Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
22 June 2020
Bhaskar Patel Sentenced in Kickback and Bribery Scheme in Connection with Government ContractsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Bhaskar Patel, 69, of Horseheads, New York, was sentenced Friday in federal district court in connection with a kickback and bribery scheme conducted in connection with federal energy savings performance contracts (“ESPCs”). While employed by Schneider Electric Buildings America (“Schneider”), Patel unlawfully solicited and accepted $2,536,119.19 in bribes and kickbacks associated with ESPCs from subcontractors to Schneider. According to the Information filed in the case, the scheme ran from June 6, 2011 through April 19, 2016, involved dozens of bribes and kickbacks from eight subcontractors to Schneider, and included amounts ranging from $6,231 to $136,990.19.
“Mr. Patel’s conduct was motivated by a corrupt culture and greed, and I am proud of our prosecutors, staff, and federal law enforcement partners that investigated this complex fraud and convicted Mr. Patel,” said Christina E. Nolan, United States Attorney for the District of Vermont. “This scheme ran for years, swindled millions of dollars, and betrayed the trust expected of government contractors when they receive American taxpayer dollars and have the honor of working with the federal government. The U.S. Attorney’s Office is committed to fighting the financial scourge imposed by procurement fraud and will vigorously enforce our criminal laws against those responsible for this conduct.”
According to the Information, Patel accepted illegal kickbacks and bribes in connection with a $70 million project for the United States Coast Guard (“USCG”) in Aguadilla, Puerto Rico; a $24.7 million project for the United States Department of Agriculture (“USDA”) in Albany, California; a $12.6 million project for the United States General Services Administration (“GSA”) in St. Croix, U.S. Virgin Islands; a $21.8 million project for GSA in San Juan, Puerto Rico and St. Thomas, U.S. Virgin Islands; a proposed project of $42.4 million for work on the VA medical centers in Vermont, Massachusetts, Rhode Island, and Maine; and a $114.3 million project for the U.S. Navy for work on the Naval base in Coronado, California.
For each contract named in the Information, Patel, a Senior Project Manager, was authorized and directed by Schneider to obtain bids from subcontractors and recommend for selection the subcontractors that would be awarded a contract under an ESPC. Schneider further authorized and directed Patel to -- post-selection of a subcontractor -- negotiate change orders, price changes, and oversee and manage subcontractors. Patel knew subcontractors provided gratuities with the intent of obtaining favorable treatment from Patel and Schneider in connection with existing and/or future ESPC contracts awarded by various government agencies to Schneider.
Patel pleaded guilty to one count of accepting illegal kickbacks in connection with federal contracts, a violation of 41 U.S.C. §§ 8702 and 8707, and one count of accepting bribes in connection with federal contracts, a violation of 18 U.S.C. § 666. Chief Judge Geoffrey W. Crawford on Friday sentenced Patel to a term of three years of probation with conditions of supervised release and entered a forfeiture judgment of $2,536,119.19.
“Federal energy savings performance contracts are intended to save VA money. Bribery and other corrupt acts by contractors instead divert and waste precious dollars intended for our nation’s veterans,” said VA-OIG Special Agent-in-Charge Christopher F. Algieri. “The VA Office of Inspector General will continue to work with our partners in the law enforcement community to prevent this type of fraud and hold any wrongdoers accountable.”
USDA-OIG Special Agent-in-Charge Bethanne M. Dinkins commented, “We appreciate the commitment of the U.S. Attorney’s Office and the cooperative efforts of our law enforcement partners throughout this significant investigation. Mr. Patel’s sentence sends a strong message regarding the benefit of working across agency lines to protect the integrity of the procurement process throughout Government. The USDA Office of Inspector General will continue to dedicate resources to investigate those who unlawfully solicit and accept bribes and kickbacks involving USDA contracts.”
Acting Special Agent-in-Charge, Tim Westfall, Naval Criminal Investigative Service, Northeast Field Office said: “Fraud is not a victimless crime, and puts our armed forces at greater risk. The American taxpayers are also victims as the flagrant and wrongful misuse of American taxpayer dollars not only erodes the public trust but also jeopardizes the Department of Navy’s efforts to obtain the best technology, services, and equipment for our brave men and women in uniform. By conspiring to manipulate the contracting process through lies and deceit, those involved have drained significant resources from the Navy and have made it harder for legitimate companies that play by the rules.”
“Federal contractors must be above board in their dealings. The U.S. General Services Administration Office of Inspector General will continue to aggressively pursue those who engage in bribery and kickback schemes,” added Special Agent-in-Charge, Luis Hernandez.
The United States is represented in this matter by Assistant U.S. Attorney Owen C.J. Foster. Bhaskar Patel is represented by David Haas, Esq., of Haas Law in Orlando, Florida; and Heather Ross, Esq., of Sheehey, Furlong & Behm PC in Burlington, Vermont.
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
Beattyville Man Sentenced to 248 Months for Armed Methamphetamine TraffickingRead the Press Release
LEXINGTON, Ky. - A Beattyville, Kentucky man, Michael B. Hensley, 58, was sentenced on Monday to 248 months in federal prison, by Chief U.S. District Judge Danny Reeves, for possession with intention to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to his plea agreement, Hensley admitted that on February 25, 2019, law enforcement officials approached him, based on an outstanding warrant for theft of a firearm, at a convenience store in Richmond, Kentucky. When searching his vehicle, officers located more than 1.9 kilograms of pure methamphetamine and a loaded firearm. Hensley admitted that he possessed the firearm in furtherance of his drug crime.
Hensley pleaded guilty in November 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Sheriff Mike Coyle, Madison County Sheriff’s Office, jointly made the announcement.
The investigation was directed by the DEA and Madison County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Gary Todd Bradbury.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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. Click here for more information about Project Guardian.
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.
— END —
Akron man sentenced to 22 years for selling fentanyl which caused the death of a Wooster woman and firing a handgun during the robbery of an Akron grocery storeRead the Press Release
Justin E. Herdman, U.S. Attorney for the Northern District of Ohio, announced today that Dayviaire Rogers, 27, of Akron, was sentenced to 264 months imprisonment by United States District Court Judge Patricia A. Gaughan. Rogers pleaded guilty to possession with intent to distribute and distribution of fentanyl, interference with commerce by robbery, possession of a firearm and ammunition by a convicted felon, and discharging a firearm during and in relation to a crime of violence on February 7, 2020.
“Today’s sentence sends a strong message that selling fentanyl and violent crime will result in a lengthy prison term,” said U.S. Attorney Justin Herdman. “We will continue to seek long prison sentences for individuals who sell opioids in our neighborhoods and who use firearms to commit acts of violence.”
According to court documents, on March 16, 2019, Rogers sold a substance containing fentanyl to a Wooster woman who used the substance several hours later at a Wadsworth bar, causing her death. Medical examiners later determined the cause of death to be acute fentanyl intoxication.
While investigators from the DEA, Wadsworth Police Department, and the Medina County Drug Task Force were investigating the overdose death, investigators from the ATF and the Akron Police Department were investigating an armed robbery on of an Akron grocery store. As agents and prosecutors collaborated on the parallel investigations, they realized Rogers was suspected of both crimes. On April 20, 2019, Rogers entered the grocery store wearing a mask and aimed a loaded handgun in the face of the store owner and her minor daughter. Rogers stole approximately $7,000 and discharged his firearm during the robbery.
A review of Rogers’ criminal record revealed he was prohibited from possessing a firearm due to prior felony convictions.
These investigations were conducted by the ATF, Drug Enforcement Administration, Medina County Drug Task Force, Medina County Prosecutor’s Office, Wadsworth Police Department and the City of Akron Police Department. The matter was prosecuted by Assistant U.S. Attorneys Christopher J. Joyce and Patrick P. Burke.
20 June 2020
Statement by U.S. Attorney Craig CarpenitoRead the Press Release
Earlier today, Attorney General Barr announced that, by operation of law, Audrey Strauss will become the Acting U.S. Attorney for the Southern District of New York and will serve in that capacity until a permanent successor is in place. Audrey Strauss is a talented and tenacious lawyer, and she is someone for whom I have a great deal of respect. She will uphold the reputation and legacy of the Southern District and honor its fine public servants. I commend the Attorney General on his decision to have Audrey Strauss serve in this capacity, and I look forward to continuing to do the job that I love – leading the great men and women of the District of New Jersey.
Statement of Geoffrey S. BermanRead the Press Release
“In light of Attorney General Barr’s decision to respect the normal operation of law and have Deputy U.S. Attorney Audrey Strauss become Acting U.S. Attorney, I will be leaving the U.S. Attorney’s Office for the Southern District of New York, effective immediately. It has been the honor of a lifetime to serve as this District’s U.S. Attorney and a custodian of its proud legacy, but I could leave the District in no better hands than Audrey’s. She is the smartest, most principled, and effective lawyer with whom I have ever had the privilege of working. And I know that under her leadership, this Office’s unparalleled AUSAs, investigators, paralegals, and staff will continue to safeguard the Southern District’s enduring tradition of integrity and independence.”
19 June 2020
Wilson Man Sentenced to 10 Years for Ammunition Charge Related to Shooting at Highway PatrolmanRead the Press Release
RALEIGH, N.C. – A Wilson man was sentenced today to 120 months in prison for unlawfully possessing ammunition.
According to court documents, on January 14, 2019, North Carolina State Highway Patrol Trooper Daniel Harrell conducted a traffic stop on a vehicle driven by John David Jones, 38, for illegally towing another vehicle. During the traffic stop, Jones fired several 9mm rounds into the windshield of Trooper Harrell’s patrol car, striking Trooper Harrell in the cheek and forehead. Jones fled the scene and Trooper Harrell pursued him until Jones made a U-Turn and rammed Trooper Harrell’s patrol vehicle head-on. At the scene of the shooting, investigators recovered multiple 9mm shell casings, and the defendant’s DNA was found on a recovered shell casing.
Following the sentencing hearing, Mr. Higdon commented: “Every day law enforcement officers across the Eastern District face unknown risks as they attempt to deal with those among us who will not follow the law. Trooper Harrell’s experience with the defendant in January of 2019 is our worst nightmare: he stops a vehicle for a relatively minor suspected violation, he finds himself fighting for his own life as he takes gunfire to the face. We are so grateful that Trooper Harrell survived and has overcome his injuries; but his experience reminds us of the inherent danger law enforcement faces every day and why my office and the U.S. Justice Department are proud to stand with Trooper Harrell who bravely faced this threat for all of us.”
