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20 July 2020
Huntington Man Pleads Guilty to Methamphetamine ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man has pled guilty to a federal drug crime, announced United States Attorney Mike Stuart. Joshua David Ramey, 29, pled guilty to possession with intent to distribute methamphetamine.
“Things just kept getting worse for Ramey – he ran out of gas, had no vehicle registration, no valid driver’s license…then officers discovered a trunk full of methamphetamine and a firearm. Reminds me of a blues song… ‘If it wasn’t for bad luck I wouldn’t have no luck at all,’” said United States Attorney Mike Stuart. “Living on the wrong side of the law eventually catches up with you. Not bad luck just bad decisions.”
Ramey admitted that on March 13, 2018, near mile marker 34 of I-64 westbound, he had been driving a vehicle which had run out of gas. A deputy with the Putnam County Sheriff’s Department stopped with the disabled vehicle and waited for a Courtesy Patrol to arrive for filling up the gas tank. Subsequent investigation determined that the vehicle had no registration and neither occupant of the vehicle, including Ramey who was the driver, had a valid driver’s license. A search of the vehicle’s trunk revealed a white shopping bag that contained four separate plastic baggies containing an approximate combined weight of 471.5 grams of methamphetamine, worth approximately $36,000 in street value. Also recovered from the trunk was a Mossburg .410 shotgun which belonged to Ramey.
Ramey faces up to 20 years in prison when sentenced on October 19, 2020.
The Putnam County Sheriff’s Department conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Ryan A. Keefe and Monica D. Coleman are handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:18-cr-00181.
Follow us on Twitter: SDWVNews and USAttyStuart
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Holyoke Man Sentenced for Selling CocaineRead the Press Release
BOSTON – A Holyoke man was sentenced on Friday, July 17, in federal court in Springfield for drug possession and distribution charges.
Roberto Santiago, 45, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 10 months in prison and three years of supervised release. Santiago sold cocaine on Sept. 30, 2019 in Holyoke. The arrest was the result of a multi-agency investigation into heroin trafficking in Holyoke dubbed “Operation Open Air.”
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Holyoke Police Chief Manny Febo made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Hartford Man Sentenced to Federal Prison for Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NOEL PEREZ, 23, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 24 months of imprisonment, followed by three years of supervised release, for illegally possession of a firearm.
According to court documents and statements made in court, on May 29, 2018, Hartford Police stopped a vehicle Perez was driving on Wadsworth Street. A search of the vehicle revealed a loaded Sig Sauer P2022 .40 caliber handgun, which had a laser sight attached to its barrel.
Perez’s criminal history includes felony convictions in state court for assault, burglary and larceny offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On December 4, 2018, Perez pleaded guilty in federal court to one count of possession of a firearm by a convicted felon. On November 20, 2019, while he was released on bond, Perez was arrested by Hartford Police. According the police report, when Perez was apprehended, a search of his person revealed wax paper sleeves containing a white powder substance that field-tested positive for heroin, and $892 in cash. In addition, a gun was discovered in the driveway where he and two associates stood before they ran from police. Perez’s bond was revoked on December 3, 2019.
This investigation was conducted by the Hartford Police Department and the Federal Bureau of Investigation’s Violent Crime Task Force. The case was prosecuted by Assistant U.S. Attorney Anastasia E. King.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Former Newark High School Faculty Member Charged with Multiple Counts of Child Pornography; Investigators Seeking Help from the PublicRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Matthew Holland, 28 of Newark, NY, was arrested and charged by criminal complaint with production, receipt, and possession of child pornography, and online enticement of a minor. The charges carry a minimum penalty of 15 years in prison, a maximum penalty of life, and a $250,000 fine.
According to the complaint, on March 9, 2020, investigators with the Loudoun County Sheriff’s Office in Leesburg Virginia, received a report that Snapchat user “Tjohnson755” had engaged in sexually explicit conversations with a 14 year old minor. The complaint states that “Tjohnson755,” later identified as Matthew Holland, coerced the minor into sending him nude photographs. When the minor indicated that she did not wish to continue communicating, the defendant threatened to disseminate the minor’s photographs over the internet. Using this and other threats, Holland coerced the minor to continue to send him sexually explicit photographs and videos.
Loudoun County Sheriff’s Office detectives executed a search warrant on Holland’s “Tjohnson755” Snapchat account, and using IP information, located the defendant’s residence in Newark, NY. While analyzing the Snapchat account, investigators identified dozens of similar conversations with other suspected minors.
On March 9, 2020, with assistance from the Newark Police Department, and the Wayne County, NY, Sheriff’s Office, Loudoun County investigators executed a search warrant at Holland’s residence. A preliminary forensic analysis of computers and other digital items seized revealed hundreds of images and videos of child pornography, including child pornography depicting prepubescent minors, and child pornography that Holland produced from known and unknown minors using his “Tjohnson755” Snapchat account. During the execution of the search warrant, Holland indicated to investigators that he operated Illumination Images on W. Union Street in Newark, NY, where he had hidden cameras in the dressing room, in order to record customers, including minors, in various stages of undress.
Following the execution of search warrant, Holland was arrested and extradited to Leesburg, VA, to face a state charges in that jurisdiction. The defendant made an initial appearance on the federal charges in United States District Court, Eastern District of Virginia, and is being held without bail, until he is transported to the Western District of New York, where the prosecution will be handled by Assistant U.S. Attorney Kyle P. Rossi.
According to the complaint, Holland recently resigned as a faculty member at Newark High School. The defendant was also previously employed at the YMCA in Canandaigua, NY, and is believed to have surreptitiously recorded individuals at that location.
Anyone with information concerning Matthew Holland, Illumination Images, or Snapchat User “Tjohnson755,” is asked to contact Homeland Security Investigations at (716) 464-6070 or via email at [email protected].“As an educator and photographer, the defendant not only had access to children but occupied a position of trust with respect to them,” stated U.S. Attorney Kennedy. “However, as reflected in the allegations set forth in the criminal complaint, his cruel and unrelenting betrayal of that trust is every parent’s nightmare. This case serves as a sobering reminder that we must remain vigilant in our effort to educate our children to the dangers they face and to pay attention to their online activities. Too often children lack the real world experience needed to discern the dangers lurking in the virtual world.”
“The allegation of child exploitation by a trusted member of our community is reprehensible and demands swift action,” said Kevin Kelly, Homeland Security Investigations Buffalo Special Agent-in-Charge. “HSI is urging those with any information about the defendant to come forward to ensure justice for those that may have been victimized.”
The criminal complaint is the result of an investigation by the Loudoun County, VA, Sheriff’s Office, under the direction of Sheriff Michael L. Chapman; the Newark, NY Police Department, under the direction of Chief Mark Thoms; the Wayne County Sheriff’s Office, under the direction of Sheriff Berry Virts; the Canandaigua, NY Police Department, under the direction of Chief Stephen Hedworth; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Former Managers and Employees of Connecticut Insurance Firm Charged in $17 Million Scheme to Defraud Client Healthcare ExpensesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector in Charge of the New York Field Office of the United States Postal Inspection Service (“USPIS”), announced the arrests of ANTHONY RICCARDI, PATRICIA RICCARDI, ERIN VERESPY, and VANESSA BATTLE, former managers and employees of Employee Benefit Solutions LLC (“EBS”), for defrauding clients by misappropriating over $17 million in client funds intended for employee healthcare claims. ANTHONY RICCARDI, PATRICIA RICCARDI, and ERIN VERESPY appeared before Chief U.S. Magistrate Judge Paul E. Davison in White Plains federal court last week, and VANESSA BATTLE appeared before Judge Davison this morning.
Acting U.S. Attorney Audrey Strauss said: “As alleged in the criminal complaint, the defendants abused their positions as administrators of client healthcare plans for years by creating false and inflated invoices and then misappropriating millions of dollars for their own uses. As further alleged, the defendants sought to conceal this fraud by creating false bank statements and checks. Our Office will continue to work with our law enforcement partners to expose and prosecute egregious fraud schemes.”
Inspector in Charge Philip R. Bartlett said: “The magnitude and the level of the alleged dishonesty by these individuals is truly unfathomable. The defendants allegedly enriched themselves with money transferred to EBS intended for the payment of medical expenses. Once Postal Inspectors caught this case they swiftly uncovered the theft scheme and brought those allegedly responsible to justice for their criminal behavior.”
According to the allegations in the Complaint unsealed today[1]:
ANTHONY RICCARDI, PATRICIA RICCARDI, ERIN VERESPY, and VANESSA BATTLE are managers and employees of EBS, a company based in Wilton, Connecticut, that offered a variety of healthcare insurance-related services to clients. EBS, among other things, provided third party healthcare claims administration (“TPA”) services to clients that elected to “self-fund” (or self-insure) their employee healthcare plans. As a TPA, EBS would purportedly administer, process, and pay healthcare claims for its clients’ employees in exchange for an administrative fee.
Between at least 2015 and continuing through 2019, EBS represented an automobile dealership chain (“Company-1”) headquartered in Westchester County, New York. During this time period, EBS served as a TPA for Company-1’s self-funded employee healthcare program and purported to process and pay claims to medical providers that treated Company-1’s employees. To do this, EBS generated bimonthly “check register” invoices for Company-1 that listed all employee healthcare expenses from healthcare providers during that two-week period. EBS also administered a bank account on Company-1’s behalf for the express purpose of paying Company-1 healthcare claims. Company-1 would fund each check register by paying the invoiced amount, expecting that EBS would promptly pay the claims to the healthcare providers. During this time period, Company-1 transferred approximately $26 million to EBS for the payment of healthcare claims.
In reality, a significant amount of purported checks listed on the EBS “check register” invoices were never actually deposited by the healthcare providers. Instead, approximately $17.87 million in Company-1 healthcare payments were misappropriated, with the overwhelming majority simply transferred by EBS into its own operating account, where they were used for non-healthcare expenses by the defendants. For example, a review of bank records indicates that Company-1 healthcare funds were used by ANTHONY RICCARDI and PATRICIA RICCARDI to pay their home mortgage expenses, as well as a personal credit card account with expenses relating to boating and golf.
EBS, through the defendants, made decisions of what few Company-1 healthcare claims they did pay based on which healthcare providers were likely to complain if they did not receive payment, or if the claims were connected to Company-1 executives. PATRICIA RICCARDI and VERESPY, for example, discussed the timing of payments for Company-1 “VIPs” as well as a “Not VIP” claim that was nonetheless the subject of complaining phone calls.
The “check registers” sent to Company-1 also contained millions of dollars in fraudulent or inflated healthcare claims that were eventually paid by Company-1. Such efforts were directed by ANTHONY RICCARDI and assisted by BATTLE, who among other things, manually entered a majority of claims relating to a specific pharmacy network that were billed to Company-1, despite approximately $3 million of those claims being fictitious. Furthermore, on at least one occasion, BATTLE sent an auditor for Company-1’s insurance underwriter a series of pharmacy network claims that were billed to Company-1 despite being significantly inflated from the pharmacy network’s records.
The defendants also took steps to conceal their fraud from Company-1 by creating and sending manipulated and fabricated bank statements and checks to create the appearance that healthcare claims were being paid by EBS, when in reality they were not. In approximately January 2019, for example, ANTHONY RICCARDI sent multiple bank statements to Company-1 that purported to show healthcare claims being paid out from the account EBS created on Company-1’s behalf. Such bank statements were significantly altered from the actual bank statements and hid, for example, the millions of dollars that EBS transferred from the Company-1 account into the EBS operating account. BATTLE sent similar copies of the altered bank statements to an auditor for Company-1’s insurance underwriter. VERESPY and ANTHONY RICCARDI also exchanged emails showing the creation of altered bank statements on behalf of another client in or about 2018. Furthermore, on at least one occasion, ANTHONY RICCARDI sent Company-1 an image of an altered check to create the appearance that EBS was handling a delayed healthcare payment. In so doing, ANTHONY RICCARDI also emailed PATRICIA RICCARDI and BATTLE to ask whether they needed to “make more . . . checks.”
ANTHONY RICCARDI, 42, PATRICIA RICCARDI, 53, and VANESSA BATTLE, 65, each of New Canaan, Connecticut, and ERIN VERESPY, 49, of Trumbull, Connecticut, are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the U.S. Postal Inspection Service and the Special Agents of the United States Attorney’s Office. Ms. Strauss also thanked the U.S. Department of Labor, Employee Benefits Security Administration; U.S. Department of Labor, Office of Inspector General; and the United States Secret Service, which are assisting in the investigation, as well as the U.S. Attorney’s Office for the District of Connecticut.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Nicholas S. Bradley is in charge of the prosecution.
The charges in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Controller Sentenced for Embezzlement SchemeRead the Press Release
GREENEVILLE, Tenn. – On July 17, 2020, Shain A. Chappell, 49, formerly of Johnson City, was sentenced by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement, Chappell pleaded guilty to an information in December 2019. The information charged Chappell with one count of wire fraud and one count of making a false tax return in the United States. Chappell was sentenced to 40 months in prison, followed by three years’ supervised release. Chappell will be required to make restitution of over $1 million to the victim and over $350,000 to the United States.
