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Thursday 30 April 2020
Bank Hapoalim Agrees to Pay More Than $30 Million for Its Role in FIFA Money Laundering ConspiracyRead the Press Release
Bank Hapoalim B.M. (BHBM), an Israeli bank with international operations, and its wholly owned subsidiary, Hapoalim (Switzerland) Ltd. (BHS), have agreed to forfeit $20,733,322 and pay a fine of $9,329,995 to resolve an investigation into their involvement in a money laundering conspiracy that fueled an international soccer bribery scheme.
Specifically, BHBM and BHS have admitted that they, through certain of their employees, conspired to launder over $20 million in bribes and kickbacks to soccer officials with Fédération Internationale de Football Association (FIFA) and other soccer federations.
“For nearly five years, Bank Hapoalim employees used the U.S. financial system to launder tens of millions of dollars in bribe payments to corrupt soccer officials in multiple countries,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s announcement demonstrates the department’s commitment to holding financial institutions to account when they knowingly facilitate corruption and other criminal conduct.”
“Today’s resolution marks another successful chapter in this district’s effort to hold accountable those corporations and individuals who participated in a bribery scheme that corrupted international soccer,” stated U.S. Attorney Richard P. Donoghue of the Eastern District of New York. “This office, along with our law enforcement partners, will continue to identify wrongdoers who manipulate international soccer in order to reap illicit profits and bring them to justice.”
“This announcement illustrates another aspect in the spider web of bribery, corruption and backroom deals going on behind the scenes as soccer games were played on the field,” said Assistant Director in Charge William F. Sweeney of the FBI’s New York Field Office. “Bank Hapoalim admits executives looked the other way, and allowed illicit activity to continue even when employees discovered the scheme and reported it. The New York FBI Eurasian Organized Crime Task Force and our law enforcement partners have doggedly pursued every strand uncovered in this criminal investigation, and will keep at it until they root out all of the bad actors.”
“This forfeiture sends a clear message that no matter how complex or far reaching the conspiracy, justice will prevail. Bank Hapoalim B.M. and its subsidiary, Hapoalim Ltd., participated in a conspiracy that corrupted international soccer, its confederations, and member associations,” said Special Agent in Charge Ryan L. Korner of the IRS-Criminal Investigation (IRS-CI) Los Angeles Field Office. “IRS-CI is proud to work alongside our international law enforcement partners, the FBI, and the United States Attorney’s Office to bring closure to this egregious international scandal that corrupted the sport of soccer.”
According to admissions in the statement of facts stipulated to by BHBM and BHS as part of the agreement, from approximately Dec. 10, 2010, to Feb. 20, 2015, BHBM and BHS personnel conspired with sports marketing executives, including executives associated with Full Play Group S.A. (Full Play), a sports media and marketing business based in Argentina, and others, to launder at least $20,733,322 in bribes and kickbacks to soccer officials. In exchange for those bribes and kickbacks, the soccer officials awarded or steered broadcasting rights for soccer matches and tournaments to the sports marketing executives and their companies. Full Play allegedly executed the illegal payments from accounts at BHS and BHBM’s branch in Miami, Florida, which were held in the names of Full Play subsidiaries and affiliates. On March 18, 2020, Full Play was charged along with others in a superseding indictment in the Eastern District of New York with racketeering conspiracy, wire fraud, wire fraud conspiracy, and money laundering conspiracy.
BHBM and BHS also admitted they conspired to launder money for Luis Bedoya, who at various times served as the president of the Federación Colombiana de Futbol, a vice president of the Confederación Sudamericana de Fútbol (CONMEBOL), and a member of FIFA’s executive committee. BHBM’s Miami branch and BHS allowed accounts controlled by Bedoya to be used to receive illicit bribe and kickback payments. Bedoya pleaded guilty to racketeering conspiracy and wire fraud conspiracy on Nov. 12, 2015, in the Eastern District of New York.
Notwithstanding the repeated concerns raised by BHS compliance personnel about certain payments made to soccer officials from the accounts associated with Full Play, BHS failed to take action. Instead, the banks’ relationship managers continued executing illicit bribe and kickback payments on behalf of Full Play.
Under the agreement, BHBM and BHS will jointly pay a criminal penalty of $9,329,995. The banks will additionally forfeit funds totaling $20,733,322.
As outlined in the agreement, the government’s decision to enter into a non-prosecution agreement with BHBM and BHS was premised upon the banks’ thorough and complete cooperation and the banks’ other substantial remedial efforts, which have included closing Bank Hapoalim (Latin America) S.A. and BHBM’s branch in Miami. BHS is also in the process of closing its operations.
The agreement announced today is part of an investigation led by the FBI’s New York Field Office and the IRS-CI’s Los Angeles Field Office. Trial Attorney Michael P. Grady of the Bank Integrity Unit of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Lauren Howard, Brian D. Morris, and Samuel P. Nitze of the U.S. Attorney’s Office for the Eastern District of New York prosecuted the case. Former MLARS attorneys Kendrack D. Lewis of the Justice Department’s Civil Division and Maria K. Vento of the U.S. Attorney’s Office for the Western District of North Carolina, the Criminal Division’s Office of International Affairs, and the government of Switzerland provided significant assistance in this matter.
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.
Augusta and Kennebec County Awarded Funds to Address COVID-19 PandemicRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that the Department of Justice’s Office of Justice Programs (OJP) has awarded $77,591 to the City of Augusta and $58,008 to Kennebec County to address the public safety challenges posed by the outbreak of COVID-19.
OJP awarded the grants as part of $850 million available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. This program allows eligible state, local and tribal governments to apply immediately for these critical funds. OJP is moving quickly, aiming to have funds available for drawdown as soon as possible after receiving an application. OJP has also made statewide awards in addition to awards to local jurisdictions. A list of all awards is at https://bja.ojp.gov/program/cesf/awards.
“Public safety professionals in Maine are doing phenomenal work as they protect Mainers during the COVID-19 pandemic,” said U.S. Attorney Frank. “I hope these emergency grants to Augusta and Kennebec County will help keep our local partners safe on the job as they keep all of us safe.”
The Coronavirus Aid, Relief and Economic Security, or CARES, Act gives jurisdictions considerable latitude in the use of funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment and distributing resources to hard-hit areas. Funds may also be used to help correctional facilities cover costs related to COVID-19, including, but not limited to, sanitation, contagion prevention and measures designed to address the related medical needs of inmates, detainees and correctional personnel.
Applications are due by May 29, 2020. OJP will fund successful applicants on a rolling basis as it receives applications. Grantees may apply the funds retroactively to January 20, 2020, subject to federal rules.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. A complete list of eligible jurisdictions and their allocations is available at https://bja.ojp.gov/program/fy20-cesf-allocations. For more information, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553.
OJP, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components is located at www.ojp.gov.
Asheville Man Is Sentenced to Seven Years in Prison for Downloading Child PornographyRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Sammy Horace Williams, II, to 84 months in prison and a lifetime of supervised release on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Williams, 55, of Asheville, was also ordered to register as a sex offender after he is released from prison, and to pay a $5,000 special assessment and $3,000 in restitution.
Ronnie Martinez, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in North Carolina joins U.S. Attorney Murray in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, Homeland Security Investigations (HSI) agents conducting an investigation into child pornography on the internet became aware that an individual, later identified as Williams, was accessing child pornography online. On May 18, 2017, HSI agents executed a search warrant at Williams’ residence. During the search, they seized multiple computer devices, thumb drives, and CDs belonging to Williams. A forensic analysis of the seized items revealed that Williams possessed more than 450 videos and 1,647 images of child pornography, some of which depicted prepubescent minors engaging in sadistic and masochistic or other lewd and lascivious conduct.
On October 30, 2019, Williams pleaded guilty to receiving child pornography. In filed plea documents, Williams admitted to downloading child pornography via the internet to his computer and other storage devices.
Williams is currently in federal custody. All federal sentences are served without the possibility of parole.
U.S. Attorney Murray thanked HSI for their handling of this investigation. The U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Wednesday 29 April 2020
Worcester Man Sentenced for Heroin and Cocaine ConspiracyRead the Press Release
BOSTON – A Worcester man was sentenced today in federal court in Worcester for his role in a heroin and cocaine conspiracy.
Vito Nuzzolilo, 46, was sentenced during a videoconference hearing before U.S. District Court Judge Timothy S. Hillman to 134 months in prison and eight years of supervised release. In August 2019, Nuzzolilo pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and more than 100 grams of heroin.
Nuzzolilo distributed heroin and cocaine from his apartment in Worcester and from a separate “band room” that he maintained in Worcester. A federal wiretap revealed numerous communications in which Nuzzolilo coordinated the sale of heroin or cocaine to various drug customers. The investigation also revealed that Nuzzolilo coordinated with a New York-based source of supply for the delivery of significant quantities of heroin and cocaine to Worcester. As a result of the investigation, law enforcement seized drugs from various locations, including from Nuzzolilo’s band room, his BMW, and from a car transporting cocaine from Nuzzolilo’s apartment in Maine.
Four other individuals have pleaded guilty and been sentenced in this drug conspiracy. In February 2019, Ricardo Ortega-Vasquez, 42, a Dominican national residing in New York City, was sentenced to time served (approximately 23 months in prison). In November 2018, Thomas Walker of Pemaquid, Maine, was sentenced to 30 months in prison. In September 2018, Melissa Rock, also of Pemaquid, Maine, was sentenced to 12 months and 1 day in prison. And in June 2018, Kristen Little of Worcester was sentenced to 30 months in prison.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division prosecuted the case.
Utah Court Orders Halt to Sale of Silver Product Fraudulently Touted as Covid-19 CureRead the Press Release
SALT LAKE CITY – A federal court in Utah has entered an injunction halting the sale of a fraudulent coronavirus (COVID-19) treatment, the Department of Justice announced today.
In response to a civil complaint and accompanying court papers filed on April 27, 2020, in Salt Lake City, the U.S. District Court for the District of Utah issued a temporary restraining order against defendants Gordon Pedersen of Cedar Hills, Utah, and his companies, My Doctor Suggests LLC and GP Silver LLC. The civil complaint alleges that the defendants are fraudulently promoting and selling various silver products for the treatment and prevention of COVID-19. The court’s order temporarily enjoins the defendants from continuing to sell or distribute their silver products for the diagnosis, cure, mitigation, treatment, or prevention of any disease, including COVID-19.
A separate court order temporarily freezes defendants’ assets in order to preserve the court’s ability to grant effective final relief and to maintain the status quo. A hearing on the government’s request for a preliminary injunction is set for May 12, 2020.
“The Department of Justice will take swift action to protect consumers from those who would recklessly exploit this public health crisis by offering phony cure-alls for the treatment and prevention of COVID-19,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We work closely with our partners at the Food and Drug Administration and will move quickly to shut down schemes that promote and sell unlawful products during this pandemic.”
“Even in a time of great uncertainty, there are at least two unchanging realities. There are those who would unlawfully exploit our vulnerabilities, and there are those who will hold such parties accountable,” said U.S. Attorney John W. Huber for the District of Utah. “COVID-19 is a dangerous disease, and American consumers must have accurate and reliable information as they make important health decisions.”
The complaint alleges that, beginning in early 2020, the defendants conducted a scheme to defraud consumers throughout the United States, promoting and selling silver products based on fraudulent claims of protection against, and treatment for, COVID-19. According to the complaint, the defendants have made a wide variety of false and misleading claims touting silver products as a preventative for COVID-19, including that having silver in the bloodstream will “usher” any coronavirus out of the body and that “it has been proven that Alkaline Structured Silver will destroy all forms of viruses, it will protect people from the Coronavirus.”
“The FDA will continue to help ensure those who place profits above the public health during the COVID-19 pandemic are stopped,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, U.S. Food and Drug Administration. “We are fully committed to working with the Department of Justice to take appropriate action against those jeopardizing the health of Americans by offering and distributing products with unproven claims to prevent or treat COVID-19.”
The enforcement action is being prosecuted by Assistant U.S. Attorney Joel A. Ferre of the U.S. Attorney’s Office for the District of Utah and Trial Attorneys Speare I. Hodges and Sarah Williams of the Department of Justice, Civil Division’s Consumer Protection Branch. The FDA’s Office of Criminal Investigations and Office of the Chief Counsel is also assisting with the case.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a permanent injunction against the defendants.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Utah, visit its website at https://www.justice.gov/usao-ut. For information about the Department of Justice’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and WHO websites.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
United States Attorney Cautions Against Predatory Practices Related to COVID-19 and HousingRead the Press Release
DETROIT, Michigan - As the country adopts drastic measures to slow the spread of COVID-19, many Americans have lost their jobs and many more have seen their wages curtailed. These losses have forced many to seek abatements or suspensions of their rent, with reports that nearly one third of Americans were unable to pay their April rent at the beginning of the month.
Many landlords have responded to these circumstances with understanding and care, trying to work with their tenants to weather the current crisis. However, there have been reports of other landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct. Such behavior is despicable and it is illegal.
Unfortunately, most victims who experience this type of abuse never report it. They fear retaliation will endanger their ability to provide shelter for themselves and their families.
United States Attorney Mathew Schneider stated, “Predatory practices related to COVID-19 are particularly disturbing as these landlords exploit our current national crisis by sexually harassing people in need of housing.”
The Department of Justice has not hesitated to intervene when clear misconduct occurs. This behavior is not tolerated in normal times, and certainly will not be tolerated now.
To report sexual harassment in housing, contact the Justice Department at (800) 896-7743 or [email protected]. Or, contact the U.S. Attorney’s Office at (313) 226-9151 or [email protected].
Below are two links to DOJ & HUD produced PSAs for your consideration. These powerful PSAs feature personal victim impact stories and a clear call to action.
DOJ PSA: Sexual Harassment in Housing Is Illegal
https://www.youtube.com/watch?v=z76bA-mf7o0&t
runtime: 1:00
Working with DOJ to Stop Sexual Harassment in Housing
https://www.youtube.com/watch?v=vhskfe_7DHc
runtime: 11:00
Fifty-two years after the passage of the Fair Housing Act, we have come a long way. But we still have work to do. Securing fair housing as part of the American way of life can be achieved when victims know it is safe to come forward, and perpetrators know we will be aggressively attacking their despicable conduct.
U.S. Attorney’s Office and law enforcement agencies are combatting sexual harassment in housing during Coronavirus pandemicRead the Press Release
ATLANTA – As the nation adopts measures to slow the spread of COVID-19, many Georgians have lost their jobs and countless more have seen their wages curtailed. These losses have forced many to seek abatements or suspensions of their rent, with reports that nearly one third of Americans were unable to pay their April rent at the beginning of the month. During this time, predatory practices have been identified and are particularly disturbing as some landlords exploit our current national crisis by sexually harassing people in need of housing.