Colonel Glenn M. McNeill of the North Carolina Highway Patrol stated: “Today, several members of the State Highway Patrol family stood alongside Trooper Daniel Harrell, as we collectively attended the sentencing hearing of his attacker. While the punishment imposed affords the Harrell family and law enforcement across our state a sense of closure, we cannot allow today’s court proceeding to overshadow Trooper Harrell’s heroic efforts. My continued hope is that our members will never face a cowardly act such as this and those wishing to do harm to a law enforcement officer understands their actions will not go unpunished. I am eternally grateful for the unwavering partnership among our federal partners from the US Attorney’s Office who worked tirelessly to ensure North Carolina remains a safe place to live.”
This case is part of 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 on a sustained basis in those communities 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. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), United States Marshals Service, North Carolina State Highway Patrol, North Carolina State Bureau of Investigation, Wilson County Sheriff’s Office, Nash County Sheriff’s Office, and Greenville Police Department investigated the case and Assistant U.S. Attorney Chad E. Rhoades prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00304-D.
##
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.
Wilmington Man Sentenced for Illegally Possessing a Stolen FirearmRead the Press Release
RALEIGH, N.C. – A Wilmington man was sentenced today to 77 months in prison for illegally possessing a firearm.
Darrius Franklin Autry, 28, was named in a one-count Indictment filed in the Eastern District of North Carolina on December 3, 2019. The Indictment charged Possession of a Firearm by a Felon on May 15, 2019. Autry pled guilty on March 11, 2020, to the sole count of the indictment.
Court documents indicate that, on May 15, 2019, officers with the Clayton North Carolina Police Department conducted a traffic stop on a vehicle occupied by Autry and two other individuals. Officers approached the vehicle and detected a strong odor of marijuana coming from within the vehicle. Autry, who was seated in the back seat of the vehicle, told officers that he had a gun in his bag on the back seat. Officers subsequently seized Autry’s firearm that was loaded with 10 rounds of ammunition. Additionally, a weapon check on the firearm confirmed that it was stolen out of Durham, North Carolina.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Clayton Police Department (CPD) investigated the case and Assistant U.S. Attorney Daniel W. Smith prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00477-D-1.
###
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.
Wilkes-Barre Man Charged with Additional Offenses for Methamphetamine LaboratoryRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury returned a superseding indictment on June 16, 2020, charging Michael Laury, age 41, formerly of Wilkes-Barre, Pennsylvania, with additional offenses for a methamphetamine laboratory.
According to United States Attorney David J. Freed, the superseding indictment charges Laury with managing a drug premises, a methamphetamine conspiracy, with giving a false statement to federal law enforcement officials. The charges stem from a methamphetamine laboratory that law enforcement officials shuttered at Laury’s residence in June 2017. Laury also is charged with lying to FBI agents about his knowledge of the methamphetamine laboratory.
The matter was investigated by the FBI, the Pennsylvania State Police, and the Wilkes-Barre Police Department. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The penalties under federal law for the most serious offense are a maximum 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
West Hazleton Man Charged with Firearms and Narcotics Trafficking OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Randell Bruton-Scott, age 33, of West Hazleton, Pennsylvania, was indicted on June 16, 2020, by a federal grand jury with crack cocaine trafficking and firearms offenses.
According to United States Attorney David J. Freed, the indictment charges Bruton-Scott with distributing crack cocaine on five different occasions, and with possessing with the intent to distribute more than 28 grams of crack cocaine, in May and June of 2019. Bruton-Scott also is charged with possessing a firearm in furtherance of his narcotics trafficking and with being a felon in possession of firearms and ammunition.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosive, the Luzerne County Drug Task Force, and the West Hazleton Police Department. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The penalties under federal law for the most serious drug offense are a minimum five years and maximum 40 years of imprisonment, for the most serious firearms offense are a minimum five years and maximum life of imprisonment, to run consecutive to any other sentenced imposed, and a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Virginia Resident Indicted for Employment Tax Evasion and Obstructing the IRSRead the Press Release
A federal grand jury in Roanoke, Virginia, returned an indictment today, charging a Virginia resident with evading payment of employment taxes and attempting to obstruct the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Thomas T. Cullen for the Western District of Virginia.
According to the indictment, Jeffrey Tharpe was the owner and operator of Shearin Construction Inc. (Shearin Construction), an excavating and heavy construction business located in Charlotte County. From 2002 through 2013, Tharpe allegedly caused payroll taxes to be withheld from Shearin Construction’s employees’ wages, but failed to fully pay them over to the IRS. In an attempt to make it appear that Tharpe had no ownership interest in the company or its funds, Tharpe allegedly placed the company and its assets in his wife’s name. When the IRS attempted to collect the outstanding payroll taxes from Tharpe’s wife, Tharpe allegedly caused his wife to transfer her interest in real property to him and then encumbered the property with fake debts to place it beyond the IRS’s reach. The indictment alleges that Tharpe owes more than $940,000 in employment taxes, interest, and penalties.
If convicted, Tharpe faces a maximum sentence of five years in prison for tax evasion, and three years in prison for obstructing the IRS. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Cullen commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and William Montague of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Virginia Attorneys Plead Guilty for Orchestrating a $200 Million Extortion Scheme Targeting a Multinational Chemicals CompanyRead the Press Release
Two licensed Virginia attorneys pleaded guilty today to federal extortion charges, admitting their roles in a scheme to extort a multinational chemicals company by threatening to inflict substantial financial and reputational harm on the company if their demands for a $200 million payment disguised as a purported “consulting agreement” were not met.
Timothy Litzenburg, 38, of Charlottesville, Virginia, and Daniel Kincheloe, 41, of Glen Allen, Virginia, each pleaded guilty today to one count of transmitting interstate communications with the intent to extort, before U.S. Magistrate Judge Joel C. Hoppe of the Western District of Virginia. Litzenburg and Kincheloe will be sentenced on Sept. 18, 2020, before U.S. District Court Judge Norman K. Moon.
“This is a case where two attorneys blew well past the line of aggressive advocacy and crossed deep into the territory of illegal extortion, in a brazen attempt to enrich themselves by extracting millions of dollars from a multinational company,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s pleas underscore that when crimes are committed, members of the bar, like all members of the public, will be held accountable for their actions.”
“The consequences of extortion are far reaching, affecting not only individuals, but also the economy in the United States and the world’s financial markets,” said Inspector in Charge Delany De Leon-Colon of the U.S. Postal Inspection Service (USPIS). “Those who engage in this type of abuse of power while in positions of authority should know they cannot escape detection. They will be found and they will be held accountable for their actions.”
As part of their guilty pleas, Litzenburg and Kincheloe admitted that in approximately October 2019, Litzenburg approached a company (Company 1) and threatened to make public statements alleging that Company 1 had significant civil liability for manufacturing a purportedly harmful chemical used in a common household product used to kill weeds. Litzenburg and Kincheloe also admitted that after describing the possibility of damaging lawsuits against Company 1, Litzenburg proposed, in sum and substance, that he and Kincheloe enter into a “consulting arrangement” with Company 1 that would create a purported conflict-of-interest that would effectively stop them from representing their clients as plaintiffs in litigation against Company 1. Thereafter, Litzenburg and Kincheloe admitted that Litzenburg, with Kincheloe’s knowledge and agreement, demanded that Company 1 pay Litzenburg, Kincheloe, and others, a total of $200 million in purported “consulting fees.”
Litzenburg and Kincheloe also admitted that after making their demand for $200 million from Company 1, they registered a Virginia corporation for the purpose of receiving monies from Company 1, and that they agreed to split the funds from Company 1 amongst themselves and their associates, and to not distribute any of the monies Company 1 paid them as purported “consulting fees” to their existing clients. Litzenburg and Kincheloe admitted that after making their demand for $200 million, Litzenburg threatened Company 1 that they and others would commence litigation that would become “an ongoing and exponentially growing problem for [Company 1], particularly when the media inevitably takes notice[,]” and that such litigation would cost Company 1 and its publicly-traded parent company “billions, setting aside the associated drop in stock price and reputation damage.”
Litzenburg and Kincheloe also admitted that in an email written by Litzenburg, they threatened Company 1 that unless they were paid $200 million, Company 1 would have “thousands of future plaintiffs against [Company 1,]” and that “in the absence of a so-called ‘global’ or final deal with me, this will certainly balloon into an existential threat to [Company 1].”
Litzenburg and Kincheloe also admitted that they met in person with attorneys representing Company 1 at a conference center in Charlottesville, Virginia, and during that meeting Litzenburg again threatened to injure the property and reputation of Company 1 and its parent company unless they were paid $200 million pursuant to purported “consulting arrangements,” and that without such a deal there was no way Company 1 “gets out of it for less” than “[a] billion. Yeah. No, I mean, nuisance value, uh, defense lawyer fees, a hit in the stock when this gets filed and served, maybe the press conference, whatever.” Later in the same meeting, Litzenburg and Kincheloe admitted that Litzenburg again stated, in sum and in part, that if they commenced litigation it would have adverse effects on Company 1’s parent’s stock price, which Litzenburg described as “a 40 percent stock loss coming off the top.”
Litzenburg also admitted that, during other communications with Company 1, he told Company 1 that if he received the $200 million in “consulting fees” he would not discuss Company 1 or its parent company with his current clients, and that he was willing to “take a dive” during a deposition of a toxicology expert to deter potential future claims related to litigation against Company 1.
The USPIS investigated the case. Principal Assistant Chief Henry P. Van Dyck and Assistant Chief L. Rush Atkinson of the Criminal Division’s Fraud Section are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
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.
Video Gambling Machine Vendor Sentenced for Tax EvasionRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Thomas Laugen, 69, Sun Prairie, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to 1 year and 1 day in federal prison for income tax evasion.
