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17 July 2020
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.
Summerville Man, Fourth Defendant to be Imprisoned for String of Armed Robberies, Sentenced to 12 YearsRead the Press Release
Charleston, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Julius Hamilton Washington, 29, of Summerville, was sentenced to 12 years in federal prison after pleading guilty to his role in a series of armed robberies that culminated in a high speed chase and shots fired at South Carolina Highway Patrol Troopers.
Evidence presented to the court showed that Washington was one of four individuals indicted in 2018 for robbing multiple businesses and business employees at gunpoint. The four defendants conspired to commit multiple armed robberies of businesses, including a Dollar General Store in Awendaw, a Verizon Store in Summerville, and a Verizon Store in Waxhaw, North Carolina. The string of robberies ended shortly after the four robbed the Verizon Store in Waxhaw on February 10, 2017. Like in other robberies, the four held the store employee at gunpoint while they stole cell phones and electronic devices from the store’s safe. Immediately after the robbery, the defendants were tracked from North Carolina into South Carolina, where South Carolina Highway Patrol Troopers located their car and attempted to stop them. The defendants did not stop, and instead fled at high speeds and fired shots at the pursuing Troopers. No Troopers were hit by the shots, and the pursing Troopers were eventually able to push the defendants’ car into a median where it crashed, and all four defendants fled.
Investigators were eventually able to identify each defendant and determine their involvement in the crimes. Washington is the fourth and final defendant to be sentenced. Co-defendant D’Angelo Antonio Coakley, 30, of Mount Pleasant, was sentenced to 24 years; co-defendant Malik Juwan Gadist, 23, of Mount Pleasant, was sentenced to 10 years imprisonment; and co-defendant Paul Anthony Walker, 24, of Goose Creek was sentenced to 10 years imprisonment.
United States District Judge David C. Norton sentenced Washington to 144 months, to be followed by a five-year term of court-ordered supervision. The sentencing hearing was conducted virtually, under the federal CARES Act, so that the parties did not appear in the Courtroom.
The case was investigated by the Federal Bureau of Investigation, Charleston County Sheriff’s Office, Dorchester County Sheriff’s Office, Richland County Sheriff’s Department, South Carolina Highway Patrol, South Carolina Law Enforcement Division, and the Waxhaw, North Carolina, Police Department. Assistant United States Attorney Nathan Williams prosecuted 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.
Statement by Department of Justice Spokesperson Kerri Kupec on the Execution of Dustin Lee HonkenRead the Press Release
Department of Justice Spokesperson Kerri Kupec has issued the following statement:
“Today, Dustin Lee Honken was executed at USP Terre Haute in accordance with the death sentence imposed by a federal district court in 2004. Honken was pronounced dead at 4:36 p.m. EDT by the Vigo County Coroner.
In 1993, Honken, a meth kingpin, kidnapped, fatally shot, and buried Lori Duncan, a single, working mother, Duncan’s two young daughters — 10-year-old Kandi and 6-year-old Amber — and Greg Nicholson, a government informant who testified against Honken on federal drug trafficking charges. Honken also murdered Terry DeGeus, who Honken thought might also testify against him, by beating him with a bat and shooting him. On October 14, 2004, a jury in the U.S. District Court for the Northern District of Iowa found Honken guilty of numerous federal offenses, including five counts of continuing criminal enterprise murder, and he was sentenced to death.
Nearly three decades after Honken coldly ended the lives of five people, including two young girls, all in an effort to protect himself and his criminal enterprise, he has finally faced justice. The death penalty has been upheld by the federal courts, supported on a bipartisan basis by Presidents and members of Congress, and approved by Attorneys General under both Democratic and Republican administrations as the appropriate sentence for the most egregious federal crimes. Today that just punishment has been carried out.”
State Contractor Charged in $2 million Unemployment Fraud SchemeRead the Press Release
A Detroit woman was charged in a criminal complaint for her alleged role in a multi-million dollar unemployment insurance fraud scheme aimed at defrauding the State of Michigan and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced United States Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge Douglas J. Zloto, US Secret Service, Richard Sheehan, Acting Postal Inspector in Charge of the Detroit Division, Special Agent in Charge Steven M. D’Antuono, Federal Bureau of Investigation, Special Agent in Charge Sarah Kull, Internal Revenue Service-Criminal Investigation and Jeffrey Frost, Special Fraud Advisor, Michigan Dept. of Labor and Economic Opportunity, Unemployment Insurance Agency.
Charged is Brandi Hawkins, 39.
According to the complaint, Brandi Hawkins was a contract employee for the State of Michigan Unemployment Insurance Agency. Her duties included reviewing, processing and verifying the legitimacy of unemployment insurance claims.
Beginning in April, 2020, it is alleged that Hawkins used her insider access to fraudulently release payment on hundreds of fraudulent claims. Hawkins actions resulted in the fraudulent disbursement of over $2,000,000 of federal and state funds intended for unemployment assistance during the pandemic. Over $200,000 in cash was seized from her residence during a search warrant. Hawkins is alleged to have used proceeds from her crimes to purchase high-end handbags and other luxury goods.
”Brandi Hawkins is charged with exploiting the current pandemic to defraud the State of Michigan and United States for her own personal gain. These are serious allegations, and my office is committed to prosecuting any person who attempts to use the Covid-19 crisis to defraud the people of Michigan,” stated US Attorney Matthew Schneider.
“The U.S. Secret Service is currently focused on criminals attempting to exploit the American people during these unprecedented times of record unemployment due to the pandemic. It is especially egregious when someone in a position of trust, working for an agency created to assist the residents of the State of Michigan, takes advantage of those during their time of need. We will continue to work with our federal and state partners to bring these perpetrators to justice”, said Douglas Zloto, Special Agent in Charge, U.S. Secret Service - Detroit Field Office.
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance benefit programs. We will continue to work with our law enforcement partners to protect the integrity of unemployment insurance benefit programs,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“Brandi Hawkins’ alleged actions are incredibly selfish and without regard for her fellow Michiganders in dire need of financial assistance,” said Sarah Kull, IRS Criminal Investigation Special Agent in Charge, Detroit Field Office. “IRS-CI will not hesitate to thoroughly investigate any COVID19 related fraud and bring those offenders to justice.”
Richard Sheehan, Acting Postal Inspector in Charge of the Detroit Division said, “This investigation was an excellent example of a partnership between federal law enforcement agencies, working together to bring down this fraud conspiracy. I fully commend the hard work and countless hours put forth by all of the agencies involved, which resulted in bringing Brandi Hawkins to justice.”
“We appreciate U.S. Attorney Schneider‘s quick action to bring this case to justice. The Unemployment Insurance Agency will continue to work closely with state and federal partners to identify unemployment fraud that can be quickly turned over to law enforcement for prosecution,” stated Jeffrey Frost, Special Fraud Advisor, Michigan Dept. of Labor and Economic Opportunity, Unemployment Insurance Agency.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.
The case is being prosecuted by Assistant United States Attorney Timothy Wyse. The investigation is being conducted jointly by the Department of Labor, Office of Inspector General, United States Secret Service, Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, the U.S. Postal Inspection Service and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity
South Bend Man Sentenced to 100 Months in PrisonRead the Press Release
SOUTH BEND – Marc Gutierrez, age 32, of South Bend, Indiana was sentenced today by United States District Court Judge Damon R. Leichty upon his guilty plea to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Mr. Gutierrez was sentenced to 100 months in prison followed by 2 years of supervised release.
According to documents filed in this case, in July 2019 a search warrant was obtained to search the residence in South Bend where Mr. Gutierrez was living. Mr. Gutierrez was located at another address in South Bend and when interviewed admitted to being a former Latin King, having felony convictions in Illinois and Texas and distributing large amounts of methamphetamine over the prior months. He further admitted the location of the firearms, two 9mm and one rifle, found at his residence along with handling and shooting them.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosive Project Disarm Task Force and the Drug Enforcement Administration. This case was prosecuted by Assistant U.S. Attorney Joel R. Gabrielse.