“Many landlords responded to these circumstances with understanding and care, trying to work with their tenants to weather the current crisis,” said U.S. Attorney Byung J. “BJay” Pak. “However, there have been reports of landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct. Such behavior is despicable, and illegal.”
Sexual harassment in housing includes demands for sex or sexual acts in order to buy, rent, or continue renting a home. It also includes other unwelcome sexual conduct that makes it hard to keep living in or feel comfortable in your home. The Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division of the Department of Justice. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing.
Attorney General William Barr has directed the Department of Justice Civil Rights Division and every U.S. Attorney's Office to devote all necessary resources to investigate reports of housing-related sexual harassment resulting from the current crisis. To report sexual harassment in housing to the DOJ, we have a toll-free phone number (1-844-380-6178), as well as an email address ([email protected]) and webpage.
The U.S. Attorney’s Office for the Northern District of Georgia and the Department of Justice (DOJ) will work with all federal agencies, as well as state, and local officials on reports of housing-related sexual harassment. We stand ready to take aggressive action against this misconduct whenever it occurs.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney Erica MacDonald Cautions Against Predatory Practices Related to COVID-19 and HousingRead the Press Release
United States Attorney Erica H. MacDonald announced today that, during the COVID-19 crisis, the U.S. Attorney’s Office is reaffirming its commitment under the Fair Housing Act to combat sexual harassment in housing.
As the nation adopts measures to slow the spread of COVID-19, many Americans have lost their jobs, have been furloughed, or have seen a drastic reduction in their wages. As a result, many Americans have been unable to pay rent. According to a recent memo from the Attorney General, there have been reports of landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct. Such behavior is illegal under the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
“Sexual harassment by landlords, property managers, maintenance workers, and others may constitute a violation of the federal Fair Housing Act. Such behavior is despicable and it is illegal,” said U.S. Attorney Erica MacDonald. “The U.S. Attorney’s Office stands ready to investigate complaints of sexual harassment in housing and to deploy all available enforcement tools against anyone who engages in this behavior. This behavior is not tolerated in normal times, and certainly, will not be tolerated now.”
If you think you are a victim of sexual harassment by a landlord, or other person who has control over housing, resulting from the COVID-19 crisis, contact the Justice Department’s Civil Rights Division at (800) 896-7743 or [email protected]. Or, contact the U.S. Attorney’s Office at (612) 664-5600 or [email protected].
Department of Justice public service announcement: Sexual Harassment in Housing Is Illegal https://www.youtube.com/watch?v=z76bA-mf7o0&t
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Tax Preparer Sentenced to Four Years in Prison for Conspiring to File False Income Tax ReturnsRead the Press Release
TRENTON, N.J. – A former employee of Tax Pro’s and Tax Solutions & Associates, tax preparation businesses located in Essex and Union counties, was sentenced today to 48 months in prison for conspiring to defraud the United States by filing false income tax returns, U.S. Attorney Craig Carpenito announced.
Tony V. Russell, 49, of Stone Mountain, Georgia, previously pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to Count One of an indictment charging him with conspiracy to defraud the IRS. Judge Shipp imposed the sentence today in a teleconference proceeding.
Two members of the conspiracy have previously pleaded guilty to their roles in the fraud and await sentencing. Damien Askew, 39, of Union, New Jersey, pleaded guilty June 6, 2017, to conspiracy to defraud the IRS and filing a false federal personal income tax return and is awaiting sentencing. Rudolph Sanders, 41, of Newark, New Jersey, pleaded guilty May 10, 2018, to conspiracy to defraud the IRS and is awaiting sentencing.
Two other members of the conspiracy, Joseph Kenny Batts, 49, of Elkridge, Maryland, and Angelo K. Thompson, 38, of Reistertown, Maryland, were arrested April 17, 2018, on charges of conspiracy to defraud the IRS and aiding and assisting in the preparation of false federal income tax returns. On Aug. 8, 2019, Thompson pleaded guilty before Judge Shipp to Count One of an indictment charging him with conspiracy to defraud the IRS, and awaits sentencing. On Sept. 17, 2019, Batts was convicted following a one-week trial before Judge Shipp on one count of conspiracy to defraud the United States and five counts of aiding and assisting in the preparation of false federal income tax returns, and awaits sentencing.
According to documents filed in this and related cases and statements made in court:
From at least 2009 to April 2015, Batts was co-owner, along with Askew, of Tax Pro’s, a tax return preparation and payroll business in Essex County, where Russell, Sanders, Batts, Thompson, and Askew prepared tax returns. To boost their business, the defendants conspired to falsify their clients’ federal income tax returns to generate refunds from the IRS in amounts that their clients were not entitled to receive. Russell, Sanders, Batts, Thompson, and Askew inflated tax refunds by fabricating and inflating credits for education and childcare; deductions, such as charitable contributions and unreimbursed employee expenses; and business losses.
Russell and other members of the conspiracy also permitted Batts to use their Preparer Tax Identification Numbers (PTIN) – the identification number that paid tax preparers are required to place on tax returns they have prepared – when preparing tax returns to conceal Batts’ identity as the actual tax return preparer; Batts had a prior federal tax fraud conviction.
After law enforcement executed a search warrant at Tax Pro’s in April 2015, Batts discontinued Tax Pro’s and opened Tax Solutions and Associates in Union, where Russell, Thompson, and Batts continued preparing false federal income tax returns.
By fraudulently inflating the amounts of the tax refunds, Batts, Askew, Thompson, Russell, and Sanders caused a total tax loss to the IRS in excess of $900,000.
In addition to the prison term, Judge Shipp sentenced Russell to three years of supervised release and ordered him to pay restitution of $241,185.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Laura J. Perry, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Cari Fais and Jihee Suh of the Special Prosecutions Division.
South Carolina Man Sentenced to 78 Months in Prison for Trafficking 25 Handguns into New York CityRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that TORRIE JOHNSON was sentenced today in Manhattan federal court to 78 months in prison for trafficking 25 firearms from South Carolina into New York City. In May 2019, JOHNSON was arrested, charged, and detained. In January 2020, JOHNSON pled guilty to one count of firearms trafficking before United States District Judge Naomi Reice Buchwald, who also imposed the sentence.
U.S. Attorney Geoffrey S. Berman said: “Torrie Johnson illegally sold more than two dozen firearms in New York City without regard for where they ended up or how they would be used. Thanks to the work of the ATF and the NYPD, the guns were taken off the street, and now Torrie Johnson is headed to prison.”
According to the allegations set forth in the Complaint, the Indictment, and the Superseding Information filed against JOHNSON in Manhattan federal court, as well as statements made in public court filings and proceedings, including JOHNSON’s sentencing hearing:
On at least five occasions between January 23, 2019, and May 9, 2019, JOHNSON sold firearms to an undercover New York City Police Department (“NYPD”) detective (the “UC”). In total, JOHNSON sold 25 firearms to the UC in Manhattan and the Bronx, including a variety of 9 millimeter, .32, .38, .40, .45, and .380 caliber pistols and revolvers, as well as hundreds of rounds of assorted ammunition.
JOHNSON purchased the firearms in South Carolina, and transported them to New York City for the purpose of selling them here. On at least two occasions, the UC specifically told JOHNSON that the UC was planning to transport at least some of the firearms that JOHNSON had sold to the UC to a foreign country, and resell them there for a profit. JOHNSON told the UC that he was attempting to obtain for sale to the UC a Century Arms Mini Draco AK-47 semi‑automatic pistol.
In addition to his prison term, JOHNSON, 42, of Sumter, South Carolina, was sentenced to three years of supervised release.
Mr. Berman praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the NYPD, and the Joint Firearms Task Force.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Benjamin Woodside Schrier is in charge of the prosecution.
Six Arrested after DEA Task Force Investigation into Fentanyl Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that the following six men were arrested yesterday on federal narcotics distribution and money laundering charges related to the large-scale distribution of fentanyl in Connecticut:
DOMINGO GUZMAN, 43, of Waterbury
ARMANDO GONZALEZ, 38, of New Britain
DAVID CINTRON, 24, of Manchester
DANIEL ESTREMERA, 40, of East Hartford
GILDARDO PEREZ-BENITEZ, also known as “Jesus Ayon,” 51, of North Canaan
XIANG QING ZHANG, also known as “Jay,” 41, of Brooklyn, New YorkPursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the defendants were presented in court via videoconference. All are detained.
As alleged in court documents and statements made in court, in July 2019, the DEA’s Hartford Task Force began investigating a drug trafficking organization that was distributing fentanyl and heroin in Connecticut. The investigation revealed that Domingo Guzman, Jesus Ayon and others received kilogram-quantities of narcotics, primarily fentanyl, from a source of supply, and then distributed the drug to various narcotics traffickers, including Armando Gonzalez, David Cintron and Daniel Estremera. Gonzalez, Cintron, Estremera and others then sold the drug to street-level distributors. Members of the organization delivered cash generated from the sale of narcotics to Zhang, a money broker in Brooklyn, New York, who assisted in laundering the narcotics proceeds before they were transferred to leaders of the drug trafficking organization.
During the investigation, it is alleged that Gonzalez and Cintron used several locations to store, process and package fentanyl for street stale, including office space on Pratt Street in Hartford, an apartment in the Asylum Hill neighborhood in Hartford, and an apartment in New Britain. On December 19, 2019, Cintron was arrested on state charges shortly after he drove from the Pratt Street location and was found in possession of approximately 4,860 wax paper sleeves of fentanyl, 90 grams of unpackaged fentanyl, and other items used to process and package narcotics.
It is further alleged that Estremera used an apartment on South Street in West Hartford to process, package and store narcotics. On March 13, 2020, investigators searched the apartment and seized approximately 1.5 kilograms of fentanyl and approximately 500 wax folds of the drug.
It is also alleged that, between August and October 2019, investigators seized more than $200,000 in cash from members of the drug trafficking organization.
In association with yesterday’s arrests, investigators seized approximately $100,000 in cash, a firearm, several thousand wax folds of suspected fentanyl, and numerous items used in the processing and packaging of narcotics.
“We are living in a time of heightened awareness of public health and safety,” said U.S. Attorney Durham. “This operation targeted a group of individuals who are alleged to be responsible for the widespread distribution of a drug that ruins lives, continues to kill people every day, and puts unneeded stress on law enforcement and healthcare resources. I thank the DEA agents and task force officers who, at great risk to their own safety, are working during this time to protect our communities, disrupt the flow of this awful drug, and remove wrongdoers from the streets.”
“Fentanyl is causing great damage to our communities,” said DEA Special Agent in Charge Boyle. “The men and women of DEA along with our law enforcement partners are hard at work protecting the public by taking this poison off the streets of Connecticut, especially during this very uncertain time of COVID-19.”
The defendants were arrested on criminal complaints charging each with possession with intent to distribute, and distribution of, controlled substances; conspiracy to possess with intent to distribute, and distribution of, controlled substances; money laundering and conspiracy to commit money laundering.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
It is alleged that Guzman, Gonzalez and Estremera all have criminal histories that include federal convictions. Guzman and Estremera are currently on federal supervised release.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the DEA New York Organized Crime Drug Enforcement Task Force (“OCDETF”) Strike Force and the New York Police Department.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Robeson County Man Sentenced to More Than Nine Years for Gun OffenseRead the Press Release
RALEIGH, N.C. – A Robeson County man was sentenced today to 115 months in prison for one count of being a Felon in Possession of a Firearm.
According to court documents, Roger Bryant Locklear, 30, and a friend on July 21, 2018, traveled from Lumberton to Raleigh to purchase drugs. Locklear and his friend picked up the would-be supplier who gave them a sample of the drugs and instructed them to drive to a location on Beauty Ave. The transaction turned into an attempted robbery and shots were fired by both Locklear and the would-be supplier. Both men suffered non-fatal gunshot wounds, were treated at a local hospital, and ultimately arrested.
Locklear already had a substantial criminal record, having amassed 19 prior criminal convictions, including 6 felonies. At least 3 of Locklear’s prior felony convictions involved violent firearm offenses, including two prior convictions for assault with a deadly weapon inflicting serious injury and a prior conviction for discharging a firearm into a vehicle that was occupied by four people.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. Assistant U.S. Attorney Bryan Stephany is prosecuting the case.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Raleigh Police Department conducted the investigation of this 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.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00191-D
Raleigh Man Receives Concurrent Life Sentences for Heroin Overdose Death and ConspiracyRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced today to two life terms in federal prison for Distribution of Heroin and Fentanyl Resulting in Death of a Person, and Conspiracy to Distribute and Possess with the Intent to Distribute One Kilogram or More of Heroin. United States District Judge James C. Dever III, ordered that Jayson McNeil, 28, serve the life sentences concurrently, along with 30 years’ imprisonment for Possession with the Intent to Distribute a Quantity of Heroin, and 10 years imprisonment for Possession of a Firearm by a Felon. In addition, McNeil was ordered to pay restitution in the amount of $20,826.64 for the victim’s funeral expenses.
McNeil was convicted, following a four-day trial, on January 28, 2020. The evidence at trial showed that McNeil operated a long-standing heroin organization in the city of Raleigh, distributing heroin and fentanyl to numerous individuals – resulting in multiple overdoses. (More here.) Despite McNeil’s own recent experience snorting fentanyl and overdosing, and despite his knowledge that his customers were overdosing on the drugs he provided to them, he continued to sell the substance to customers who would inject it intravenously.
The overdoses culminated on May 30, 2018 with the overdose death of a 27-year-old man in the Raleigh area. The man, an expectant father, had struggled with addiction to powerful opiates. The deadly dose was provided to him by McNeil.
At trial, one of McNeil’s customers testified that he, too, bought heroin and fentanyl from McNeil, and that he overdosed in a bathroom within days of May 30, 2018. That man survived his overdose only through the administration of multiple doses of Narcan. Another customer, a friend of the deceased, testified that when he confronted McNeil about his friend’s death, McNeil responded by providing him with free heroin. That customer, in the depths of his own addiction, used the drugs.
At sentencing, the Court heard from the deceased’s family members, who described a loving family in disbelief of what occurred, the wife and children left behind, and the countless family events that this young man will never have an opportunity to share in and witness.
Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina commented:
“I join the Court in the message it clearly expressed today – anyone that is a heroin dealer, particularly those who cut it with fentanyl, is playing with death. Mr. McNeil was fully aware of the deadly power of the substance he was distributing – indeed, he had his own personal wakeup call when he overdosed. He knew that his customers were overdosing. Undeterred by either, he continued to show zero regard for this community by spreading this poison on our streets. As the Court stated, ‘Death is fundamentally different, when it is fundamentally preventable.’ Mr. McNeil will have a lifetime in federal prison to reflect upon this.
I was proud to stand with the victim’s family in Court today. They have endured the nightmare shared by some 70,000 families a year whose loved ones are taken from them by drug overdoses, many involving opioids like fentanyl. Drug dealers, like Mr. McNeil, and the drug abuse they fuel are devastating families and robbing North Carolina of the potential and promise of our citizens. So long as this continues, we will continue our fight.”
A co-conspirator, Destin McLean, pled guilty to Conspiracy to Distribute one (1) kilogram of heroin before trial. McLean is awaiting sentencing.
The Wake County Sheriff’s Office, the North Carolina State Bureau of Investigation, and the United States Marshals Service conducted the investigation in this matter. Assistant U.S. Attorneys Kelly L. Sandling and Thomas L. Crosby prosecuted this case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00120-D.
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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.
Pittsburgh Man Pleads Guilty in Federal Wire Investigation of Drug Trafficking by South Side Neighborhood Gang Known as DS44Read the Press Release
PITTSBURGH, PA – A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Rico Taylor, 35, pleaded guilty to one count of conspiracy to distribute or possess with intent to distribute heroin and fentanyl, before United States District Judge William S. Stickman IV. Mr. Taylor is one of 36 defendants charged in the Indictment.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
The court was further advised that Mr. Taylor was involved in the distribution of heroin and fentanyl, including serving as source of supply of heroin and fentanyl for co-conspirator Christopher Highsmith. In connection with his guilty plea, Mr. Taylor accepted responsibility for distributing or possessing with intent to distribute 39 grams of a mixture containing fentanyl and heroin.
Judge Stickman scheduled sentencing for September 21, 2020, at 10:30 am. The law provides for a total sentence of not more than twenty years in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of each defendant. Taylor remains detained pending sentencing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Missouri Man Charged with Federal Arson ChargesRead the Press Release
WASHINGTON – Nicholas J. Proffitt, 42, of Cape Girardeau, Missouri, was charged by a federal complaint with maliciously damaging a building by means of a fire. Proffitt will appear in court on April 30, 2020, for his initial appearance in front of U.S. Magistrate Judge Abbie Crites-Leoni.
According to the criminal complaint, on April 24, 2020, at approximately 4:50 a.m., a fire was discovered at The Islamic Center of Cape Girardeau, 298 Northwest End Boulevard, Cape Girardeau, Missouri. The Center’s video security system for the time of the fire observed Proffitt throwing multiple objects through a glass window, causing it to break. Proffitt threw two containers into the Center through the broken window and stepped through to enter the Center. Proffitt then picked up the containers and splashed liquid inside the Center. Proffitt ignited the fire with some type of fire starter. The blaze began immediately and appeared to be accelerated by the liquid that was poured in the building.
“To people of faith in our nation, houses of worship are sacred places,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Attacks against houses of worship are attacks against people of faith and their right to exercise their religion freely and without fear. The Justice Department will defend the right of all people in our country to exercise their religion, no matter the creed.”
“I extend my sincere thanks to all law enforcement agencies involved for their quick and effective response to this serious crime,” said U.S. Attorney Jeff Jensen for the Eastern District of Missouri.
“The fact this fire damaged a place of worship during the Muslim holy month of Ramadan is especially harmful,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “Protecting the civil rights of all Americans, regardless of color or creed, is one of the top priorities of the FBI.”
“ATF has a long tradition of fire and arson investigation,” Marino Vidoli, Special Agent in Charge of ATF’s Kansas City Field Division. “In no case is that expertise more critical than a fire such as this. When a house of worship is intentionally damaged by fire, it is not only that congregation that suffers, but the entire community. Religious centers, churches and mosques are often at the center of our neighborhoods, offering sanctuaries of peace and caring to those in need. Today’s complaint is an example of local, state and federal law enforcement coming together to support our communities.”
This is an ongoing investigation.
Proffitt is presumed to be innocent unless and until proven guilty.
These charges are the result of an investigation by the Cape Girardeau Police Department, the FBI, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Missouri State Fire Marshal Office and the Perryville Police Department. The United States Attorney’s Office for the Eastern District of Missouri and the Civil Rights Division of the Department of Justice are prosecuting this case.
Missouri Man Charged with Federal Arson ChargesRead the Press Release
St. Louis – Nicholas J. Proffitt, 42, of Cape Girardeau, Missouri, was charged by a federal complaint with maliciously damaging a building by means of a fire. Proffitt will appear in court on April 30, 2020, for his initial appearance in front of U.S. Magistrate Judge Abbie Crites-Leoni.
According to the criminal complaint, on April 24, 2020, at approximately 4:50 a.m., a fire was discovered at The Islamic Center of Cape Girardeau, 298 Northwest End Boulevard, Cape Girardeau, Missouri. The Center’s video security system for the time of the fire observed Proffitt throwing multiple objects through a glass window, causing it to break. Proffitt threw two containers into the Center through the broken window and stepped through to enter the Center. Proffitt then picked up the containers and splashed liquid inside the Center. Proffitt ignited the fire with some type of fire starter. The blaze began immediately and appeared to be accelerated by the liquid that was poured in the building.
“To people of faith in our nation, houses of worship are sacred places,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Attacks against houses of worship are attacks against people of faith and their right to exercise their religion freely and without fear. The Justice Department will defend the right of all people in our country to exercise their religion, no matter the creed.”
“I extend my sincere thanks to all law enforcement agencies involved for their quick and effective response to this serious crime,” said U.S. Attorney Jeff Jensen for the Eastern District of Missouri.
“The fact this fire damaged a place of worship during the Muslim holy month of Ramadan is especially harmful,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “Protecting the civil rights of all Americans, regardless of color or creed, is one of the top priorities of the FBI.”
“ATF has a long tradition of fire and arson investigation,” Marino Vidoli, Special Agent in Charge of ATF’s Kansas City Field Division. “In no case is that expertise more critical than a fire such as this. When a house of worship is intentionally damaged by fire, it is not only that congregation that suffers, but the entire community. Religious centers, churches and mosques are often at the center of our neighborhoods, offering sanctuaries of peace and caring to those in need. Today’s complaint is an example of local, state and federal law enforcement coming together to support our communities.”
This is an ongoing investigation.
Proffitt is presumed to be innocent unless and until proven guilty.
These charges are the result of an investigation by the Cape Girardeau Police Department, the FBI, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Missouri State Fire Marshal Office and the Perryville Police Department. The United States Attorney’s Office for the Eastern District of Missouri and the Civil Rights Division of the Department of Justice are prosecuting this case.
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to three months in federal prison.
Ricardo Penaloza-Pizano, age 28, a citizen of Mexico illegally present in the United States and residing in Waterloo, Iowa, received the prison term after a March 17, 2020, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Penaloza-Pizano admitted he had previously been deported from the United States in September 2011 and illegally reentered the United States in May 2012 without the permission of the United States government. In January 2020, Penaloza-Pizano’s illegal presence in the United States came to the attention of immigration agents following his arrest in Black Hawk County, Iowa, on state criminal charges. An arrest warrant was issued for Penaloza-Pizano in January 2019 after he failed to report to jail to serve his sentence on his March 2018 conviction in Bremer County, Iowa, for operating a motor vehicle while intoxicated and possession of cocaine.
Penaloza-Pizano was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Penaloza-Pizano was sentenced to 92 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Penaloza-Pizano is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2003.
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Meth Ring That Tried to Kill Suspected Government Informant Sees Last Member Sentenced to Federal PrisonRead the Press Release
Zachary Moorhouse, age 37, from Sioux City, Iowa, the final member of a methamphetamine drug trafficking organization that attempted to murder a suspected government witness to protect itself, was sentenced today to a prison term of more than three years in federal prison. Moorhouse had previously pled guilty to conspiracy to distribute a controlled substance on December 19, 2019.
Evidence presented by the United States at the detention, change of plea, and sentencing hearings in this case revealed that from about January 1, 2018, to about March 6, 2019, Isaac McDonald, Oscar Garcia, Andrew Nissen, Jessica Rose Ott, William David Schoen, and Moorhouse conspired to sell methamphetamine in the Sioux City area within 1,000 feet of a local playground. At some point, certain members of the drug conspiracy began to suspect another individual was cooperating with the police and providing information regarding their illegal activities. On the evening of August 1, 2018, Ott got into a car already occupied by Isaac McDonald, Oscar Garcia, and Andrew Nissen, and informed them of the suspected informant’s location. Nissen, who was armed with a handgun, drove the car to the suspected informant’s location. McDonald and Garcia, both also armed with handguns, got out of the car and approached the suspected informant. The suspected informant saw the gunmen coming and tried to escape by driving away. He did not get far. McDonald began firing. A bullet he fired passed through the suspected informant’s head. The suspected informant lost control of his car and crashed into a tree. Assuming the suspected informant was dead, the gunmen returned to their car and the foursome sped away.
Fortunately, the suspected informant was not killed in the attack. Despite McDonald having fired multiple rounds, nobody else was injured, including a person hiding in the back seat of the suspected informant’s car.
Moorhouse was the driver during drug sales and supply runs, invested small amounts of his own money in the conspiracy, and personally distributed methamphetamine to a handful of the conspiracy’s customers. He was not involved with the violence mounted to protect the organization. Similarly, while Schoen participated in the drug trafficking conspiracy, and later violently resisted arrest, he did not participate in the shooting of the suspected informant.
“As this case demonstrates, drug trafficking poses a significant threat to the safety of our communities,” said United States Attorney Peter Deegan. “Our office will hold accountable anyone who uses weapons or threats of violence to distribute drugs. We commend all of our federal and state law enforcement partners that participated in this investigation. Through their hard work and dedication, they ensured these violent individuals are off of our streets and have made us all safer.”
Sioux City Police Chief Rex Mueller stated, “This case highlights how effective programs like Project Safe Neighborhood/Project Guardian are at encouraging productive working relationships between local and federal authorities. Working as a team operating off the same playbook creates a seamless flow of intelligence and direction to facilitate iron clad casework. We continue to value the working relationship we enjoy with the United States Attorney’s Office and our local federal law enforcement agencies. The partnerships established for the mutual benefit of positive public safety makes Sioux City a better place to live, and led to countless successful federal prosecutions of dangerous offenders.”
On October 30, 2019, Andrew Nissen, the getaway driver, was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Nissen was sentenced to 188 months’ imprisonment and was ordered to make restitution to the suspected informant. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
On December 5, 2019, Jessica Ott, the person who provided the firearm for the shooting and the location of the victim, was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Ott was sentenced to 180 months’ imprisonment and was ordered to make restitution to the suspected informant. She must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
On December 11, 2019, McDonald, the shooter, was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. McDonald was sentenced to 300 months’ imprisonment and ordered to make restitution to the suspected informant. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
On January 3, 2020, Oscar Garcia, the armed wingman/second gunman, was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Garcia was sentenced to 180 months’ imprisonment and ordered to make restitution to the suspected informant. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
On January 7, 2020, William Schoen, a violent member of the conspiracy, was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Schoen was sentenced to 147 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
On April 29, 2020, Zachary Moorhouse, a member of the conspiracy, was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Moorhouse was sentenced to 40 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from our Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa (that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement United States Marshals Service; South Dakota Division of Criminal Investigation), the Sioux City, Iowa Police Department, the South Sioux City, Nebraska, Police Department, the United States Marshal’s Service, the Bureau of Alcohol Tobacco and Firearms, and the Woodbury County Attorney’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 19-4021 and 18-4078.
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Meth Dealer, Apprehended on I-75, Facing Maximum 20 Years in PrisonRead the Press Release
MACON, Ga. – A Valdosta, Georgia resident is facing a maximum 20 years in prison for possessing methamphetamine with the intention to sell the deadly drug, announced Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. Joseph Fairley, 47, of Valdosta, entered a guilty plea to one count possession with intent to distribute methamphetamine before U.S. District Judge Marc Treadwell on Wednesday, April 29, 2020. The maximum prison time under federal guidelines is 20 years imprisonment, three years supervised release and a $1,000,000 fine. Fairley’s sentencing has not been scheduled. There is no parole in the federal system.
Fairley was taken into custody on August 20, 2018 after fleeing a Georgia State Patrol officer during a traffic stop on I-75 in Perry, Georgia. Fairley was under surveillance at the time. During the attempted stop, Fairley accelerated and engaged in a high speed chase with the trooper. The trooper successfully utilized a P.I.T. maneuver to stop Fairley’s car. A drug dog conducted a free air sniff of the car and alerted to the presence of narcotics. Agents found a blue cooler with a loaded pistol, 56 grams of pure “ice” methamphetamine, 14 grams of cocaine and 33 grams of marijuana inside the vehicle. In addition to the drugs and firearm, the agents found a drug ledger in the trunk which contained various names and figures.
“Drug dealers caught pushing deadly poison into our communities will face maximum prosecution in the Middle District of Georgia,” said U.S. Attorney Charlie Peeler. “This case is the result of the hard work by our law enforcement partners at DEA, GBI, GSP, Bibb County Sheriff’s Office and Houston County Sheriff’s Office. I commend them for their dedicated service on the front lines of the drug war.”
This case is being investigated by the DEA, GBI, Bibb County Sheriff’s Office, Houston County Sheriff’s Office and the Georgia State Patrol. Assistant U.S. Attorney Charles Calhoun and Steven Ouzts is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Man Arrested for Assaulting U.S. Postal Service EmployeeRead the Press Release
SAN JUAN, P.R. – On April 28, 2020, United States Postal Inspection Service (USPIS) agents arrested Wilfredo Fontanez-Reyes for assaulting a federal employee working in the United States Postal Service (USPS) in Comerio, announced United States Attorney for the District of Puerto Rico, W. Stephen Muldrow.
The criminal complaint alleges that on April 28, 2020, the victim was approached by another USPS employee who indicated there was an irate customer, defendant Fontanez-Reyes, who was demanding to speak to postal management about a package. The victim went up to the lobby side door to speak to Fontanez-Reyes. Fontanez-Reyes stated he wanted to pick up a package, but became aggressive when he was told that the package was still being processed due to the high volume of packages at the facility.
The defendant punched the postal employee in the face after being told to return later to pick up the package. The altercation continued outside of the Post Office when the victim stopped Fontanez-Reyes as he fled from the scene. During this second altercation, the defendant kicked the victim in the face. Other postal employees were able to intervene and detain the defendant until Puerto Rico Police agents arrived at the scene and took custody of defendant. The victim received medical care for his injuries.