In October 2015, Greentech Environmental, LLC hired Chappell as its controller. During his time at Greentech, Chappell developed a scheme that used his position as controller to deceive Greentech into paying for Chappell’s personal credit card purchases, subsequently hiding the thefts by showing the payments as purchases of inventory in Greentech’s books and records. By July 2017, less than two years after his hiring, Chappell had embezzled over $1 million from his former employer, using the embezzled funds to pay for lavish lifestyle expenditures.
In addition to stealing from Greentech, Chappell filed false tax returns for 2017 and 2018 that failed to include as income the money he stole from his employer, resulting in additional income tax owed of over $350,000.
The criminal indictment was the result of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigations. This investigation was co-led by FBI Special Agent Reanna E. O’Hare and IRS CI Special Agent Jimmy Cline.
Assistant U.S. Attorney Mac D. Heavener, III represented the United States.
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Former Bossier Parish Community College Comptroller Pleads Guilty to Stealing More Than $250,000Read the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Carol Bates, the former comptroller for Bossier Parish Community College (BPCC), pled guilty today before Chief U.S. District Judge S. Maurice Hicks Jr., to one count of conspiracy to commit wire fraud.
Bates admitted at the plea hearing that from 2013 to 2016, she used her position as comptroller of BPCC to access an internal BPCC computer database and make false entries falsely showing individuals were due refunds by the school. These individuals were not qualified to receive the funds, and, in most cases, they were not even attending BPCC during the semesters they received the money. As a part of the scheme, Bates and her sister, Audrey Williams, recruited Faith Alexander and Marquise Perry, along with seven other individuals to receive fraudulent refunds from BPCC. Once the individual received the funds, they were instructed to deliver between one-half and two-thirds of the money to Carol Bates or her sister, Audrey Williams.
In total, Bates caused 45 fraudulent refunds totaling $259,591.87 to be issued. Alexander received eight refunds totaling $45,482.65 from 2014 through 2016. Perry received seven refunds totaling $49,524.65 from 2015 through 2016. The remaining 30 refunds were issued to seven other individuals who, after receiving the money, transferred two-thirds or half of it to Bates.
On September 25, 2019, Bates, 49, along with her co-defendants, Faith Alexander, 28, Marquise Perry, 35, and Audrey Williams, 56, all of Shreveport, was charged with one count of conspiracy to commit wire fraud. In addition to the conspiracy to commit wire fraud, Bates was charged with 12 counts of wire fraud and Perry was charged with three counts of wire fraud.
Faith Alexander pled guilty on February 19, 2020, to one count of conspiracy to commit wire fraud; Perry pled guilty on December 9, 2019, to one count of wire fraud; and Williams entered a not guilty plea on October 23, 2019.
Bates faces up to 20 years in prison, a $250,000 fine, and up to one year of supervised release. Sentencing will be set at a later date. Alexander and Perry also face up to 20 years in prison, a $250,000 fine, and up to one year of supervised release when they are sentenced on September 2, 2020.
The U.S. Department of Education, Office of Inspector General, and the Louisiana Office of State Inspector General conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Acting Administrator of the Drug Enforcement Administration Uttam Dhillon New Interpol Washington DirectorRead the Press Release
Attorney General William P. Barr announced today Uttam Dhillon will become INTERPOL Washington Director after Wayne Salzgaber returns to the U.S. Department of Homeland Security following his over two-year detail serving as INTERPOL Washington Director, effective August 1. INTERPOL Washington, the U.S. National Central Bureau, is a component of the U.S. Department of Justice and is co-managed by the U.S. Department of Homeland Security.
“I want to thank Director Wayne Salzgaber for his service to the Department of Justice as the Deputy Director and Director of INTERPOL Washington, while on detail to us from the Department of Homeland Security (DHS),” said Attorney General Barr. “Director Salzgaber has done an excellent job leading one of the Department’s most significant crime fighting agencies these past five years, achieving many successes on high-profile cases while advancing the rule of law and combatting transnational crime and terrorism. I greatly appreciate Director Salzgaber’s service to the Department and our nation, and I wish him well as he returns to DHS. I am pleased to appoint Uttam Dhillon as the next INTERPOL Washington Director.”
Salzgaber, an over 30-year veteran of DHS, began his appointment as Director of INTERPOL Washington in June 2018 after serving in the positions of Deputy Director and Acting Director since 2015. As Director, Mr. Salzgaber has been instrumental in advancing many of our nation’s international information sharing strategies by using the INTERPOL platform as the central component to facilitate and enhance the sharing of crucial U.S. criminal intelligence and investigative information on wanted fugitives, transnational criminals and terrorists. Wayne was recognized, in 2018, as a recipient of the Deputy Attorney General’s Award for Outstanding Leadership for his dedication and ability to influence global partnerships in support of U.S. strategies.
As INTERPOL Washington Director, Mr. Dhillon will act on behalf of the Attorney General as the official U.S. representative to INTERPOL, the world’s largest International Criminal Police Organization, and its 194 member countries, leading the U.S. Government’s efforts to share and exchange international criminal investigate, border security and humanitarian assistance information across the INTERPOL communications platform, and be responsible for all personnel and assets dedicated to INTERPOL Washington’s mission of supporting domestic and international law enforcement and border security operations around the globe.
Mr. Dhillon is a dedicated public servant who has served in the Department of Justice, the White House, DHS, Congress, and as a career federal prosecutor. Dhillon was appointed Acting Administrator of the U.S. Drug Enforcement Administration (DEA), on July 2, 2018, and for nearly two years led a workforce of over 15,000 and oversaw a budget of $3.2 billion. He was responsible for DEA’s enforcement, intelligence, administrative, and regulatory activities worldwide. He previously served on the Board of Directors for the International Association of Chiefs of Police (IACP), and is co-chair of the IACP Narcotics and Dangerous Drugs Committee. Prior to joining the DEA, he served as Deputy Counsel and Deputy Assistant to the President of the United States.
In 2006, Mr. Dhillon was confirmed by the U.S. Senate as the Director of the Office of Counternarcotics Enforcement at DHS. Prior to DHS, Mr. Dhillon served as an Associate Deputy Attorney General in the Justice Department. Earlier in his career, Mr. Dhillon served as an Assistant U.S. Attorney in the Central District of California for six and one-half years. He also has significant experience in the Legislative Branch, holding several senior roles, including Chief Oversight Counsel for the House Financial Services Committee, Chief Counsel and Deputy Staff Director for the House Select Committee on Homeland Security, and Senior Investigative Counsel for the House Committee on Oversight and Government Reform.
Mr. Dhillon graduated from the University of California, Berkeley School of Law. He earned a Master of Arts degree in psychology from the University of California, San Diego and a Bachelor of Arts degree in psychology from California State University, Sacramento. He is a member of the District of Columbia Bar.
Michael A. Hughes will continue serving as Deputy Director of INTERPOL Washington.
For more information about INTERPOL Washington, please visit https://www.justice.gov/interpol-washington.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Florida Man Sentenced for Making Death Threats on Facebook PostsRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Chase A. Davis (20, Alva) to six months in federal prison for making a threat over the internet to kill an individual. The court also sentenced Davis to serve 400 hours of community service, to pay $1,440 in restitution to the American Family Association, and to serve a three-year term of supervised release.
Davis had pleaded guilty on November 27, 2019.
According to court documents, on May 22, 2019, Davis transmitted two threats over the internet from Pompano Beach, Florida to Tupelo, Mississippi, to the American Family Association’s Facebook page. The posts contained the following language:
“i am coming to tupelo unexpected with a group of people and we are going to kill every single person who runs your group,” and
“you are the most disgusting people in america. i have put together a group to have you pieces of [expletive] obliterated into dust. yes, i literally mean killing all of you. you people are nothing but disgusting, worn out, and old excuses of human life.”
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Federal Jury Convicts Boone, N.C. Man of Child PornographyRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte has convicted William Jon Patric Ebert, 60, of Boone, N.C. of child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney presided over the trial. The jury returned the guilty verdict on Friday, July 17, 2020, following a two-day trial.
According to filed court documents and evidence presented at trial, Ebert sexually abused a minor for more than six years. The sexual abuse took place in Ohio and in North Carolina. Evidence presented at trial established that Ebert also used the minor to produce child pornography photographs of the minor, and that he stored those photographs on his computer and other devices he owned. On September 22, 2016, law enforcement officials executed a search warrant at Ebert’s residence in Boone and seized several devices and computers. A forensic analysis of Ebert’s hard drive revealed that it contained sexually explicit images of the minor victim.
The jury convicted Ebert of using a minor to produce child pornography photographs of the minor. The jury also convicted Ebert of possessing those photographs. He was found not guilty of transporting a minor with intent to engage in sexual criminal activity. Ebert is currently in federal custody. A sentencing date has not been set.
The production of child pornography charge carries a mandatory minimum sentence of 15 years and a maximum sentence of 30 years in prison. The possession of child pornography charge carries a maximum sentence of 10 years in prison. Both charges carry a maximum fine of $250,000.
In making today’s announcement U.S. Attorney Murray thanked the North Carolina State Bureau of Investigation and the Avon Police Department in Ohio for their investigation of this case.
Assistant United States Attorneys Kimlani Ford and Eric Lindahl are prosecuting the case for the United States.
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.
Federal Grand Jury Indicts Three Men for Their Roles in Violent Robberies of Two Local Credit UnionsRead 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 Adrian D. Applewhite, a/k/a Boons, 32, of Cheektowaga, NY; along with Ronald L. Morris, a/k/a Cracks, 45, and Carl I. Wilson, Jr., a/k/a Baby C, 35, both of Buffalo, NY, with aggravated bank robbery, brandishing a firearm, entering a bank with intent to commit a larceny, and bank larceny. In addition, defendant Morris is charged with being a felon in possession of a firearm and ammunition. The charges carry a maximum penalty of life in prison and a $250,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that according to the indictment and a previously filed complaint, on July 25, 2019, defendants Applewhite and Morris entered the Southtowns Community Federal Credit Union (SC FCU) on South Park Avenue in Lackawanna, and conducted a bank robbery with pepper spray and a pistol. The two suspects traversed the teller's counter, sprayed the tellers with pepper spray, and went directly to the unlocked safe, removing $290,500.00 in United States currency. The defendants placed the currency in a dark colored duffle bag then fled on foot.
On November 7, 2019, the three defendants are accused of entering the Clarence Community and School Federal Credit Union (CCS FCU), on Sheridan Drive in Clarence and conducted a take-over style bank robbery. Armed with pistols, and donning masks and florescent green work gloves, at least two of the defendants holding hand guns ordered all the employees to the ground and demanded money. Two of the defendants went back behind the teller line and went through teller's drawers. The third robber went to the vault. The defendants stole a total of $148,793.90.
Defendant Morris was previously convicted of three felonies, two in New York State Court in 1993 and 2002, and one in Erie County Court in 1996. As a result, he is legally prohibited from possessing a firearm and ammunition.
“The tremendous work done by federal, state, and local law enforcement in this case, led to the apprehension of three violent bank robbers who sought to retain their anonymity—and their criminality—behind a cloud of pepper spray, masks, and illegal guns,” stated U.S. Attorney Kennedy. “Despite a barrage of recent criticism, the conduct by law enforcement in this investigation demonstrates the selfless and invaluable role that our partners in law enforcement play in unmasking, disarming, and apprehending dangerous individuals, who disregard the law, place their own interests above all others, and in the process, endanger the safety and well-being of ordinary citizens everywhere.”
The defendants were arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and detained.
The indictment is the result of an investigation by the New York State Police, under the direction of Major James Hall; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Lackawanna Police Department, under the direction of Chief Mark Packard; and 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.
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Federal Corrections Officer Indicted for Accepting BribesRead the Press Release
Jackson, Miss. – Wesley Hughes, 28, of Greenwood, Mississippi, was indicted by a Federal Grand Jury on July 14, 2020 and charged with accepting bribes, announced United States Attorney Mike Hurst, James F. Boyersmith, Special Agent in Charge, U.S. Department of Justice Office of the Inspector General (“DOJ-OIG”) Miami Field Office, and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation (“FBI”) in Mississippi.
According to the indictment, Hughes, who was employed as a Federal Corrections Officer, accepted money from an individual in return for providing contraband to a federal inmate at the Yazoo City Federal Correctional Complex.
Hughes will have his initial court appearance before United States Magistrate Judge Linda R. Anderson in Jackson today at 1:00 p.m.
If convicted, Hughes faces a maximum penalty of 15 years in federal prison and a $250,000 fine.
The case was investigated by the DOJ-OIG and the FBI Jackson Division. The Federal Bureau of Prisons also assisted with the investigation. The case is being prosecuted by Assistant United States Attorney Dave Fulcher.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Detroit, Michigan man pled guilty to a drug crime, announced United States Attorney Mike Stuart. William Anthony Sparks, 32, pled guilty to possession with intent to distribute a quantity of heroin.
“Detroit drug dealers keep coming into our district, and we keep catching and prosecuting them,” said United States Attorney Mike Stuart. “To all you out of state drug dealers, I’ll give you few tips. Stay out of my district. Stop selling drugs. And stay out of prison. Pretty easy.”
Sparks admitted that on April 25, 2019, Jackson County Sheriff’s Office deputies stopped a car in which he was a passenger and recovered over 40 grams of a controlled substance he possessed with intent to distribute.
Sparks faces up to 20 years in prison when sentenced on October 13, 2020.