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Providence Man Indicted for Trafficking Crystal Meth, Crack CocaineRead the Press Release
PROVIDENCE – A Providence man arrested on federal drug trafficking charges by members of the FBI Safe Street Task Force while he was on state probation, having been previously convicted in Rhode Island state court and incarcerated on unrelated drug trafficking charges, was indicted by a federal grand jury today on charges of trafficking crystal methamphetamine (meth) and crack cocaine.
Casimiro Pereira, 28, was arrested during an investigation into his alleged drug trafficking activities during which time it is alleged that on at least five occasions, while under law enforcement surveillance, Pereira delivered varying amounts of crystal meth and crack cocaine in exchange for cash.
It is alleged that on July 25 and on August 15, 2019, Pereira sold approximately 20 grams of crystal meth for $360, and that on at least three occasions between October 1, 2019, and January 28, 2020, he allegedly delivered between approximately 1.45 and 7 grams of crack cocaine for between $100 and $300. Each alleged transaction was monitored by members of the FBI Safe Streets Task Force and the drugs quickly seized by members of law enforcement.
On January 31, 2020, a federal court-authorized search of Pereira’s residence resulted in the seizure of approximately 136 grams of crystal meth and 8 grams of crack cocaine, and various items used in the preparation, packaging, and distribution of crystal meth and crack cocaine.
A federal grand jury today returned a seven-count indictment charging Pereira with possession with intent to distribute 50 grams or more of methamphetamine, two counts of distribution of 5 grams or more of methamphetamine, three counts of distribution of cocaine base, and one count of possession of cocaine base with the intent to distribute.
Pereira’s indictment is announced by United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorneys Christine D. Lowell and Sandra R. Hebert.
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Previously convicted sex offender from Roswell, New Mexico faces federal charges in New MexicoRead the Press Release
ALBUQUERQUE, N.M. – Anthony Gilbert Thompson, 31, of Roswell, New Mexico, appeared in federal court in Albuquerque on July 13 for an initial appearance on a criminal complaint charging him with failure to register as a sex offender.
According to the criminal complaint, Thompson was previously convicted in 2009 of possession of child pornography and again in 2012 for the same offense. Thompson was allegedly finishing his second term of imprisonment in a residential reentry center in Las Vegas, Nevada, when he escaped the facility on Feb 6. He was later found and arrested in Roswell, New Mexico, by deputies of the U.S. Marshals on June 18. Thompson allegedly had not notified authorities in Nevada or in New Mexico that he would be residing or working in New Mexico, in violation of the Sex Offender Registration and Notification Act.
Thompson is currently in custody pending trial after a detention hearing on July 15. He faces up to 10 years in prison. A criminal complaint is only an accusation. A defendant is presumed innocent until proven guilty.
The United States Marshal Service, FBI, and Roswell Police Department investigated this case. Assistant U.S. Attorney Matilda McCarthy Villalobos is prosecuting the case.
Presidential Task Force on Missing and Murdered American Indians and Alaska Natives Announces Virtual ConsultationsRead the Press Release
WASHINGTON – The Presidential Task Force on Missing and Murdered American Indians and Alaska Natives announced 12 Tribal consultations to occur virtually across the United States in the coming months.
American Indians and Alaska Natives experience disproportionately high rates of violence. President Trump has called the crisis of missing and murdered Native Americans “sobering and heartbreaking.”
The Presidential Task Force on Missing and Murdered American Indians and Alaska Natives, also known as Operation Lady Justice, announces the upcoming series of Tribal consultations under Executive Order 13898. The Executive Order requires the Task Force to “conduct appropriate consultations with Tribal governments on the scope and nature of the issues regarding missing and murdered American Indians and Alaska Natives.” While the Task Force had plans in place for a robust schedule of consultations and listening sessions in various locations in Indian country and elsewhere beginning in March, postponement of those sessions was required by the current public health crisis. Therefore, the Task Force has established a series of Tribal consultations to be held virtually. The sessions are regional, based on Bureau of Indian Affairs regions. The schedule, link to register, Dear Tribal Leader letter and framing paper are available on the Operation Lady Justice website, which can be found at OperationLadyJustice.usdoj.gov.
Confirmed Dates and Times
August 17th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Eastern Region – Virtual Consultation via WebEx.
August 19th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Midwest Region – Virtual Consultation via WebEx.
August 21st, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Southern Plains and Eastern Oklahoma Regions – Virtual Consultation via WebEx.
August 25th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Great Plains and Rocky Mountain Regions – Virtual Consultation via WebEx.
August 27th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Southwest Region – Virtual Consultation via WebEx.
August 31st, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Northwest Region – Virtual Consultation via WebEx.
September 2nd, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Western and Navajo Regions – Virtual Consultation via WebEx.
September 4th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Pacific Region First session – Virtual Consultation via WebEx.
September 8th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Pacific Region Second Session – Virtual Consultation via WebEx.
September 10th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Alaska Region First Session – Virtual Consultation via WebEx.
September 14th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Alaska Region Second Session – Virtual Consultation via WebEx.
September 17th, 1:30 p.m. – 5:00 p.m. Eastern
- Final session for any leader who could not make their scheduled Regional Session via WebEx.
The members of the Task Force are:
- Katharine (Katie) Sullivan, Principal Deputy Assistant Attorney General, Office of Justice Programs, designee for the Attorney General;
- Tara Sweeney, Assistant Secretary for Indian Affairs, designee for the Secretary of the Interior;
- Terry Wade, Executive Assistant Director, Criminal, Cyber, Response, and Services Branch, Federal Bureau of Investigation;
- Laura Rogers, Acting Director, Office on Violence Against Women;
- Charles (Charlie) Addington, Deputy Bureau Director, Bureau of Indian Affairs, Office of Justice Services;
- Trent Shores, U.S. Attorney for the Northern District of Oklahoma and Chair of the Native American Issues Subcommittee of the Attorney General’s Advisory Committee; and
- Jean (Jeannie) Hovland, Deputy Assistant Secretary for Native American Affairs and Commissioner, Administration for Native Americans, Department of Health and Human Services.
Marcia Good of the Department of Justice serves as the Executive Director of the Task Force. The Task Force will present a progress report to the President by Nov. 26, 2020, and a final report detailing its activities and accomplishments by Nov. 26, 2021.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of the Department of Justice at www.Justice.gov/Celebrating150Years. 2020 also marks 171st anniversary of the Department of the Interior. Learn more about the history of DOI at www.doi.gov/history/.
Peshawbestown Resident Found Guilty of Drug Distribution, Assault, Contempt, and, Along with A Cohort, Conspiracy to Tamper with A WitnessRead the Press Release
GRAND RAPIDS, MICHIGAN — A federal jury found Melvin James Harris, 46, of Peshawbestown, Michigan, and Vanessa Louis Hunter, 45, of Rockford, Illinois, guilty of conspiring to tamper with a witness in a federal trial. A third member of the conspiracy, Corey John Raphael, pled guilty to conspiracy to witness tamper earlier this year. The jury also convicted Harris of distributing cocaine, assaulting a federal officer, contempt of court, and witness tampering. Harris faces up to life in federal prison, and Hunter faces up to 20 years.
The evidence at trial showed that on August 14, 2019, Harris sold cocaine to an individual who was assisting police with narcotics investigations. Harris chose the location for the sale – a spot within the Grand Traverse Band of Ottawa and Chippewa Indians’ community, commonly known as Peshawbestown. Four days later, Harris assaulted a federal officer who was attempting arrest him.