“There is no excuse for the acts of violence that the defendant inflicted upon a U.S. Postal Service employee engaged in his official duties providing essential services during this pandemic,” said United States Attorney Muldrow. “Our office will not tolerate anyone who assaults a federal employee engaged in their official duties and we will aggressively prosecute these cases.”
Assistant U.S. Attorney Richard T. Passanisi is in charge of the prosecution of this case, and the United States Postal Inspection Service conducted the investigation. If convicted, Fontanez-Reyes could face a maximum penalty of 20 years of imprisonment and a fine of $250,000 for assaulting a federal employee. Federal criminal complaints contain only charges and are not evidence of guilt. The defendant is presumed to be innocent unless and until proven guilty.
Justice Department Committed to Investigating Predatory Practices in Housing Amid COVID-19 PandemicRead the Press Release
BOSTON – The Attorney General has directed U.S. Attorney’s Offices across the country to investigate reports of housing-related sexual harassment resulting from the current COVID-19 pandemic.
As the country adopts drastic measures to slow the spread of COVID-19, many Americans have lost their jobs and many more have seen their wages curtailed. These losses have forced some to seek abatements or suspensions of their rent. According to a recent memo from the Attorney General, there have been reports of landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct. Such behavior is illegal under the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Sexual harassment is a form of sex discrimination prohibited by the Act. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often impacts society’s most vulnerable populations.
“Sexual harassment in housing is illegal and despicable,” said United States Attorney Andrew E. Lelling. “No person should have to tolerate this behavior in order to keep a roof over his or her head. This conduct is unacceptable in normal times, and certainly will not be tolerated in the midst of a pandemic. My office will aggressively investigate these cases.”
The Attorney’s General’s directive reaffirms the commitment that the Department of Justice made when it launched the Sexual Harassment Initiative in October 2017. The initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts – both among survivors and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
If you think you are a victim of sexual harassment by a landlord, or other person who has control over housing, resulting from the COVID-19 crisis, contact the U.S. Attorney’s Office by calling 888-221-6023 or emailing [email protected]. For more information, visit www.justice.gov/crt/sexual-harassment-housing-initiative
Independence Man Charged with Child PornographyRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, man who was arrested yesterday, the same day he shared pornographic images over the internet that he had just taken of a 5-year-old child victim, was charged in federal court today.
Justin Swift, 35, was charged in a two-count criminal complaint with producing child pornography and with distributing child pornography over the internet. Swift, who was arrested on Tuesday, April 28, remains in federal custody pending a detention hearing on Monday.
According to an affidavit filed in support of the federal criminal complaint, Swift shared 11 images of child pornography on Tuesday, April 28, with another person using the Kik message application on his phone. Swift falsely claimed the child victim was his 5-year-old daughter, the affidavit says, and commented that he took the photos either the night before or a few minutes before distributing them.
Law enforcement officers executed a search warrant at Swift’s residence later on the same day. Swift, an unidentified woman, and four children – including the child victim – were present. Officers seized Swift’s phone, the affidavit says, which contained numerous sexually explicit images of the child victim, including the same photos Swift had previously distributed via the Kik application. Swift was placed under arrest.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the FBI, the Kansas City, Mo., Police Department, and the Independence, Mo., Police Department.
Project Safe Childhood
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."Guaranteed Rate to Pay $15 Million to Resolve Allegations it Knowingly Caused False Claims to Government Loan ProgramsRead the Press Release
ALBANY, NEW YORK – Guaranteed Rate, Inc. has agreed to pay the United States $15.06 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by knowingly violating material program requirements when it originated and underwrote mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA), United States Attorney Grant C. Jaquith announced today. Guaranteed Rate is headquartered in Chicago, Illinois, with branches across the United States, including in upstate New York.
“Lenders participating in mortgage programs backed by taxpayers must follow rules designed to protect both program integrity and homeowners,” said United States Attorney Jaquith. “Today’s settlement holds Guaranteed Rate accountable for its past violations and reflects that it has strengthened its internal controls to ensure future compliance with Federal Housing Administration and Department of Veterans Affairs requirements.”
Participants in FHA insurance and VA guarantee programs, like Guaranteed Rate, have the authority to originate and underwrite mortgage loans without first having the government review the loans for compliance with the agency’s underwriting and origination requirements. If an FHA insured or VA guaranteed loan defaults, the holder of the loan may submit a claim to the United States for certain losses. Lenders are therefore required to follow FHA and VA rules designed to ensure that only mortgages that meet key credit and underwriting criteria are insured or guaranteed by the government.
The settlement announced today resolves allegations that Guaranteed Rate knowingly failed to comply with material program rules that require lenders to maintain quality control programs to prevent and correct underwriting deficiencies, self-report any materially deficient loans that they identify, and ensure that the underwriting process is free from conflicts of interest.
As part of the settlement, Guaranteed Rate admitted that it failed to adhere to the applicable self-reporting requirements, that its FHA underwriters received commissions and gifts in violation of program rules, and that there were instances in which its government underwriters were instructed not to review documents that were relevant to the underwriting decision. Guaranteed Rate further acknowledged that it certified and the government insured and guaranteed loans approved by Guaranteed Rate that were not eligible for FHA mortgage insurance or VA loan guarantees and that HUD and VA would not have insured or guaranteed the loans but for it actions.
While the covered conduct stretched back as far as January 2008, Guaranteed Rate took significant measures to stop the practices, both before and after being notified of the United States’ investigation. It received credit for doing so in connection with the settlement.
“The department works with our partners at HUD and the VA to protect vital federal lending programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will continue to protect American taxpayers and homebuyers by holding accountable FHA and VA lenders that knowingly and materially violate program requirements.”
“This case involved a pattern of serious, systemic and widespread violations under the False Claims Act,” said Rae Oliver Davis, Inspector General, U.S. Department of Housing and Urban Development. “This recovery on behalf of FHA and the American taxpayer should serve as a stark reminder of the potential consequences of not adhering to HUD program rules and to the value of whistleblowers, in pursuing lenders that violate these rules.”
Chris Algieri, Special Agent in Charge, VA Office of Inspector General (OIG), stated: “It is vital that the VA and other federal lending programs are protected and those who violate or circumvent program rules and regulations are held accountable. Today’s civil settlement reinforces VA-OIG’s commitment to enforcing the VA’s requirements for mortgage underwriting and originations to protect taxpayers and veteran homebuyers.”
This investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which allow private persons, known as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case, a former Guaranteed Rate employee, will receive $2,443,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 17-cv-637.
This matter was investigated by the U.S. Attorney’s Office for the Northern District of New York, the Department of Justice’s Civil Division, HUD-OIG, HUD, and VA-OIG. The United States was represented by Assistant U.S. Attorney Adam J. Katz and Department of Justice Trial Attorney Christopher Reimer.
Guaranteed Rate to Pay $15 Million to Resolve Allegations It Knowingly Caused False Claims to Government Mortgage Loan ProgramsRead the Press Release
Guaranteed Rate Inc. has agreed to pay the United States $15.06 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by knowingly violating material program requirements when it originated and underwrote mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA), the Department of Justice announced today. Guaranteed Rate is headquartered in Chicago, Illinois, with branches across the United States.
“The department works with our partners at HUD and the VA to protect vital federal lending programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will continue to protect American taxpayers and homebuyers by holding accountable FHA and VA lenders that knowingly and materially violate program requirements.”
“Lenders participating in mortgage programs backed by taxpayers must follow rules designed to protect both program integrity and homeowners,” said U.S. Attorney Grant C. Jaquith for the Northern District of New York. “Today’s settlement holds Guaranteed Rate accountable for its past violations and reflects that it has strengthened its internal controls to ensure future compliance with Federal Housing Administration and Department of Veterans Affairs requirements.”
Participants in FHA insurance and VA guarantee programs, like Guaranteed Rate, have the authority to originate and underwrite mortgage loans without first having the government review the loans for compliance with the agency’s underwriting and origination requirements. If an FHA insured or VA guaranteed loan defaults, the holder of the loan may submit a claim to the United States for certain losses. Lenders are therefore required to follow FHA and VA rules designed to ensure that only mortgages that meet key credit and underwriting criteria are insured or guaranteed by the government.
The settlement announced today resolves allegations that Guaranteed Rate knowingly failed to comply with material program rules that require lenders to maintain quality control programs to prevent and correct underwriting deficiencies, self-report any materially deficient loans that they identify, and ensure that the underwriting process is free from conflicts of interest.
As part of the settlement, Guaranteed Rate admitted that it failed to adhere to the applicable self-reporting requirements, that its FHA underwriters received commissions and gifts in violation of program rules, and that there were instances in which its government underwriters were instructed not to review documents that were relevant to the underwriting decision. Guaranteed Rate further acknowledged that it certified and the government insured and guaranteed loans approved by Guaranteed Rate that were not eligible for FHA mortgage insurance or VA loan guarantees and that HUD and VA would not have insured or guaranteed the loans but for its actions.
While the covered conduct stretched back as far as January 2008, Guaranteed Rate took significant measures to stop the practices, both before and after being notified of the United States’ investigation. It received credit for doing so in connection with the settlement.
“This case involved a pattern of serious, systemic and widespread violations under the False Claims Act,” said Rae Oliver Davis, Inspector General, U.S. Department of Housing and Urban Development. “This recovery on behalf of FHA and the American taxpayer should serve as a stark reminder of the potential consequences of not adhering to HUD program rules and to the value of whistleblowers, in pursuing lenders that violate these rules.”
“It is vital that the VA and other federal lending programs are protected and those who violate or circumvent program rules and regulations are held accountable,” said Chris Algieri, Special Agent in Charge, VA Office of Inspector General. “Today’s civil settlement reinforces VA OIG’s commitment to enforcing the VA’s requirements for mortgage underwriting and originations to protect taxpayers and veteran homebuyers.”
The agreement resolves allegations brought by former Guaranteed Rate employee Anthonitte Carranza under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The qui tam case is captioned United States ex rel. Anthonitte Carranza v. Guaranteed Rate, Inc., et al., No. 17-cv-637 (N.D.N.Y.). As part of this settlement, Carranza will receive $2,443,000 as her share of the government’s recovery.
The investigation and settlement were the result of a coordinated effort among the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Northern District of New York, HUD-OIG, HUD, and VA-OIG.
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.
Franchisee of Long Island 7-Eleven Store Pleads Guilty to Harboring Illegal AliensRead the Press Release
Earlier today, in federal court in Central Islip, Yong Min Choe pleaded guilty before United States District Judge Joanna Seybert to conspiracy to conceal and harbor illegal aliens by employing undocumented immigrants at his 7-Eleven franchise in Brentwood, New York. When sentenced, Choe faces up to 10 years’ imprisonment as well as a fine of up to twice the value of the gross gain. Additionally, Choe agreed to forfeit more than $1.3 million in assets that represent proceeds of the offense.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and John Grasso, Special Agent-in-Charge, Social Security Administration, Office of the Inspector General (SSA-OIG) announced the guilty plea.
In March 2004, Choe began operating the 7-Eleven store and, as part of the franchise agreement, agreed to abide by state and local labor laws. Between 2004 and November 2019, Choe hired individuals who did not have authorization to work in the United States and allowed those employees to use false social security numbers and other personal identifying information. As a result, Choe was able to pay his employees sub-standard wages and enrich himself.
“The defendant conveniently used his convenience store to harbor and exploit alien employees and steal wages,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, is committed to vigorously enforcing immigration and labor laws that protect our borders as well as the workplace.”
“Over the course of 15 years, Choe knowingly hired individuals who had no legal authorization to work in the U.S., then took advantage of their illegal status by paying them inadequate wages with long hours,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI and its law enforcement partners are committed to protecting our communities from the abuses of corrupt business owners seeking to gain an illegal advantage and make a steep profit off the backs of others.”
“Today’s guilty plea illustrates our commitment to pursuing those who intentionally misuse Social Security numbers to circumvent immigration and employment law,” stated SSA-OIG Special Agent-in-Charge Grasso. “I want to thank the other participating agencies for their efforts in investigating and prosecuting this case, and their partnership in our work to protect the integrity of the Social Security system.”
The government’s case is being handled by the Office’s Public Integrity Section. Special Assistant United States Attorney Virginia Nguyen is in charge of the prosecution together with Assistant United States Attorney Elliot M. Schachner of the Office’s Asset Forfeiture Unit.
The Defendant:
YONG MIN CHOE (also known as “Jason Choe”)
Age: 55
Northport, New YorkE.D.N.Y. Docket No. 20-CR-153 (JS)
Four Meridian Police Officers Indicted for Federal CrimesRead the Press Release
Jackson, Miss. – Four present and former officers of the City of Meridian Police Department have each been charged in separate indictments for theft and embezzlement of federal funds, announced United States Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
The four indictments, dated November 6, 2019, were unsealed today in United States District Court charging Captain James F. Arrington, 62, with two counts of theft and embezzlement amounting to over $22,000 in loss; Sergeant Dareall D. Thompson, 41, with two counts of theft and embezzlement, totaling over $14,000; Officer Tenesia A. Evans, 37, with one count of theft and embezzlement of over $13,000; and former Officer Erica L. Harmon, 51, with one count of theft and embezzlement of more than $5,000.
According to the indictments, between January 2016 and December 2019, each defendant is alleged to have been an employee of the City of Meridian Police Department who embezzled and otherwise converted to his or her own use funds from the City, which was a governmental entity which received federal funding during each specified one year period.
Arrington, Thompson, Evans and Harmon all appeared today for arraignment on their respective indictments before United States Magistrate Judge F. Keith Ball in Jackson, Mississippi. The Court released all four defendants on bond, subject to conditions including that each of them refrain from violations of state or federal law while awaiting trial.
Each of the four defendant police officers faces maximum penalties of 10 years in prison for theft from an agency receiving federal funds. Each count also can merit a fine of up to $250,000.
Trial has been set for James F. Arrington on June 22, 2020, before the Hon. Henry T. Wingate, United States District Judge.
Trial has been set for Dareall D. Thompson on June 8, 2020, before the Hon. David C. Bramlette, Senior United States District Judge.
Trial has been set for Tenesia A. Evans on July 6, 2020, before the Hon. Carlton W. Reeves, United States District Judge.
Trial has been set for Erica L. Harmon on June 22, 2020, before the Hon. Daniel P. Jordan, Chief United States District Judge.