The Drug Enforcement Administration (DEA) and the Jackson County Sheriff’s Office conducted the investigation. Senior United States District Judge David A. Faber presided over the hearing. Former Assistant United States Attorney Drew Inman and Assistant United States Attorney Negar M. Kordestani are handling the prosecution.
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Defense Contractor to Pay Nearly $1 Million to the United States to Resolve Allegation of Overbilling on NSA ContractRead the Press Release
Baltimore, Maryland – iNovex Information Systems, Incorporated (“iNovex”), located in Annapolis, Maryland, has agreed to pay the United States $962,747.42 to resolve federal False Claims Act allegations that iNovex knowingly billed the National Security Agency (“NSA”), a component of the Department of Defense, for work performed by certain iNovex employees who did not meet all of the specialized qualifications required under their contract with NSA.
The civil settlement was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Inspector for Investigations G. Shawn Tate of the NSA Office of Inspector General; and Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
“Defense contractors are required to bill for costs actually incurred, and to be truthful in the claims they submit to federal agencies,” said U.S. Attorney Robert K. Hur. “The U.S. Attorney’s Office and our partners are committed to protecting taxpayer dollars and ensuring integrity and compliance with federal agency standards. This agreement settles the allegations that iNovex billed the federal government for work performed by employees who did not meet the qualifications required under their contract.”
iNovex provides advanced information technology (“IT”) consulting, engineering, development, and integration services to both the public and private sectors. In March 2012, iNovex was awarded an NSA contract (“the contract”). Given the complexity of the work that was to be performed under the contract, the NSA specifically included as a term of the contract the requirement that iNovex provide personnel possessing the training, qualifications, and clearances to accomplish all tasks identified in the contract. To assure that iNovex understood the skills its employees were required to have to perform the services under the contract, NSA included an appendix to the contract that expressly referenced and attached a set of labor categories prescribing the experience, educational qualifications, and specialized certifications needed for the classes of personnel billed under the corresponding labor category, including the hourly rate that would be paid by the NSA.
According to the civil settlement agreement, the settlement resolves the allegation that between November 9, 2012 and April 14, 2016, iNovex knowingly billed the NSA, and the NSA paid, for work performed by iNovex employees who were identified by iNovex, on the invoices it presented to the NSA, as System Administrator-IV (“SA-IV”) and System Administrator-III (“SA-III”) positions, despite the fact that those employees did not timely obtain a specific certification required for payment of the rates corresponding to those two labor categories.
The claim resolved by this settlement is an allegation. The settlement is not an admission of liability by iNovex, nor a concession by the United States that its claim is not well founded.
United States Attorney Robert K. Hur commended the NSA’s Office of the Inspector General and the Defense Contract Audit Agency for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Tarra DeShields who handled this case.
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Davenport Man Sentenced to 10 Years in Federal Prison for Gun ChargeRead the Press Release
DAVENPORT, Iowa—On July 20, 2020, United States District Court Chief Judge John A. Jarvey sentenced Isaiah Henderson, age 27, of Davenport, to 10 years in prison, the statutory maximum, after he was found guilty of felon in possession of a firearm, announced United States Attorney Marc Krickbaum. Henderson was ordered to serve a period of supervised release of three years to follow his prison terms and pay a $100 special assessment payable to the Crime Victims’ Fund. There is no parole in the federal system.
In February 2020, a jury found Henderson guilty of the charge. On October 21, 2018, a Davenport police officer observed a disturbance in the parking lot of the Kwik Shop located at Locust and Marquette Streets. A witness reported to the officer that Henderson had threatened her with a firearm. Officers immediately made contact with Henderson and subsequently located a loaded firearm, which he had attempted to hide inside of the Kwik Shop. Henderson has a history of assaults, distributing drugs, eluding, and interfering with officers. Henderson was on parole through the State of Iowa for approximately one month at the time he committed this offense.
This case is part of Project Guardian (PG) and Project Safe Neighborhoods (PSN), programs designed to bring together law enforcement and reduce gun violence to make our communities safer for everyone. This case was investigated by the Davenport Police Department and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
DOJ settles False Claims Act allegations against drug testing lab with operations in Tacoma and DenverRead the Press Release
Seattle ‑ The U.S. Department of Justice and Sterling Healthcare Opco, LLC d/b/a/Cordant Health Solutions (Cordant), today settled a civil suit alleging Cordant illegally paid kickbacks to generate urine testing business from government insured consumers. Cordant has agreed to pay various government healthcare programs $11,942,913 to settle the allegations. Twenty percent of the settlement will go to the relator who first filed a qui tam case regarding the conduct in 2015, alerting the government to the misconduct.
According to the settlement, Cordant paid millions of dollars in remuneration to Northwest Physicians Laboratories, LLC (“NWPL”), and Genesis Marketing Group (“Genesis”) in exchange for referrals of urine drug tests paid for by federal healthcare programs in violation of the Anti-Kickback Statute and the False Claims Act. The kickbacks were paid to NWPL for claims that were filed between January 1, 2013, and July 31, 2015, and to Genesis from August 7, 2013, through March 31, 2015.
“This is the largest civil settlement in the illegal kickback scheme involving Northwest Physicians Laboratories,” said First Assistant United States Attorney Tessa G. Gorman. “The False Claims Act and Anti-Kickback Statute work together to make sure medical providers don’t cut side deals that line their pockets, but fail to provide value for taxpayers.”
The settlement specifically applies to two Cordant operated labs: Regional Toxicology Services LLC d/b/a Sterling Reference Laboratory in Tacoma and Rocky Mountain Tox LLC d/b/a Forensic Laboratories in Denver.
In December 2019, NWPL and three executives were indicted for conspiracy to pay and solicit kickbacks in their dealings with various urine testing labs. Trial in the criminal case is set for February 1, 2021.
Payments to local laboratories in exchange for referrals of government insured health care, such as Medicare and TRICARE, violates the Anti-Kickback Statute. Paying remuneration to medical providers or provider-owned laboratories in exchange for referrals encourages providers to order medically unnecessary services. The False Claims Act and the Anti-Kickback Statute function, in part, to discourage such behavior.
“The questionable business practices and unnecessary medical testing revealed in this matter only served to improve financial gain and not the patients' well-being,” said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service, Western Field Office. “This settlement outcome is but one example of DCIS's on-going commitment to working with its law enforcement partners to protect the integrity of federal healthcare programs, especially the Department of Defense's TRICARE program.”
“The government alleged that the Cordant organization paid millions of dollars to buy referrals at the expense of the nation’s taxpayers. By working with our law enforcement partners, we are able to root out kickback schemes that defraud the government,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will remain vigilant in guarding the integrity of our healthcare programs.”
As part of the settlement, Cordant does not admit any wrongdoing. Cordant agrees to cooperate fully in the government investigation. Cordant also entered into a Corporate Integrity Agreement (CIA) with the Office of Inspector General (OIG). The CIA promotes compliance with the statutes, regulations, program requirements, and written directives of Medicare and all other federal health care programs. Among other things, the CIA requires that for the next five years Cordant must retain an Independent Review Organization to monitor its arrangements with other individuals and entities, and it requires that Cordant routinely report to the OIG.
In addition to the U.S. Attorney’s Office, this matter was investigated by the Department of Health and Human Services Office of the Inspector General (HHS-OIG), the Defense Health Agency of the U.S. Department of Defense, and the FBI. Assistant United States Attorney Kayla Stahman negotiated the settlement for the U.S. Attorney’s Office.
Cross Lanes Man Pleads Guilty to Two Federal Drug Trafficking CrimesRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man pled guilty to two federal drug trafficking crimes, announced United States Attorney Mike Stuart. Joseph Lee Harper, 35, pled guilty to possession with the intent to distribute fentanyl and distribution of fentanyl.
“The lives of many West Virginians have been lost to fentanyl overdose,” said United States Attorney Mike Stuart. “By getting fentanyl dealers and their poisons off the street, many lives are saved and the harm done to our communities is greatly reduced.”
Harper admitted that on June 10, 2019, he sold over four grams of fentanyl to a confidential informant in return for $700. The sale occurred at the Speedway in Cross Lanes. Harper also admitted that on June 12, 2019, he had approximately 26 grams of fentanyl concealed behind an air duct in his Cross Lanes residence. Officers executing a search warrant located the fentanyl when they searched Harper’s residence. Inside Harper’s residence, officers also located the United States currency tied to the earlier controlled drug sale conducted by Harper.
Harper faces up to 20 years in prison when sentenced on October 13, 2020.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Kristin F. Scott is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-cr-00300.
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Council Bluffs Man Sentenced to Prison for Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on Wednesday, July 15, 2020, Tate Pilger, age 19, of Council Bluffs was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 84 months in prison for possession of child pornography. Pilger was ordered to pay $1,500 in restitution and $100 special assessment to the Crime Victims’ Fund. Pilger will serve ten years of supervised release at the conclusion of his prison term.
The charges were the result of an investigation initiated by Facebook who submitted information to the National Center for Missing and Exploited Children that a user of their service uploaded suspected images of child pornography via Facebook Messenger. This cyber tip was forwarded to the Iowa Internet Crimes Against Children Task Force and local law enforcement who executed two search warrants at Council Bluffs homes linked to Pilger. Law enforcement located a computer, cell phones, and flash drives which were taken as evidence and analyzed. The forensic analysis revealed Pilger possessed numerous images and videos of child pornography.
This investigation was conducted by the Council Bluffs Police Department and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Chicago Man Sentenced to Five Years in Prison in Connection with Dubuque ShootingRead the Press Release
A man who unlawfully possessed a firearm while subject to a protective order was sentenced on July 17, 2020, to five years in federal prison.
Jeareau O’Bryant, age 37, from Chicago, Illinois, received the prison sentence after a September 23, 2019 guilty plea to unlawfully possessing a firearm while subject to the terms of a protective order. The protective order expressly prohibited O’Bryant from legally possessing any firearm or ammunition.
Evidence at sentencing established that, in the early morning hours of September 11, 2016, O’Bryant was involved in a bar fight in Dubuque. Video evidence showed that O’Bryant, after the fight, crouched between two cars along a side street before standing up and shooting several times at another individual who had been in the bar. The court found that O’Bryant was trying to kill the other individual.
O’Bryant was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. O’Bryant was sentenced to 60 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from its Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline
The case was prosecuted by Assistant United States Attorneys Jacob Schunk and Ashley Corkery and investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 180-CR-1050.
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Canadian Resident Pleads Guilty to Smuggling Aliens into the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Renan Portela Bandeira De Souza, 32, a Brazilian citizen living in Toronto, Canada, pleaded guilty before U.S. District Judge Richard J. Arcara to bringing aliens to the United States for commercial advantage or private financial gain. The charge carries a mandatory minimum penalty of three years in prison, a maximum of 10 years, and a $250,000 fine.Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that prior to April 28, 2019, the defendant agreed to help smuggle an illegal alien from Canada into the United States in exchange for $6,000. On April 28, 2019, while in Ontario, Canada, De Souza and two co-conspirators launched a boat into the Niagara River. The defendant and another co-conspirator rode in the boat with four aliens, none of whom had received prior approval to enter, come to, or reside in the United States. The boat landed on Grand Island, NY, and the four passengers disembarked. De Souza and his co-conspirator then returned to Canada.
The plea is the result of an investigation by U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Eduardo Payan; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and U.S. Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Sentencing is scheduled for October 26, 2020, before Judge Arcara.
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California-Based Company, Company President and Employee Indicted in Alleged Scheme to Violate the Export Control Reform ActRead the Press Release
PROVIDENCE – The president of a California-based electronics distribution company, his company and an employee have been indicted by a federal grand jury in Providence, Rhode Island, on charges they participated in a conspiracy to conceal information from the U.S. Department of Commerce and U.S. Customs and Border Protection as part of a scheme to illegally export chemicals manufactured and/or distributed by a Rhode Island-based company to a technology company in China. The company is on a U.S. government list of businesses not permitted to receive products manufactured in the United States.
According to an indictment unsealed today in U.S. District Court in Providence, there is reasonable cause to believe that the Chinese entity is involved in the illicit procurement of commodities and technologies for unauthorized military end-use. Export Administration Regulations restrict the export of items that could make a significant contribution to the military potential of other nations or that could be detrimental to the foreign policy or national security of the United States.
It is alleged in the indictment that Broad Tech System Inc., located in Ontario, California, the company’s CEO, CFO, and President Tao Jiang, aka “Jason Jiang” and Bohr Winn-Shih, an equipment engineer for Broad Tech Systems, conspired to order the chemicals HiPR 6517 Photoresist (Photoresist) and HPRD 441 Developer (Developer) from a Rhode Island-based manufacturer, then knowingly submitted false and misleading documentation to the U.S. Government and shipping companies in an effort to have the product illegally shipped to a company in China, in violation of the Export Control Reform Act. Photoresist and HPRD are essential in the chip manufacturing process.
It is alleged the defendants knowingly provided false information in an attempt to ship the chemicals to China Electronics Technology Group Corporation 55th Research Institute, a/k/a Nanjing Electronic Devices Institute, CETC Research Institute 55, NEDI, and NEDTEK, located in Nanjing, China. The company is a state-owned Chinese entity that mainly engages in the manufacturing of electronic components and the research, development and production of core chips and key components in China’s military strategic early warning systems, air defense systems, airborne fire control systems, manned space systems, and other national large-scale projects.