In September 2019, Harris was charged in federal court with distributing cocaine and assaulting an officer. After he learned the identity of the person who had assisted police with the narcotics investigation, Harris conspired with Hunter, Raphael, and others to tamper with that witness, in an effort to discourage the witness from testifying against him. Harris ultimately succeeded in contacting the witness through intermediaries and asked the witness not to go to court. Harris also disseminated the witness’s name and other personal information in violation of a court order. He used the jail’s phone system to do so, and he directed his co-conspirators and associates to further disseminate the information through Facebook and other means. Additional charges against Harris, Hunter, and Raphael soon followed.
"This verdict sends a clear message to those who would try to subvert our justice system by violating court orders and intimidating witnesses," said U.S. Attorney Andrew Birge.
This case was jointly investigated by the Traverse Narcotics Team, Drug Enforcement Administration, Grand Traverse Band Tribal Police Department, Leelanau County Sheriff’s Office, and Michigan State Police.
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Oxford Man Indicted by Federal Grand Jury on Gun and Drug ChargesRead the Press Release
GREENVILLE, N.C. – A federal grand jury returned an indictment today charging an Oxford man with illegally possessing a firearm and crack distribution.
According to the indictment, Connell Clayton Lester, 55, is charged with possessing a firearm while subject to a domestic violence protective order, possessing a firearm by a convicted felon, and possession with intent to distribute and distribution of cocaine base (crack).
According to the indictment, on March 5, 2020, Lester, a convicted felon, possessed a Hi-Point 9mm handgun while subject to a domestic violence protective order from New York. It is alleged that the order restrained Lester from harassing, stalking, assaulting, or threatening an intimate partner and prohibited him from possessing a firearm. Additionally, the indictment alleges that Lester possessed with the intent to distribute crack cocaine and distributed crack cocaine. If convicted, he faces up to twenty years imprisonment for the drug charge and ten years for the firearm count.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Franklin County Sheriff’s Office are investigating the case and Assistant U.S. Attorney Robert J. Dodson is prosecuting the case.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
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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.
Opium Smuggler Sentenced to 42 Months' ImprisonmentRead the Press Release
MARQUETTE, MICHIGAN — U.S. Attorney Andrew Birge announced that Abdolnasser Mahmoudikanesbi, formerly of Gatineau, Quebec, was sentenced today to serve 42 months’ imprisonment by Chief U.S. District Judge Robert J. Jonker. Mahmoudikanesbi pled guilty in February 2020 to possession with intent to distribute opium. Upon release, Mahmoudikanesbi will be supervised for 3 years.
On December 7, 2019, Mahmoudikanesbi crossed into the United States at Sault Ste. Marie, where he encountered Customs and Border Protection (CBP). Mahmoudikanesbi told CBP that he was transporting towels, but an x-ray of his rental truck revealed items in the cargo area that were inconsistent with towels. Inside the vehicle, investigators discovered approximately 100 kilograms of unrefined opium paste.
Homeland Security Investigations (HSI), working with Canadian authorities, then took over the investigation. HSI determined the opium had come from Pakistan via an international shipping container with a false bottom. After the shipping container made it to the Port of Montreal, Mahmoudikanesbi and an associate cut the false bottom out of the container and moved the drugs to a rented warehouse in Montreal. Mahmoudikanesbi then had the opium put on a rental truck, which he drove across Ontario and into the United States.
“Trafficking illegal narcotics across international borders is a quintessential federal concern and federal law enforcement remains ever vigilant at our borders, whether at the southwest border or the bridge at Sault Ste. Marie,” commented U.S. Attorney Birge.
“HSI’s core mission is to prosecute cross border criminal activity and bring to bear its unique investigative authorities and international resources,” said Vance Callender, special agent in charge of HSI Detroit. “This case in particular and by its very nature, stretches across the globe and impacts several countries. Global criminal networks attempt to exploit international borders for profit daily. These types of investigations are some of the most complex known to law enforcement.”
“CBP officers are constantly on the lookout for smugglers and criminals attempting to cross our borders,” said Port Director Patrick Wilson. “Mr. Mahmoudikanesbi’s sentencing today demonstrates the important relationships we have with our federal law enforcement partners in seeking justice.”
The case was investigated by HSI, CBP, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorneys Theodore J. Greeley and Kristin M. Pinkston represented the United States.
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Operation Cookout: Eight Plead Guilty to Heroin and Fentanyl Trafficking ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Eight individuals pleaded guilty this week for their respective roles in a conspiracy to distribute and possess with intent to distribute large amounts of heroin, fentanyl, cocaine, and cocaine base in Hampton Roads.
In August 2019, over 120 law enforcement officers from 30 law enforcement agencies in Virginia, North Carolina and Texas executed a major operation that resulted in 35 defendants being arrested for their respective roles in the conspiracy, along with the seizure of 24 firearms, 30 kilograms of fentanyl, 30 kilograms of heroin, 5 kilograms of cocaine, and over $700,000 in cash.
To date, 46 defendants have been charged in this case. Of those, 38 have admitted their criminal conduct and pleaded guilty. Eight defendants are currently scheduled for trial.
Below is a list of the defendants who pleaded guilty this week:
Name, Age
Hometown
Charges
David Brandon Porter, 30
Hampton
Conspiracy to distribute and PWID 280 grams + cocaine base and 500 grams + cocaine
Russell Patrick Johnson, 50
Suffolk
Conspiracy to distribute and PWID 1 kg + heroin, 400 grams + fentanyl, and 500 grams + cocaine
April Loredo, 29
Newport News
Use of a communication facility in furtherance of drug trafficking
Iban Barreto Hernandez, 25
Riverside, California
Conspiracy to distribute and PWID 5 kg + cocaine and 1 kg + heroin
Carmen Suhey Miranda, 42
Newport News
Conspiracy to distribute and PWID 100 grams + heroin and cocaine
Felix Omar Rodriguez-Roig, 40
Newport News
Conspiracy to distribute and PWID 100 grams + heroin and cocaine
Lupe Camberos, 37
Portland, Oregon
Use of a communication facility in furtherance of drug trafficking
Kerry Christian, 54
Hampton
Conspiracy to distribute and PWID 500 grams + cocaine
According to the 88-count indictment, which was returned by a federal grand jury in February, the 46 defendants were involved in an alleged large-scale drug trafficking conspiracy that began in March 2016. The co-conspirators participated in various criminal acts throughout the alleged conspiracy, including armed drug distribution, while assuming and carrying out different roles such as a supplier, packager, transporter, financier, distributor, and facilitator throughout the life of the alleged drug trafficking ring.
The indictment alleges that the defendants and unindicted co-conspirators would purchase and receive narcotics from suppliers in Mexico, California, and New York, and would arrange for heroin, fentanyl, cocaine, and cocaine base to be transported to and within the Eastern District of Virginia using hidden traps in privately owned vehicles, couriers, and semi-trailers, trucks, and recreational vehicles.
It was further part of the conspiracy that the defendants and co-conspirators would utilize various locations throughout Hampton Roads to possess and prepare for distribution heroin, fentanyl, cocaine, and cocaine base, and to meet and discuss previous and future narcotics transactions. These various locations include houses and parking lots of businesses located in Newport News, Hampton, Suffolk, Carrolton, Yorktown, Lawrenceville, South Hill, and Richmond.
According to the indictment, throughout the life of the drug trafficking ring, the co-conspirators used at least 94 different telecommunication devices such as pre-paid cell phones, Facebook, and encrypted communications apps like FaceTime and WhatsApp to conduct the day-to-day operations, including negotiating prices, and arranging locations for purchasing and selling the drugs. Some of co-conspirators changed devices on a regular basis in an effort to thwart law enforcement surveillance. Typically, the cell phone numbers that were used were in pre-paid cell phones that did not need a subscriber’s name.