On July 12, 2019, Laugen pleaded guilty to a one-count information that charged him with evading his 2015 federal income taxes. According to the information filed by the U.S. Attorney’s Office, Laugen owned and operated Global Vending LLC, which operated as a vending company that supplied video gambling machines (VGMs) to Class B alcohol beverage-licensed taverns, restaurants and bowling alleys. The information alleges that Laugen split the cash profits generated by the VGMs with the tavern owners where the machines were placed, with Global typically receiving 25% of the VGM cash profits, and the tavern owners receiving the remaining 75%. The gross receipts from the VGMs were subject to Wisconsin sales tax. The net income from the VGMs were subject to Wisconsin income tax and federal income tax.
As part of the plea agreement, Laugen admitted the he skimmed VGM cash receipts and did not report the skimmed receipts on his state sales tax returns or on his state and federal income tax returns. The total tax loss from the skim, for both state and federal income taxes, and the state sales taxes, totaled over $548,000 for the years 2010-2017.
This tax investigation started with a U.S. Department of Treasury Special Agent working as an undercover agent and posing as a buyer of a bar listed for sale by Cherie and Dudley Hellenbrand in August 2017. The bar was Middleton Sports Bowl (MSB) in Middleton, WI. On May 31, 2018, the undercover agent met with the Hellenbrands and Laugen at Middleton Sport Bowl. During that meeting, Laugen told the undercover agent he skimmed the cash receipts from all of his client’s VGMs, including Middleton Sport Bowl, and that he prepared handwritten collection tickets showing much lower numbers for what came in, what came out, and what was the profit. Laugen told the undercover agent he used the handwritten collection tickets to create fake 1099s that were used to report a portion of the VGM cash receipts to the IRS and to the state of Wisconsin. Laugen also told the undercover agents that he had fake VGM machine-generated tickets created to support the numbers on the handwritten collection tickets in case there was an audit. Laugen explained to the undercover agent that, “you got to steal in this business or you ain’t going to make any money.”
At today’s sentencing, Judge Peterson noted that a prison sentence was required in this case to promote a general deterrence message to the business community. The judge explained that people need to know they must report all of their income and pay taxes -- and if they cheat, they will go to prison. Judge Peterson added that he was “appalled by the idea that it is okay to cheat on your taxes because everyone else in the business community does as well and that the only way to make money is to cheat.” Judge Peterson noted such an idea is wrong and a prison sentence is needed to promote a respect for the law.
Judge Peterson also ordered Laugen to pay $548,416.43 in restitution to the IRS and Wisconsin Department of Revenue noting that, “restitution is not punishment – it is only paying back the loot you took.”
The case against Laugen is the result of an ongoing investigation being conducted by IRS Criminal Investigation and the Wisconsin Department of Revenue, Office of Criminal Investigation. The prosecution of this case is being handled by Assistant U.S. Attorneys Daniel Graber and Chadwick Elgersma.
U.S. Attorney’s Office Shuts Down Website Promoting Prostitution and Sex Trafficking, Indicts OwnerRead the Press Release
The website CityXGuide.com — a leading source of online advertisements for prostitution and sex trafficking that users described as “taking over from where Backpage left off” — has been seized and its owner charged in a 28-count federal indictment, announced United States Attorney for the Northern District of Texas Erin Nealy Cox.
Wilhan Martono, 46, was indicted on June 2 on one count of promotion of prostitution and reckless disregard of sex trafficking, one count of interstate racketeering conspiracy (facilitating prostitution), nine counts of interstate transportation in aid of racketeering (facilitating prostitution), and 17 counts of money laundering. He was arrested on June 17 in Fremont, California by Homeland Security Investigations and the United States Secret Service.
Shortly after the defendant’s arrest, CityXGuide was replaced with a splash page notifying users that the website had been seized by the U.S. Department of Homeland Security pursuant to a warrant.
According to the indictment, Mr. Martono allegedly netted more than $21 million off a suite of illicit websites promoting prostitution and sex trafficking. He allegedly registered the domain names for several of the sites just one day after the FBI shut down Backpage.com, then the internet’s leading source of prostitution and sex trafficking advertisements.
Despite Terms of Use purportedly forbidding the advertisement of illegal sexual services, CityXGuide and its affiliated websites (Backpage.co, CAPleasures.com, and BodyRubShop.com, among others) allegedly allowed brothels, pimps, and prostitutes to post hundreds of thousands of advertisements for sexual services, which users could then filter by geography and preference.
In correspondence with Mr. Martono, one of his CityXGuide advertisers noted that the website was “taking over from where Backpage left off.”
CityXGuide and its companion websites allegedly allowed advertisers to select from a pre-populated list of “intimate activities,” then add nude photographs, descriptions, work hours, methods of payment, and contact information for the women being advertised. In order to secure premium placement, the websites offered paid “upgrades,” which could be purchased in Bitcoin or in exchange for gift cards from Walmart, Best Buy, Lowe’s, Amazon, and other retailers. Mr. Martono allegedly used CardCash, a third party gift card reseller, to exchange these gift cards for U.S. currency.
Mr. Martono allegedly took steps to conceal his online activity by routing website traffic through an IP address in Europe, using a VPN to mask his IP address while conducting CardCash transactions, and funneling his proceeds through a network of business and personal bank accounts. (At the time of Mr. Martono’s arrest, the Department of Homeland Security seized millions of dollars from accounts controlled by Mr. Martono.)
CityXGuide, which served clients across the globe, included a list of 14 “Favorite Cities,” including Dallas, Los Angeles, San Francisco, Las Vegas, Chicago, Atlanta, Miami, and Boston.
Law enforcement has identified numerous minor victims in CityXGuide advertisements, including a 13-year-old Jane Doe recovered in North Texas in November 2019.
“As soon as DOJ shut down one despicable site, another popped up to take its place,” said U.S. Attorney Erin Nealy Cox. “Like the owners of Backpage, this defendant made millions facilitating the online exploitation of women and children. The Justice Department will not rest until these sites are eliminated and their owners held accountable for their crimes.”
“This case is a harsh reminder of the ruthlessness of human traffickers and lengths to which they go, including victimizing women and children, to make a profit,” said Ryan L. Spradlin, Special Agent in Charge of Homeland Security Investigations’ Dallas Field Office. “HSI maintains its unwavering commitment to investigate these heinous crimes, rescue victims, and prosecute the offenders to the fullest extent of the law.”
“The Secret Service remains committed to investigating and pursuing those responsible for cyber-enabled financial crimes. Although the explosive expansion of the cyber domain has forced us to develop innovative ways of conducting these types of investigations, our proven model remains the same,” said Secret Service Special Agent in Charge of the Dallas Field Office William Smarr, adding, “This investigation is an excellent example of a partnership between local, state, and federal law enforcement agencies working together to successfully prosecute numerous violations of federal statutes. There are real innocent victims due to these crimes. The Secret Service also thanks the Northern District of Texas United States Attorney’s Office for their aggressive support.”
“I’m proud of our team who, with our federal partners, relentlessly pursued this investigation for more than a year. Today, we have made a significant impact on one of the world’s largest digital marketplaces for prostitution and sex trafficking. We know many lives will be saved through this joint effort,” said Michael C. Miller, Chief of Police for the Colleyville Police Department.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Martono is presumed innocent unless and until proven guilty in a court of law.
If convicted, he faces up to 25 years in federal prison.
Mr. Martono was charged in part under FOSTA, a law passed in the wake of the Backpage scandal in April 2018 that allows the federal government to prosecute websites that facilitate sex trafficking.
The North Texas Trafficking Task Force conducted the investigation, led by Homeland Security Investigations’ Dallas Field Office, the United States Secret Service, and the Colleyville Police Department, with assistance from HSI’s El Paso and San Jose Field Offices as well as the Texas Department of Public Safety. Assistant United States Attorneys Sid Mody, Rebekah Ricketts, and John de la Garza are prosecuting the case.
U.S. Attorney Justin Herdman’s statement commemorating JuneteenthRead the Press Release
On this day in 1865, Major General Gordon Granger led his Union troops to Galveston, Texas, with this purpose – to formally and finally deliver news that the Civil War had ended and that all enslaved people were free. As part of this announcement, General Granger read General Order Number 3: “The people of Texas are informed that in accordance with a Proclamation from the Executive of the United States, all slaves are free. This involves an absolute equality of rights and rights of property between former masters and slaves, and the connection heretofore existing between them that becomes that between employer and hired laborer.” With those few legalistic words, the last bonds of slavery were slipped in the United States.
The date we now honor with Juneteenth came two months after the formal cessation of hostilities in the Civil War, and more than two and a half years after the Emancipation Proclamation was first issued. Yet it is important because it marks the historical date on which the original promise of freedom, as embodied in our American Revolution, was extended to those who had been excluded from birth – both their individual births and the birth of the United States.
Importantly, though, June 19, 1865, was not the end of guaranteeing the promise of freedom for all Americans. The Department of Justice was created almost exactly five years later, during the administration of President Ulysses S. Grant, to help guarantee the “absolute equality of rights” of all persons, as recognized in General Order Number 3. In fact, the Department’s first order of business was to prosecute members of the Ku Klux Klan who were engaged in a campaign of terror directed against newly-freed slaves across the South. I like to say that our DOJ was born fighting, and that fight has never ceased in the ensuing 150 years.
As men and women of the Justice Department, it is important for us to take a moment today to remind ourselves why we have chosen to work here. The Department of Justice is the only cabinet-level agency named for a moral virtue – Justice -- and that is what we seek, what we obtain, and what we are committed to preserving.
Juneteenth this year is different. We are all witnessing a righteous public outcry against not just unacceptable individual acts of police brutality, but longstanding societal unfairness that still, after 155 years, has not been fully redressed. As members of the Department of Justice who are proudly tasked with carrying forward a grand tradition of upholding the equal rights of all persons, we are in a unique – and I would say, fortunate – position at this time in American history. Although the absolute equality of rights for all has not yet been experienced in this country, this does not mean that it will not ever happen. If it is to happen, and I believe that it will, the Department of Justice will play an important role. For as long as we continue to have men and women who step forward to join this great institution, we are all guaranteed a Department of Justice that will pursue America’s long-sought, collective moral virtue.Juneteenth is a celebration. It is a day of freedom – that was long overdue – and we should all remember and acknowledge it as such.