On October 25, 2018, The Customs and Border Protection National Targeting Center alerted an agent from the Department of Commerce (DOC) of an intended export of 58 gallons of Photoresist to NEDI. The shipment was halted and agents from DOC communicated with the RI-based manufacturer to inform them that NEDI was included on a U.S government list of Chinese companies that U.S companies are prohibited from exporting commodities to. The product was returned to the manufacturer.
It is alleged that several days after the shipment to NEDI was halted, the Rhode Island manufacturer received a call from Jason Jiang, acting on behalf of Broad Tech System, requesting to purchase 94 gallons of Photoresist. During continuing communications, Jiang and Bohr Winn-Shih represented to the manufacturer that the intended recipient of the Photoresist, and a quantity of Developer added to the order, was a company called NTESY, located in Nanjing, China. The manufacturer communicated to DOC agents that they found this to be suspicious because they had never done business with Broad Tech; ninety-four gallons was a significant quantity of Photoresist; and that the request came just several days after the shipment to NEDI had been recalled.
Records obtained by DOC agents established that Jiang, Shih and Broad Tech allegedly used NTESY to conceal that NEDI was the intended recipient.
According to the indictment, in January 2019, Jiang, Shih, and Broad Tech provided false information to a California-based freight forwarder about the intended recipient of 58 gallons of Photoresist. In May 2019, Jiang, Shih, and Broad Tech provided false information to the freight forwarder about the intended recipient of an additional 36 gallons of Photoresist and 131 units of Developer. Relying on these false representations, the freight forwarder filed export documents with the DOC that allegedly falsely identified the recipient of the Photoresist and Developer as NTESY.
According to the indictment, on January 29, 2019, Broad Tech received a wire transfer of $65,984 to its account at a bank within the United States purporting to be from NTESY Technology Co., China, representing payment for the 58 gallons of Photoresist. The wire transfer originated in Nanjing, China. Records show that the account where the funds originated from was an account controlled by NEDI.
The indictment charges Broad Tech Systems, Inc., Tao Jiang, 50, of Riverside, CA, and Bohr Winn-Shih, 63, of Ontario, CA, with conspiracy, violation of the Export Control Reform Act, and money laundering conspiracy, announced Aaron L. Weisman, United States Attorney for the District of Rhode Island and Department of Commerce Office of Export Enforcement Boston Field Office Special Agent in Charge William Higgins.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted in the District of Rhode Island by Assistant U.S. Attorney Paul F. Daly, Jr.
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CEO of Chaska Telemarketing Company Pleads Guilty to Mail FraudRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of WAYNE ROBERT DAHL, JR., 51, to one count of mail fraud. DAHL entered his guilty plea today before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minn.
“Fraudulent and deceptive sales tactics designed to trick consumers into buying expensive magazine subscriptions was the foundation of Wayne Dahl’s business model. This nationwide fraud scheme impacted more than 13,000 people across the United States, many of them elderly,” said U.S. Attorney Erica H. MacDonald. “Bringing to justice those who target vulnerable individuals for their own financial profit is a top priority of the Department of Justice and my office.”
According to DAHL’s guilty plea and documents filed with the court, DAHL was the owner and Chief Executive Officer of Your Magazine Service, Inc., a fraudulent telemarketing company that operated a call center in Chaska, Minnesota. DAHL and his company defrauded mostly elderly consumers by tricking them into signing up for costly magazine subscriptions through false and fraudulent representations and sales tactics. DAHL purchased lists of consumers who had active magazine subscriptions through other companies. DAHL directed his sales employees to cold-call the people on these lists and fraudulently sign them up for expensive magazine subscription packages. DAHL required his employees call these consumers and falsely claim they were calling to offer the consumers a $150 reduction on their existing account balance. In reality, as DAHL knew, the consumers did not have an existing magazine subscription with his company. During the calls, DAHL directed his employees to obtain consumers’ credit card information by falsely claiming that the company was conducting a survey on credit card and banking usage. DAHL then directed his employees to use this information to trick consumers into signing up for expensive magazine subscription packages that they did not want nor realize they were purchasing. These new subscription packages resulted in DAHL’s company billing his victim-consumers 20 monthly payments of $49.90, for a total cost of $998.
According to DAHL’s guilty plea and documents filed with the court, DAHL also gave his employees a “rebuttal script” for use in responding to consumers’ questions. The rebuttal scripts provided false and fraudulent responses to consumers’ potential questions. For example, if a consumer stated that he or she did not want more magazines, DAHL’s script directed employees to falsely state “Oh, this isn’t for any more. This is for what you’re already getting.”
DAHL’s company used these fraudulent sales tactics to sell magazine packages to more than 13,000 people across the United States. DAHL and his company received more than $11 million from their victim-customers for the magazine subscription packages.
This case is the result of an investigation conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation. United States Attorney MacDonald would also like to thank the Minnesota Office of the Attorney General for its assistance in this matter.
This case was prosecuted by Assistant United Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, and Melinda A. Williams are prosecuting the case.
Defendant Information:
WAYNE ROBERT DAHL, JR., 51
Fridley, Minn.
Convicted:
- Mail fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Branford Man Sentenced to 33 Months in Prison for Stealing from Non-Profit Employer and IndividualsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL VERZELLA, 41, of Branford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 33 months of imprisonment, followed by three years of supervised release, for stealing more than $240,000 from his non-profit employer and numerous individuals serviced by his employer.
According to court documents and statements made in court, Verzella was employed as the Supervisor of Recreation and Operations at Chapel Haven Schleifer Center (“Chapel Haven”), a private, non-profit entity that provides services and residential housing to individuals with developmental and social disabilities. As an employee of Chapel Haven, Verzella possessed a Chapel Haven credit card that was supposed to be used to pay for expenses related to Chapel Haven, including the purchasing of tickets to off-site events that students and community members of Chapel Haven could attend. These events included trips to dances, bingo nights, plays, shopping malls, and sporting events.
In pleading guilty, Verzella admitted that, between January 2012 and February 2018, he used his Chapel Haven credit card to purchase tickets for sporting and entertainment events that he attended with friends and family. He then submitted fraudulent purchase orders for these expenses to the Chapel Haven business office, representing them to be for recreational events for the students and community members of Chapel Haven. He also used the credit card to purchase gift cards for his personal use. Through this scheme, Verzella defrauded Chapel Haven of approximately $175,872.
In addition, Verzella directed Chapel Haven employees he supervised to collect cash from Chapel Haven students and community members to attend in-house events at Chapel Haven, even though the fees for attending such events were already included in the tuition for students and billed by invoice to community members. Verzella kept at least $68,000 in collected cash for himself.
Judge Dooley ordered Verzella to pay total restitution of $450,062.08, which includes expenses Chapel Haven incurred while investigating his criminal conduct.
Verzella was arrested on a criminal complaint on December 20, 2018. On February 27, 2020, he pleaded guilty to one count of wire fraud.
Verzella, who is released on a $100,000 bond, is required to report to prison on September 17, 2020.
This matter was investigated by the Federal Bureau of Investigation and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorneys Sarah P. Karwan and Maria del Pilar Gonzalez.
Blair County Man Charged with Sextortion, Production of Material Depicting the Sexual Exploitation of Minors and Transferring Obscene MaterialRead the Press Release
PITTSBURGH - A Blair County resident has been indicted by a federal grand jury in Pittsburgh on charges of interstate transmission of an extortion communication, production and attempted production and receipt and attempted receipt of material depicting the sexual exploitation of a minor, and transfer of obscene material to a minor, United States Attorney Scott W. Brady announced today.
The 16-count Indictment, returned on July 8 and unsealed today, named Jacob Kolonis, age 27, of Duncansville, Pennsylvania, as the sole defendant.
According to the Indictment, in August of 2019, and on November 22, 2019, November 28, 2019, and February 5 through 7, 2020, Kolonis knowingly transmitted threatening communications to seven minor females with the intent to extort them. On November 22, 2019, November 28, 2019, and February 5 through 7, 2020, in addition to communicating threats with the intent to extort, Kolonis attempted to produce and produced live video depictions of the sexual exploitation of three of the minor females located in Ohio and in the Western District of Pennsylvania, attempted to receive and received material depicting their sexual exploitation, and transferred and attempted to transfer obscene material to them.
The law provides for a maximum total sentence of not less than 15 years and not more than life in prison, a fine of $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
Homeland Security Investigations (HSI), the Pennsylvania Office of the Attorney General, and the South Fayette Township Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Berks County Accountant Sentenced to Ten Years in Prison in One of the Largest Pennsylvania-Based Ponzi Schemes in HistoryRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Philip Elvin Riehl, 68, of Bethel Township, Berks County, PA, was sentenced to 120 months in prison, three years supervised release, and was ordered to pay $59,688,297 in restitution and $59,688,297 in forfeiture by United States District Judge Edward G. Smith for orchestrating a massive Ponzi scheme that targeted members of the Mennonite and Amish religious communities in Pennsylvania and elsewhere. Riehl was also ordered to forfeit two pieces of real estate, $22 million in loans receivable and $1.145 million in payments.
In February 2020, Riehl pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, and one count of wire fraud. The defendant, a Berks County–based accountant, fraudulently solicited tens of millions of dollars in investments from his accounting clients and others (who are mostly members of the Mennonite or Amish communities) into an investment program that he operated.
Riehl then diverted funds from the program to Trickling Springs Creamery, LLC, a Franklin County–based creamery of which he was the majority owner. Riehl also fraudulently solicited direct investments in Trickling Springs Creamery. The defendant made material misrepresentations about the safety and security of these investments in his program and about the performance of the program, as well as misrepresentations and omissions about the creamery’s business and financial condition. Trickling Springs Creamery announced it was ceasing operations in September 2019 and filed a bankruptcy petition in December 2019. Investor losses are estimated to be around $60 million, making this one of the largest Pennsylvania-based Ponzi schemes ever.
The entire scheme is what is commonly referred to as “affinity fraud,” which typically involves investment scams that prey upon members of identifiable groups, such as religious or ethnic communities. These types of scams exploit the trust and friendship that exist in groups of people who share common interests or beliefs.
“The people who invested their money, sometimes their entire life’s savings, with Philip Riehl believed implicitly that they could trust him because he was one of their own,” said U.S. Attorney McSwain. “Riehl preyed upon that trust, swindling them out of tens of millions of dollars in an effort to keep his creamery business from going under. No matter what community they belong to, fraudsters like Riehl must be held accountable under the law for justice to prevail.”
“While no form of fraud is ever acceptable, it takes a particularly vile person to target their own religious community,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Philip Riehl’s investors knew him and they took him at his word. He fully exploited that trust, misleading them repeatedly, with some $60 million of their hard-earned money disappearing into what proved nothing more than a giant Ponzi scheme. While we can never make his victims whole financially or emotionally, today he is being held accountable and that is some measure of justice for those he’s wronged.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael J. Rinaldi. The U.S. Attorney’s Office appreciates the assistance of the Pennsylvania Department of Banking and Securities and the U.S. Securities and Exchange Commission.
Amsterdam Man Sentenced to 37 Months on Heroin and Fentanyl ConvictionRead the Press Release
ALBANY, NEW YORK – Edwin Rodriguez, a/k/a “Chaka,” age 31, of Amsterdam, New York, was sentenced today to 37 months in prison for possessing and intending to distribute more than 100 grams of heroin mixed with fentanyl.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and City of Amsterdam Police Chief John “JJ” Thomas.
United States District Judge Mae A. D’Agostino also imposed a 4-year term of supervised release, to begin once Rodriguez is released from prison.
On May 15, 2019, Rodriguez was the subject of a traffic stop in Amsterdam. In pleading guilty, he admitted that he was stopped while driving to meet a drug customer to whom he planned to sell 100 grams of heroin. As Amsterdam Police Officers were arresting Rodriguez for driving with a suspended license, a vacuum-sealed bag of powder fell out of his pant leg. The bag contained 100.3 grams of heroin mixed with fentanyl.
Also on May 15, law enforcement executed a search warrant on Rodriguez’s Amsterdam residence. In the apartment’s kitchen, they found an empty bleach bottle, with a hidden compartment containing 1.78 grams of heroin mixed with fentanyl, which Rodriguez intended to sell.
This case was investigated by the DEA and the Amsterdam Police Department, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Alexander Man Arrested, Charged with Production of Child PornographyRead 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 Christopher Brown, 40, of Alexander, NY, was arrested and charged by criminal complaint with production of child pornography. The charge carries a minimum penalty of 15 years in prison, a maximum penalty of 30 years, imprisonment and a $250,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that in April 2020, a law enforcement officer working online undercover discovered a sexually explicit video, which included a pre-pubescent female who appeared to be between 9 and 11 years old. The IP address was traced to the defendant’s Dodgeson Road residence in Alexander. On July 17, 2020, a federal search warrant was executed at the residence. Investigators seized several items, including three cellular telephones and a computer. In addition, a DVD was recovered that contained explicit video of child pornography that was allegedly produced by the defendant using a hidden camera his bathroom. In addition, investigators recovered four firearms, including two rifles and two pistols, and ammunition.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and is being detained.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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18 Defendants Charged in Federal Drug Probe Targeting Heroin and Fentanyl-Laced Heroin Sales in ChicagoRead the Press Release
CHICAGO — Eighteen individuals have been charged in federal court with conspiring to sell heroin or fentanyl-laced heroin on the Northwest Side of Chicago.