The 88-count indictment alleges various offenses, including conspiracy to distribute and possess with intent to distribute cocaine, heroin, cocaine base, and fentanyl; conspiracy to launder money; felon in possession of a firearm; maintaining a drug-involved premises; use of a communication facility in furtherance of drug trafficking; interstate travel in aid of racketeering enterprises; and illegal re-entry by a previously deported or removed alien.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Cookout. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Office of National Drug Control Policy (ONDCP). There are currently 28 HIDTAs, which include approximately 18 percent of all counties in the United States and 66 percent of the U.S. population.
This case is part of Project Safe Neighborhoods (PSN), which 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington D.C., Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), Colonel Gary T. Settle, Superintendent of Virginia State Police, Steve R. Drew, Chief of Newport News Police, Terry L. Sult, Chief of Hampton Police Division, Col. K.L. Wright, Chief of Chesapeake Police, and Hampton Commonwealth's Attorney Anton A. Bell, made the announcement. Assistant U.S. Attorneys Kevin P. Hudson and Peter G. Osyf, and Special Assistant U.S. Attorney Amy E. Cross are prosecuting the case.
The following law enforcement agencies provided significant assistance during the investigation and arrest operation: U.S. Marshals, Newport News Sheriff’s Office, Chesapeake Sheriff’s Office, York-Poquoson Sheriff’s Office, Tennessee Highway Patrol, Amarillo Police, and Brunswick County Sheriff’s Office. Approximately 30 law enforcement agencies assisted in the arrest operation in Virginia, North Carolina and Texas.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-47.
Omaha Man Sentenced for Lincoln Jewelry Store RobberyRead the Press Release
United States Attorney Joe Kelly announced that Chief U.S. District Judge John M. Gerrard sentenced Joshua Z. Dortch, 29, today to 14 ½ years in federal prison to be followed by 5 years of supervised release. Dortch previously pleaded guilty to interference with commerce by robbery and brandishing a firearm during that robbery.
On March 23, 2018, at approximately 1:14 p.m., two armed men with gloves and masks entered the Sartor Hamann Jewelry Store located at 2900 Pine Lake Road, Lincoln, Nebraska, and demanded people in the store to not move and to be quiet. One of the men smashed a watch case and the robbers left the store with 25 Rolex watches. One of the watches was equipped with a GPS tracker. Officers were able to locate Dortch and his co-defendant, Anwar Hunt, the watches and other evidence tying them to the robbery within a short time.
Hunt was sentenced previously to 13 ½ years’ imprisonment.
The Lincoln Police Department and the FBI Great Plains Violent Crime Task Force, comprised of FBI agents, Omaha Police Department detectives, Nebraska State Patrol Investigators and Papillion Police Department Detectives, are responsible for the investigation of the robbery.
Obion County Man Sentenced to Federal Prison for Firearms OffenseRead the Press Release
Jackson, TN – Edwin Joseph Hogg Jr., 55, has been sentenced to 14 months in federal prison for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to the information presented in court, on January 23, 2019, law enforcement conducted a traffic stop on the defendant’s vehicle for a stop sign violation. Officers observed a Ruger 10-22 semi-automatic rifle in plain view and were aware of Hogg as being a convicted felon.
During the search of Hogg’s person and vehicle, officers seized the firearm and approximately 1.3 grams of methamphetamine from his left coat pocket. Also, further investigation through the National Crime Information Center (NCIC) confirmed that on September 5, 2008, Hogg was convicted of manufacturing methamphetamine, and on December 5, 2016 he was convicted of unlawful possession of a firearm by a convicted felon in Obion County.
Hogg was arrested and later charged in federal court with one count of being a convicted felon-in-possession of a firearm. He pled guilty on January 10, 2020.
On June 19, 2020, United States District Court Chief Judge S. Thomas Anderson sentenced Hogg to 14 months imprisonment followed by 3 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Clearly, Hogg did not learn a lesson from his prior state convictions. Now, he will be rightly punished for his recidivism and incapacitated in federal prison, where there is no sentence discount or sanctuary of parole. We thank and commend the Obion County Sheriff’s Office for their outstanding work in this important case."
This case was investigated by the Obion County Sheriff’s Office.
Assistant U.S. Attorney Josh Morrow prosecuted this case on behalf of the government.
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NDTX Round-Up: July 6-12Read the Press Release
SENTENCING – BRIAN MODESTER
On July 6, Brian Modester, 36, was sentenced to 3 years in federal prison for possession of a firearm in furtherance of drug trafficking. Dallas Police conducted a traffic stop of a vehicle in which Modester was riding as a passenger. Police searched the vehicle and discovered Modester with $12,348 in drug proceeds. Officers also searched the residence that Modester had left and recovered a loaded firearm, multiple bags of marijuana, and drug paraphernalia. This case was investigated by the Homeland Security Investigations. Assistant U.S. Attorney Phelesa Guy is prosecuting this case.
GUILTY PLEA – LARRY DONELL BOOKER
On July 7, Larry Donell Booker, 60, pled guilty to conspiracy to possess with intent to distribute Hydrocodone. Booker met a confidential government source to arrange a transaction of Hydrocodone. Two days later, Booker sold the government source 1,000 pills of suspected Hydrodone in exchange for cash. Booker faces up to 20 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Myria Boehm is prosecuting this case.
GUILTY PLEA – NOLBERTO VASQUEZ
On July 7, Nolberto Vasquez, 30, pled guilty to conspiracy to commit bank fraud. Vasquez executed a scheme to fraudulently obtain credit cards and lines of credit from financial institutions using victims' personal identifying information to open credit cards at retain stores which would then be used to make unauthorized purchases. Vasquez faces up to 30 years in federal prison for his crimes. This case was investigated by the United States Secrete Service. Assistant U.S. Attorney Damien Diggs is prosecuting this case.
GUILTY PLEA – TEMIOPE AMINAT FOLORUNSHO
On July 7, Temitope Aminat Folorunsho, 33, pled guilty to conspiracy to commit wire fraud, two counts of wire fraud, conspiracy to commit money laundering, two counts of laundering monetary instruments, and two counts of use of a false passport. Folorunsho and her co-conspirators used email phishing scams, social engineering, and spoofing email addresses in order to cause victims to wire and electronically transfer funds to fraudulently opened bank accounts. Prior to Folorunsho’s guilty plea, other co-defendants pled guilty as well, with the most recent being Opeyemi Abidemi Adeoso in June 2020 who pled guility to 33 counts. This case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, and Department of State’s Diplomatic Security Service. Assistant U.S. Attorney Tiffany Eggers is prosecuting this case.
SENTENCING – ARMANDO SILVA
On July 9, Armando Silva, 26, was sentenced to 105 months in federal prison for possession with the intent to distribute methamphetamine. As Samson Park Police approached Silva’s vehicle during a traffic offense, officers noticed a marijuana odor emitting from the car. Officers conducted a search of vehicle and recovered a handgun, Xanax pills, and over one-ounce of methamphetamine. This case was investigated by the Homeland Security Investigations. Assistant U.S. Attorney Levi Thomas is prosecuting this case.
Montana Pharmacy Settles Controlled Substances Act Violations for $125,000Read the Press Release
HELENA—A pharmacy in Ennis, Montana settled potential violations of the Controlled Substances Act by agreeing to several substantive changes to its practices and paying a fine of $125,000, U.S. Attorney Kurt Alme said.
The Ennis Pharmacy and Yesterday’s Soda Fountain, Inc., entered into a civil settlement agreement with the U.S. Attorney’s Office for the District of Montana on July 7, 2020. The terms of the settlement include that Ennis Pharmacy shall check the criminal history of any potential employee handling controlled substances, and only a registered pharmacist may order Schedule II controlled substances for the pharmacy. In addition, Ennis Pharmacy will make 11 monthly payments for a total fine of $125,000.