U.S. Attorney Hurst commended the work of the Special Agents with the FBI’s Jackson Division, and the Mississippi State Auditor’s Office, who investigated the case. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Felon is Sentenced for Fraud for More Than $464,000 in Supplemental Nutrition Assistance Program (Snap) Committed While on ProbationRead the Press Release
RALEIGH, N.C. – A Warsaw man was sentenced today to 48 months in prison for SNAP fraud and conspiracy to commit money laundering charges. He was also ordered to pay restitution in the amount of $464,385.60 and to forfeit criminal proceeds and property used in the crimes.
According to court documents, Fernan Sanchez, 52, previously pled guilty to making material false statements in connection with the on-going federal crop insurance fraud investigations in Eastern North Carolina. On April 9, 2010, the Court granted the government’s motion for a departure based on substantial assistance and sentenced Sanchez to 5 years’ probation.
Sanchez’s 2010 felony conviction made him ineligible to participate in SNAP and he was permanently disbarred from the program. Notwithstanding his debarment, Sanchez recruited another person who, at Sanchez’s direction, created a business entity known as Selena’s Mexican Bakery & Store, opened a bank account in the name of Selena’s Mexican Products, and submitted an electronic SNAP vendor application that contained false and misleading information. Based on the application, the co-conspirator received authorization to be a SNAP vendor in August 2013. The co-conspirator opened up a bank account, listing Sanchez on the account.
From August 30, 2013, through September 24, 2017, Selena’s Mexican Bakery & Store received approximately $464,385.60 in SNAP benefits. During that period, Sanchez trafficked SNAP EBT benefits, allowing individuals to exchange benefits for cash or ineligible purchases.
Sanchez and/or another person, through Selena’s Mexican Products, also caused the transfer of $464,385.60 SNAP funds to Selena’s Mexican Products business account at First Bank. Sanchez transferred a portion of the money to an account controlled exclusively by him. He withdrew or otherwise spent the remaining SNAP funds in the Selena’s Mexican Products business account.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge James C. Dever II. Assistant U.S. Attorney Banumathi Rangarajan is prosecuting the case.
The United States Department of Agriculture - Office of Inspector General, Investigations and the Internal Revenue Service - Criminal Investigations conducted the investigation in this matter. Special thanks to the Warsaw Police Department for their assistance in the investigation.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00120-D.
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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.
Federal criminal complaint charges Evans man with possession of child pornographyRead the Press Release
AUGUSTA, GA: An Evans man was charged in U.S. District Court with possession of child pornography.
Oludare Oluwabusi, 43, of Evans, was taken into custody after FBI agents searched his residence based on a cyber tip from the National Center for Missing and Exploited Children, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
Oluwabusi appeared by video before U.S. District Court Magistrate Judge Brian K. Epps Wednesday in an initial appearance hearing, at which Judge Epps agreed to the prosecutor’s request that Oluwabusi remain in custody pending further court appearances.
“The criminal element thinks the national pause brought on by COVID-19 has limited law enforcement activity. Quite the opposite has occurred in the Southern District of Georgia where law enforcement never sleeps, as the good people in Columbia County witnessed last evening when they saw the vigilance of the FBI on display,” said U.S. Attorney Christine. “The U.S. Attorney’s Office and our federal, state and local law enforcement partners are using the lowered guard of bad guys as a way to get in their flank and disrupt their enterprises all over south Georgia at this very minute.”
“Every time an individual possesses pornographic images of children and views them for personal gratification, the children in those images are victimized again and again,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will always make it a priority to protect our most vulnerable citizens, our children.”
Criminal complaints contain only charges. Defendants are considered innocent unless and until proven guilty.
The FBI is investigating the case, which is being prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Enid Man Sentenced to Twenty Years in Prison for Possessing a Gun While Dealing MethRead the Press Release
OKLAHOMA CITY – Jerry James Kendall Ritchie, 32, of Enid, Oklahoma, has been sentenced to 240 months in prison for possessing methamphetamine with intent to distribute, as well as possessing a firearm in furtherance of a drug-trafficking crime, announced U.S. Attorney Timothy J. Downing.
Ritchie was indicted on November 13, 2018, with three counts—possession of methamphetamine with intent to distribute, possession of a firearm in furtherance of a drug-trafficking crime, and felon in possession of a firearm—all of which stemmed from his October 19, 2018 arrest by Enid Police Department officers. At trial, the government presented evidence that Mr. Ritchie attempted to flee from law enforcement and then refused to comply with police officers when he was finally caught.
During the subsequent search of the vehicle, Enid Police Officers located approximately 13.9 grams of methamphetamine and a hand gun hidden under the hood of the vehicle.
Following a trial last year, on April 11, 2019, the jury found Ritchie guilty on all counts.
Today, U.S. District Judge Scott L. Palk sentenced Ritchie to 180 months in prison on the drug count, which was run concurrent to 120 months on the firearm count, to be followed by 60 additional months on the conviction for possessing a firearm in furtherance of a drug trafficking crime, for a total sentence of 240 months in prison. Judge Palk also imposed three years of supervised release.
This case is the result of an investigation by the Enid Police Department and the U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Assistant U.S. Attorneys Wilson McGarry and Nicholas Patterson prosecuted the case.
This case is part of the work of the Organized Crimes and Drug Enforcement Task Force, the Department of Justice’s signature initiatives to address and reduce drug-related criminal activity.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
El Fiscal Federal de los Estados Unidos advierte sobre las prácticas de los depredadores sexuales relacionadas con COVID-19 y viviendaRead the Press Release
SAN JUAN, P.R. – El Procurador General de los Estados Unidos William P. Barr ordenó a todas las Oficinas de los Fiscales Federales de los Estados Unidos a investigar toda querella de acoso sexual relacionada con vivienda como resultado de la actual pandemia COVID-19, anunció W. Stephen Muldrow, Fiscal Federal de los Estados Unidos para el Distrito de Puerto Rico.
Mientras que Puerto Rico y el resto de los Estados Unidos adoptan medidas drásticas para frenar la propagación de COVID-19, muchos ciudadanos han perdido sus empleos y muchos otros han visto una reducción en sus ingresos. Estas pérdidas han obligado a muchos a buscar reducciones o suspensiones de sus pagos de arrendamiento.
Muchos propietarios han respondido a estas circunstancias comprensivamente y con cuidado, tratando de trabajar con sus inquilinos para ofrecer ayuda durante esta crisis. Sin embargo, se ha reportado que otros propietarios han respondido a las solicitudes de aplazar el pago del alquiler con demandas de favores sexuales y otros actos de conducta sexual no deseada. Tal comportamiento es despreciable y es ilegal.
Desafortunadamente, la mayoría de las víctimas que experimentan este tipo de abuso nunca lo denuncian. Temen que las represalias pongan en peligro su capacidad de proporcionar refugio para ellos y sus familias.
El Fiscal Federal Muldrow declaró: "Las prácticas de los depredadores relacionadas con la COVID-19 son particularmente inquietantes ya que estos propietarios se aprovechan de nuestra crisis nacional actual al hostigar sexualmente a las personas que necesitan vivienda. La Fiscalía Federal no dudará en intervenir cuando ocurra una conducta tan despreciable. Este comportamiento no se tolera en tiempos normales, y ciertamente no se tolerará ahora".
Para denunciar el acoso sexual en la vivienda, comuníquese con el Departamento de Justicia al (800) 896-7743 o [email protected]. Para más información: https://www.justice.gov/crt/sexual-harassment-housing-initiative o en español: https://www.justice.gov/crt-espanol/iniciativa-en-contra-del-acoso-sexual-en-la-vivienda.
Dominican National Sentenced for Fentanyl DistributionRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence pleaded guilty and was sentenced yesterday for distributing fentanyl.
Erick Alberto Paulino Amador, 28, pleaded guilty to two counts of distribution of and possession with intent to distribute fentanyl during a videoconference hearing before U.S. District Judge Richard G. Stearns. Judge Stearns then sentenced Paulino Amador to one year and one day in prison. Paulino Amador will face deportation proceedings upon completion of his sentence.
On two occasions in July 2019, Paulino Amador sold fentanyl to an undercover agent. Law enforcement officers arrested Paulino Amador in Lawrence on July 25, 2019, and he has been in custody since. A federal grand jury indicted Paulino Amador in August 2019.
This case is part of a coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Assistance was provided by the Massachusetts State Police and the Andover Police Department. Assistant U.S. Attorney Charles B. Weinograd prosecuted the case.
Court Orders Halt to Sale of Silver Product Fraudulently Touted as COVID-19 CureRead the Press Release
A federal court in Utah has entered an injunction halting the sale of a fraudulent coronavirus (COVID-19) treatment, the Department of Justice announced today.
In response to a civil complaint and accompanying court papers filed on April 27, 2020, in Salt Lake City, the U.S. District Court for the District of Utah issued a temporary restraining order against defendants Gordon Pedersen of Cedar Hills, Utah, and his companies, My Doctor Suggests LLC and GP Silver LLC. The civil complaint alleges that the defendants are fraudulently promoting and selling various silver products for the treatment and prevention of COVID-19. The court’s order temporarily enjoins the defendants from continuing to sell or distribute their silver products for the diagnosis, cure, mitigation, treatment, or prevention of any disease, including COVID-19. A separate court order temporarily freezes defendants’ assets in order to preserve the court’s ability to grant effective final relief and to maintain the status quo. A hearing on the government’s request for a preliminary injunction is set for May 12, 2020.
“The Department of Justice will take swift action to protect consumers from those who would recklessly exploit this public health crisis by offering phony cure-alls for the treatment and prevention of COVID-19,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We work closely with our partners at the Food and Drug Administration and will move quickly to shut down schemes that promote and sell unlawful products during this pandemic.”
“Even in a time of great uncertainty, there are at least two unchanging realities. There are those who would unlawfully exploit our vulnerabilities, and there are those who will hold such parties accountable,” said U.S. Attorney John W. Huber for the District of Utah. “COVID-19 is a dangerous disease, and American consumers must have accurate and reliable information as they make important health decisions.”
The complaint alleges that, beginning in early 2020, the defendants conducted a scheme to defraud consumers throughout the United States, promoting and selling silver products based on fraudulent claims of protection against, and treatment for, COVID-19. According to the complaint, the defendants have made a wide variety of false and misleading claims touting silver products as a preventative for COVID-19, including that having silver in the bloodstream will “usher” any coronavirus out of the body and that “it has been proven that Alkaline Structured Silver will destroy all forms of viruses, it will protect people from the Coronavirus.” Additionally, the defendants assert that once in the blood stream, silver nanoparticles can block the virus from attaching to their cells, and thus “prevent[] the disease totally and completely.”
“The FDA will continue to help ensure those who place profits above the public health during the COVID-19 pandemic are stopped,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, U.S. Food and Drug Administration. “We are fully committed to working with the Department of Justice to take appropriate action against those jeopardizing the health of Americans by offering and distributing products with unproven claims to prevent or treat COVID-19.”
The enforcement action filed today is being prosecuted by Trial Attorneys Speare I. Hodges and Sarah Williams of the Department of Justice, Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joel A. Ferre of the U.S. Attorney’s Office for the District of Utah, with support from FDA’s Office of Criminal Investigations and Office of the Chief Counsel.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a permanent injunction against the defendants.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Utah, visit its website at https://www.justice.gov/usao-ut. For information about the Department of Justice’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and WHO websites.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
Colorado U.S. Attorney's Office Joins Department of Justice to Target COVID-19 Related Housing Predatory PracticesRead the Press Release
DENVER – United States Attorney Jason R. Dunn has announced that the District of Colorado, in conjunction with the Department of Justice, will take legal action against anyone trying to capitalize on the current COVID-19 crisis by sexually harassing those in need of housing or struggling financially to stay in rental housing. U.S. Attorneys’ Offices will work with all Department of Justice offices, federal agencies, as well as state, local, and tribal officials to combat housing related sexual harassment. The Justice Department and U.S. Attorneys stand ready to take aggressive action against housing-related sexual harassment whenever and wherever it occurs.
“The Colorado U.S. Attorney’s Office is committed to assisting victims of harassment and will work with law enforcement to ensure reports of landlord predatory practices related to COVID-19 will be aggressively investigated,” said U.S. Attorney Jason Dunn. “Those who target tenants, especially during this national crisis, will not be tolerated and violators are prosecuted.”
"The pandemic is dangerous enough without wrongdoers seeking to profit from public panic and this sort of conduct cannot be tolerated." said Attorney General Barr. To address predatory practices by unscrupulous landlords, Attorney General Barr directed the Department’s Civil Rights Division and U.S. Attorney’s to coordinate efforts to devote all necessary resources to investigate reports of housing-related sexual harassment resulting from the current crisis.
As the country adopted drastic measures to slow the spread of COVID-19, Americans have lost jobs with many more having their wages curtailed. These losses have forced many to seek abatements or suspensions of their rent. Many landlords responded to these circumstances with understanding by working with tenants during the crisis. Other landlords, however, have demanded sexual favors and other acts of unwelcomed sexual conduct in exchange for deferral of rent payments. This behavior is horrific and illegal.
Anyone who is a victim of sexual harassment by a property owner, or someone who has control over housing resulting from the COVID-19 crisis, should contact:
- Sexual Harassment in Housing Initiative at 1-844-380-6178 or email [email protected]
For more information: www.justice.gov/crt/sexual-harassment-housing-initiative
Brooklyn Man Arrested for Stealing U.S. Mail, Including Government Stimulus ChecksRead the Press Release
A criminal complaint was filed today in federal court in Brooklyn charging Feng Chen with theft of mail, including credit cards, multiple checks and nine Economic Impact Payments (“EIP”) from the United States Treasury Department, otherwise known as “stimulus payments.” Chen was arrested yesterday and will make his initial appearance via videoconference this afternoon before United States Chief Magistrate Judge Cheryl L. Pollak.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), J. Russell George, Treasury Office of Inspector General for Tax Administration (TIGTA), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrest.
"For many families, these stimulus checks are a lifeline in these difficult times and anyone who tries to cut that lifeline will face the full weight of the law,” stated United States Attorney Donoghue. “This Office will vigorously prosecute all those who seek to take advantage of the public health crisis. I commend the NYPD police officers for their truly outstanding work and service under difficult conditions.”
Mr. Donoghue urged the public to report suspected fraud related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected]. For information on how to identify or report fraud involving Economic Impact Payments, visit tips.tigta.gov.
“The COVID-19 crisis has placed tremendous stress on underserved communities across this country. The Economic Impact Payments are, in many cases, the lifeline needed by these individuals to stay afloat during this crisis. When Mr. Chen stole these checks, he robbed recipients of these much needed funds. Postal Inspectors and their law enforcement partners have no tolerance for the theft of mail, especially during these unprecedented times”, stated USPIS Inspector-in-Charge Bartlett.