The defendants participated in a drug trafficking operation that was responsible for distributing approximately 12.6 kilograms of heroin, more than 23 kilograms of heroin laced with fentanyl or fentanyl-analogue, and 2.56 kilograms of heroin laced with both fentanyl and fentanyl analogue, according to a criminal complaint filed in U.S. District Court in Chicago. Much of the alleged drug trafficking occurred in the Humboldt Park neighborhood on the Northwest Side of Chicago.
During the multi-year investigation, dubbed “Operation Monticello’s Revenge,” law enforcement shut down a busy open-air drug market utilized by the defendants in the 1000 block of North Monticello Avenue in Chicago. Agents and officers from the U.S. Drug Enforcement Administration and Chicago Police Department made approximately eighty undercover purchases of heroin and fentanyl-laced heroin from various members of the crew, the charges allege.
Most of the 18 federal defendants were arrested last week and have begun making initial appearances in U.S. District Court in Chicago. In addition to the federal defendants, four other individuals were charged in state court and will be prosecuted by the Cook County State’s Attorney’s Office.
The federal charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the DEA; and David Brown, Superintendent of CPD. Substantial assistance was provided by the Cook County State’s Attorney’s Office and the IRS Criminal Investigation Division in Chicago. Assistant U.S. Attorneys Richard M. Rothblatt and Jason A. Julien represent the government.
The investigation was conducted with the support of the Chicago High Intensity Drug Trafficking Task Force (HIDTA). The task force is comprised of federal, state, and local law enforcement agencies who work together to identify, disrupt, and dismantle the most serious drug trafficking organizations.
Charged in the federal drug conspiracy are: SAM HOWARD, 32; WILLIE TATE, 45; KELVIN FRANKLIN, 28; STEVEN DYER, 43; MORRIO BONDS, 37; ANTONIO LEE, 39; DWAYNE PETERSON, 36; ANTHONY DAVIS, 30; FLOYD STEWART, 35; WILL HOWARD, 29; TORIAN JOHNSON, 26; JAMES HUGHES, 36; KAMRON GARRAWAY, 27; SAVAN WARD, 28; JEREMY HAMPTON, 31; JOHNNIE DANIELS, 34; and ROBERT STUCKEY, 20, all of Chicago; and BRYANT BARNES, 29, of Justice.
According to the federal complaint, Sam Howard and Franklin personally sold drugs and also worked as street-level managers of the trafficking organization. They coordinated with Tate, Bonds, and Lee to ensure that the crew had sufficient quantities of narcotics to distribute to customers, the complaint states. The other defendants allegedly served as street-level traffickers who would give Sam Howard and Franklin the proceeds from the sales.
The complaint also describes an attempt by Franklin to secure a handgun for use at the Monticello Avenue drug market. In October 2019, Franklin asked a woman to deliver the loaded gun to members of the drug trafficking organization, the complaint states. Law enforcement intervened in the delivery and the gun was never delivered, the complaint states. The firearms aspect of the federal probe remains under investigation.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
18 July 2020
Two Alleged Criminals – A Hezbollah Associated Narco-Money Launderer and a Computer Hacker - Extradited from Cyprus to the United StatesRead the Press Release
A Lebanese national wanted in Florida who is alleged to have conspired to engage in, and actually engaged, in the laundering of drug proceeds through the use of the black market peso exchange in support of Hezbollah’s global criminal-support network and a Cypriot national who is wanted in the Northern District of Georgia and the District of Arizona for cyber intrusion and extortion, were both extradited yesterday from the Republic of Cyprus to the United States.
“These successful extraditions demonstrate the commitment of the Department of Justice to support local, state and federal law enforcement agencies throughout the United States and our strong working relationship with dedicated foreign partners who assist in apprehending foreign fugitives wherever they may be hiding,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Thanks to the efforts of our law enforcement partners in Cyprus, Ghassan Diab and Joshua Polloso Epifaniou will now be held accountable in the United States for their alleged crimes.”
Ghassan Diab, 37, a citizen of Lebanon, arrived in Miami yesterday after being extradited from the Republic of Cyprus. Diab is charged in the State of Florida, Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County, with two counts of money laundering over $100,000, two counts of conspiracy to launder over $100,000, two counts of unlicensed transmission of currency over $100,000, and two counts of unlawful use of a two-way communications device to further the commission of money laundering, all felonies under Florida law.
Diab was previously identified as an alleged Hezbollah associate and charges were announced by the Miami-Dade State Attorney’s Office in October 2016 as a part of the Drug Enforcement Administration (DEA) Miami Field Division’s “Operation reconquista,” a joint State/Federal partnership to attack money laundering which resulted in the arrest of two co-defendants. At that time, Ghassan Diab’s specific whereabouts were unknown.
Diab was provisionally arrested in Cyprus for purposes of extradition on March 9, 2019, at the Larnaca International Airport upon his arrival from Beirut, Lebanon, based on a request from the United States in accordance with the U.S.-Cyprus Extradition Treaty. On September 27, 2019, the court in Cyprus found him extraditable to the United States.
Joshua Polloso Epifaniou, 21, a resident of Nicosia, Cyprus, arrived at John F. Kennedy Airport in New York yesterday after being extradited from the Republic of Cyprus, where he was arrested in February 2018. Epifaniou is the first Cypriot national extradited by Cyprus to the United States. Cyprus amended its Constitution in 2013 to allow for the extradition of Cypriot nationals to a European country or to a third country on the basis of a European arrest warrant or on the basis of a bilateral or multilateral treaty that the Republic of Cyprus has signed, with the understanding that the corresponding country would extradite its citizens as well. In 2003, the United States and the European Union entered into an extradition agreement. The articles of the U.S.-E.U. agreement were incorporated into the pre-existing bilateral treaty to create a new bilateral treaty with Cyprus, signed in 2006.
A five-count indictment filed in the Northern District of Georgia charges Epifaniou with conspiracy to commit wire fraud, wire fraud, conspiracy to commit computer fraud and identity theft, and extortion related to a protected computer. According to the indictment, between approximately October 2014 and November 2016, Epifaniou worked with coconspirators to steal personal identifying information from user and customer databases at victim websites in order to extort the websites into paying ransoms under threat of public disclosure of the sensitive data. The indictment alleges that Epifaniou obtained confidential personal identifying information from these websites including from a free online game publisher based in Irvine, California; a hardware company based in New York, New York; an online employment website headquartered in Innsbrook, Virginia; and an online sports news website owned by Turner Broadcasting System Inc. in Atlanta, Georgia, either by directly exploiting a security vulnerability at the websites and stealing user and customer data, or by obtaining a portion of the victim website’s user data from a co-conspirator who had hacked into the victim network. After obtaining the personal identifying information, Epifaniou allegedly used proxy servers located in foreign countries to log into online email accounts and send messages to the victim websites threatening to leak the sensitive data unless a ransom was paid. He is alleged to have defrauded the entities of $56,850 in bitcoin, and two victims incurred losses of over $530,000 from remediation costs associated with the incident.
Epifanou is scheduled for his arraignment on Monday, July 20, before U.S. Magistrate Judge Alan J. Baverman in the Northern District of Georgia.
Epifaniou is charged in the District of Arizona in a 24-count indictment with conspiracy to commit computer hacking, obtaining information from a protected computer, intentional damage to a protected computer, and threatening to damage a protected computer.
The indictment alleges that on Oct. 30, 2016, Epifaniou obtained unauthorized access to the database of Ripoff Report (ROR), a company located in Phoenix, Arizona, through a brute force attack. A brute force attack is a trial-and-error method used to obtain information, such as a user password or personal identification number. Epifaniou allegedly used the attack to successfully override ROR’s login and password protection to access its database through an existing account for a ROR employee. On Nov. 18, 2016, Epifaniou emailed ROR’s CEO using an email address, threatening to publicly disseminate stolen ROR data unless the company paid him $90,000 within 48 hours. According to the indictment, Epifaniou emailed again the following day with a hyperlink to a video recording demonstrating Epifaniou’s unauthorized access to the ROR CEO’s account. The indictment additionally alleges that between October 2016 and May 2017, Epifaniou worked with an associate at “SEO Company,” which was a search engine marketing company based in Glendale, California, to identify companies that might be interested in paying for removal of complaints posted on ROR’s website, which Epifaniou would then illegally remove through unauthorized access to the ROR database. Epifaniou and his co-conspirator removed at least 100 complaints from the ROR database, charging SEO Company’s “clients” approximately $3,000 to $5,000 for removal of each complaint.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Diab case was investigated by DEA’s Miami Field Division and Special Operations Division. Assistant State Attorney Adam C. Korn, Executive Director of the South Florida Financial Crimes Strike Force of the Miami-Dade State Attorney Katherine Fernandez Rundle Office is prosecuting the case. The Epifaniou case was investigated by the FBI Atlanta and Phoenix Field Offices. Assistant U.S. Attorney Nathan Kitchens of the Northern District of Georgia is handling the prosecution in that District and Assistant U.S. Attorneys James Knapp and Andrew Stone are handling the prosecution in the District of Arizona.
The Justice Department extends its gratitude to the government of Cyprus for making the extraditions possible. The Criminal Division’s Office of International Affairs provided significant assistance in securing the defendants’ extradition from Cyprus. The U.S. Marshals Service assisted in bringing them back to the United States.
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.
Lincoln Man Sentenced for Producing Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Aaron Lee Fischer, 27, of Lincoln, Nebraska, was sentenced today in Lincoln by Chief United States District Judge John M. Gerrard for production of child pornography. Fischer was sentenced to 21 years and 10 months in prison. There is no parole in the federal system. After his release from prison, Fischer will begin a 10-year term of supervised release and will be required to register as a sex offender. He was also ordered to pay $3,000 in restitution to the victim of the crime.
In May of 2019, a counselor at a local middle school reported to Lincoln Police that a 13-year-old student had told an aide at the school about meeting an “older boy” at a park in Lincoln and being driven back to his apartment where a sexual encounter took place. The victim’s mother was contacted and a search of the victim’s cell phone revealed a video of the victim and Fischer engaging in sexually explicit contact.
Further investigation determined that Fischer had communicated with the victim through various internet-based social media platforms. The communications culminated with Fischer arranging a meeting with the minor victim. A subsequent search of Fischer’s cell phone also revealed 14 additional videos of child pornography later identified as a second minor victim.
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 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 www.projectsafechildhood.gov.
This case was investigated by the Lincoln Police Department.
Internal Revenue Service Wrapped up the ‘Dirty Dozen’ List of Tax Scams for 2020; IRS Criminal Investigation and U.S. Attorney Office Urge Taxpayers to Watch Out for These Tax ScamsRead the Press Release
The Internal Revenue Service wrapped up its annual ‘Dirty Dozen’ list of tax scams with a special emphasis on aggressive and evolving schemes related to coronavirus tax relief, including Economic Impact Payments. The Internal Revenue Service Criminal Investigation division and the U.S. Attorney’s Office for the District of South Dakota urge taxpayers to be vigilant to these tax scams.
This year, the Dirty Dozen focuses on scams that target taxpayers. The criminals behind these bogus schemes view everyone as potentially easy prey.
“Fraud schemes harm everyone, especially those which defraud the IRS and members of our community,” said Adam Steiner, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “As we stand ready to investigate anyone who would put a taxpayer at risk for a quick profit, we urge everyone to watch out for these tax scams all the time.”
Tax scams tend to rise during tax season or during times of crisis. “This years’ list of tax scams should serve as a stark reminder to everyone to be vigilant to these threats during the current pandemic and its aftermath,” said U.S. Attorney Ron Parsons for the District of South Dakota. “Please safeguard your personal and financial information, and refrain from engaging potential scammers online or on the phone.”
Taxpayers are encouraged to review the ‘Dirty Dozen’ list in a special section on IRS.gov and be on the lookout for these scams throughout the year.
For official information year round, taxpayers can visit IRS.gov
17 July 2020
Youngstown man charged with series of armed robberiesRead the Press Release
U.S. Attorney Justin Herdman announced today that an information charge was filed against Melvin Lee Jackson, age 18, of Youngstown, Ohio. Jackson is charged with 3-counts of interference with commerce by means of robbery and 2-counts using or carrying, and brandishing a firearm during and in relation to a crime of violence.
According to court documents, from December 17 to December 21, 2019, Jackson is alleged to have committed a series of armed robberies at various locations in the Youngstown, Struthers and Boardman areas.
On December 17, 2019, Jackson and other suspects allegedly entered a Speedway in Boardman and then held the store employees at gunpoint and demanded money. The employees complied, and Jackson took approximately $381.00.
On December 19, 2019, Jackson and other suspects allegedly entered a Subway in Youngstown and then held the store employees at gunpoint and demanded money. The employees complied, and Jackson took approximately $381.00.
On December 21, 2019, Jackson and other suspects allegedly entered a Kwik Fill in Struthers and then held the store employees at gunpoint and demanded money. The employees complied, and Jackson took approximately $3,400.00 in cash and lottery tickets valued at $261.00.
An information charge is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Yasmine Makridis
Winona Man Charged with Illegally Possessing A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced a criminal complaint charging DAMARLO MARCELLE WEST, 27, with one count of possession of a firearm by a felon. WEST made his initial appearance earlier today before Magistrate Judge Katherine M. Menendez in U.S. District Court in Minneapolis, Minnesota.