“Opioid abuse causes tremendous harm in our communities. It is critical that all pharmacies and other providers follow the rules to be sure that controlled substances are not misused,” said U.S. Attorney Kurt Alme. “We take very seriously any violations of the Controlled Substances Act, particularly those which could lead to diversion of opioids.”
The settlement agreement recites that in April, 2019, Drug Enforcement Administration investigators conducted a routine inspection of Ennis Pharmacy. During that inspection and subsequent investigation, they discovered numerous potential civil violations of the Controlled Substances Act, including:
- Failing to report at least seven thefts or losses of controlled substances to DEA,
- Failing to take a proper inventory of its stock of controlled substances,
- Allowing pharmacy staff to use the owner’s credentials to order controlled substances, and
- Allowing staff to make manual adjustments to inventory records without proper explanation.
This civil settlement agreement is not an admission of any liability by Ennis Pharmacy, nor a concession by the United States that its potential claims were not well-founded.
Assistant U.S. Attorney Michael A. Kakuk and former Assistant U.S. Attorney Megan Dishong represented the United States in this matter, which was investigated by the Drug Enforcement Administration.
Monroe County Man Guilty of Possessing Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jonathan Brownlee, age 42, of Long Pond, Pennsylvania, pleaded guilty on July 16, 2020, before U.S. District Court Judge Malachy E. Mannion, to possessing child pornography
According to United States Attorney David J. Freed, Brownlee admitted that he used a laptop computer to possess and access images of child pornography. Between August 2017 and April 10, 2018, in Monroe County. Brownlee possessed the child pornography while serving a term of supervised release for a previous conviction for receipt and distribution of child pornography.
Judge Mannion ordered a presentence investigation to be completed. Sentencing will be scheduled at a later date.
The case was investigated by the Federal Bureau of Investigation and the U.S. Probation Office. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The maximum penalty under federal law for the offenses is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 10 years’ imprisonment because of Brownlee’s prior conviction for a child pornography crime. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Million Dollar Drug Money Launderer Sentenced to 18 Years in Federal PrisonRead the Press Release
KANSAS CITY, KAN. – A Missouri man who admitted to conspiring to launder more than $1 million in drug proceeds was sentenced Thursday to 216 months in federal prison, U.S. Attorney Stephen McAllister said.
Juan Duarte-Tello, 47, Kansas City, Mo., pleaded guilty to one count of conspiracy to possess and distribute methamphetamine and one count of conspiracy to commit money laundering. In his plea, Duarte-Tello admitted he personally handled more than a $1 million in drug trafficking proceeds for a drug trafficking organization that was distributing methamphetamine in the greater Kansas City metropolitan area. During the conspiracy, investigators had Duarte-Tello under electronic surveillance. He arranged for cash derived from drug trafficking to be funneled into bank accounts in California.
McAllister commended the Drug Enforcement Administration, Federal Bureau of Investigation, Department of Homeland Security-Homeland Security Investigations, and the Jackson County Missouri Drug Task Force, and Assistant U.S. Attorney Tris Hunt for their work on the case.
Milla Gangsta Bloods Gang Member and Another Man Charged with Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Nathaniel Myers, a/k/a Stretch, 26, and Robert Fletcher, 29, both of Buffalo, NY, were charged by criminal complaint with conspiracy to distribute cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that according to the complaint, in early June 2020, investigators learned that defendant Fletcher would be receiving a package of narcotics. On June 4, 2020, the DEA set up surveillance of Fletcher’s vehicle in the area of 827 Clinton Street in Buffalo. Investigators observed the defendant going in and out or opening the door and looking out the front unit of 827 Clinton Street during the morning. At approximately 11:00 a.m., a UPS vehicle pulled up and placed a brown package from San Diego, CA next to the side door of the front unit. Minutes later, Fletcher picked up the package and took it inside. A short time later, Fletcher left carrying a white plastic bag and got into his car. A Buffalo Police Patrol Unit attempted to conduct a motor vehicle stop but the defendant sped away and engaged at a high-speed for approximately a mile before eventually pulling over on the eastbound side of Route 33 near the Best Street exit. At the entrance of Route 33 where Fletcher entered, a DEA Special Agent recovered a plastic bag that contained suspected marijuana. The defendant was charged with various motor vehicle offenses.
A K-9 search of Fletcher’s vehicle gave a positive alert for narcotics near the rear seat of the vehicle. During a search of the vehicle, investigators recovered telephones and a Walmart to Walmart money transfer from the defendant to a family member of the individual responsible for sending the cocaine to Fletcher. After tracing the route that Fletcher traveled while eluding police officers, investigators found a white plastic bag containing suspected cocaine near where the suspected marijuana was previously recovered.
Investigators then placed a “sham” package in a white plastic bag near the location where the suspected cocaine was recovered, and set up surveillance. At approximately 7:50 p.m., after being released from state custody, Fletcher's vehicle arrived in the area of the “sham” package and stopped. A vehicle traveling behind Fletcher’s vehicle also stopped. An individual exited that vehicle, picked up the “sham” package and walked towards Fletcher’s vehicle.During the investigation, investigators learned that Fletcher conspired with defendant Myers to receive and distribute narcotics, including cocaine. Myers had been in prison since 2018 for federal narcotics-related offenses. Myers was previously identified as a leader of the LRGP Gang, but he is now believed to be a member of the Milla Gangsta Bloods. Records from the Niagara County Jail where Myers has been held reveal that Fletcher has provided money to Myers while incarcerated.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
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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Managing Partner of Investment Advisory Firm Charged for over $100 Million Ponzi-Like Fraud SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of an Information charging DAVID HU, a managing partner and the chief investment officer of the New York-based investment advisory firm International Investment Group (“IIG”), with investment adviser fraud, securities fraud, and wire fraud offenses. As alleged, over a period of more than 10 years, HU perpetrated an over $100 million scheme to defraud investors in IIG’s funds, including by creating fictitious investments and overvaluing investments used to generate funds to pay off earlier investors in a Ponzi-like manner. HU was arrested today and was presented and arraigned before Magistrate Judge Robert W. Lehrburger. The case has been assigned to U.S. District Judge Alvin K. Hellerstein.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged, David Hu directed a multimillion-dollar, years-long scheme to defraud investors. Putting profit ahead of his fiduciary duties, Hu allegedly mismarked millions of dollars of loan assets to cover up millions in losses. Hu also created fake entities and loans, and falsified paperwork to deceive auditors and avoid detection. Now David Hu stands charged with federal crimes and faces time in federal prison.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, for nearly a decade, David Hu misled investors about the value of their investments, including the creation and sale of fictitious fund portfolios to raise capital to prop up his schemes. His alleged actions serve as an example of the lengths some will go to in these all-too-common fraud cases. The FBI is committed to investigating those who prey upon trusting individuals for their own personal gain.”
In a separate civil action, the U.S. Securities and Exchange Commission (“SEC”) today filed civil charges against HU.
As alleged in the Information and based on statements made in Manhattan federal court in this case:[1]
Background of IIG
HU and a co-conspirator (“CC-1”) founded IIG in 1994. HU was a managing partner and the chief investment officer of IIG. IIG, an SEC-registered investment adviser, provided investment management and advisory services, including for three private funds that it operated: (1) the IIG Trade Opportunities Fund N.V. (“TOF”), (2) the IIG Global Trade Finance Fund, Ltd. (“GTFF”), and (3) the IIG Structured Trade Finance Fund, Ltd. (“STFF”). IIG also advised the Venezuela Recovery Fund (“VRF”), a fund that managed the remaining assets of a failed Venezuelan bank (VRF, together with TOF, GTFF, and STFF, the “IIG Funds”). In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management.
IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. IIG’s principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade. IIG’s purported expertise was in trade finance loans to borrowers located in Central or South America, and in a variety of industries, with a stated focus on “soft commodities,” such as coffee, agriculture, fishing, and other food products. IIG’s trade finance loans were purportedly secured by collateral, such as the underlying traded goods, assets held by the borrowers, or expected payments by third parties.
Investments in TOF, STFF, and GTFF were marketed by IIG to institutional investors, such as pension funds, hedge funds, and insurers. In offering memoranda and communications with investors, IIG advertised strict risk controls, such as promises to use diligence to carefully select borrowers or issuers with trusted management and marketable assets, and portfolio concentration limits based on borrower, developing country, and industry.
IIG purported to value the trade finance loans in the IIG Funds on a regular basis. IIG and, in turn, HU, received a performance fee with respect to the IIG Funds, as well as a management fee, which was calculated as a percentage of the assets under management held in the Funds.
The Scheme
From approximately 2007 to 2019, HU conspired to defraud investors in IIG-managed funds by: (i) overvaluing distressed loans held by the IIG Funds, (ii) falsifying paperwork to create a series of fake loans that were classified, fraudulently, as positively performing loans, and to otherwise hide losses, (iii) selling overvalued and fake loans to a collateralized loan obligation trust and new private funds established and advised by IIG, and (iv) using the proceeds from those fraudulent sales to generate liquidity required to pay off earlier investors in a Ponzi-like manner.
The scheme HU participated in involved, among other things:
- Mismarking Defaulted Loans. HU and CC-1 caused IIG to mismark the value of multiple loans that had, in reality, defaulted (the “Defaulted Loans”). Instead of acknowledging the defaulted status of these loans, HU and CC-1 instead caused IIG to mark the Defaulted Loans at par plus accrued interest, even though HU and CC-1 knew that the borrowers’ default significantly impaired the true value of these loans. HU and CC-1 certified these false valuations and caused them to be reported to investors.
- Mismarking Distressed Loans. HU and CC-1 caused IIG to mismark multiple loans that were distressed (the “Distressed Loans”). These Distressed Loans included, for example, loans for which the borrowers had missed multiple scheduled payments. Even though HU and CC-1 knew that the non-performing status of the loans significantly impaired their true value, they nevertheless caused IIG to continue to mark the loans at par plus accrued interest.
- Creating Fictitious Loans. With respect to TOF, in order to hide the losses resulting from the Defaulted Loans, including from auditors reviewing TOF’s financials, HU and CC-1 removed the Defaulted Loans from the TOF portfolio, replacing them with tens of millions of dollars in fictitious loans to purported borrowers in foreign countries (the “Fake Loans”). HU and CC-1 also created or directed the creation of documents to keep in IIG’s files as purported documentation of the Fake Loans. To pass auditor scrutiny, HU and CC-1 also directed purported borrowers – sham foreign entities that were controlled by IIG’s business associates and that did not engage in actual business – to provide confirmations of the Fake Loans to auditors, including by arranging for TOF to pay a monthly fee to one purported borrower in exchange for providing false confirmations. In reality, these purported borrowers did not receive a loan from TOF, and were not expected to make any payments to TOF.
- Using a CLO Trust to Create Liquidity through Investments in Fraudulent Loans. In or about 2014, HU and CC-1 obtained approximately $220 million in bank financing to create a collateralized loan obligation trust (the “CLO Trust”), for which IIG served as an investment adviser. HU and CC-1 then engaged in various deceptive acts, using the CLO Trust, to hide TOF’s losses and generate liquidity for TOF, which was facing investor redemption requests and demands for repayment of loans that IIG had taken from international development banks. For example, in its capacity as investment adviser for the CLO Trust, IIG, through the efforts of HU and CC-1, caused the newly-created CLO Trust to purchase loans from the TOF portfolio, including Defaulted Loans, Distressed Loans, and Fake Loans, which generated liquidity for TOF. After the CLO Trust purchased loans in the TOF portfolio, IIG, through the efforts of HU and CC-1, generated additional liquidity by causing the CLO Trust to issue securitized debt instruments based on these loans, payable in various tranches to investors in the CLO Trust.
- Using the CLO Trust and Panamanian Shell Entities to Cover Up Losses. IIG, through the efforts of HU and CC-1, also caused the CLO Trust to create new fraudulent trade finance loans, and used those new fraudulent loans to cover up TOF’s losses. Specifically, HU caused the creation of shell entities domiciled in Panama (“Panamanian Shell Entities”) that were controlled by an IIG nominee. Then, HU caused the CLO Trust to enter into fake loan transactions with the Panamanian Shell Entities. HU caused the creation of fake promissory notes and other paperwork to conceal the fraudulent nature of the loans to the Panamanian Shell Entities. Finally, under the guise of the fake loan transactions with the Panamanian Shell Entities, the CLO Trust disbursed funds that HU and CC-1 diverted to TOF in order to pay off TOF’s various debts and obligations.
- Generating Liquidity By Selling Fraudulent Loans to Newly Created Funds Backed by a New Investor. In or about 2017, HU and CC-1 targeted a foreign institutional investor (“Institutional Investor-1”) to raise money for two new private IIG managed funds: GTFF and STFF. Institutional Investor-1 provided $70 million as the seed investment for GTFF, and, later, $130 million as the seed investment for STFF. HU and CC-1 caused GTFF and STFF to purchase at least approximately $100 million in fake, distressed, defaulted or otherwise fraudulent loans.
- Inducing a Retail Mutual Fund to Invest in a Fictitious $6 Million Loan. In or about December 2012, IIG became an investment adviser to an open-ended mutual fund marketed to retail investors (the “Retail Fund”). As an investment adviser to the Retail Fund, IIG made investment recommendations, including recommendations that the Retail Fund invest in trade finance loans originated by IIG. In or about February 2017, a borrower (the “Argentine Borrower”) had failed to pay the principal on an approximately $6 million loan (“Loan-1”) in which the Retail Fund had invested and which was nearing its maturity date. In or about March 2017, HU caused approximately $6 million to be transferred into an account associated with the Argentine Borrower from the account of a different borrower (“Borrower-1”), and further directed the funds from Borrower-1’s account to pay off the debt owed by the Argentine Borrower to the Retail Fund. To replace the funds from Borrower-1’s account that were used to make it appear as though the Argentine Borrower had repaid its debt to the Retail Fund, HU fraudulently induced the Retail Fund to invest in a new, fake $6 million loan to the Argentine Borrower (the “New Loan”). HU then directed that the proceeds from the fraudulently induced New Loan be transferred into Borrower-1’s account, effectively reimbursing the account for the earlier $6 million transfer to the Retail Fund. To further conceal the fraudulent nature of the New Loan, HU caused the creation of forged documents to make it appear as though the New Loan was a legitimate loan to the Argentine Borrower.
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DAVID HU, 62, of West Orange, New Jersey, is charged with one count of conspiracy to commit investment adviser fraud, securities fraud, and wire fraud, which carries a maximum sentence of five years in prison; one count of securities fraud, which carries a maximum sentence of 20 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Ms. Strauss praised the investigative work of the FBI and also thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Drew Skinner and Negar Tekeei are in charge of the prosecution.
The charges contained in the Information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Information, and the description of the Information set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
- Mismarking Defaulted Loans. HU and CC-1 caused IIG to mismark the value of multiple loans that had, in reality, defaulted (the “Defaulted Loans”). Instead of acknowledging the defaulted status of these loans, HU and CC-1 instead caused IIG to mark the Defaulted Loans at par plus accrued interest, even though HU and CC-1 knew that the borrowers’ default significantly impaired the true value of these loans. HU and CC-1 certified these false valuations and caused them to be reported to investors.
Man Pleads Guilty for Role in Illegally Straw Purchasing FirearmsRead the Press Release
ALEXANDRIA, Va. – A Maryland man pleaded guilty today to aiding and abetting the straw purchase of firearms.