-Justin E. Herdman, U.S. Attorney for the Northern District of Ohio
Two Plead Guilty in Illegal Alien Smuggling Operation; Three Illegal Aliens Sentenced for Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – Jose Ramon Hernandez-Reyes, 33, an illegal alien from Mexico, and Modesto Alvarado, 18, a United States citizen living in Houston, Texas, pled guilty before Senior U.S. District Judge Louis Guirola, Jr. in connection with illegal alien smuggling in Harrison County, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of Homeland Security Investigations in New Orleans, and Michael J. Harrison, Acting Chief Patrol Agent of the Border Patrol’s New Orleans Sector.
Hernandez-Reyes pled guilty on June 4, 2020, to illegal transportation or moving of an alien. He will be sentenced by Judge Guirola on August 26, 2020 at 10:00 a.m. He faces a maximum penalty of 5 years in federal prison, a $250,000 fine, $5,100 in special assessments, and proceedings to remove him from the United States. Alvarado pled guilty on June 17, 2020, to misprision of a felony, and will be sentenced on September 15, 2020, at 10:00 a.m. He faces a maximum penalty of 3 years in federal prison and a $250,000 fine.
Additionally, three illegal aliens who had been passengers of Hernandez-Reyes and Alvarado pled guilty and were sentenced for unlawful return after removal. Elias Delgado-Ortiz, 19, a citizen of Mexico; Jose Ernaides Aldana-Hernandez, 42, a citizen of El Salvador; and Orbin Noel Gomez-Suarez, 24, a citizen of Honduras, all pled guilty and were sentenced earlier this month to time served (effectively 6 months). They were also sentenced to one year of supervised release, and face Department of Homeland Security proceedings to remove them back to their home nations.
On December 4, 2019, an agent of the South Mississippi Metro Enforcement Team, who also is a City of Gautier Police Officer, conducted a traffic stop on a white Dodge Caravan on Interstate 10 eastbound in Jackson County. After making the traffic stop, the agent found that the driver, Modesto Alvarado, was a U.S. citizen who spoke fluent English, but did not have a valid driver’s license. Including the driver, nine people were in the minivan, which was more than the vehicle was designed to carry or had seat belts to secure. The agent believed a smuggling event was taking place, and notified the U.S. Department of Homeland Security, Blue Lightening Operations Center, in Gulfport, and all occupants were transported to the Gautier Police Department for initial processing.
Homeland Security Investigations special agents and task force agents responded to Gautier to interview the occupants. None of the nine minivan occupants had proper identification documents and eight were found to be illegally present in the United States. After interviewing all occupants, it was determined that seven passengers were being smuggled from Houston, Texas, to different locations throughout the United States. One of the two drivers (who rented the minivan) was Hernandez-Reyes who was determined to be the brother-in-law of Modesto Alvarado. Three of their passengers, Delgado-Ortiz, Aldana-Hernandez, and Gomez-Suarez were determined to have been lawfully deported or removed from the United States, and to have unlawfully returned to the U.S. after their removal.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland
Security, United States Border Patrol, Homeland Security Investigations, the South Mississippi Metro Enforcement Team, the Jackson County Sheriff’s Department, and the City of Gautier Police Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Two Anchorage Women Charged with Illegal Possession of Firearms and Ammunition Following Crime SpreeRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Zayha Marie Meehan, 39, and Sarah Hall-Wright, 30, both of Anchorage, have been charged with illegal possession of firearms and ammunition following a crime spree of shootings and robberies spanning several months.
According to the charging documents, on Sept. 21, 2019, inside their shared Anchorage residence, Meehan and Hall-Wright allegedly robbed two individuals at gunpoint. Specifically, it is alleged that Meehan and Hall-Wright met with the two individuals at Tesoro around 2:30 a.m., and invited them back to their residence. While at the residence, it is alleged that Hall-Wright became upset with one of the individuals for disrespecting Meehan. Both Meehan and Hall-Wright allegedly pulled out separate firearms and stuck them to the back of each individual’s head, demanding they empty their pockets. After robbing them, it is alleged that Meehan and Hall-Wright stood the two individuals up while still pointing firearms at their heads, walked them outside to their car, and told them to leave. Meehan and Hall-Wright were subsequently arrested and a search of their residence revealed several rounds of 9mm ammunition.
During another incident on April 1, 2020, APD officers responded to a report regarding a gunshot fired outside of Meehan’s residence. The responding officers received further information that Meehan was observed and photographed holding a pistol, while arguing with two other individuals outside. A search of Meehan’s residence revealed two handguns, one of which was stolen. Meehan was subsequently arrested on an outstanding warrant.
The charging documents allege four other incidents of misconduct involving weapons, and two other incidents of armed robbery that either Meehan or Hall-Wright were involved in, spanning from August 2019 to April 2020. Meehan has two prior felony convictions for crimes involving assault and attempted robbery, and Hall-Wright has two prior felony conviction for theft, which prohibited them from possessing firearms or ammunition under federal law.
If convicted, Meehan and Hall-Wright each face a maximum penalty of up to 10 years in federal prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Anchorage Police Department (APD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Christopher D. Schroeder of the U.S. Attorney’s Office for the District of Alaska.
This case was made possible by investigative leads generated from ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crime involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The charges in the criminal complaint are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Mexican Nationals Sentenced for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Three Mexican nationals have been sentenced in federal court this week for their roles in a conspiracy to distribute large quantities of methamphetamine.
Alfredo Soto-Contreras, also known as “Antonio,” 38, of Kansas City, Missouri, was sentenced today by U.S. Chief District Judge Beth Phillips to 10 years and 10 months in federal prison without parole. Omar Eliseo Barraza-Bueno, 32, of Arvin, California, was sentenced on June 18, 2020, to 18 years in federal prison without parole. Rey Moreno-Chepe, 26, of Kansas City, Missouri, was sentenced on June 17, 2020, to 11 years and eight months in federal prison without parole.
Soto-Contreras, Barraza-Bueno, and Moreno-Chepe each pleaded guilty to participating in a conspiracy to distribute methamphetamine from May to December 2018. Each of them also pleaded guilty to one count of conspiracy to use firearms in a drug-trafficking crime, and one count of using a firearm in a drug-trafficking crime. Barraza-Bueno and Moreno-Chepe also each pleaded guilty to aiding and abetting the possession of methamphetamine with the intent to distribute.
This investigation into a conspiracy to traffic large quantities of methamphetamine ended on Dec. 18, 2018, when four co-conspirators were arrested in possession of approximately 25 pounds of methamphetamine during an undercover operation. Conspirators sold (or attempted to sell) a total of approximately 13 kilograms of methamphetamine to an undercover agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Conspirators also sold eight firearms to the undercover agent, including several that had been reported as stolen.
Co-defendant Daniel Calderon-Vargas, 31, a Mexican national residing in Arvin, has pleaded guilty and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Thorp Resident Sentenced on Methamphetamine ChargeRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Keith Strong, 50, Thorp, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 72 months in prison for possessing methamphetamine with intent to distribute. Strong pleaded guilty to this charge on February 19, 2020.
On June 20, 2019, the Chippewa County Sheriff’s Office responded to a complaint about a suspicious individual who spent the night outside of a storage facility in Wheaton, Wisconsin. Upon arrival, deputies encountered Strong standing next to a car parked near an open storage unit. During initial questioning, Strong provided law enforcement with a false name. Later, however, he gave the deputy his true name and admitted there was an outstanding warrant for his arrest. Deputies searched Strong’s vehicle and storage unit. Inside the trunk of Strong’s car, deputies found 102 grams of methamphetamine. Strong’s cell phone also contained numerous text messages consistent with drug distribution.
The charge against Strong was the result of an investigation conducted by the Chippewa County Sheriff’s Office and the Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Chadwick M. Elgersma.
The Department of Justice Files Statement of Interest Defending the Constitutionality of Idaho’s Fairness in Women’s Sports ActRead the Press Release
The Department of Justice today filed a statement of interest in Idaho federal court defending Idaho’s Fairness in Women’s Sports Act against a challenge under the Constitution’s Equal Protection Clause.
“Allowing biological males to compete in all-female sports is fundamentally unfair to female athletes” said Attorney General William P. Barr. “Under the Constitution, the Equal Protection Clause allows Idaho to recognize the physiological differences between the biological sexes in athletics. Because of these differences, the Fairness Act’s limiting of certain athletic teams to biological females provides equal protection. This limitation is based on the same exact interest that allows the creation of sex-specific athletic teams in the first place — namely, the goal of ensuring that biological females have equal athletic opportunities. Single-sex athletics is rooted in the reality of biological differences between the sexes and should stay rooted in objective biological fact.”
On March 30, 2020, Idaho enacted the Fairness in Women’s Sports Act (Fairness Act), Idaho Code Ann. § 33-6202 et seq., which goes into effect in July 2020. Idaho’s Fairness Act contains two main provisions. First, covered athletic teams “shall be expressly designated as one (1) of the following based on biological sex: (a) Males, men, or boys; (b) Females, women, or girls; or (c) Coed or mixed.” Idaho Code Ann. § 33-6203(1). Second, “[a]thletic teams or sports designated for females, women, or girls shall not be open to students of the male sex.” Id. § 33-6203(2). The Fairness Act does not contain a comparable limitation for biological females who wish to participate on a team designated for biological males.
In enacting the Fairness Act, Idaho determined that “[h]aving separate sex specific teams furthers efforts to promote sex equality. Sex-specific teams accomplish this by providing opportunities for female athletes to demonstrate their skill, strength, and athletic abilities while also providing them with opportunities to obtain recognition and accolades, college scholarships, and the numerous other long-term benefits that flow from success in athletic endeavors.” Id. § 33-6202(12). In support of this conclusion, the Fairness Act cites authority establishing that inherent physiological differences between men and women generally include a difference in “strength, speed, and endurance” that results in “different athletic capabilities,” which generally give men a significant advantage in head-to-head competition. Id. § 33-6202(1)-(10).
In its statement of interest, the United States explains that the Equal Protection Clause of the Constitution does not require States to abandon their efforts to provide biological women with equal opportunity to compete for, and enjoy the life-long benefits that flow from, participation in school athletics in order to accommodate the team preferences of transgender athletes. Put differently, the Constitution does not require Idaho to provide the special treatment plaintiffs request, under which biological males are allowed to compete against biological females if and only if the biological males are transgender.