According to the allegations in the criminal complaint and law enforcement affidavit, on July 14, 2020, Minneapolis Police Department (MPD) identified WEST as one of two individuals that had committed an armed carjacking on July 9, 2020. As MPD officers were conducting surveillance, they observed WEST walking into a restaurant in Minneapolis. When officers entered the restaurant to make an arrest, WEST, initially, failed to comply and began reaching into his waistband area, apparently trying to retrieve something. Officers struggled with WEST as they tried to remove his hand from a gun in his waistband. After WEST was taken into custody, officers recovered a loaded Sturm/Ruger, Model 9E, 9mm caliber, semi-automatic pistol from WEST’s waistband. Because WEST has a prior felony conviction in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Minneapolis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was brought as part of the Twin Cities Violent Crime Task Force, a multi-agency effort that brings together additional federal and state resources to assist local law enforcement to investigate, arrest, and prosecute individuals responsible for gun violence in the Twin Cities. For more information about the Twin Cities Violent Crime Task Force, please visit https://www.justice.gov/usao-mn/pr/united-states-attorney-announces-new-twin-cities-violent-crime-task-force.
Assistant U.S. Attorney David P. Steinkamp is prosecuting the case.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
DAMARLO MARCELLE WEST, 27
Winona, Minn.
Charges:
- Felon in possession of a firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Wilmington Man Federally Indicted for Carjacking and Weapons OffensesRead the Press Release
WILMINGTON, Del. – A federal grand jury returned an indictment yesterday charging a Wilmington man with carjacking and weapons offenses.
According to the indictment, Davine Boyce, 21, committed the carjacking on December 1, 2019, and in the process he brandished a loaded Taurus Model G2C 9mm semiautomatic firearm with an extended magazine. He was prohibited from possessing a firearm by virtue of a prior felony conviction.
Boyce is charged with carjacking, brandishing a firearm during and in relation to a crime of violence, and possession of a firearm by a person prohibited. If convicted, he faces a mandatory minimum of 7 years imprisonment, with a maximum of life imprisonment. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
David C. Weiss, U.S. Attorney for the District of Delaware, and Timothy Jones, ATF Baltimore Special Agent in Charge made the announcement. Assistant U.S. Attorney Jennifer K. Welsh and Special Assistant U.S. Attorney Michael McTaggart are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Virginia Man Charged with Cyberstalking Tulsa MayorRead the Press Release
A Virginia man who sent harassing and intimidating emails directed toward Tulsa Mayor G.T. Bynum and his family made an initial appearance in federal court in the Eastern District of Virginia, announced U.S. Attorney Trent Shores.
Adam Maxwell Donn, 40, of Norfolk, Virginia, was charged by Criminal Complaint with cyberstalking. According to court documents, Bynum and his family received 44 emails and 14 phone calls from June 11 through June 22, 2020, which were meant to harass, annoy, threaten and intimate Bynum and his family.
“The United States charged Adam Donn with stalking, harassing, intimidating, and inflicting emotional distress upon Tulsa Mayor G.T. Bynum and his family. Mr. Donn allegedly sent a series of harassing emails and voicemails in an effort to intimidate the mayor into canceling the presidential rally that occurred here in June,” said U.S. Attorney Trent Shores. “Cyberstalkers try to hide behind keyboards while they threaten and intimidate others, but their online actions have real world effects. Mr. Donn will now face the real world consequences for his alleged criminal actions. As we do in all cases, our victim coordinators will work with the mayor and his family as this case proceeds in federal court.”
Bynum, concerned for his family’s safety, reported the emails and calls to the Tulsa Police Department on June 18, 2020. According to the affidavit filed by an FBI agent, investigators found that the emails were linked to an IP address traced to a Cox Communications account holder named Adam Donn of Norfolk, Virginia, and that his email addresses were used to send the intimidating emails to Mayor Bynum and his wife.
Court documents allege that Donn threatened to publish the Bynum family's home address and personal information to the internet, including the children's cell phone numbers and social media accounts. The defendant allegedly said this with the hope that people would encroach upon the Bynum residence with the intent to cause Mayor Bynum harm and emotional distress. Another email was sent on June 19, 2020, when Donn allegedly stated he hoped Bynum's family contracted Covid-19 and hoped the family suffered. Donn further stated he would possibly show up to Bynum’s next bible study, and on another occasion, asked the mayor’s wife if she would be home later so the he could meet her at her house. Lastly, a voicemail received by the mayor’s wife from the defendant allegedly stated the street she lived on and asked if she still lived there “before his guys made a delivery.”
The affidavit also alleged that Donn masqueraded as the mayor’s wife and sent emails to her colleagues via her business website. In those emails, he allegedly stated that recipients should send the messages on to the mayor’s wife, and if they didn’t, he would show up at their office. The emails also stated that he had COVID and would come visit.
A Criminal Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt.
Donn was released under the pretrial supervision of the U.S. Probation Office. He is scheduled to appear in federal court on July 22, 2020, at 2 p.m. in the Northern District of Oklahoma.
The Tulsa Police Department and FBI are the investigative agencies. U.S. Attorney Trent Shores and Assistant U.S. Attorney Christopher J. Nassar are prosecuting the case.
Ukrainian men plead guilty to conspiracy and trafficking counterfeit cancer and hepatitis drugsRead the Press Release
HOUSTON – Two citizens of Ukraine have admitted they conspired to smuggle and distribute counterfeit cancer and hepatitis drugs into the United States, announced U.S. Attorney Ryan K. Patrick and Acting Assistant Attorney General Brian C. Rabbitt.
Maksym Nienadov, 36, is the owner of the Ukrainian-based company Healthy Nation. He and his co-conspirator and employee - Volodymyr Nikolaienko, 33 - pleaded guilty today to conspiracy, trafficking in counterfeit drugs and smuggling goods into the United States. Nienadov also admitted to introducing misbranded medicine into the United States.
In June 2018, undercover U.S. authorities began communicating with Nienadov about the illegal sale of Keytruda. This prompted a months-long exchange which also involved Nikolaienko and resulted in the unlawful sale of counterfeit or unapproved Keytruda, Abraxane and Epclusa. Neither Nienadov nor Nikolaienko are medical doctors, pharmacists or licensed pharmaceutical wholesalers in the United States and did not have authorization to sell the drugs.
Merck & Co. manufactures Keytruda, a medicine to treat cancer, while Gilead Sciences Inc. manufactures Epclusa, a prescription drug for the treatment of hepatitis-C. Celgene Corporation is a wholly-owned subsidiary of Bristol Myers Squibb and manufactures the oncology product Abraxane. In their legitimate form, the Food and Drug Administration (FDA) approved all three drugs for distribution in the United States.
During the undercover investigation, law enforcement received Nienadov’s banking information, which included the name “Maksim Nenadov” and his Ukrainian bank account number. Authorities transferred $2,400 to his bank account for the purchase of the purported Keytruda. Soon after, they received a shipment from “Maxim Nenadov” which contained two boxes represented to contain Keytruda. However, the items were sent to Merck for testing and determined to be counterfeit.
Authorities then negotiated the purchase of more Keytruda as well as an another medication, Abraxane. The online messaging and email conversations resulted in a $3,400 undercover payment to Nienadov for the purchase of both drugs. On July 30, 2018, “Maxim Nenadov” sent two boxes of 50 mg purported Keytruda and two boxes of supposed Abraxane 5 mg/ml to undercover agents. Merck and Celgene performed analyses and confirmed the packaging and medication to be counterfeit.
In late 2018, law enforcement also negotiated the undercover purchase of two boxes of purported Epclusa tablets from Nienadov and Nikolaienko for $6,000. Gilead identified the packaging and contents as counterfeit.
Nienadov and Nikolaienko were taken into custody April 18, 2019, after they arrived in the United States from Ukraine to discuss future unlawful shipments of pharmaceuticals.
Sentencing has been set for Nov. 4 before Chief U.S. District Judge Lee H. Rosenthal. At that time, Nienadov and Nikolaienko face up to 20 years in prison and a possible $5 million fine. Both men will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations and FDA’s Office of Criminal Investigations conducted the investigation.
Senior Trial Attorney Jeffrey Pearlman of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Sebastian Edwards of the Southern District of Texas are prosecuting the case. Former CCIPS Senior Trial Attorney Kebharu Smith assisted in the prosecution. In addition, the Criminal Division’s Office of International Affairs provided substantial assistance.
Ukrainian Men Plead Guilty to Conspiracy and Trafficking of Counterfeit Cancer and Hepatitis DrugsRead the Press Release
Two citizens of Ukraine have admitted they conspired to smuggle and distribute counterfeit cancer and hepatitis drugs into the United States, announced Acting Assistant Attorney General Brian C. Rabbitt and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.
Maksym Nienadov, 36, is the owner of the Ukrainian-based company Healthy Nation. He and his co-conspirator and employee – Volodymyr Nikolaienko, 33 – pleaded guilty today to conspiracy, trafficking in counterfeit drugs and smuggling goods into the United States. Nienadov also admitted to introducing misbranded drugs into the United States.
In June 2018, undercover U.S. authorities began communicating with Nienadov about the illegal sale of Keytruda. This prompted a months-long exchange which also involved Nikolaienko and resulted in the unlawful sale of counterfeit or unapproved Keytruda, Abraxane and Epclusa. Neither Nienadov nor Nikolaienko are medical doctors, pharmacists or licensed pharmaceutical wholesalers in the United States and did not have authorization to sell the drugs.
Merck & Co. manufactures Keytruda, a medicine to treat cancer, while Gilead Sciences Inc. manufactures Epclusa, a prescription drug for the treatment of hepatitis-C. Celgene Corporation is a wholly-owned subsidiary of Bristol Myers Squibb and manufactures the oncology product Abraxane. In their legitimate form, the U.S. Food and Drug Administration (FDA) approved all three drugs for distribution in the United States.
During the undercover investigation, law enforcement received Nienadov’s banking information, which included the name “Maksim Nenadov” and his Ukrainian bank account number. Authorities transferred $2,400 to his bank account for the purchase of the purported Keytruda. Soon after, they received a shipment from “Maxim Nenadov” which contained two boxes represented to contain Keytruda. However, the items were sent to Merck for testing and determined to be counterfeit.
Authorities then negotiated the purchase of more Keytruda as well as another medication, Abraxane. The online messaging and email conversations resulted in a $3,400 undercover payment to Nienadov for the purchase of both drugs. On July 30, 2018, “Maxim Nenadov” sent two boxes of 50 mg purported Keytruda and two boxes of supposed Abraxane 5 mg/ml to undercover agents. Merck and Celgene performed analyses and confirmed the packaging and medication to be counterfeit.
In late 2018, law enforcement also negotiated the undercover purchase of two boxes of purported Epclusa tablets from Nienadov and Nikolaienko for $6,000. Gilead identified the packaging and contents as counterfeit.
Nienadov and Nikolaienko were taken into custody April 18, 2019, after they arrived in the United States from Ukraine to discuss future unlawful shipments of pharmaceuticals.
U.S. Magistrate Judge Christina A. Bryan took the pleas today. Sentencing has been set for Nov. 4, 2020 before Chief Judge Rosenthal. Both men will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations and FDA’s Office of Criminal Investigations conducted the investigation.
Senior Trial Attorney Jeffrey Pearlman of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Sebastian Edwards of the Southern District of Texas are prosecuting the case. Former CCIPS Senior Trial Attorney Kebharu Smith assisted in the prosecution. In addition, the Criminal Division’s Office of International Affairs and the Office of the Prosecutor General of Ukraine provided substantial assistance.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Files Lawsuits Seeking to Recover More Than $100 Million Embezzled by Former Officials in Kuwait’s Ministry of DefenseRead the Press Release
LOS ANGELES – The Justice Department has filed seven lawsuits seeking the forfeiture of real estate, a private jet, a yacht and additional assets purchased with public funds allegedly embezzled by former high-level officials in Kuwait’s Ministry of Defense (MOD), part of which were transferred to California bank accounts operated by the son of a convicted felon.
According to complaints filed Thursday in United States District Court in Los Angeles, between 2009 and 2016, individuals who were high-level MOD officials at the time and their associates used the MOD’s London attaché office to open at least six unauthorized bank accounts and then transferred more than $100 million of Kuwaiti public funds from the National Bank of Kuwait into the unauthorized London accounts. In order to disguise the nature of these transfers, some of them were falsely described as being intended for military purposes. According to the complaints, these funds were actually transferred to several California entities that had no business or contractual relationship with the MOD.
With the complaints, the United States seeks to recover at least $104,380,000 laundered into and through U.S. financial institutions.
The California entities that received the illicit funds are allegedly connected to a Los Angeles man – Victorino Noval, 58, formerly known as Victor Jesus Noval – who was convicted in 2003 of mail fraud and tax evasion in connection with a multimillion-dollar loan fraud committed against the U.S. Department of Housing and Urban Development. Noval was sentenced to 57 months in federal prison and was ordered to pay more than $25 million in restitution.
According to the complaints, once in the California bank accounts, the pilfered funds were used to purchase or contribute to the improvement of a parcel of land in Beverly Hills known as “The Mountain,” three homes in Beverly Hills, a penthouse and an apartment in Westwood, a private jet, a yacht, a Lamborghini sports car and approximately $40,000 worth of memorabilia of boxer Manny Pacquiao. Each of these assets is subject to the forfeiture complaints.