According to court documents, D’Lanta Boone, 29, of Temple Hills, aided and abetted the straw purchase of seven firearms by providing his then-girlfriend with money and explicitly directing her as to which firearms to illegally purchase on his behalf. Police in Washington, D.C. recovered one of the illegally purchased firearms from a felon, and police in Prince George’s County recovered another of the illegally purchased firearms.
Boone faces a maximum penalty of five years in prison when sentenced on December 18. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after Senior U.S. District Judge T.S. Ellis, III accepted the plea. Assistant U.S. Attorney Nicholas U. Murphy, II is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-153.
Lansing, Illinois Resident Ordered to Pay $323,986.54 in RestitutionRead the Press Release
HAMMOND- Ruby Toosevich a/k/a Ruby Marie Lewis, 55, of Lansing, Illinois, was sentenced before District Court Judge James T. Moody following her plea of guilty to bank fraud, announced U.S. Attorney Thomas L. Kirsch II.
Toosevich was ordered to pay $323,986.54 in restitution and sentenced to 27 months in prison.
According to documents filed in this case, between December 2012 and December 2013, Ruby Toosevich executed a scheme to defraud the medical practice where she worked by using her employer’s bank account to pay her own expenses. Toosevich created fraudulent invoices disguised as legitimate business expenses to obtain checks from her employer’s bank account totaling more than a half million dollars. She then used the checks to pay or attempt to pay for a mortgage, home remodeling and repairs, private school tuition, federal taxes, jewelry, a luxury car lease, and other expenses. After discovering Toosevich’s scheme, the medical practice stopped payment on some of the checks, resulting in a loss of approximately $335,676.
“Ms. Toosevich cheated her employer for the financial gain of herself, her friends and family,” said U.S. Attorney Kirsch. “These type of crimes will be investigated and prosecuted by my Office and our investigative partners.”
This case was investigated by the Internal Revenue Service, Criminal Investigation Division, and the Munster Police Department. The case was prosecuted by Assistant United States Attorney Jacqueline L. Jacobs.
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Kalamazoo Methamphetamine Dealers Plead Guilty to Drug Trafficking and Gun CrimesRead the Press Release
GRAND RAPIDS, MICHIGAN — Two Kalamazoo men face up to life in prison following their guilty pleas to multiple drug and firearms offenses, announced U.S. Attorney Andrew Birge. Trevon Gates (age 21) and Deonte Gates (age 19) were scheduled for trial on July 14, 2020 and instead pled guilty to their charges, which included conspiring to distribute methamphetamine and possessing firearms in furtherance of the methamphetamine conspiracy.
The Gates brothers partnered to sell methamphetamine in Kalamazoo, Holland, Plainwell, and Otsego during 2018 and 2019. The execution of a search warrant at the defendants’ home uncovered guns, money, methamphetamine, and drug packaging material. The investigation revealed that the brothers were constantly armed and even coerced at least one other person to deliver methamphetamine on their behalf or face harm.
“No one should view selling methamphetamine or other addictive drugs on the street as a way to raise one’s station in life,” commented U.S. Attorney Birge. “Taking advantage of addicts is shameful, destroys families and brings communities down. People who not only sell methamphetamine but also use guns to further their efforts pose an enhanced threat to safety in their communities. Our office is committed to investigating and prosecuting those individuals to the full extent of the law.”
Chief Karianne Thomas of the Kalamazoo Department of Public Safety agreed: “The illegal use and distribution of methamphetamine continues to be a scourge in our community and is responsible for driving a large amount of crime. This investigation showed that these two individuals had an extensive involvement in methamphetamine distribution in not just Kalamazoo, but throughout southwest Michigan. Their propensity to employ many different firearms to further their drug trafficking network made them particularly dangerous to the community. This is another excellent example of the outstanding partnership and cooperation between the Kalamazoo Department of Public Safety and our state and federal law enforcement partners to include the Michigan State Police, U.S. Attorney’s Office for the Western District of Michigan, U.S. Drug Enforcement Administration (DEA) and the Bureau of Alcohol Tobacco and Firearms (ATF).”
Michigan State Police Lieutenant Andrew Foster of the West Michigan Enforcement Team commented, “We appreciate the work done by the U.S. Attorney’s Office with this investigation. This case brought to justice individuals responsible for trafficking large quantities of crystal methamphetamine into west Michigan. It is just another great example of the partnership WEMET has with our federal law enforcement and local agencies throughout west Michigan.”
Trevon Gates is subject to a mandatory minimum term of 15 years in prison, while Deontae Gates is subject to a mandatory minimum term of 10 years in prison. Both brothers will be sentenced later this year.
This case was investigated by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kalamazoo Department of Public Safety, Kalamazoo Valley Enforcement Team, the Holland Police Department, and the West Michigan Enforcement Team.
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Jamaican Native Convicted of Fraud Pleads Guilty to Failure to Report for SentencingRead 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 Daciann Brown, 30, a Jamaican native residing in Rochester, NY, pleaded guilty to failure to appear for sentencing before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that in May 2018, the defendant pleaded guilty to wire fraud, false claims, and fraud related to identification documents. Brown purported to be a tax preparer and filed 66 false tax returns on behalf of 44 taxpayers with the IRS. Thirteen of those taxpayers did not know the defendant was filing returns using their personal information. Brown was scheduled to be sentenced on August 28, 2018. However, the defendant failed to appear on that date, and an arrest warrant was issued. On June 3, 2020, Brown was arrested by the U.S. Marshal Service.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, and the U.S. Marshal Service, under the direction of Marshal Charles Salina.
Sentencing on both the failure to appear and fraud charges will scheduled at a later date before Chief Judge Geraci.
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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 Southern District of Iowa 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 Marc Krickbaum for the Southern District of Iowa. “Please safeguard your personal and financial information, and don’t engage 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
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 Southern District of Illinois 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 Steven D. Weinhoeft for the Southern District of
Illinois. “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
Howard University Graduate Pleads Guilty to Defrauding Financial Aid OfficeRead the Press Release
WASHINGTON – Brian Johnson, 35, of Washington, D.C., pled guilty today for his role in defrauding Howard University out of more than $100,000, announced Acting U.S. Attorney Michael R. Sherwin and James A. Dawson, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Washington Field Office’s Criminal Division.
Johnson pled guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 371, in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum sentence of five years in prison. Under federal sentencing guidelines, Johnson faces a likely recommended sentence of 10 to 16 months in prison. The plea agreement calls for Johnson to pay $107,697.75 in restitution and $53,849 in a forfeiture money judgment.
According to the statement of offense filed with the Court, Johnson earned a Bachelor of Science degree and a Master of Business Administration from Howard University. From 2011 through 2016, he worked in the school’s Financial Aid Office. He served as the Associate Director of Financial Aid from 2014 through August 2016. In the fall of 2016, a co-conspirator, who worked at Howard from 2011 through 2017 in the Financial Aid Office and then the Bursar’s Office, proposed a scheme to Johnson in which the co-conspirator would cause fraudulently-obtained money to be sent from Howard University to Johnson, with Johnson then kicking back half of the proceeds to the co-conspirator. As part of the scheme, the co-conspirator applied fraudulent financial aid awards onto Johnson’s student profile even though he was no longer a student or employed at the school. As a result, the co-conspirator caused the University to issue $107,697.75 to Johnson’s bank account between November 2016 and May 2017. Johnson admitted sharing half of the fraud proceeds with the co‑conspirator in the form of cash or electronic payments.
Chief Judge Beryl A. Howell accepted Johnson’s guilty plea and scheduled his sentencing for September 25, 2020.