Syracuse Man Pleads Guilty to Heroin, Fentanyl, Cocaine ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Isidro De Los Santos, age 33, of Syracuse pled guilty to conspiracy to distribute and possess with intent to distribute, and distribution of heroin, fentanyl, acetyl fentanyl, and cocaine, announced United States Attorney Grant C. Jaquith, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division, and Chief Kenton Buckner, City of Syracuse Police Department
As part of his guilty plea, De Los Santos admitted that he conspired with others to possess with intent to distribute and distribute heroin, fentanyl, acetyl fentanyl, and cocaine from a location on Syracuse’s west side. In pleading guilty, De Los Santos admitted that on six (6) occasions between December 2018 and January 2019, he and co-conspirator Anthony Moreno sold drugs during an undercover operation conducted by ATF, DEA, and the Syracuse Police Department. On January 31, 2019, ATF Agents assisted by the United States Drug Enforcement Administration (DEA) and the Syracuse Police Department Special Investigations Division, executed a federal search warrant at Isidro De Los Santos’s residence and recovered over a pound (743 grams) of heroin mixed with fentanyl in two packages. A federal search warrant executed at the residence of Anthony Moreno on the same day resulted in the seizure of approximately 13 ounces of cocaine. A sentencing date will be set in the future. Anthony Moreno also pled guilty previously and is awaiting sentencing.
At sentencing De Los Santos faces a maximum sentence of life imprisonment, a minimum of ten years imprisonment, a fine of up to $10 million, and a term of post-imprisonment 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.
This case is being investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Drug Enforcement Administration (DEA), and the Syracuse Police Department Special Investigations Division, and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
Statement of U.S. Attorney Geoffrey S. Berman on Announcement by Attorney General BarrRead the Press Release
“I learned in a press release from the Attorney General tonight that I was ‘stepping down’ as United States Attorney. I have not resigned, and have no intention of resigning, my position, to which I was appointed by the Judges of the United States District Court for the Southern District of New York. I will step down when a presidentially appointed nominee is confirmed by the Senate. Until then, our investigations will move forward without delay or interruption. I cherish every day that I work with the men and women of this Office to pursue justice without fear or favor – and intend to ensure that this Office’s important cases continue unimpeded.”
Readout of Attorney General William P. Barr’s Visit with Boston and New York City Police DepartmentsRead the Press Release
On Thursday, June 18, and Friday, June 19, Attorney General William P. Barr traveled to Boston and New York City to visit with leadership and members of each city’s police department. In Boston, the Attorney General met with Commissioner William Gross and his leadership team. In New York City, the Attorney General met with Deputy Commissioner Ben Tucker and other senior NYPD officials. In both meetings, the Attorney General expressed his deep appreciation for, and importance of, the service and work of their departments and discussed policing issues that have been at the forefront of national conversation and debate.
The purpose of the Attorney General’s visit was to show the Administration’s strong support for law enforcement and seek the input of police leadership on a range of issues, including President Trump’s recent Executive Order on Safe Policing for Safe Communities, as well as other issues involving community relations, use of force, officer training, and officer wellness. These visits were the first in a series of meetings Attorney General Barr intends to hold in the coming weeks with police leadership across the nation.
Rainier Man Charged with Kidnapping Ex-GirlfriendRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Rainier, Oregon man has been charged with kidnapping his ex-girlfriend and transporting her from her home in Ilwalco, Washington to Rainier.
James Donald Cooley, 59, has been charged by criminal complaint with one count of kidnapping.
According to court documents, in the early morning hours of May 18, 2020, Cooley is alleged to have traveled from his home in Rainier to his ex-girlfriend’s home in Ilwalco without notice or invitation. He parked his vehicle on the side of Highway 101 near her home. Cooley approached his ex-girlfriend and a confrontation ensued. He grabbed her by her arms, tied her hands together with zip ties, and began pulling her toward the highway. Cooley drug his ex-girlfriend a couple hundred feet to his vehicle, put a knife to her throat, shoved her into the backseat, and began driving back to Rainier.
When Cooley arrived at his residence, his sister, who also lives in Rainier, spotted Cooley’s ex-girlfriend at his residence. Cooley’s sister confronted them and the ex-girlfriend told her that Cooley was going to kill her. Cooley’s sister contacted the Columbia County Sheriff’s Office and reported the incident. Sheriff deputies responded and later arrested Cooley.
Cooley made his initial appearance in federal court today before U.S. Magistrate Judge Stacie F. Beckerman. He was ordered detained pending further proceedings.
This case was investigated by the Columbia County Sheriff’s Office and the FBI. It is being prosecuted by Gregory R. Nyhus, Assistant U.S. Attorneys for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Domestic violence is a serious violent crime that includes both physical and emotional abuse. It is frequently hidden from public view. Many survivors suffer in silence, afraid to seek help or not knowing where to turn. The traumatic effects of domestic violence also extend beyond the abused person, impacting family members and communities.
If you or someone you know are in immediate danger, please call 911.
If you need assistance or know someone who needs help, please contact the National Domestic Violence Hotline at 1-800-799-SAFE (7233). Many communities throughout the country have developed support networks to assist survivors in the process of recovery.
Project Guardian Update: Seven Felons Appear in Federal Court for Gun CrimesRead the Press Release
CHARLESTON, W.Va. -- Defendants in seven separate Project Guardian cases appeared in federal court this week, according to United States Attorney Mike Stuart.
Kevin Lee Ramsey, 30, of Parkersburg, pled guilty to being a felon in possession of a firearm. Ramsey admitted that he possessed a loaded Heckler & Koch 9mm compact semi-automatic pistol within a vehicle in which he was riding as a passenger on August 15, 2019. On that date, the vehicle was stopped by officers with the Parkersburg Police Department near the intersection of 7th Street and Swann Street in the city of Parkersburg. Pursuant to that traffic stop, officers searched the vehicle and discovered the firearm in the glove box directly in front of where Ramsey was seated. At the time that Ramsey possessed this firearm, he knew that he had been previously convicted of the offense of delivery of heroin in Wood County Circuit Court in July of 2015, and was prohibited by law from possessing a firearm. He faces up to 10 years in prison when sentenced on September 9, 2020 in Charleston. The Parkersburg Police Department conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.
Anthony Smith, 44, of Wayne County, was sentenced to 33 months for being a felon in possession of a firearm. He previously admitted that on April 8, 2019, troopers with the West Virginia State Police searched his vehicle in the parking lot of the Speedway gas station on 5th Street Road in Huntington. Troopers located a loaded sawed off shotgun in the vehicle. Smith admitted the gun was his. Smith was prohibited from possessing a firearm under federal law because of a 2005 conviction for the felony offense of aggravated assault with a deadly weapon in Davidson County, Tennessee. The West Virginia State Police conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
Ricky Nelson, 32, of Logan County, was sentenced to 30 months in prison and three years of supervised release for being a felon in possession of a firearm. Nelson previously admitted that on April 30, 2018, he possessed a RG Model 23, .22 in Boone County. While in his possession, the gun fired, shooting another person. His possession of the firearm was illegal due to his having been convicted in the Circuit Court of Logan County for robbery in the first degree. The Boone County Sheriff’s Office conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the sentencing. Assistant United States Attorney Christopher Arthur handled the prosecution.
David Walker, Jr., 45, of Huntington, was sentenced to 57 months in prison and three years of supervised release for being a felon in possession of a firearm. Walker previously admitted that while on parole, he possessed two firearms. He is prohibited from possessing firearms because he was convicted in 2018 of the felony offense of possession with intent to deliver controlled substances in Cabell County. The West Virginia State Police and the West Virginia Division of Corrections Probation and Parole conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor handled the prosecution.
Jonathan Felts, 31, of Greenbrier County, was sentenced to 50 months in prison and three years of supervised release for being a felon in possession of a firearm. Felts previously admitted that on August 16, 2018, he was a passenger in a motor vehicle driving on Route 20 in Summers County. The vehicle was stopped because the registration plates were not visible. The deputy sheriff smelled burned marijuana coming from the vehicle. The deputy had each occupant exit the vehicle. In Felts’ backpack, deputies located a Springfield Armory XDS, .40 caliber six round magazine, numerous empty baggies used in the distribution of controlled substances, a blue digital scale, and approximately three grams of a white crystal substance. Upon further search of the vehicle, deputies located a Glock, model 27, .40 caliber pistol under the passenger seat and a Springfield Armory XDS, .40 caliber pistol stuffed underneath the cushion of the back seat. The Springfield Armory XDS, .40 caliber six round magazine that was located in a lock box found in Felts’ red backpack fit the Springfield Armory XDS, .40 caliber pistol. Felts’ prior felony convictions included delivery of oxymorphone and burglary in Greenbrier County. The Summers County Sheriff’s Department, the Summers County Prosecutor’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Kristin F. Scott handled the prosecution.
David Moore, 40, of Beckley, was sentenced to 46 months in prison to be followed by three years of supervised release for being a felon in possession of a firearm. Moore previously admitted that on April 1, 2017, a Raleigh County Sheriff’s Deputy pulled him over near the Beckley bypass. At the time of the stop, the officer saw a firearm in the back seat area of Moore’s car. Moore admitted to the deputy that he possessed the Sig Sauer P522, .22 caliber semi-automatic firearm found in the car. Moore further admitted that he knew it was illegal for him to possess a firearm because he had been convicted of a felony in 2003 in Raleigh County Circuit Court for delivery of a controlled substance. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Raleigh County Sheriff’s Department. Assistant United States Attorney Timothy D. Boggess handled the prosecution. United States District Judge Frank W. Volk imposed the sentence.
Richard Spinks, 40, of Richwood, was sentenced to 18 months in prison and a term of three years of supervised release for being a felon in possession of a firearm. Spinks previously admitted that he was in possession of a firearm on June 22, 2019, despite his knowledge that he was prohibited by federal law from possessing firearms due to a 2010 felony conviction in Nicholas County Circuit Court for forgery. Spinks was witnessed carrying a Savage .22 caliber rifle into the home of another individual in Richwood by a sergeant with the Nicholas County Sheriff’s Department. When officers arrived at the residence to investigate, they encountered Spinks and two other individuals, who both gave statements indicating that Spinks carried the weapon into the residence. The firearm was seized, and Spinks was then placed under arrest. The Nicholas County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Andrew Tessman handled the prosecution.