This matter was investigated by IRS Criminal Investigation and the FBI. The Office of International Affairs in the Justice Department’s Criminal Division is providing substantial assistance.
The asset forfeiture cases will be litigated by Assistant United States Attorneys Michael Sew Hoy and Dan G. Boyle of the Asset Forfeiture Section.
U.S. Attorney's Office for the District of Columbia Presents Annual Youth Summit on July 17Read the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia teams up with our local and federal law enforcement partners and community-based organizations to host the Tenth Annual “Breaking the Silence on Youth Violence Youth Summit,” on Friday, July 17, 2020, at The Catholic University of America in the Hartke Theater. Due to the global pandemic, this year’s youth summit was presented for the first time virtually via Zoom. This year’s summit broke attendance records with 659 youth logged on to participate.
Acting U.S. Attorney Michael R. Sherwin gave the welcome address to the youth and spoke about the tragic death of George Floyd and how law enforcement can reevaluate how to more effectively balance First Amendment rights and violence that may be associated with protests. He also expressed how critical it is to communicate with the youth, especially during times such as these. Acting U.S. Attorney Sherwin also recognized and congratulated the 13 youth winners of the 2020 United States Attorney’s awards.
The free Summit focuses on gun violence and mental health issues and feature dynamic speakers, entertainment, prizes, invaluable information and resources.
For the past nine years, the U.S. Attorney’s Office has collaborated with its partners to host the Youth Summit. Past Summits have included sessions that highlight the causes and consequences of youth violence, challenge youth participants to make better decisions, and emphasize the importance of cooperating with law enforcement.
This year’s Youth Summit featured virtual Zumba and public service announcements on how to stay healthy during this time of crisis. Staff from the U.S. Attorney’s Office presented valuable information on topics such as “Know Your Rights,” “Mental Health” and “Internet Safety.” There was also a moment of silence for victims of gun violence.
In addition, there was a Youth Art Contest in which the theme urges young people to reflect in their artwork ways that they can effectuate change in their communities.
This year’s partners include, East of the River Family Collaborative, Hillcrest Family and Child Services Organization, Court Services and Offender Supervision Agency, Marion Barry Summer Youth Employment Program, D.C. Prevention Centers, the Metropolitan Police Department, the D.C. Department of Parks and Recreation, D.C. Department of Behavioral Sciences and Health, the D.C. Office of the Attorney General, The Flava Show, and the Foundation for a Drug-Free World.
This year’s Youth Summit was a tremendous success. For more information, contact Director of Community Outreach, Wendy Pohlhaus (202)252-6930 or [email protected]. You can also view the video of the summit on YouTube using the following link: https://www.youtube.com/watch?v=6OJpGh4rjeA&t=52s.
U.S. Attorney Statement on Federal Law Enforcement Activity in PortlandRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams released the following statement today on federal law enforcement’s response to ongoing protests in Portland:
“The overarching goal of law enforcement is public protection and, during tense and dangerous situations, de-escalation. Federal law enforcement officers protecting the Mark O. Hatfield U.S. Courthouse and other federal buildings have been operating with those two critical goals. Night after night for the past 50 nights, they have protected the federal courthouse from incursion and fire. They have rebuffed efforts to enter the building by force and have been met with an onslaught of commercial fireworks, laser strikes, glass, mortars, paint, and anything else near at hand. They have endeavored to find the individuals within the crowd who are committing these violent acts and arrest them in a manner that is safe for both the officers and nearby non-violent protesters.
In limited instances, their conduct has been questioned and the Department of Justice Office of the Inspector General appropriately opened an investigation into the use of less lethal ammunition directed at a protestor last week.
Based on news accounts circulating that allege federal law enforcement detained two protestors without probable cause, I have requested the Department of Homeland Security Office of the Inspector General to open a separate investigation directed specifically at the actions of DHS personnel.
As U.S. Attorney, I will continue to work in concert with local and federal law enforcement and city and community leaders to bring about an end to this violence.”
U.S. Attorney Announces MOU with Special Inspector General for Pandemic RecoveryRead the Press Release
ALEXANDRIA, Va. – United States Attorney G. Zachary Terwilliger and Special Inspector General for Pandemic Recovery Brian D. Miller today announced that the U.S. Attorney’s Office for the Eastern District of Virginia has entered into Memorandum of Understanding (MOU) with the Office of the Special Inspector General for Pandemic Recovery (SIGPR).
“Fraudsters frequently prey upon vulnerable individuals during difficult times,” said Terwilliger. “We are working closely with various federal, state, and local law enforcement partners to guard against fraudulent pandemic profiteers, protect the public fisc, and ensure the rule of law and public safety is not eroded during this critical time. It is inevitable that fraudsters will attempt to take advantage of the $2.2 trillion CARES Act, and this partnership with SIGPR underscores EDVA’s commitment to criminally prosecuting and holding civilly liable those who attempt to take advantage during this historic pandemic. Special Inspector General Miller is an EDVA alum and SIGPR will be physically housed within 75 yards of our office and the District Court—it makes all the sense in the world to formally partner on this critical work for the American people.”
The purpose and mission of the MOU is to develop a cooperative effort to investigate and prosecute matters involving the making, purchase, management, and sale of loans, loan guarantees, and other investments made by the Secretary of the Treasury under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, and the management by the Secretary of the Treasury of any program established under the CARES Act, in order to achieve just results while using all criminal and civil resources most efficiently.
“I look forward to working with United States Attorney Zach Terwilliger and his team in the Eastern District of Virginia to identify fraud, waste and abuse of the money provided under the CARES Act,” said Brian D. Miller, Special Inspector General for Pandemic Recovery. “We will bring to justice those who would steal CARES Act money, and recover money for the taxpayers. Taxpayers should expect nothing less.”
The MOU outlines four objectives: 1) To provide a coordinated response to CARES Act funding fraud, with an emphasis on organized criminal activity, as well as criminal and civil fraud affecting federal money, vulnerable victims, and fraud recidivists; 2) To facilitate legal process, case intake, and swift prosecution of CARES Act-related fraud; 3) To link and associate isolated CARES Act-related complaints with larger schemes and related unlawful activity; and 4) To deter future CARES Act funding fraud through an enhanced awareness of successful criminal prosecution and civil enforcement against individuals and companies involved in CARES-related financial fraud.
Two Assistant U.S. Attorneys (AUSA) – one from the Criminal Division and one from the Civil Division – will serve as liaisons to the EDVA-SIGPR partnership. These AUSAs will be direct points of contact for case-related inquiries from SIGPR. Additionally, a criminal paralegal will be assigned specifically to SIGPR investigations and prosecutions. EDVA will also provide forensic audit support for civil enforcement matters.
The MOU also calls for EDVA to create a streamlined, accelerated process for SIGPR investigations to obtain needed preliminary legal process, including grand jury subpoenas and court orders, subpoenas, and civil investigative demands.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
U.S. Attorney Announces Appointment of District Election Officer to Monitor Elections in West TennesseeRead the Press Release
MEMPHIS, TN – United States Attorney D. Michael Dunavant announced today that Assistant United States Attorney (AUSA) Scott Smith will lead the efforts of his office in connection with the Justice Department’s Election Day Program for the upcoming August 6, 2020, primary election.
AUSA Smith has been appointed to serve as the District Election Officer (DEO) for the Western District of Tennessee, and in that capacity is responsible for monitoring elections in West Tennessee to ensure compliance with the Voting Rights Act and other federal election statutes, and overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington, D.C.
United States Attorney Dunavant said, "Every citizen must be able to vote without interference, intimidation, or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process."
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on August 6, 2020 or during the early voting period from July 17 through August 1, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Dunavant stated that AUSA Smith will be on duty in this District while the polls are open. He can be reached by the public at the following office telephone number: (901) 544-4231.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day and during the early voting period. The local FBI Memphis field office can be reached by the public at (901) 747-4300.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at (800)-253- 3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at https://civilrights.justice.gov/report/
United States Attorney Dunavant said, "Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the DOJ Civil Rights Division."
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Two Fruit Belt Gang Members Arrested on Gun ChargeRead 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 Antwaine Parker, 27, and Michael Woods, 31, both of Buffalo, NY, were arrested and each charged by criminal complaint with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that according to the complaint, since August 2019, the FBI’s Safe Streets Task Force has been investigating the Fruit Belt Gang, whose members are allegedly actively engaged in the distribution of narcotics, firearms offenses, and gang activity. On July 1, 2020, Central Park Gang (CPG) member Shariff Jackson was murdered in Buffalo, and investigators believe that members of the Fruit Belt Gang were involved with Jackson's murder.
On July 4, 2020, defendants Parker and Woods were shot in Buffalo. Woods drove himself to the hospital. Officers on scene of the shooting received information that one of the victims may have thrown a gun. A 9mm handgun was recovered on the roof of a nearby building. Woods told investigators that he was driving in the area with an unnamed person when he was shot; he would not provide any additional information. Investigators believe the shooting could be the result of rival gang activity between CPG and the Fruit Belt.
On July 9, 2020, a photo showing Woods with what appears to be a firearm hanging out of his right-side pocket, was posted to a social media account believed to belong to Woods. Also in July 2020, a photo was posted to a social media account believed to be used by defendant Parker. That photo showed Parker with what appears to be two firearms in his left hand, and a large quantity of plastic wrapped green leafy substance believed to be marijuana.
On July 14, 2020, investigators, fearing potential violence in connection with it, conducted surveillance at the funeral of Shariff Jackson. At the same time, they also conducted surveillance of defendant Parker, who was in the vicinity of 28 Burnie Lane in the McCarley Gardens Apartments. During the surveillance, Woods was observed driving to the area were Parker was. After talking with Parker, Woods left the area. A short time later, a Buffalo Police Officer initiated a traffic stop of Woods’ vehicle. Woods told the officer that he two guns in the vehicle, and gave consent to search the vehicle. Officers recovered two loaded handguns. Woods was taken into custody and the handguns were seized.
Subsequently, defendant Parker left the McCarley Gardens Apartments, and the Buffalo Police conducted a traffic stop. Parker, who was driving with a suspended license, and a passenger were searched with no contraband discovered. The vehicle, which had invalid license plates, was impounded, and Parker was ticketed for various vehicle and traffic violations. Investigators then searched 28 Burnie Lane, and recovered two firearms in the basement. A witness told investigators that Parker and Woods constantly entered the witness’ apartment without knowledge or permission. Investigators believe the two firearms seized are the same weapons depicted in the social media photo showing Parker with two firearms.
In April 2014, Parker was convicted in state court of Criminal Possession of a Weapon and sentenced to serve 42 months in prison. In March 2012, Woods was convicted in state court of Attempted Criminal Possession of Controlled Substances and sentenced to serve five years probation. In addition, Woods was sentenced in July 2015 to serve 84 months in prison after being convicted of possession of a firearm in furtherance of drug trafficking and being a felon in possession of a firearm. As a result, both defendants are legally prohibited from possessing a firearm.
“In view of the recent increase in violence and shootings in our community, this prosecution highlights a number of things of which the public needs to be aware,” stated U.S. Attorney Kennedy. “There is a cycle of criminality and violence which connects many of the shootings we are seeing in our City. These defendants both have prior weapons convictions, both were themselves shooting victims, and both chose to arm themselves despite being prohibited from legally doing so. Left to their own devices, this is, sadly, the type of ‘justice’ to which those involved in these sorts of activities—many of whom are members of street gangs—aspire. The result is anything but ‘just,’ as it leads inexorably to an ever-escalating and expanding sphere of violence and lawlessness. Yet, the tremendous investigation giving rise to this criminal complaint also demonstrates how professional and proactive law enforcement can effectively disrupt that cycle of violence, save lives, restore law and order, and achieve some measure of ‘justice,’ which is cognizable to the community as a whole. Hats off to the BPD, the FBI, and the ECAC for their outstanding work in this investigation.”
The complaint is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Erie Crime Analysis Center, under the direction of Director Jamie Giammaresi.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Twenty-Five Year Old Hiawatha Man Who Threatened His Neighbors with a Loaded Firearm Sentenced to Federal PrisonRead the Press Release
A Hiawatha man who was an unlawful user of controlled substances and possessed a gun he used to threaten his neighbors was sentenced today to more than 3 years in federal prison.
Austin Bowers, age 25, from Hiawatha, received the prison term after a January 29, 2020 guilty plea to being an unlawful user of controlled substances in possession of a firearm.
In a plea agreement, Bowers admitted that on October 4, 2019, there were two disturbances at a home in northwest Cedar Rapids. That evening, Bowers had an argument with his fiancé, which then led to a disturbance with his neighbors. When the Cedar Rapids Police Department arrived, Bowers was in his neighbor’s garage, threatening the neighbors with a loaded Taurus PT 111 Millennium G2 9mm semi-automatic pistol with an extended magazine.
Bowers was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Bowers was sentenced to 46 months’ imprisonment. Bowers must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Bowers is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Matthew J. Cole and investigated by the Cedar Rapids Police Department.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-1.
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Three Members of Brooklyn-Based Real Ryte Set of the Bloods Gang Arrested for Attempted Murder and Other ChargesRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging three alleged members of the Real Ryte set of the Bloods street gang with crimes related to their participation in acts of violence, including the attempted murder of a gang rival that left an unintended target with gunshot wounds. Specifically, Dajahn McBean, Semaj Smith and Mark Waiters are charged with conspiring to commit murder in-aid-of their racketeering enterprise, attempted murder and assault in-aid-of racketeering, and using firearms in furtherance of the attempted murder and assault. These crimes stemmed from an internecine gang war with the Breadgang set of the Bloods. Smith was arrested this morning and will be arraigned via videoconference before United States Magistrate Judge James Orenstein this afternoon. Waiters and McBean are in custody and will be arraigned on a later date.