In announcing the plea, Acting U.S. Attorney Sherwin and Special Agent in Charge Dawson commended the work of those from the FBI’s Washington Field Office who are involved in this ongoing investigation. They also expressed appreciation for the work of Paralegal Specialist Mariela Andrade and former Paralegal Specialist Brittany Phillips. Finally, they commended the work of Assistant U.S. Attorney Kondi J. Kleinman.
Hartford Felon Pleads Guilty to Possessing Sawed-Off ShotgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KEVIN BARCO, 36, of Hartford, pleaded guilty today before U.S. District Judge Stefan R. Underhill to possession of a firearm by a convicted felon.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, on October 6, 2018, Hartford Police encountered Barco sitting in a car that was parked on Albany Avenue. A subsequent search of the car revealed a Harrington and Richardson, Model 176, 10 gauge shotgun with a sawed-off barrel. Eight shotgun shells were also found in the car.
Barco’s criminal history includes state convictions for felony weapon, robbery, larceny and escape 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.
Judge Underhill scheduled sentencing for October 9, 2020, at which time Barco faces a maximum term of imprisonment of 10 years. Barco is released on a $50,000 bond pending sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Ray Miller
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.
Harrison County Couple Sentenced for Illegal Possession of FirearmsRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced that on July 16, 2020, Walter Greenwood Stokes, 34 years of age, and his wife, Brittany Leah Lynne Stokes, 34 years of age, were sentenced to prison for possession of firearms while prohibited. Walter Stokes was sentenced to 70 months in prison followed by three years of supervised release, while Brittany Stokes was sentenced to a year and a day in prison followed by three years of supervised release. A third defendant, Laura Edith Chedester of Omaha, Nebraska, is awaiting sentencing on August 20, 2020.
The Stokes were convicted by jury on March 3, 2020. Walter Stokes was found guilty of being a felon in possession of a firearm and Brittany Stokes was found guilty of being a drug user in possession of a firearm and of falsifying a government document in the acquisition of a firearm.
The jury heard evidence that Woodbine Police Department along with the Logan Police Department served a search warrant on the Stokes’ residence located in Woodbine, Iowa. The search by law enforcement recovered 25 firearms, and over 14,000 rounds of ammunition. Five loaded semi-automatic assault type rifles were located in the master bedroom of the home. Evidence showed that Walter Stokes had built several of the assault weapons from parts obtained by Brittany Stokes. Evidence was also heard by the jury about an extensive history of drug use by the couple and that Walter Stokes had felony convictions dating back to 2003.
The investigation was conducted by the Woodbine Iowa Police Department, Logan Iowa Police Department, Council Bluffs Police Department, Harrison County Sheriff’s Office, Pottawattamie County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Fremont Man Sentenced to More Than 16 Years in Prison for Conspiring to Possess with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that James Maynard, age 28, of Fremont, Nebraska, was sentenced on July 16, 2020, in federal court in Omaha, Nebraska, for conspiracy to possess with intent to distribute methamphetamine. Chief United States District Court Judge John M. Gerrard sentenced Maynard to 200 months’ imprisonment. After completing his term of imprisonment, Maynard will be required to serve a 5-year term of supervised release. There is no parole in the federal system.
On July 11, 2018, Dodge County Deputy Sheriffs stopped Maynard driving a vehicle on a Dodge County highway after observing him commit a number of traffic violations. During the stop, deputies noticed drug paraphernalia inside Maynard’s vehicle and asked him to step outside. In response, Maynard drove away leading deputies on a chase where speeds exceeded 100 mph. During the chase, Maynard threw out several evidentiary items including approximately 300 grams of actual methamphetamine. Maynard eventually crashed his vehicle and was arrested after a foot chase. During a post arrest interview, Maynard admitted selling methamphetamine for the past several months.
This case was investigated by the Dodge County Sheriff’s Office.
Franklin, N.C. Man Is Sentenced to More Than 12 Years for Armed Bank Robbery in AshevilleRead the Press Release
ASHEVILLE, N.C. – Chief U.S. District Judge Martin Reidinger sentenced William Keith Leonhart, 41, of Franklin, N.C., to 154 months in prison followed by five years of supervised release for robbing at gunpoint an Asheville bank, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
According to filed court documents and yesterday’s sentencing hearing, on August 5, 2019, the Asheville Police Department received a call regarding an armed robbery of the First Citizens Bank located at 1201 Tunnel Road in Asheville. Court records show that Leonhart had entered the bank, approached a teller and brandished a firearm. While pointing his firearm at the teller, Leonhart gave the teller a threatening demand note. The teller handed Leonhart approximately $500 out of her cash drawer and Leonhart fled the scene in a stolen vehicle. The next day, law enforcement identified Leonhart driving a second stolen vehicle in Black Mountain, N.C. Following a vehicle chase, Leonhart was arrested, and law enforcement recovered from inside the vehicle the firearm Leonhart had used during the robbery. According to court records, Leonhart had previously robbed the same bank in 2013, and had received a sentence of 66-89 months in prison.
In October 2019, Leonhart pleaded guilty to one count of bank robbery and one count of possession of a firearm in furtherance of a crime of violence. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney Murray thanked the Asheville Police Department, the Black Mountain Police Department, and the Federal Bureau of Investigation for their investigation of this case. He also thanked District Attorney Todd Williams for his office’s coordination over the course of the prosecution of this case.
Special Assistant United States Attorney (SAUSA) Alexis Solheim prosecuted the case. Ms. Solheim is a state prosecutor with the office of the 30th Prosecutorial District, and was assigned by District Attorney Ashley Welch to serve as SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Solheim is duly sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 30th Prosecutorial District and the United States Attorney’s Office. The SAUSA position helps ensure the effective and vigorous prosecution of federal court cases that impact the counties within the 30th Prosecutorial District.
Former Waterloo Teacher Sentenced to Eight Months’ Imprisonment for FraudRead the Press Release
A former Waterloo teacher was sentenced today to 8 months in federal prison. Defendant is to serve 4 months in BOP facility and 4 months in home confinement.
Anthony Dehl, age 59, from Waterloo, Iowa, received the prison term after a guilty plea to wire fraud.
In a plea agreement, Dehl admitted that from 2014 to 2019, he defrauded the Waterloo Education Association (WEA) out of $54,254.07. He withdrew most of the money at a local casino. At the time of the fraud, Dehl was the treasurer of the WEA and concealed his scheme by submitting false treasurer reports and other yearly reports to the organization.
Dehl was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Dehl was sentenced to 8 months’ imprisonment and fined $4,000. Dehl was ordered to make $54,254.07 in restitution to the WEA and defendant paid his restitution in full. Defendant must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Dehl was released on the bond previously set and is to surrender to the United States Marshal on August 3, 2020.
The case was prosecuted by Assistant United States Attorney Matthew J. Cole and investigated by FBI and the Iowa State Auditor’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-02004.
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Former USPS Employee Charged with Stealing Cash and Gift Cards from MailRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, today announced that ELIZABETH URBANI, 42, of West Haven, has been charged by federal criminal complaint with theft of mail by a U.S. Postal Service (USPS) employee.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Urbani appeared today before U.S. Magistrate Judge Robert M. Spector via videoconference.
As alleged in the criminal complaint, Urbani has been employed by the U.S. Postal Service since approximately 2015, and most recently was a mail carrier assigned to the New Haven Post Office. Beginning in December 2019, some USPS customers along Urbani’s mail route submitted complaints that their mail was missing or had been stolen. Subsequent investigation revealed that, in January and February 2020, Urbani opened approximately 125 pieces of mail and stole cash and gift cards contained within several of those mail pieces.
The charge of theft of mail by an employee carries a maximum term of imprisonment of five years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Urbani, who resigned from the USPS, is released on a $50,000 bond.
This investigation is being conducted by the U.S. Postal Service Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Brendan Keefe.
Individuals who believe they are a victim of mail theft may file a complaint by calling 888-USPS-OIG or by visiting this link.