The cases are 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 (ATF) 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 these cases with support from the Project Guardian partners listed above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Philadelphia Woman Who Worked with Children at Multiple Locations Arrested for Distributing Child PornographyRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that Tayanna Bowman, 23, of Philadelphia, Pennsylvania, has been arrested and charged with one count of distribution and attempted distribution of child pornography. The charges arise out of the defendant’s alleged distribution of images and videos -- including to an undercover federal agent -- on a file sharing platform over the internet.
At the time of the alleged offenses, Bowman worked with some of the most vulnerable members of society – autistic children. She was employed as a behavioral health technician at ChanceLight Autism Services in Havertown until June 12, 2020. Previously, she was employed as a teaching assistant at Cynthia’s Little Treasures Day Care on North 63rd Street in West Philadelphia.
“The allegations in this case are disturbing,” said U.S. Attorney McSwain. “Any child exploitation case is a very serious matter, but here, the defendant was working with vulnerable, autistic children while she was engaged with an online community of individuals interested in the sexual abuse and exploitation of children -- and illegally distributing child pornography to that community. It is our duty to protect the most vulnerable members of society and we will continue to uphold that duty by bringing to justice anybody who preys upon minor children.”
“It’s extremely concerning when someone allegedly distributing child pornography also works with children,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI is committed to identifying, locating, and holding responsible anyone who circulates this vile material. In doing so, they extend the trauma of the children victimized and drive a demand for additional abusive content.”
If convicted, Bowman faces a statutory maximum sentence of 20 years in prison, a lifetime of supervised release, and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Kelly Harrell.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pearl River County Man Pleads Guilty to Failing to Register as Sex OffenderRead the Press Release
Gulfport, Miss. – Nathanael Cecil Hall III, 37, of Pearl River County, Mississippi, pled guilty yesterday before U.S. District Judge Sul Ozerden to failing to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA), also known as the Adam Walsh Act, announced U.S. Attorney Mike Hurst and U.S. Marshal Mark Shepherd for the Southern District of Mississippi.
Hall will be sentenced by Judge Ozerden on September 24, 2020, at 10:30 a.m. in Gulfport. He faces a maximum penalty of 10 years in prison, a $250,000.00 fine, and 5 years to life of supervised release.
In 2006, Hall was convicted of “Possession of Photographs, Film or other Representation that Knowingly Includes Sexual Conduct of a Child” in Hillsborough County, Florida. As part of his sentence, Hall was required to register as a sex offender. He also was required to notify/register with Florida officials if he moved away from the State of Florida.
In March 2020, Hall did not appear in person for his scheduled sex offender registration in Florida, and it was determined that he had absconded. A full extradition arrest warrant was issued by the Hillsborough County Sheriff’s Office for failure to renew his sex offender registration. The U.S. Marshals Service in the Middle District of Florida was advised by the Florida Department of Law Enforcement that Hall had absconded from supervision and appeared to have departed the State of Florida.
In April 2020, the U.S. Marshals obtained information showing Hall had been in Picayune, Mississippi, during January and February 2020. After an investigation, members of the USMS Gulf Coast Regional Fugitive Task Force traveled to Picayune on May 8, 2020, to locate and arrest Hall. Hall was arrested without incident based on the Florida State Arrest Warrant. He was transported to the Pearl River County Sherriff’s Office, where he was charged with failing to register as a sex offender in Mississippi. He was held at the Pearl River County Adult Detention Facility, until he was released to the U.S. Marshals Service after a federal criminal complaint and arrest warrant were issued. A multi-jurisdiction investigation, coordinated by the U.S. Marshals, showed that Hall failed to fulfill his registration requirement in Florida, and traveled interstate to Mississippi.
Law enforcement records document that Nathanael Cecil Hall, III, also has been known by, or has had attributed to him, the following names or name variations: Nathanael Cecil Paul Hall, III, Nathanael Hall, and Satanica.
U.S. Attorney Hurst commended the coordinated investigation conducted by the U.S. Marshals Service, the Mississippi Department of Public Safety, the Pearl River County Sheriff’s Department, the Florida Department of Law Enforcement, and the Hillsborough County Sheriff’s Department in Florida. The case is being prosecuted by Assistant U.S. Attorney Stan Harris.
Omaha Woman Sentenced for Straw Purchase of Two FirearmsRead the Press Release
United States Attorney Joe Kelly announced that Ashlie Rickards, 27, of Omaha, Nebraska, was sentenced by United States District Judge Robert F. Rossiter, Jr. on June 18, 2020 for transferring a firearm to a prohibited person. She received a three-year term of probation.
An ATF investigation revealed that Rickards purchased two Taurus 9mm handguns in 2016. According to firearms transactions records executed by Rickards, she purchased four handguns between the dates of September 22 and September 24, 2016. Two of the purchases were, by Rickards own admissions, straw purchases. A straw purchase occurs when someone buys a firearm for another person who is legally prohibited from purchasing a firearm.
Between September 11 and September 24, 2019, Omaha Police conducted two interviews with Rickards. Ultimately, she admitted to purchasing two Taurus 9mm 111G2 handguns for her then boyfriend in exchange for money. The boyfriend was prohibited from possessing a firearm. During each purchase, Rickards falsified firearm transaction documents indicating that she was the actual transferee/buyer of the firearm listed when, in fact, she was acquiring the firearm on behalf of another person, which is a violation of federal law. Her boyfriend is not charged at this time.
This case was investigated by Omaha Police officers who are members of a Bureau of Alcohol, Tobacco, Firearms, and Explosives task force. This case is part of Project Safe Neighborhoods, which is a national initiative of the Department of Justice that was announced in 2001 to reduce and prevent violent crime and make the nation’s neighborhoods safer.
Omaha Man Sentenced for Methamphetamine TraffickingRead the Press Release
United States Attorney Joe Kelly announced that John West, Jr., 38, of Omaha, Nebraska, was sentenced by United States District Judge Robert F. Rossiter, Jr. on June 18, 2020, for Conspiracy to Distribute Methamphetamine and Possession with Intent to Distribute Methamphetamine. He received a sentence of 120 months’ imprisonment with a five-year term of supervised release to follow. There is no parole in the federal system.
On December 6, 2018, Sarpy County Sheriff’s deputies utilized an informant to purchase approximately 1.5 grams of methamphetamine mixture from West inside of West’s residence. Then on March 14, 2019, the informant purchased 11 grams of actual methamphetamine from West. On March 25, 2019, the informant purchased 12 grams of actual methamphetamine from West. Later that same day, the informant purchased a stolen/defaced Springfield XDs 9mm handgun from West. On April 11, 2019, the informant purchased 2 grams of actual methamphetamine from West on the street outside of his residence. On April 30, 2019, the informant purchased 11 grams of actual methamphetamine from West. On June 27, 2019, the informant purchased 10 grams of actual methamphetamine from West inside of his residence. On August 6, 2019, officers executed a search warrant on West’s residence and seized 75 grams of actual methamphetamine, a scale, a cell phone, and $801. A search of the phone showed text messages evidencing his involvement in sales of methamphetamine. In a post-Miranda interview, West admitted to selling and using methamphetamine.
This case was investigated by the Sarpy County Sheriff’s Office.
Old Forge Man Charged with Tax EvasionRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christopher Jones, age 53, of Old Forge, Pennsylvania, was charged on June 16, 2020, by criminal information with tax evasion.
According to United States Attorney David J. Freed, the criminal information alleges that Jones failed to report over $500,000 in taxable income between 2014 and 2019 to avoid paying federal income taxes. The information alleges that Jones failed to report income he gained from illegal bookmaking activities. The information further alleges that Jones made false statements to federal agents in February 2019 during the investigation.
The case is being investigated by the U.S. Internal Revenue Service (IRS). Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Niagara Falls Man Indicted on Multiple Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY—U.S. Attorney James P. Kennedy Jr. announced today that a federal grand jury has returned an indictment charging Verquan Jackson, 32, of Niagara Falls, NY, with attempted possession with intent to distribute MDMA, maintaining a drug-involved premises, and possession of a firearm in furtherance of drug trafficking offenses. The charges carry up to 45 years in prison.
Assistant U.S. Attorney Charles E. Watkins, Jr., who is handling the case, stated that according to the indictment and a previously filed complaint, on February 13, 2020, the United States Postal Inspection Service was notified about a box that was shipped from California to Niagara Falls breaking open during transit. Inside the box, which was addressed to Jackson at his 65th Street residence, were approximately 41 lbs. of 2 oz. individual narcotics distribution baggies.
Subsequently, on April 8 and May 19, 2020, search warrants were executed on packages addressed to the defendant’s residence but in the names of B. Jackson and Jane Brown. One package contained approximately 695 grams of suspected marijuana and paraphernalia. The other package contained approximately 652 grams of multicolored pills containing MDMA and fentanyl.
On May 21, 2020, the package containing the MDMA was replaced with sham and delivered to Jackson’s residence. A short time later, investigators executed a search warrant inside the residence. They recovered a 9mm firearm; five digital scales; a box of plastic sandwich baggies; clear plastic bags containing a tan powdery substance; designer drug packaging bags; and multiple clear plastic bags containing suspected marijuana.
Jackson made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder and was released on conditions.
The indictment is the culmination of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the Niagara Falls Police Department, under the direction of Superintendent Thomas Licata.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Neopit Woman Indicted for Felony Child Abuse on the Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on June 16, 2020, a federal grand jury returned a one-count indictment against a woman allegedly involved in felony child abuse against a child on the Menominee Indian Reservation. The indictment named Markala K. Waukau (age: 18) of Neopit.
The indictment charged Waukau with Felony Child Abuse in violation of 18 U.S.C. § 1153(a) and Wis. Stat. § 948.02(b)(2). If convicted, Waukau faces a maximum of three years in prison, up to a $10,000 fine, and up to three years of supervised release.