Seth DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the indictment.
“The Real Rytes allegedly engaged in extreme acts of violence that threatened the safety of our community and, in one instance, resulted in serious injury to a bystander,” stated Acting United States Attorney DuCharme. “This Office and our law enforcement partners will continue to work hard to address the problem of gun violence in our neighborhoods, and we will prosecute to the fullest extent of the law gang members who endeavor to use our streets as battlefields.” Mr. DuCharme expressed his grateful appreciation to the New York State Department of Corrections and Community Supervision for its assistance with the investigation.
“The alleged behavior of these individuals has now landed them in federal custody and, if convicted, they’re in for a long stay,” stated FBI Assistant Director-in-Charge Sweeney. “To others anywhere in this city who are engaging in violent acts and illegally carrying weapons in our neighborhoods, pay attention: the FBI/NYPD Safe Streets Task Force is fully engaged with our partners, and we will utilize any federal law available to protect our community. The penalties for breaking those federal laws are appropriately severe.”
According to the indictment and public court documents, the Real Ryte set of the Bloods street gang operated in Brooklyn and elsewhere. Real Ryte members were active on social media and often appended the name of the gang to their usernames, used the #RealRyte hashtag on their posts and also wore clothing and jewelry with the Real Ryte gang’s double “R” logo on it. Between 2015 and 2017, Real Ryte was feuding with a rival set of the Bloods known as the Breadgang, whose members also operated in Brooklyn. The feud led to a series of violent confrontations between the two gangs, and the defendants and their co-conspirators sought to retaliate against the Breadgang for the December 19, 2015 slaying of Real Ryte member Sean Peart by shooting and killing Breadgang members at any opportunity. On January 3, 2017, the defendants learned that a Breadgang member could be found at a specific location in the vicinity of Essex Street and Hester Street in lower Manhattan. Smith and Waiters traveled to the location and shot an innocent person sitting in his car whom they mistook for their intended target. The victim was seriously injured, but survived the shooting.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of discharging a firearm during and in relation to a crime of violence, each of the defendants faces a mandatory minimum sentence of 10 years’ and up to life imprisonment, which would run consecutively to any other sentence imposed. The murder conspiracy and attempted murder in-aid-of racketeering charges each carry a sentence of up to 10 years’ imprisonment, and the assault in-aid-of racketeering charge carries a sentence of up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jennifer M. Sasso, Drew G. Rolle and Nicholas J. Moscow are in charge of the prosecution.
The Defendants:
DAJAHN MCBEAN (also known as “Jeezy Mula”)
Age: 24
Brooklyn, New YorkSEMAJ SMITH (also known as “Bam Bam” and “Real Ryte Sport”)
Age: 26
Brooklyn, New YorkMARK WAITERS (also known as “Telly”)
Age: 23
Brooklyn, New YorkE.D.N.Y. Docket No.: 20-CR-260 (ARR)
Third Co-Founder of Cryptocurrency Company Pleads Guilty for Leading Role in ICO Fraud SchemeRead the Press Release
Ilan T. Graff, Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced that SOHRAB SHARMA, a/k/a “Sam Sharma,” pled guilty today before U.S. Magistrate Judge Robert W. Lehrburger to conspiring to commit securities fraud, wire fraud, and mail fraud in connection with a scheme to induce victims to invest more than $25 million dollars’ worth of digital funds in Centra Tech, Inc. (“Centra Tech”), a Miami-based company he co-founded and which purported to offer cryptocurrency-related financial products. SHARMA, a leader of the scheme, and his co-conspirators used material misrepresentations and omissions to solicit investors to purchase securities, in the form of digital tokens issued by Centra Tech, through, among other means, an initial coin offering (“ICO”) beginning in approximately July 2017. In connection with his plea agreement, SHARMA has also agreed to forfeit 100,000 Ether units, consisting of digital funds raised from victims who purchased digital tokens issued by Centra Tech based on fraudulent misrepresentations and omissions.
Mr. Graff said: “As he has now admitted, Sharma and his co-conspirators lured victims into investing digital currencies worth millions of dollars based on false claims about their company and its purported products. Sharma and his co-conspirators concocted a fake CEO, fake partnerships, and fake licenses. Fraud is fraud, whether it occurs in digital securities markets or over traditional exchanges, and Sharma now faces a federal sentence for his role in this fraudulent scheme.”
According to the Superseding Information, and other filings and statements at public court proceedings in the case:
In or about July 2017, SHARMA, along with co-defendants Raymond Trapani and Robert Farkas, founded a company called Centra Tech that claimed to offer cryptocurrency-related financial products, including a purported debit card, the “Centra Card,” that supposedly allowed users to make purchases using cryptocurrency at establishments accepting Visa or Mastercard payment cards. From approximately July 2017 through October 2017, SHARMA and his co-defendants solicited investors to purchase unregistered securities, in the form of digital tokens issued by Centra Tech (“Centra tokens” or “CTR tokens”), through, among other means, a so-called “initial coin offering” or “ICO.” As part of their fundraising efforts, SHARMA and his co-defendants in oral and written offering materials that were disseminated via the internet, represented: (a) that Centra Tech had an experienced executive team with impressive credentials, including a purported CEO named “Michael Edwards” with more than 20 years of banking industry experience and a master’s degree in business administration from Harvard University, (b) that Centra Tech had formed partnerships with Bancorp, Visa, and Mastercard to issue Centra Cards licensed by Visa or Mastercard, and (c) that Centra Tech had money transmitter and other licenses in 38 states, among other claims. Based in part on these claims, victims provided millions of dollars’ worth of digital funds in investments for the purchase of Centra Tech tokens. In or about October 2017, at the end of Centra Tech’s fundraising efforts, those digital funds raised from victims were worth more than $25 million. At certain times in 2018, as the defendants’ fraud scheme was ongoing, those funds were worth more than $60 million.
The claims that SHARMA and his co-conspirators made to help secure these investments, however, were false. In fact, the purported CEO “Michael Edwards” and another supposed member of Centra Tech’s executive team were fictional people who were fabricated to dupe investors, Centra Tech had no such partnerships with Bancorp, Visa, or Mastercard, and Centra Tech did not have such licenses in a number of those states.
SHARMA and his co-defendants were well aware of the falsity of such claims. For example, with respect to Centra Tech’s purported CEO “Michael Edwards,” SHARMA text messaged Trapani and Farkas on or about July 29, 2017, that they “Need to find someone who looks like Michael,” “Team photos,” “He’s real lol,” “Everyone real,” “Except Jessica,” “And Mike.” Similarly, SHARMA later wrote during that same exchange: “Gonna kill both Ceo and her,” “Gonna say they were married and got into an accident.”
With respect to Centra Tech’s purported partnerships with Bancorp, Visa, and Mastercard, SHARMA engaged in a cellphone text message conversation with Trapani and Farkas on or about July 31, 2017, in which they discussed Centra Tech’s lack of actual partnerships with banks or credit card companies. Similarly, on or about September 29, 2017 – the date on which the United States Securities and Exchange Commission (the “SEC”) announced that it filed a civil complaint charging a company, among others, with defrauding investors in an unregistered offering of securities styled as an initial coin offering – SHARMA asked via a group text message conversation with Trapani and Farkas that they remove certain materials from Centra Tech’s website that contained “fufu,” or fake information, about Centra Tech’s purported relationship with Visa because, according to SHARMA, “I rather cut any fufu,” “Off right own,” “Now,” “Then worry,” “Anything that doesn’t exist current,” “We need to remove.” Later that day, SHARMA text messaged Trapani and Farkas: “I want a product page like [another company],” “Theirs is so nice.” Trapani wrote “Lol yeah no real product,” to which SHARMA responded “Yea but it doesn’t say much,” “And looks good,” “We don’t have a real product either right now,” “So I wanna tighten up ship asap.”
With respect to Centra Tech’s purported money transmitter and other licenses in 38 states, SHARMA had a text message conversation with Trapani and Farkas on or about August 30, 2017, about applying for state licenses that Centra Tech had previously represented it already held in 38 states. For example, SHARMA wrote in one message on or about August 30, 2017, to Trapani and Farkas: “Gotta apply for all licenses,” “Should I even say this.”
On or about May 2018 and October 2018, this Office and the Federal Bureau of Investigation (“FBI”) seized, pursuant to judicially authorized seizure warrants, 100,000 Ether units, consisting of digital funds raised from victims who purchased digital tokens issued by Centra Tech based on fraudulent misrepresentations and omissions.
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SHARMA, 29, pled guilty to one count of conspiracy to commit securities fraud, one count of conspiracy to commit wire fraud, and one count of conspiracy to commit mail fraud, each of which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. SHARMA will be sentenced by U.S. District Judge Lorna G. Schofield on a date to be determined.
Mr. Graff praised the work of the FBI, and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Samson Enzer, Negar Tekeei, and Daniel Loss are in charge of the prosecution.
Texas Oil and Gas Company and Limited Partnerships to Pay over $488,000 to Settle Trespass Allegations Arising from Unapproved Drilling, Extraction, and Selling of Federal MineralsRead the Press Release
OKLAHOMA CITY – Texas based oil and gas companies, EnerVest Operating, L.L.C., EnerVest Energy Institutional Fund XII-WIB, L.P., EnerVest Energy Institutional Fund XIII-WIB, L.P., EnerVest Energy Institutional Fund XIII-A, L.P., EnerVest Energy Institutional Fund XIII-WIC, L.P., (collectively, "EnerVest") will pay $488,491 to resolve claims related to the alleged improper drilling, extraction, and selling of federal minerals, the Justice Department announced today.
The settlement resolves allegations that between 2014 and 2020, EnerVest drilled a well in Roger Mills County, Oklahoma, and extracted and sold federal minerals in trespass after the expiration of two federal leases ("Federal Property"). In addition to paying monetary trespass damages, the settlement requires EnerVest to (i) abandon its claims of ownership or leasehold interest in the Federal Property; (ii) cease production of oil and gas from the Federal Property; (iii) plug and shut in the well; and (iv) remediate and reclaim the Federal Property.
This case is the result of an investigation by the U.S. Department of Interior, Office of Inspector General. Assistant U.S. Attorneys Rebecca A. Frazier and Ronald Gallegos represented the United States. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Syracuse Man Sentenced on Drug Trafficking ConvictionsRead the Press Release
SYRACUSE, NEW YORK – Michael Starkey, age 29, of Syracuse, was sentenced today to 61 months in prison for his convictions on multiple charges relating to his participation in cocaine and crack cocaine distribution conspiracies, announced United States Attorney Grant C. Jaquith, Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division, Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), New York State Police Superintendent Keith Corlett, Sheriff Eugene Conway, Onondaga County Sheriff’s Office, and William J. Fitzpatrick, Onondaga County District Attorney. The defendant was also ordered to serve a period of four years supervised release following his term of incarceration, and to forfeit to the government $10,000 in proceeds from his drug trafficking activity.
Pursuant to his plea agreement in this case, Starkey admitted that during the summer of 2018, he repeatedly acquired multiple ounces of cocaine from one of his co-conspirators, which Starkey then redistributed to others in the form of cocaine and crack cocaine. This case was investigated by the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the New York State Police, the Onondaga County Sheriff’s Office, and the Onondaga County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Syracuse Man Indicted for Assaulting a U.S. Postal EmployeeRead the Press Release
SYRACUSE, NEW YORK – Daniel J. Trammell, age 58, of Syracuse, was named as a defendant in a federal indictment charging him with assaulting a United States Postal Service employee, announced United States Attorney Grant C. Jaquith and Joseph Cronin, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service.
Trammell was ordered detained following his arrest on April 22, 2020. According to the indictment and a previously filed criminal complaint, on April 21, 2020, Trammell is alleged to have entered the Franklin Square Station Post Office in Syracuse, shouted at Postal Service employees, and threatened to shoot a letter carrier who was previously assigned to deliver mail to Trammell’s residence. A short time later, Trammell allegedly assaulted the letter carrier during his delivery of mail, causing a cut to the victim’s neck.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted of the charges set forth in the indictment, Trammell faces up to 20 years in prison, a maximum fine of up to $250,000, and up to 3 years of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the U.S. Postal Inspection Service and the Syracuse Police Department, and is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.
Syracuse Man Charged with Possessing Unregistered SilencersRead the Press Release
SYRACUSE, NEW YORK – Anthony Lopes, age 29, of Syracuse, was named as a defendant yesterday in a federal indictment charging him with possessing unregistered silencers, announced United States Attorney Grant C. Jaquith, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Chief Kenton Buckner, City of Syracuse Police Department.
Lopes was previously ordered detained following his arrest on April 12, 2020, in connection with a criminal complaint. According to the indictment and the previously filed criminal complaint, Lopes is alleged to have possessed and sold a total of 3 silencers on February 10, 2020, and February 13, 2020. The indictment further alleges that none of the silencers bears a serial number, and none are registered in the National Firearms Registration and Transfer Record, as required by law.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Lopes faces up to 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Syracuse Police Department, and is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.