“The Treasury Inspector General for Tax Administration (TIGTA) is the agency responsible for protecting the integrity of the Internal Revenue Service, including the theft of Economic Impact Payments. We are committed to working with our law enforcement partners to investigate any individual that engages in criminal activity to victimize taxpayers and exploit this national crisis for their own benefit,” stated TIGTA George.
“The NYPD recognizes how the COVID-19 pandemic presents an opportunity for a variety of malicious, criminal scams. In this case, I applaud our alert detectives and federal partners for interrupting an alleged scheme to victimize New Yorkers by stealing important mail and stimulus money meant to aid them during this unprecedented crises,” stated NYPD Commissioner Shea.
According to the complaint and statements made in court, in the early morning hours of April 28, 2020 in Sunset Park, New York, NYPD police officers observed Chen look inside the medical collection bin at a closed medical office and then walk to a nearby residential building and examine mail left at the door. Chen then walked into the gated area of a second residential building and left carrying what appeared to be mail. Chen saw the police officers and tossed mail on the sidewalk. The officers exited their vehicle and observed a bulge in Chen’s jacket pocket. The officers searched Chen and recovered checks, EIPs totaling more than $12,000, credit cards, opened envelopes and letters bearing the names of various individuals and mail addresses.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Chen faces a maximum of five years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Andrew D. Grubin is in charge of the prosecution.
The Defendant:
FENG CHEN
Age: 31
Brooklyn, New YorkE.D.N.Y. Docket No. 20-MJ-337
Brazilian National Sentenced for Producing False Identification DocumentsRead the Press Release
BOSTON – A Brazilian national who previously resided in Framingham was sentenced yesterday for producing false identification documents and Social Security card fraud.
Cristiano Ribeiro De Moura, 33, was sentenced by U.S. District Court Judge Allison D. Burroughs to time served (roughly 8 months) in prison and one year of supervised release. In January 2020, Ribeiro De Moura pleaded guilty to producing a false identification document, aiding and abetting and Social Security card fraud.
Ribeiro De Moura sold four counterfeit Lawful Permanent Resident cards and four counterfeit Social Security cards in July and August 2019. Ribeiro De Moura charged $350 for a set of fake documents, which included one Lawful Permanent Resident card and one Social Security card. The buyers provided their name and date of birth, and Ribeiro De Moura provided the Social Security number.
United States Attorney Andrew E. Lelling; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Beware of Scammers Still Looking to Profit from CoronavirusRead the Press Release
NOTE: This press release has been updated with additional information since its original release (4-29-20) to provide a link to a new online COVID-19 Fraud reporting form and an updated downloadable pamphlet reflecting this change.
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma reminds everyone that even as we begin moving toward resumption of normal lives, fraudsters will continue their schemes to take advantage of the coronavirus pandemic. The best defense is to remain vigilant knowing there are a number of methods criminals will try to profit at your expense. The United States Attorneys for the Eastern, Western and Northern Districts are partnering with the Oklahoma Attorney General to identify, investigate, and prosecute fraud related to the ongoing coronavirus pandemic in Oklahoma.
“Attorney General Barr has instructed U.S. Attorneys to make it a priority to investigate and stop coronavirus fraud, and we will continue to do so even while Oklahomans are beginning to see the light at the end of the tunnel. We would also like to stop fraud before it happens by reminding everyone to watch for scams and exercise caution accordingly,” said United States Attorney Brian J. Kuester. “If you have been a victim or you suspect someone has attempted to defraud you or a family member, please report it. Information you provide may help to put an end to a criminal’s scheme before additional victims fall prey.”
The best protection from becoming a victim is being informed. Examples of COVID-19 fraud include: economic impact scams, supply scams, provider scams, charity scams, phishing scams, mobile app scams, investment scams, price gouging and unemployment fraud. Attached is a
COVID-19 Fraud Tri-Fold Brochure that discusses these types of fraud, details specific ways you can protect yourself from COVID-19 fraud, as well as what to do if you suspect you have become the victim of fraud.For the most up-to-date information on COVID-19, visit the Centers for Disease Control and Prevention (CDC). We urge you: don’t fall victim to these frauds. If you have, please report COVID-19 fraud to the National Center for Disaster Fraud hotline by phone at (866) 720-5721 or via an online reporting form available at www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. You may also report fraud to the Oklahoma Attorney General’s Consumer Protection Unit by phone at (405) 521-2029 or by email at [email protected]. You can also find this press release and more on our webpage at www.justice.gov/usao-edok or via Twitter at @USAO_EDOK.
Ardmore Bank Robber Sentenced to 147 Months in Federal PrisonRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Zachary Gage Pebley, age 22, of MaComb, Oklahoma was sentenced to 147 months’ imprisonment, and 3 years’ supervised release for Bank Robbery, in violation of Title 18, United States Code, Sections 2113(a) and 2113(d), and for Use, Carry, and Brandish a Firearm During and in Relation to a Crime of Violence, in violation of Title 18 United States Code, Section 924(c)(1)(A)(ii). Pebley’s jury trial began on January 21, 2020 and concluded on January 22, 2020 with a guilty verdict. The verdict was the result of an investigation by the Federal Bureau of Investigation and the Ardmore Police Department. Sentencing occurred following the completion of a presentence report.
Evidence presented at trial proved to the jury that on October 15, 2019, the defendant entered the Bank of the West in Ardmore, Oklahoma wearing a black hat, sunglasses and a white bandana over his face. He approached and pointed a gun at a bank teller demanding that money be placed into a pillowcase. After receiving the money the defendant fled the bank, and within minutes was pursued and detained briefly by a bystander who had seen him running from the area of the bank. Shortly thereafter, officers with the Ardmore Police Department located the defendant hiding in a back yard and arrested him.
United States Attorney Brian J. Kuester said, “Alert victims, a willing bystander, rapid response by the Ardmore Police Department, and their thorough investigation with the Federal Bureau of Investigation led to swift justice against the defendant in just over six months following his crime. This investigation and prosecution was a result of teamwork at its finest – local and federal law enforcement agencies working together with the communities they serve and protect.”
“Armed bank robbery is a serious violent crime which is aggressively investigated, prosecuted and punished," said Melissa Godbold, Special Agent in Charge of the FBI's Oklahoma City Field Office. "The quick intervention by a good Samaritan led to the apprehension of Mr. Pebley by the Ardmore Police Department. This is an example of how the FBI, our law enforcement partners, and Oklahomans work together to defend their community against those who commit violent crime."
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorneys Dean Burris and Ryan Conway represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-parolable sentence will be served.
Tuesday 28 April 2020
Washington County Man Indicted on Cocaine Distribution ChargesRead the Press Release
ALBANY, NEW YORK – Victor Aguero Vasquez, age 45, of Granville, New York, was arraigned last week on an indictment charging that he conspired to distribute and possess with intent to distribute more than 5 kilograms of cocaine, and that he possessed firearms in furtherance of his drug distribution operation. The announcement was made by United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.
Vasquez was arraigned on April 21 in Albany before United States Magistrate Judge Daniel J. Stewart, and ordered detained pending a trial before Senior United States District Judge Frederick J. Scullin, Jr. According to the indictment and a previously filed criminal complaint, Vasquez worked with a co-conspirator to possess and distribute more than 5 kilograms of cocaine between November 2018 and September 2019 in Saratoga and Washington Counties. Vasquez also possessed additional cocaine, drug processing paraphernalia, and multiple firearms at his residence.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted on all counts, Vasquez faces at least 15 years and up to life in prison, a fine of up to $10 million, and a term of supervised release of at least 5 years and up to life. 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.
Vasquez’s co-conspirator, Nestor Cordero-Hernandez, age 43, of Fort Ann, New York, pled guilty in March 2020 to conspiring to distribute more than 500 grams of cocaine and more than 50 grams of methamphetamine. He is scheduled to be sentenced on July 2.
This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Victims of Sexual Harassment in Housing Encouraged to Report WrongdoingRead the Press Release
Today, Peter E. Deegan, Jr., United States Attorney for the Northern District of Iowa, announced that he will be using all available tools to combat sexual harassment in housing. The United States Attorney’s Office will target unscrupulous landlords who attempt to take advantage of the pandemic by demanding sexual favors or sexually harassing tenants who, because of the pandemic or for any other reason, are unable to make timely rent payments.
As a result of the measures taken to slow the spread of COVID-19, many Iowans have lost jobs or wages. Some tenants may be unable to make rent payments. While many landlords have responded with understanding, there are reports of landlords across the country who have attempted to exploit the crisis by responding to cash-strapped tenants with demands for sex acts or inappropriate sexual favors. Such conduct is not only despicable and wrong, it is illegal.
“My office will work with all available partners, including state, local, and tribal officials, to address sexual harassment in housing, especially during this national crisis,” said Peter E. Deegan, Jr., United States Attorney for the Northern District of Iowa. “We will use every means at our disposal to investigate, prosecute, and hold responsible anyone who sexually harasses tenants or prospective tenants. Combatting sexual harassment associated with housing has been a priority for the Department of Justice for years and it remains a priority during this unique time in history. Such conduct cannot be tolerated.”
To report instances of sexual harassment in housing, individuals with knowledge of wrongdoing can call the Department of Justice’s Sexual Harassment in Housing Initiative at 1-844-380-6178 or email [email protected]. More information is also available at www.justice.gov/crt/sexual-harassment-housing-initiative and www.justice.gov/crt/page/file/1048341/download.
U.S. Attorneys Say Strike Force Combats Drugs, Violence in the St. Louis Metropolitan AreaRead the Press Release
St. Louis – A new St. Louis Organized Crime Drug Enforcement Task Force (OCDETF) Gateway Strike Force is combatting drug traffickers and violent criminals on both sides of the Mississippi River, Adam Cohen of the DOJ OCDETF Executive Office, U.S. Attorney Steve Weinhoeft in the Southern District of Illinois (SDIL), and U.S. Attorney Jeff Jensen in the Eastern District of Missouri (EDMO) announced today.
The St. Louis OCDETF Gateway Strike Force represents an incredible investigative force to address major drug trafficking organizations, gangs and associated violence, including murders, in the St. Louis Metropolitan Region. The Strike Force brings together under one roof federal investigative agencies including the Drug Enforcement Administration (DEA), the St. Louis Field Office of the Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), the United States Marshals Service (USMS), United States Postal Investigation Service (USPIS), the Internal Revenue Service Criminal Investigations (IRS), and the United States Secret Service (USSS) along with State and local law enforcement offices including the St. Louis County Police Department, St. Louis City Police Department, Missouri State Highway Patrol, St. Charles County Police Department, St. Charles City Police Department, Chesterfield Police Department, Manchester Police Department, Webster Groves Police Department, Woodson Terrace Police Department, and the Missouri National Guard.
A satellite office located in Illinois will include members of the DEA, FBI Springfield, Illinois State Police, and the aforementioned agency partners along with prosecutors from the SDIL and the EDMO who will pursue criminal charges in federal court. Although the Strike Force is designed to generate federal prosecutions, it is anticipated that some Strike Force cases will be suitable for prosecution in state courts in St. Louis City and St. Louis County. The ongoing cooperation of the Circuit Attorney’s Office of the City of St. Louis and the Office of the Prosecuting Attorney of St. Louis County is a significant and appreciated factor in the Strike Force’s ongoing efforts.
This unique entity brings to bear the investigative experience and expertise of these various law enforcement agencies and equips them with additional resources to investigate and dismantle, through federal and state prosecution, criminal organizations involved in drug trafficking, murders, other acts of violence, and other criminal activity.
The Director of the Organized Crime Drug Enforcement Task Forces, Adam Cohen, wanted to be here to celebrate the announcement of this newest OCDETF Strike Force, but the restrictions related to the current public health crisis prevented his traveling to St. Louis from Washington. He released the following statement:
“The OCDETF co-located Strike Forces Initiative provides for the establishment of permanent prosecutor-led, multi-agency task force teams that work side-by-side in the same office space where they partner to conduct intelligence-driven, multi-jurisdictional operations against priority targets and their illicit financial networks. With the addition of the St. Louis Gateway Strike Force, OCDETF now has 19 Strike Forces operating throughout the country.
“The OCDETF Program is the keystone of the U.S. Attorney General’s strategy to reduce the availability of illicit narcotics throughout our nation using a prosecutor-led, multi-agency approach to combat transnational organized crime. The role of OCDETF is to facilitate joint operations by focusing its partners on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
“The St. Louis Gateway OCDETF Strike Force is a joint effort led by the United States Attorneys in the Eastern District of Missouri and the Southern District of Illinois. This newest OCDETF Strike Force features agents from at least seven federal agencies and two state and local law enforcement agencies. These U.S. Attorneys’ offices are working together, across state lines and judicial districts, in a regional approach to combat criminal organizations and the violence they inflict on the community. Criminals do not recognize state boundaries or county lines and neither will we.
“As illicit drug production, transportation, and distribution continue to plague our nation and the safety of our citizens, OCDETF remains the targeting, coordination, and intelligence platform for combatting high-level drug trafficking and its attendant violent crime.
“It is a privilege to acknowledge the multi-agency effort demonstrated today by the announcement of the opening of the St. Louis Gateway OCDETF Strike Force. This new Strike Force team doesn’t just join 18 other Strike Forces, it joins the largest anti-crime task force in the country – OCDETF is made up of over 550 federal prosecutors, 2,000 federal agents, 40,000 state and local law enforcement officers from almost 1,200 police agencies, and an intelligence fusion center.”
In conclusion, Mr. Cohen stated that, “I offer my sincerest congratulations to U.S. Attorneys Jeff Jensen and Steve Weinhoeft as they formally open the St. Louis Gateway Strike Force which will serve and protect the community for years to come with a prosecutor-led, multi-agency approach to combating the command and control elements of organized criminal networks.”
Chief Jon Belmar, St. Louis County Police Department, stated that, “This Strike Force designation will provide additional resources as our Law Enforcement community works together to provide a safer St. Louis region. Removing the most violent criminals from our streets is our top priority, and I am proud of the collaboration that exists between Local Law Enforcement, our Federal partners and the United States Attorney’s Office. Congratulations to all who have worked so diligently to move this forward in the effort of a safer St. Louis.”
“Mark Twain once famously described the Mississippi River as a ‘lawless stream’ that cannot be tamed. Today, the challenge we face isn’t the water itself but the flow of illegal drugs that cross the river each day. That flow of illegal drugs fuels violence, overdoses, addiction, and countless other societal harms. We remain committed to disrupting and dismantling drug trafficking organizations in the St. Louis metropolitan area, and through the formation of this joint strike force, we now have important new resources at our disposal to stem the tide,” stated U.S. Attorney Steve Weinhoeft, U.S. Attorney’s Office, Southern District of Illinois.