According to the indictment, on or about January 6, 2020, the defendant struck a child under the age of one with an elbow while at a residence on the Menominee Indian Reservation. The child’s injuries included a fractured skull and hematomas.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which will be prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
# # #
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
Follow us on Twitter
Maryland Man Sentenced to 70 Months' Imprisonment for Narcotics Trafficking Conviction in ATF Firearms and Narcotics InvestigationRead the Press Release
WASHINGTON – Marcus Stackhouse, 37, of Maryland was sentenced today to 70 months’ imprisonment on a federal narcotics trafficking charge stemming from his narcotics trafficking in the summer and fall of 2019, announced Acting U.S. Attorney Michael R. Sherwin, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
On February 13, 2020, Stackhouse pled guilty in the U.S. District Court for the District of Columbia to one count of Conspiracy to Distribute and Possess with Intent to Distribute 28 Grams or more of Cocaine Base. Today, June 19, 2020, he was sentenced to 70 months’ imprisonment followed by four years of supervised release by the Honorable Amit P. Mehta of the U.S. District Court, with some of that term to run concurrently to his ongoing sentence in Prince George’s County, Maryland.
Stackhouse was arrested after the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) engaged in a large-scale drug investigation in the 2900 block of Martin Luther King Jr. Avenue, Southeast, Washington, D.C. and arrested multiple individuals involved with narcotics trafficking. During the investigation, the ATF conducted several controlled purchases of narcotics from Stackhouse, to include the purchase of cocaine base (also known as crack cocaine). After Stackhouse was arrested on a separate firearms charge in Maryland, Stackhouse’s brother – Kevin Stackhouse – took over the narcotics trafficking on Stackhouse’s behalf. On October 9, 2019, ATF obtained a search warrant and conducted a search of Kevin Stackhouse’s residence, finding a digital scale, drug paraphernalia, cocaine residue, two loaded firearms – a .22 caliber firearm and a revolver – and four imitation firearms. Law enforcement also recovered nearly 400 rounds of ammunition, and two additional firearms magazines. On January 8, 2020, Kevin Stackhouse pled guilty to one count of Using, Carrying, and Possessing a Firearm in Furtherance of a Drug Trafficking Offense, and on May 7, 2020, Judge Mehta sentenced Kevin Stackhouse to 60 months’ imprisonment.
“This investigation is another example of our ability and desire to disrupt drug trafficking organizations in the District of Columbia, even and especially during a global public health crisis,” said Acting U.S. Attorney Sherwin. “As a result of this effort, we were able to remove dangerous narcotics and firearms off of our streets.”
“Today’s sentencing is the culmination of an extensive and highly successful investigation by our dedicated agents and law enforcement partners,” said ATF Washington Special Agent in Charge Ashan M. Benedict. “This operation accomplished multiple objectives, including the removal of firearms and ammunition, as well as the arrests and convictions of multiple suspects tied to these crimes. Our communities are safer today as a result of these efforts.”
“This arrest and conviction gets us one step closer to making our communities in the District safe from illegal drugs, firearms and violent crime,” said Metropolitan Police Chief Peter Newsham. “The coordinated effort between federal and local agencies demonstrates our commitment to bringing individuals involved in these types of crimes to justice.”
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
This case was also prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime-reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the District of Columbia, Acting U.S. Attorney Sherwin coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
In announcing the sentence, Acting U.S. Attorney Sherwin, Special Agent in Charge Benedict, and Chief Newsham commended the work of those who investigated the case, including ATF and MPD. They also expressed appreciation for the assistance provided by the United States Secret Service, U.S. Marshals Service, Prince George’s County, Md. Police Department, and the U.S. Attorney’s Office for the District of Maryland.
Finally, they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, Assistant U.S. Attorney Gregory Rosen of the Violent Crime and Narcotics Section, Paralegal Specialist Teesha Tobias, Kim Hall, Candace Battle, and Legal Assistant Peter Gaboton.
MS-13 Members Sentenced to Prison for Violent 2018 AttackRead the Press Release
ALEXANDRIA, Va. – Two MS-13 members were sentenced today to over a combined 28 years in prison for their roles in a December 2018 shooting and stabbing that occurred in Four Mile Run Park.
“Yes, Northern Virginia has a gang problem,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “I have personally handled the prosecution of MS-13 members in Alexandria for over a decade. By burying their heads in the sand and lacking courage to address a problem because they mistakenly deem it to be politically incorrect, various community leaders in Northern Virginia simply refuse to acknowledge the gang problem to the detriment of the same Hispanic community they claim to be defending. No one suffers more at the hands of MS-13 than other individuals of Central American birth or ancestry. MS-13 gang members extort minority owned businesses in their own communities, sexually traffic first generation American juveniles, and brutally assault and even murder Hispanic boys and girls who they believe have disrespected the gang. This case is proof positive of the need for community leaders in Northern Virginia to acknowledge this reality and work to be part of the solution. We cannot prosecute MS-13 out of existence. The community must play a significant role to protect our youth from joining the gang in the first place. I believe that together we can eliminate the gang problem in Northern Virginia.”
According to court documents, Juan Francisco Rivera-Pineda, 25, and Jefferson Noe Amaya, 25, both of Alexandria, are members of the Pinos Locos Salvatrucha (PLS) clique of MS-13, which operates in Chirilagua, an area in Alexandria near the border of Arlington.
On Dec. 30, 2018, Rivera-Pineda and Amaya shot and stabbed a 40-year-old victim while the victim and his two friends were in Four Mile Run Park. The victim’s nephew had been warned by PLS not to sell drugs in PLS territory without paying rent. On the night of the shooting, Rivera-Pineda, Amaya, and a third unidentified suspect confronted the victim in the park, shooting him in the throat and arm, and stabbing him in the torso. The victim was transported to the hospital where he underwent surgery and survived.
“Today's sentencings send a clear message that the FBI and the Safe Streets Task Force remain aggressive in investigating and dismantling gang activity that brings violence and fear into our communities,” said James A. Dawson, Special Agent in Charge of the Criminal Division, FBI Washington Field Office. “The FBI will continue steadfastly in its goal to take these violent offenders off the street and ultimately bring justice to the victims of these brutal acts.”
Rivera-Pineda and Amaya each pleaded guilty to assault with a dangerous weapon in aid of racketeering activity, and discharging a firearm during a crime of violence. Rivera-Pineda was sentenced to 161 months in prison, and Amaya was sentenced to 177 months. Each sentence included a mandatory minimum penalty of 10 years.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Blue Heat. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This matter was investigated by the FBI Washington Field Office’s Safe Streets/HIDTA Task Force – Northern Virginia, which is composed of FBI Agents, along with Detectives from the Fairfax County Police, Alexandria City Police, Prince William County Police, Arlington County Police, Alexandria Police Department, Alexandria Sheriff’s Office, Vienna Police Department, Herndon Police Department, along with Agents from the Department of Homeland Security Enforcement Removal Operations, the USMS, and the Northern Virginia Gang Task Force. The task force is charged with investigating, disrupting and dismantling the most egregious and violent gangs operating in Northern Virginia to include MS-13.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; M. Jay Farr, Arlington County Chief of Police; and James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Morris Parker and Natasha Smalky prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-225.
Long Island Man Indicted on Sexual Exploitation and Child Pornography ChargesRead the Press Release
An indictment was filed today in federal court in Central Islip charging Thomas Blaha with traveling to the Philippines with intent to engage in illicit sexual conduct, sexual exploitation of a child, distribution of child pornography and possession of child pornography. Blaha was arrested on a complaint in February 2020 and released on a $1 million bond. He will be arraigned at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the charges.
“The defendant allegedly traveled halfway across the globe to sexually exploit a minor that he had enticed through Facebook and create child pornography,” stated United States Attorney Donoghue. “The Department of Justice is committed to protecting children from online predators by identifying such offenders and prosecuting them to the full extent of the law.”
“It is alleged Blaha made trips to the Philippines to sexually abuse a 13-year old female who was being exploited for money,” stated HSI Special Agent-in-Charge Fitzhugh. “Crimes involving the sexual exploitation of unwitting children are the most heinous and will not be tolerated, regardless of where the sexual acts occur. HSI is a global investigative agency, and with our resources and partnerships with the United States Attorney’s Office, we will stop at nothing to put an end to child victimization worldwide.”
According to court filings, in September and October 2019 Blaha traveled from New York to the Philippines to engage in sexual activity with a 13-year-old female and persuade her to take sexually explicit images of herself and send them to him in exchange for money. As a part of the government’s investigation, in December 2019, search warrants were obtained for Blaha’s Facebook account, as well as his residence in Garden City and his electronic devices. The searches revealed hundreds of images of children engaged in sexually explicit conduct.
The charges in the indictment are allegations only, and the defendant is presumed innocent unless and until proven guilty. If convicted, Blaha faces a mandatory minimum sentence of 15 years’ imprisonment.
This prosecution 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 United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Anna L. Karamigios is in charge of the prosecution.
The Defendant:
THOMAS BLAHA
Age: 64
Garden City, New YorkE.D.N.Y. Docket No. 20-CR-220 (JMA)
Labor trafficker sentenced for encouraging the illegal entry of Guatemalan nationals, including unaccompanied minors, into the United StatesRead the Press Release
Justin E. Herdman, U.S. Attorney for the Northern District of Ohio, announced that Pablo Duran Ramirez, age 52, was sentenced to 37 months imprisonment, three years supervised release and ordered to pay a $67,232 fine after pleading guilty to one count of encouraging illegal entry for financial gain on September 17, 2018. According to court documents, Ramirez encouraged the illegal entry of Guatemalan nationals, including unaccompanied minors, into the United States, knowing that the individuals had been smuggled into the United States through coercion or threat.
“Ramirez exploited the desperation of migrant workers and, in some instances, their children for his own personal financial gain,” said U.S. Attorney Justin Herdman. “Human trafficking can take many forms, and this sentence reflects the Justice Department’s commitment to combat this plague in every shape it takes.”
"Ramirez, in conspiracy with three other previously convicted individuals, coerced and assisted individuals to enter the United States illegally, many of them children, forcing them to live in deplorable conditions and work for little to no wages,” said Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Division. “These reprehensible actions are unacceptable. The FBI will continue to work with our partners to identify and bring to justice those who engage in human trafficking."
Ramirez, through his company, Haba Corporate Services, contracted to provide labor to Trillium Farms, knowing that the workers were unlawfully present in the United States. He further admitted to knowing that some of the workers were unaccompanied minors who had been coerced or threatened to enter the United States and then housed in an isolated trailer park in Marion, Ohio. In 2013 and 2014, Trillium Farms paid the defendant’s company approximately $6 million for its labor services.
