opportunity.
The complaint affidavit alleges that during the afternoon of May 31, Facebook user Ca’Quintez Gibson Sr., made numerous posts beginning at 3:30 p.m.: “Bra y’all letting little ole Champaign out do us?” Attached was a video of groups attempting to break into stores in a strip mall.
According to Peoria Police Department reports, from May 31, at approximately 9:00 pm. through June 1, 2020, at 6:00 a.m., there were approximately 27 business burglaries reported, approximately 14 criminal damage to property reports, and several reports of arson.
The affidavit alleges that on June 1, Facebook account Ca’Quintez Gibson Sr., posted at 1:13 a.m.: [smiling emoji with tears] “YEAAAAAA SEND THIS B---- UP !! !! !! !! !! !! #” [fist emoji] and at 6:28 a.m.: “MISSION #Send PeoriaUp ACCOMPLISHED” [flexing bicep emoji] ..”I KNEW Y’ALL WOULD ACT A A—WITH ME YALL JUST NEEDED A LIL PUSH.”
The Peoria Police Department and the Federal Bureau of Investigation, Springfield Division, are conducting the investigation. Supervisory Assistant U.S. Attorney Darilynn J. Knauss is representing the government in the prosecution.
If convicted for the offense of inciting a riot, the statutory penalty is up to five years in prison, a fine of up to $250,000, and three years of supervised release following imprisonment.
Members of the public are reminded that a complaint is merely an accusation; the defendant is presumed innocent unless proven guilty.
Fayetteville Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Alan Longmore, age 66, of Fayetteville, New York, pled guilty today before United States District Judge David N. Hurd to one count of receipt of child pornography and one count of possession of child pornography, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI). Longmore, who remains detained pending his sentencing, faces at least 180 months of imprisonment and up to 210 months of imprisonment on the charges when he is sentenced on October 1, 2020 in Utica, New York. The Court will also impose a term of supervised release of between five (5) years and life, and Longmore will be required to register as a sex offender.
As part of his guilty plea, Longmore admitted that he received images and videos of child pornography through a Peer-to-Peer file-sharing program. A forensic review of his laptop computer revealed that it contained numerous video files depicting child pornography. After being confronted about these charges, Longmore admitted to engaging in this conduct for years. In addition to these video and image files, the defendant also admitted to secretly recording and subsequently possessing video files depicting two minors engaged in sexually explicit conduct.
Longmore’s case was investigated by Homeland Security Investigations, Syracuse Office with assistance from the NYSP Computer Crimes Unit, and the Manlius Police Department. The case is being prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to 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 https://www.justice.gov/psc.
Fayette County Man with Prior Child Porn Conviction Pleads to Possessing 1000’s of Images Depicting the Sexual Exploitation of ChildrenRead the Press Release
PITTSBURGH -A Fayette County resident pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Michael Pulliam, 36, of Fairchance, Pennsylvania pleaded guilty to one count before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in April 2019, an undercover online investigation revealed that Pulliam was sharing child pornography over the eMule file sharing network. A subsequent search of Pulliam’s residence, and electronic devices, uncovered thousands of images of child pornography, including images of prepubescent children and sadistic and masochistic conduct. The Court was further advised that Pulliam has a prior conviction in federal court for possession of child pornography, which triggers a mandatory sentence of at least 10 years in prison.
Judge Hornak scheduled sentencing for October 6, 2020 at 9:30 am. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that the defendant remain detained.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation that led to the prosecution of Pulliam.
Ellenville Woman Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
ALBANY, NEW YORK – Margaret Vandyke, age 58, of Ellenville, New York, pled guilty today to her involvement in a drug trafficking organization that distributed crack cocaine and fentanyl in Ulster County.
The announcement was made by United States Attorney Grant C. Jaquith; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (HSI), New York; Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT); Ulster County District Attorney David Clegg; New York State Police Superintendent Keith M. Corlett; and Village of Ellenville Police Chief Philip Mattracion.
Vandyke admitted that between September 2017 and December 2018, in cooperation with co-conspirators, she sold over 300 grams of crack cocaine on behalf of the organization in various locations around Ellenville.
Vandyke faces at least 10 years and up to life in prison, a term of supervised release of at least 5 years and up to life, and a maximum fine of $10 million, when she is sentenced by United States District Judge Mae A. D’Agostino on October 2, 2020. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The following defendants have also pled guilty in connection with the conspiracy, and were sentenced as follows:
Name
Age
Prison Term
Supervised Release Term
Iqwan Mandiville, aka “Qwan”
27
70 months
4 years
Randy Mandiville, aka “B-Murda”
31
42 months
6 years
The following defendants have also pled guilty in connection with the conspiracy, and face the following terms of imprisonment:
Name
Age
Minimum
Maximum
Luis Curet
35
5 years
40 years
Edwin Jorge
46
None
20 years
Jennifer McCombs, aka
“Jennifer Marks”49
5 years
40 years
The following defendant still faces charges in this case, and faces the following terms of imprisonment if convicted on the drug conspiracy charge:
Name
Age
Minimum
Maximum
Antonio Naveo, aka “Gratto,” aka “Green Eyes”
39
10 years
Life
Naveo is also charged with unlawful possession of a Mossberg shotgun as a felon. The charges against Naveo are merely accusations. He is presumed innocent unless and until proven guilty.
This case is being investigated by HSI, the Ulster County Sheriff’s Office in conjunction with URGENT, an inter-agency taskforce targeting drug dealers and gang members in Ulster County, and the New York State Police, with assistance from the Village of Ellenville Police and the Ulster County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
Dominican National Sentenced for Fentanyl DistributionRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence pleaded guilty and was sentenced today for distributing fentanyl.
Enel Alfredo Mendez-Aquino, 30, pleaded guilty to distribution of fentanyl and was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 12 months in prison and three years of supervised release. Mendez-Aquino will face deportation proceedings upon completion of his sentence. Mendez-Aquino was indicted by a grand jury on Aug. 1, 2019.
On June 11, 2019, federal agents observed Mendez-Aquino throw objects into a SUV parked on Abbott Street in Lawrence. During a subsequent stop of the SUV, the occupants of the vehicle admitted that they had just purchase drugs from Mendez-Aquino. Law enforcement officers arrested Mendez-Aquino, who has been in custody since. A lab test confirmed that the drugs were fentanyl and cocaine.
This case is part of a coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
United States Attorney Andrew Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Lucy Sun prosecuted the case.
Department of Justice awards $2.3 million to help Northern Ohio public safety agencies address Coronavirus costsRead the Press Release
The Department of Justice announced today that it has awarded approximately $2.3 million in funding to public safety agencies throughout Northern Ohio to help respond to the challenges posed by the COVID-19 pandemic. This funding is available through the Coronavirus Emergency Supplemental Funding Program (CESF), which allows for eligible state, local and tribal governments to support a broad range of activities to prevent, prepare for, and respond to the coronavirus.
“The Justice Department has acted swiftly to help our law enforcement partners throughout Northern Ohio address public safety issues during the COVID-19 pandemic,” said U.S. Attorney Justin Herdman. “This funding will help pay for costs associated with the pandemic such as overtime, medical personal protective equipment, hiring, training and other expenses.”
In the Northern District of Ohio, communities receiving funding via the CESF include:
- City of Cleveland - $1,719,898
- City of Akron - $403,225
- City of Youngstown - $139,227
- Trumbull county - $58,008
- Lorain county - $58,008
For more information about the Coronavirus Emergency Supplemental Funding program, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553. For more information about the Office of Justice Programs, please visit https://www.ojp.gov/