Jensen stated that, “The new Strike Force will have a major impact in reducing the trafficking of fentanyl, heroin, methamphetamine and other drugs throughout the St. Louis Metropolitan area and the Midwest. The Strike Force is a powerful tool to target those organizations involved in many of the murders and other violent acts in our region. These groups are organized, compartmentalized, secretive, and often ruthless. Therefore, it takes a powerful tool, a Strike Force, to dismantle these predatory organizations.”
Jensen extended his thanks to Attorney General William Barr and the DOJ OCDETF Executive Office for designating St. Louis as a Strike Force location.
Jensen further stated, “I am particularly honored to formalize our Gateway Strike Force partnership with our counterparts in the Southern District of Illinois. Steve Weinhoeft, federal prosecutors, and officers and agents in the Southern District are strong and effective law enforcement partners. Organized and violent drug traffickers do not recognize state lines. Our combined resources will enable us to dismantle criminal organizations that impact both sides of the river.”
ST. LOUIS JOINS OCDETF STRIKE FORCES NATIONWIDE
The Justice Department’s Organized Crime and Drug Enforcement Task Forces (OCDETF) oversees the Strike Force initiative. St. Louis joins OCDETF Strike Forces in major cities including Atlanta, Baltimore, Boston, Chicago, Cleveland, Denver, El Paso, Houston, Kansas City, Los Angeles, New York, North Texas, Phoenix, Sacramento, San Diego, San Juan, Southeast Michigan, and Tampa.
MISSION: DISRUPT, DISMANTLE CRIMINAL ORGANIZATIONS
The goal of the Strike Force is to disrupt and dismantle criminal organizations, including gangs, cartels, and others that are trafficking in drugs and firearms, or engaging in money laundering.
Participating agencies have agreed to assign full-time personnel to the Strike Force. Police officers, federal agents, and prosecutors are working together under one roof. For security reasons, the location will not be made public.
An FBI Assistant Special Agent in Charge and a DEA Assistant Special Agent in Charge manage the Strike Force’s teams: a major crime squad, a major threat squad, and a fugitive squad. A Strike Force Executive Council, whose members include both U.S. Attorneys, will oversee the Strike Force.
CASES FILED
Some of the law enforcement agencies comprising The St. Louis OCDETF Gateway Strike Force started working together over the last several years as a prelude to the formation of the Strike Force. Examples of their work include:
U.S. v. Velazquez, et al: Thirty-four defendants were indicted for their roles in a large-scale drug trafficking conspiracy or related offenses. Agents seized approximately $1.3 million dollars, and more than sixty kilograms of cocaine. The indictment alleges that members of the organization committed multiple murders as part of the drug trafficking enterprise. Prosecutors are seeking the death penalty against one of the members of the organization alleged to have been involved in murders. Many of the defendants in this case have pled guilty in federal court.
U.S. v. Goolsby, et al: Fifteen defendants were indicted in this drug trafficking conspiracy involving the seizure of approximately 25 kilograms of cocaine, 10 kilograms of heroin, 3 kilograms of fentanyl and over $2,000,000 in currency.
U.S. v. Starr, et al: Nine defendants were indicted in a multi-kilogram methamphetamine conspiracy. Investigators seized approximately 2.3 kilograms of methamphetamine as well as quantities of cocaine, over $50,000 in currency and two firearms.
U.S. v. Johnson, et al: Approximately twenty-one defendants were indicted for their various roles in the trafficking of heroin and fentanyl in and around the Peabody Housing Complex just south of downtown St. Louis. Investigators seized approximately 1.5 kilograms of cocaine, 9 ounces of fentanyl, 27 firearms, and approximately $70,000.00. The indictment alleges that the members of the conspiracy committed a homicide and are responsible for two overdose deaths. Many of the defendants (approximately 15) have pled guilty in federal court.
The charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
The prosecutions announced in this release were brought as a part of the Department of Justice’s OCDETF Co-located Strike Forces Initiative or as the prelude to the designation of the Strike Force. The Strike Force will build upon this work and bring even more resources to bear in identifying and dismantling other large criminal organizations involved in the flow of drugs to our community and associated murders and other violence. The Strike Force, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location, will only strengthen successful prelude partnerships. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led, co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime.
OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s illicit drug reduction strategy. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
STATEMENTS FROM PARTNERS
Agency officials who are working with the Strike Force made the following statements:
FBI Special Agent in Charge, Springfield, Illinois Division, Sean M. Cox stated, "The Springfield Division of the FBI is proud to collaborate with FBI St. Louis as well as our federal and state law enforcement partners to combat the most prolific criminals operating between St. Louis and East St. Louis. It is only by way of focused law enforcement operations and prosecutorial relationships that we can make a positive impact in our communities and hold these criminals accountable for their actions."
"This Gateway Strike Force will use increased funding and expanded partnerships to target violent gangs engaged in drug trafficking, homicides, carjackings, and armed robberies," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "By joining forces with our brethren across the river, it will also make it much more difficult for criminals to exploit geographic and jurisdictional boundaries to evade justice."
“The St. Louis Gateway OCDETF Strike Force will place a special emphasis on the region’s most serious drug and drug violence threats,” said Special Agent in Charge William Callahan, head of the DEA St. Louis Division. “The DEA will bring significant investigative resources, in collaboration with our federal, state, and local law enforcement partners to target the command and control of drug trafficking organizations in the St. Louis Metro and worldwide. We expect the Gateway Strike Force to identify and seize drug-related assets associated with these criminal networks for a well-rounded, targeted approach to their dismantlement.”
Katherine Greer, Homeland Security Investigations Special Agent in Charge, Kansas City stated, “The creation of the St. Louis Strike Force provides a collaborative effort, serving as a force multiplier to effectively protect the public, by targeting the command structure of major international criminal organizations. HSI brings a unique expertise to combatting violent crime utilizing over 400 federal statutes involving narcotics smuggling, weapons violations, money laundering and immigration enforcement.”
“Our citizens have heard me say on numerous occasions that at least 50% of our City’s homicides and gun violence is drug-related; not to mention the fact that drug overdoses in our City have ravaged through our community as well. The Drug Strike Force will be a regional effort which promises to have a meaningful impact on the City’s gun violence and overdose rate. I am thankful for the opportunity to participate on the Strike Force and I am looking forward to reaping the benefits of its presence in our region,” stated Police Commissioner John Hayden, St. Louis Metropolitan Police Department.
“The United States Marshals Service serves as the United States Government’s primary fugitive investigation and apprehension agency. As a charter agency within the Organized Crime Drug Enforcement Task Force, the Marshals Service stands ready to help the Strike Force destabilize and disrupt the most serious crime organizations through joint and collaborative fugitive investigations. The Marshals Service in St. Louis has a dedicated group of Deputy U.S. Marshals and Task Force Officers embedded at the St. Louis Gateway Strike Force as a fugitive team. Leveraging the 94 Marshals Service district offices across the country, and proud 230-year history of the U.S. Marshals, this fugitive team will support the Strike Force in investigating, locating, and apprehending the country’s most serious fugitives. We are proud to be a partner agency in this endeavor and commend the work of the United States Attorney’s Office and all other partner agencies that make up the OCDETF Strike Force,” stated John Jordan, United States Marshal, Eastern District of Missouri.
Postal Inspector in Charge Bill Hedrick, of the Chicago Division Postal Inspection Service, St. Louis Field Office, stated, “The United States Postal Inspection Service proudly partners with the agencies involved in the task force to better coordinate investigations. These relationships facilitate communication and data sharing that enable the identification of drug trafficking organizations, which would not be possible without interagency cooperation. This allows the Postal Inspection Service to advance its mission to enforce the laws that defend the nation’s mail, and protect the American public from criminal drug and gang activity which destroys so many lives.”
Karl Stiften, IRS-Criminal Investigation Special Agent in Charge, stated, “IRS-Criminal Investigation (CI) is a proud participant of the St. Louis OCDETF Strike Force. CI special agents contribute our financial investigative skills to track and seize proceeds of illegal activities from the criminals involved. Pooling the skills and resources of each agency makes a formidable team.”
“The United States Secret Service is proud to join forces with our local, state, and federal partners as a member of the St. Louis Gateway OCDETF Strike Force. This collaboration will serve to strengthen our capabilities to directly target major international criminal organizations operating in the St. Louis metropolitan area and around the world,” stated Thomas Landry, Special Agent in Charge, U.S. Secret Service - St. Louis Field Office.
Chief Kurt Frisz of the St. Charles County Police Department stated, “The St. Charles County Police Department has long valued interagency collaborations and we are happy to support this initiative. The Strike Force will play a vital role in dismantling the very complex and transient criminal networks that are plaguing our region, which will increase our ability to solve heinous crimes that have threatened the community’s sense of peace.”
U.S. Attorney Hyslop Wants You to Report Housing-Related Sexual HarassmentRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that he will use all available federal enforcement tools against those who try to capitalize on the COVID-19 crisis by sexually harassing people in need of housing, and is asking the individuals in the community to report housing-related sexual harassment.
United States Attorney Hyslop said, “The vast majority of landlords in our community have responded to the housing problems created by COVID-19 with care and compassion for their tenants. Those landlords should be commended and thanked. Unfortunately, there are also reports around the country of some landlords taking advantage of the financial hardships of their tenants by demanding sex-for-rent or otherwise sexually exploiting their tenants. This conduct is absolutely abhorrent, illegal under the Fair Housing Act, and has no place in our community. Sexually harassing a tenant is not who we are as a Nation and especially not who we are during this COVID-19 crisis; this cannot be tolerated.”
The Department of Justice, through the United States Attorney’s Office, remains unwavering in its enforcement of the Fair Housing Act. The Fair Housing Act prohibits sexual harassment in housing. Fair Housing Act cases often involve egregious conduct, including allegations that landlords, property managers, or maintenance workers have exposed their genitals to current or prospective tenants, requested sexual favors in exchange for reduced rents, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted the landlord’s sexual overtures.
“If anyone you know has experienced sexual harassment in housing, please contact the Civil Rights Division of the Department of Justice by calling (844) 380-6178 or emailing: [email protected] with a description of sexually harassing behavior. Individuals in Washington can also contact the Department of Housing and Urban Development (HUD) by calling (800) 877-0246 or emailing: [email protected],” Hyslop said.
To arrange an interview with United States Attorney William Hyslop, contact Debra Doll at (509) 413-6344 or email [email protected]
U.S. Attorney Bryan Schroder Warns Against Predatory Practices Related to Covid-19 and HousingRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder issued a warning today against predatory practices related to COVID-19 and housing. In a recent memorandum, Attorney General William Barr instructed every U.S. Attorney across the country to deploy all available enforcement tools against anyone who tries to capitalize on the current crisis by sexually harassing people in need of housing.
“It’s disturbing to hear that the Department of Justice is receiving reports of landlords exploiting our current national crisis by sexually harassing people in need of housing,” said U.S. Attorney Schroder. “This despicable behavior is illegal, and will be enforced under federal laws. If such reports are received in Alaska, the U.S. Attorney’s Office, together with our federal, state, and local law enforcement partners, stands ready to hold these predatory landlords accountable.”
As the country adopts drastic measures to slow the spread of COVID-19, many Americans have lost their jobs and many more have seen their wages curtailed. These losses have forced many to seek abatements or suspensions of their rent, with reports that nearly one third of Americans were unable to pay their April rent at the beginning of the month.
Many landlords responded to these circumstances with understanding and care, trying to work with their tenants to weather the current crisis. There have been reports across the country, however, of other landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct.
U.S. Attorneys’ Offices will work with all Department of Justice offices, federal agencies, as well as state, local, and tribal officials. If you think you are a victim of sexual harassment by a landlord, or other person who has control over housing, resulting from the COVID-19 crisis, contact:
- Sexual Harassment in Housing Initiative at 1-844-380-6178
- Email: [email protected]
- Local authorities
For more information, you can visit www.justice.gov/crt/sexual-harassment-housing-initiative and https://www.hud.gov/program_offices/fair_housing_equal_opp/sexual_harassment.
For more facts on how to report sexual harassment in housing, you can visit: www.justice.gov/crt/page/file/1048341/download.
U.S. Attorney Brady Announces $42K Grant to Address COVID-19 Pandemic in the City of AltoonaRead the Press Release
PITTSBURGH - U.S. Attorney Scott W. Brady today announced that the City of Altoona Pennsylvania, received $42,842 in Department of Justice grants to purchase supplies that are essential for responding to the public safety challenges posed by the outbreak of COVID-19.
The grant, awarded to the City of Altoona is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. According to U.S. Attorney Brady, an additional $1,369,225 has been allocated for other local counties, cities, and municipalities in Western Pennsylvania. The U.S. Attorney’s Office has discussed this grant with each of those eligible jurisdictions, which are listed on this website. In addition, the Pennsylvania Commission on Crime and Delinquency has been awarded $17.6 million in grants that can be distributed to eligible governmental agencies throughout Pennsylvania, including western Pennsylvania. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.
"The men and women on the front line of this pandemic deserve our deepest appreciation for answering the call to serve regardless of the danger," U.S. Attorney Brady said. "The public safety funds being made available through DOJ’s Coronavirus Emergency Supplemental Funding program can be used for the most pressing needs of our state and local partners, including new hiring and overtime pay, training, critical personal protective equipment and supplies, and the medical needs of prisoners."
"We are grateful for this grant," added Janice Freehling, Chief of Police of the Altoona Police Department. "The funds will allow us to purchase the supplies necessary to help keep our citizens and employees safe while combatting the coronavirus."
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Two Individuals Arrested for Conspiring to Violate the Defense Production ActRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Kent Bulloch and William Young, Sr., with conspiracy to violate the Defense Production Act by seeking to resell one million KN95 protective masks in New York City at a 50 percent mark-up. Bulloch, an attorney, was arrested Monday night in California and will make his initial appearance via teleconference in federal court in San Francisco and Young will appear via teleconference in federal court in Phoenix.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Craig Carpenito, head of the Department of Justice’s nationwide COVID-19 Hoarding and Price Gouging Task Force, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York Field Office (IRS-CI), announced the charges.
On March 18, 2020, in response to the COVID-19 pandemic, President Donald Trump issued Executive Order 13909 invoking the Defense Production Act making it illegal to acquire medical supplies and devices designated by the Secretary of Health and Human Services (HHS) as scarce in order to hoard them or sell them for excessive prices.
According to court filings, between March 2020 and April 2020, Bulloch and Young sought out potential investors to sell one million KN95 respirator masks for double or triple the purchase price. To conceal their exorbitant markup on the masks, Bulloch created and signed an escrow agreement for a purported investor that falsely stated that the profits on the re-sale of the masks would not exceed 10 percent. Unbeknownst to the defendants, the purported investor was a federal law enforcement agent.
“As alleged, the defendants conspired to turn a huge profit from the urgent need for surgical masks in New York during the pandemic,” stated United States Attorney Donoghue. “When the Attorney General said that those engaged in price gouging should expect a knock on the door, he meant it and when we knock with one hand, we usually have a warrant in the other.” Mr. Donoghue expressed his grateful appreciation to the United States Attorney’s Offices in New Jersey, the Northern District of California and the District of Arizona, and the San Francisco and Phoenix Field Offices of the FBI and IRS-CI for their invaluable assistance in this case.
“This is precisely the type of price gouging for which Attorney General Barr created our nationwide task force,” stated Carpenito. “The Department of Justice will not allow greedy profiteers to take advantage of the public during this health crisis.”
“While the need for an influx of medical equipment and supplies continued to mount as a result of the COVID-19 crisis, Young and Bulloch allegedly claimed they could acquire approximately one million highly sought after KN95 masks. As detailed in the complaint, the next phase of their plan was pretty straightforward--find investors who would sell these masks for far more than their purchase price, in turn earning the defendants a 50 percent mark-up on the sale. It's hard to believe anyone could take advantage of a situation like this, but this case clearly proves that theory wrong. The FBI is proud to work with all of our partners as we confront the threats posed by those who are looking to game the system in this current environment,” stated FBI Assistant Director-in-Charge Sweeney.
“The invocation of the Defense Production Act was implemented to protect our healthcare workers, the heroes of 2020,” stated IRS-CI Special Agent-in-Charge Larsen. “As alleged, Bulloch and Kent attempted to personally enrich themselves by preying on potential investors during this pandemic.”
The charge in the complaint is an allegation, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to one year in prison.
Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by Craig Carpenito, United States Attorney for District of New Jersey, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs. The Secretary of Health and Human Services has issued a Notice designating categories of health and medical supplies that must not be hoarded or sold for exorbitant prices.
Please report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or e-mail: [email protected].
The government’s case is being handled by the Office’s Public Integrity and Business & Securities Fraud Sections. Assistant United States Attorneys Nathan Reilly and Hiral Mehta are in charge of the prosecution.
The Defendants:
KENT BULLOCH
Age: 56
Santa Rosa, CaliforniaWILLIAM YOUNG, SR. (also known as “Bill”)
Age: 64
Phoenix, ArizonaE.D.N.Y. Docket No. 20-MJ-327
Three Alabama U.S. Attorneys Announce $9,645,679.00 Award to Address Covid-19 PandemicRead the Press Release
Montgomery, Alabama – United States Attorney Louis V. Franklin, Sr., for the Middle District of Alabama, United States Attorney Jay E. Town, for the Northern District of Alabama, and United States Attorney Richard W. Moore, for the Southern District of Alabama, are pleased to announce that the state has received $9,645,679.00 in Department of Justice grants to respond to the challenges posed by the outbreak of COVID-19.
The grant is available under the Coronavirus Emergency Supplemental Funding program and was authorized by the recent stimulus legislation signed by President Trump. In addition to the state award, over $4.8 million has been allocated to local agencies throughout Alabama, with $1,182,725.00 being set aside for fifteen jurisdictions here in the Middle District. Those jurisdictions can find out if they are eligible and apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications. Jurisdictions not listed for individual allocations may be eligible to apply for part of the state funding through the Alabama Department of Economic and Community Affairs.
“As the coronavirus crisis continues, every day law enforcement officers and first responders knowingly put themselves at risk of exposure as they do their jobs serving and protecting the community,” stated U.S. Attorney Louis V. Franklin, Sr. “This funding will help the State of Alabama and numerous local agencies that are struggling with limited resources to address many critical needs. I encourage all agencies eligible to apply for funding to do so.”
“The COVID- 19 pandemic has created many challenges for law enforcement and our first responders to safely perform important duties,” said Jay E. Town, U.S. Attorney for the Northern District of Alabama. “These funds from DOJ will be used to ensure that our brave men and women of the badge can continue the mission of safeguarding the citizens of our great state.”
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment and distributing resources to hard-hit areas. Funds may also be used to help correctional facilities cover costs related to COVID-19, including, but not limited to, sanitation, contagion prevention and measures designed to address the related medical needs of inmates, detainees and correctional personnel.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations. For a list of all awards thus far, visit the Coronavirus Emergency Supplemental Funding program webpage.
Suspected Neo-Nazi Sentenced to 2.5 Years for Gun CrimeRead the Press Release
A suspected neo-Nazi has been sentenced to 30 months in federal prison for a gun crime, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Aiden Bruce-Umbaugh, 23, pleaded guilty to possession of firearms and ammunition by a prohibited person in Lubbock in January. Appearing via video teleconference from the Lubbock County Detention Center, the defendant was sentenced today before U.S. District Judge James Wesley Hendrix.
According to his plea papers, Mr. Bruce-Umbaugh – who was arrested in November in Post, Texas, dressed in tactical gear – admitted to possessing AR-15 rifle, two AK-47 rifles, a Sig Sauer 9mm pistol, and assorted ammunition while being an unlawful user of a controlled substance. (Federal law prohibits unlawful users of controlled substances to possess firearms.)
Mr. Bruce-Umbaugh admits he and Kaleb Cole were pulled over in a blue Ford in which law enforcement officers discovered the firearms, a small canister of marijuana, and a vial of THC oil.
Mr. Bruce-Umbaugh – who “avoided eye contact and limited conversation” with law enforcement and denied having anything illegal inside the vehicle during the traffic stop – later admitted that the firearms, marijuana, and THC belonged to him, telling investigators he smoked marijuana on a daily basis, according to plea papers.
In a detention hearing in November, prosecutors argued the government had reason to believe Mr. Bruce-Umbaugh is a member of AtomWaffen Division, a neo-Nazi hate group.
In jailhouse phone calls, Mr. Bruce-Umbaugh allegedly referenced his affiliation with “the group,” declared he was “a Nazi,” and discussed a photo taken of him and another AtomWaffen Division member at the Auschwitz concentration camp, prosecutors said at the detention hearing.
Video released by the Court in February shows the defendant, handcuffed and clad in an orange jumpsuit, telling agents, “I assume you’re here because of my swastika flag and my firearms.”
AtomWaffen propaganda videos also admitted into evidence depict members of the Nazi group at self-described “hate camps,” spewing hateful rhetoric against Jews, practicing hand-to-hand combat and shooting firearms.
“Race war now!” they cry, before one displays a Nazi salute.
“The Northern District of Texas is committed to keeping guns out of the hands of dangerous individuals,” U.S. Attorney Nealy Cox said after the defendant pleaded guilty. “As a drug user, this defendant should never have been allowed to possess firearms. We’re grateful to our law enforcement partners for helpings us keep this defendant, and his guns, off the streets.”
“The amount of weapons and ammunition seized from the defendant could have caused serious harm. Luckily, the FBI and our law enforcement partners successfully intervened before an act of violence could be committed,” FBI Special Agent in Charge Matthew J. DeSarno said then. “The FBI will continue working with our partners to protect the communities we serve.”
The Federal Bureau of Investigation’s Lubbock Resident Agency, the Garza County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation. Assistant U.S. Attorney Stephen Rancourt is prosecuting the case.
South Jersey Tax Preparer Admits Filing False Income Tax ReturnsRead the Press Release
CAMDEN, N.J. – A South Jersey woman who owns a tax preparation business admitted today to helping her clients file falsified tax returns, U.S. Attorney Craig Carpenito announced.
Gloria Valentin, 48, of Cherry Hill, New Jersey, pleaded guilty by teleconference before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging her with one count of aiding and assisting in the preparation of false income tax returns.
According to documents filed in this case and statements made in court:
Valentin owned, operated and approved all of the income tax returns filed by GNG Business Solutions in Cinnaminson. She admitted that she prepared approximately 60 income tax returns for 27 tax clients during tax years 2013 through 2016. Those tax returns contained similar patterns of false and fictitious Schedule A itemized deductions and unreimbursed employee business expenses. Valentin and her employees fabricated Schedule A, unreimbursed employee business expenses when none were incurred. Those false expenses resulted in substantially reduced income tax liabilities and resulted in larger refunds for her clients and caused a tax loss of $201,896 to the government.
The charges to which Valentin pleaded guilty carry a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 8, 2020.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Laura J. Perry, with the investigation leading to today’s guilty plea.
The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Second Employee in Cash Flow Partners’ Bank Fraud Conspiracy Admits Role in Multimillion-Dollar Loan SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman today admitted participating in a scheme that involved the creation of false documentation to secure over $4 million in bank loans, U.S. Attorney Craig Carpenito announced.
Jennie Frias, a/k/a “Jennie Castillo,” 36, of Englewood, New Jersey, pleaded guilty by teleconference before U.S. District Judge Kevin McNulty to an information charging her with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Between March 2016 and May 2018, Cash Flow Partners LLC, a business consulting firm with offices in New York and New Jersey, released internet advertisements and held seminars offering to assist customers in obtaining bank loans, including loans insured by the Federal Deposit Insurance Corporation (FDIC). When customers submitted documentation supporting their bank loan applications to Cash Flow Partners, Frias and others created false documentation to make customers’ loan applications appear more financially viable than they actually were. Victim banks sustained losses of over $4 million.
One of Frias’ conspirators, Raymundo Torres, previously pleaded guilty to charges relating to his role in the Cash Flow bank fraud conspiracy.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Sept. 2, 2020.
Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).
U.S. Attorney Carpenito credited special agents of the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys J. Stephen Ferketic of the Opioids Unit and Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Second Defendant in Major Drug Conspiracy SentencedRead the Press Release
ABINGDON, Va. – The second defendant in a major drug distribution organization that trafficked methamphetamine, heroin, and cocaine from Texas and Indiana into Southwest Virginia was sentenced today in federal court on drug conspiracy charges, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
In a hearing today, Jon Trevor DeBord, 29, of Vinton, Va., was sentenced to 60 months in federal prison. In January 2020, DeBord pleaded guilty to one count of conspiracy to possess with the intent to distribute and distributing 50 grams but less than 200 grams of methamphetamine.
“The methamphetamine trade has ravaged communities across Southwest Virginia for too long,” U.S. Attorney Cullen stated today. “Reducing the meth trade is a top priority of the U.S. Attorney’s Office, and we will continue to work with our federal, state, and local partners to identify the individuals responsible for importing and distributing this deadly substance and put them in federal prison.”
“Methamphetamine is an extremely dangerous drug that can have devastating effects on communities,” said Attorney General Mark Herring. “My office remains committed to our partnership with the United States Attorney’s Office and law enforcement agencies at the federal, state, and local level to prosecute those who endanger our communities by trafficking this drug.”
In the most recent indictment, three individuals were charged as part of a drug trafficking conspiracy. DeBord, who pleaded guilty in January 2020, Daniel Augusto Rosa-Suarez, of Arlington, Texas, who was sentenced to 324 months in prison in February 2020, and Robert Luis Gray Osborne, who is scheduled for trial in August 2020.
According to court documents, the defendants conspired to traffic large quantities of crystal ice methamphetamine, heroin, and cocaine from Texas and Indiana into Southwest Virginia for redistribution. In Virginia, the organization operated primarily in Smyth County and the Harrisonburg area from August 26, 2016, through May 25, 2018.
This case is one in a series of indictments stemming from a methamphetamine trafficking conspiracy ring operating primarily in the Smyth County, Virginia area. In total, 20 defendants have been charged in federal court in connection with the investigation.
The investigation of this case was led by the Drug Enforcement Administration, Bristol, Virginia, with assistance from the Smyth County Virginia Sheriff’s Office. Numerous other agencies also provided assistance throughout the investigation, including the Drug Enforcement Administration in Indianapolis, Indiana, and Birmingham, Alabama, Washington County Virginia Sheriff’s Office, Abingdon, Virginia Police Department, Rockingham County Virginia RUSH Drug Task Force, Rockingham County Virginia Sheriff’s Office, Harrisonburg, Virginia Police Department, Bessemer, Alabama Police Department, Virginia Department of Corrections, Virginia Department of Corrections Probation and Parole Unit, and the Southwest Virginia Regional Jail Authority. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, and Special Assistant United States Attorney Roy F. Evans, who is also Commonwealth’s Attorney for Smyth County, prosecuted the case for the United States.
Rochester Woman Sentenced to 60 Months for Drug Trafficking and Firearms OffensesRead the Press Release
CONCORD - Haley Hansler, 33, of Rochester, was sentenced to 60 months in federal prison for participating in a drug trafficking conspiracy and possessing a firearm in furtherance of drug trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Hansler conspired with two other individuals to traffic in methamphetamine and fentanyl in the Rochester area. On November 7, 2018, the New Hampshire State Police (“NHSP”) conducted a motor vehicle stop on a vehicle operated by Hansler and seized approximately 58 grams of heroin and smaller quantities of crystal “ice” methamphetamine and other narcotics. Later the same evening, members of the NHSP and the DEA searched Hansler’s hotel room in Ossipee, New Hampshire and seized approximately 171 grams of crystal “ice” methamphetamine and smaller quantities of fentanyl and other narcotics. Law enforcement also seized a semi-automatic handgun from Hansler’s purse. On December 20, 2018, DEA agents arrested Hansler and co-conspirator James Nesbitt at their Rochester residence and seized approximately 60 grams of fentanyl, four firearms, and ammunition.
Hansler previously pleaded guilty on January 21, 2020. Nesbitt pleaded guilty to the charges on March 6, 2020, and is awaiting sentencing.
“Drugs and guns are a potentially deadly combination,” said U.S. Attorney Murray. “In order to protect public safety, we will work closely with our law enforcement partners to identify, prosecute, and incarcerate the armed drug dealers who endanger our communities. When drug traffickers use or possess firearms, they should understand that they will be prosecuted in federal court and receive substantial prison sentences.”
“DEA is committed to bring to justice poly-drug traffickers like Ms. Hansler,” said Special Agent in Charge Brian D. Boyle. “This investigation demonstrates the strength of collaborative law enforcement efforts in New Hampshire.”
This investigation was the product of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). 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.
This case was investigated by the DEA’s Tactical Diversion Squad; the New Hampshire State Police; the United States Postal Inspection Service; and the Strafford County Drug Task Force. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
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