Three other defendants—Aroldo Castillo-Serrano, of Guatemala, Ana Angelica Pedro-Juan, of Guatemala, and Conrado Salgado-Soto, of Mexico—previously pleaded guilty for their roles in the same labor trafficking scheme. Castillo-Serrano, the lead smuggler and primary enforcer, was sentenced to 188 months in prison; Pedro-Juan, who oversaw the victims in Ohio, was sentenced to 120 months; and Salgado-Soto, a subcontractor hired by Duran Ramirez, was sentenced to 51 months.
Those defendants admitted to recruiting workers from Guatemala, some as young as 14 or 15 years old, falsely promising them good jobs and a chance to attend school in the United States. The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and work at physically demanding jobs at Trillium Farms for up to 12 hours a day. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens. During their sentencing, Senior United States District Judge James G. Carr found that they had threatened workers with physical harm and withheld their paychecks in order to compel them to work. Eight minors and two adults were identified as victims of the scheme.
Three additional defendants, including Duran Ramirez’s son, pleaded guilty for their roles in encouraging the workers’ illegal entry into the United States.
This case was investigated by the FBI’s Cleveland Office, Mansfield Resident Agency and the Department of Homeland Security. The case was jointly prosecuted by Assistant U.S. Attorney Chelsea Rice and Dana Mulhauser, formerly of the Civil Rights Division’s Criminal Section.
Keshena Man Indicted for Domestic Violence on the Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on June 16, 2020, a federal grand jury returned a one-count indictment against a man allegedly involved in domestic violence against a woman on the Menominee Indian Reservation. The indictment named Justin M. Moore (age: 35) of Keshena.
The indictment charged Moore with Domestic Assault by Strangulation in violation of 18 U.S.C. § 113(a)(8). If convicted, Moore faces a maximum of ten years in prison, up to a $250,000 fine, and up to three years of supervised release.
According to the indictment, on or about December 1, 2019, the defendant strangled a woman with whom he had a dating relationship on the Menominee Indian Reservation.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which will be prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
# # #
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
Follow us on Twitter
Kayenta Man Sentenced to Federal Prison for Domestic AssaultRead the Press Release
PHOENIX, Ariz. – On Monday, Ervin Crank, 58, of Kayenta, Arizona, was sentenced by U.S. District Judge Steven P. Logan to 30 months of imprisonment to be followed by three years of supervised release. Crank previously pleaded guilty to assault of an intimate partner or dating partner resulting in substantial bodily injury.
On July 1, 2019, Crank assaulted the victim by striking her multiple times with his hand. The assault occurred on the Navajo Nation Indian Reservation and both Crank and the victim are enrolled members of the Navajo Nation.
The Navajo Nation Division of Public Safety and the Federal Bureau of Investigation conducted the investigation in this case. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-19-08192-PCT-SPL
RELEASE NUMBER: 2020-059_Crank# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Kaplan Sex Offender Sentenced to 7+ Years in Federal Prison for Possessing Child PornographyRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a Kaplan, Louisiana, man with a prior 2002 state conviction of carnal knowledge of a juvenile, was sentenced in federal court today for a child pornography offense.
Jessie C. Comeaux, 37, was sentenced by U.S. District Judge Michael J. Juneau., to 87 months in federal prison for possession of child pornography. Following his imprisonment, Comeaux will be supervised by the United States Probation Office for eight years and will be required to register with the state sex offender registry in any state in which he lives or works. Comeaux pled guilty to this charge on March 12, 2020.
According to court records, the investigation began when the National Center for Missing and Exploited Children (NCMEC) reported a CyberTip to special agents with the Louisiana Bureau of Investigations (LBI) Cyber Crimes Unit indicating that an IP address associated with Comeaux’s address used an electronic device to access child pornography. Special agents with U.S. Department of Homeland Security Investigations (HSI) obtained a federal court-authorized search warrant, and on April 1, 2019, law enforcement officers with HSI, LBI and Vermilion Parish Sheriff’s Office executed the search warrant at Comeaux’s residence in Kaplan. A laptop previewed during the search revealed images of child pornography. Comeaux admitted to the officers that he was the primary user of the laptop and that he viewed images of child pornography on the internet involving females 10 and 12 years of age.
A subsequent forensic analysis of Comeaux’s laptop revealed 42 images of pre-pubescent and post-pubescent children engaged in sexually explicit conduct, some as young as two years of age. Seven of the images had been downloaded by Comeaux from the internet.
The U.S. Department of Homeland Security Investigations, Louisiana Attorney General’s Office Cyber Crime Unit, and Vermilion Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Danny Siefker prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood combines 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.justice.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the “resources” tab.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/tipline or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Tips may also be submitted through your local law enforcement agency or through the following agencies:
- Leave a tip with the FBI at https://tips.fbi.gov. Tips may be submitted anonymously.
- File a report with NCMEC at 1-800-THE-LOST or online at www.cybertipline.org.
# # #
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.
KC-Area Brothers Plead Guilty to $4 Million Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Two Kansas City-area brothers have pleaded guilty in federal court this week to their roles in a multi-million dollar investment fraud scheme.
Phillip Hudnall, 49, of Lenexa, Kansas, waived his right to a grand jury and pleaded guilty today before U.S. District Judge Roseann Ketchmark to a federal information that charges him with conspiracy to commit money laundering. His brother, Brian Hudnall, 43, of Kansas City, Missouri, pleaded guilty on Wednesday, June 17, to the same charge in a separate but related case.
Phillip Hudnall was one of the owners of BirdDog Business Group, LLC. Brian Hudnall owned and operated a business called DonDon LLC.
Phillip Hudnall and his co-conspirators proposed an opportunity to high net worth individuals to invest in the purchase, refurbishing, and sale of used oil equipment. Phillip Hudnall informed investors that their principal would be returned within nine months along with 20 to 30 percent interest.
Phillip Hudnall informed the investors that BirdDog had completed two successful transactions – a $244,000 loan and a $490,000 loan, both of which had been repaid with an interest rate of 30 percent. In fact, no prior completed transactions occurred and no monies were received from the sale of any oil equipment including any principal or interest. To support the false claim, Phillip Hudnall requested that Brian Hudnall create documents as proof of the prior successfully completed transactions. Brian Hudnall wrote two checks on a DonDon bank account that was closed. Brian Hudnall also created a fraudulent memorandum to support the false claim.
Phillip Hudnall informed the investors that the monies raised would be used to purchase specific pieces of oil equipment for refurbishment and resale. Persons invested approximately $3.6 million for the purpose of purchasing specific pieces of oil equipment. Phillip Hudnall and another person also obtained a loan from a bank in Pittsburgh, Pennsylvania, for approximately $1.3 million to finance the oil equipment scheme.
From February through June 2019, Phillip Hudnall transferred approximately $4.1 million from the BirdDog Oil Equipment bank account to the DonDon bank account. Thereafter, Brian Hudnall transferred approximately $4 million from the DonDon account to the bank account of Kansas Oil Reserve 2, another company owned by Phillip Hudnall and operating at the same address as BirdDog Oil Equipment.
Phillip Hudnall used approximately $925,000 of that money to purchase “used oil equipment.” He used the remainder of the investor funds to purchase mineral rights in Weld County, Colorado, for $1.7 million, a BMW for $99,000, and transfer approximately $1.6 million to his other business and personal bank accounts.
Brian Hudnall retained approximately $58,000 of the investor monies in the DonDon account. Brian Hudnall transferred $34,000 to other accounts, paid over $15,000 in credit card charges, and withdrew approximately $6,000 in cash.
Under the terms of their plea agreements, Phillip and Brian Hudnall must pay restitution to the victims of the fraud scheme, in an amount to be determine by the court. They must also forfeit to the government an amount to be determined by the court. The government believes a money judgment in the amount of at least $3,848,067, representing the proceeds Phillip Hudnall received as result of the criminal conspiracy , is supported by the evidence. Phillip Hudnall must forfeit his 2019 BMW X7 and his mineral and royalty rights.
Under federal statutes, Phillip and Brian Hudnall each are subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
These cases are being prosecuted by Assistant U.S. Attorneys Kathleen D. Mahoney and Paul S. Becker. They were investigated by the FBI and the Securities and Exchange Commission.
KC Man Sentenced for $2.5 Million Tax Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for a scheme to obtain more than $2.5 million in fraudulent federal income tax refunds, in part by stealing his children’s identities.
“This lifelong criminal has spent his entire adult life committing one fraud after another,” said Garrison, “but he reached a new low when he used his own children in a failed tax fraud scheme. Even after being indicted by a federal grand jury, he continued to steal from the public by filing another false tax return and by fraudulently claiming unemployment benefits. Today’s substantial prison sentence will deter him from committing more crimes and protect the public from his habitual thievery.”
“Today’s sentencing further shows that IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” stated Acting Special Agent in Charge Adam Steiner. “Individuals who commit refund fraud with this degree of dishonesty and deceit, deserve to be punished to the fullest extent of the law. IRS Criminal Investigation along with the United States Attorney’s Office remains vigilant in identifying, investigating, and prosecuting those individuals who seek to willfully defraud the United States Treasury.”
Michael A. Kheop, 53, was sentenced by U.S. Chief District Judge Beth Phillips to eight years and six months in federal prison without parole. The court also ordered Kheop to pay $24,322 in restitution.
On Dec. 2, 2019, Kheop was found guilty at the conclusion of a bench trial of three counts of making false claims, two counts of mail fraud and one count of aggravated identity theft.
Kheop created a fraudulent business entity in 2013. He then created fraudulent W-2 forms that contained false income and withholding in order to fraudulently claim refunds in his own name and using his three minor children’s names. Kheop filed 12 fraudulent claims for refunds on behalf of his three minor children for tax years 2014 through 2017. He filed four fraudulent claims for refunds in his own name for tax years 2015 through 2017.
By filing the 15 fraudulent claims for refunds, Kheop attempted to defraud the government of $2,591,706. The U.S. Treasury actually paid Kheop $24,322. In August 2017, the IRS sent Kheop a check for $717,910 based on his false 2016 return, but Central Bank refused to deposit the check due to suspected fraud and contacted the IRS. In 2018, the IRS also sent Kheop a check for $1,596,765 based on his false 2017 tax return, which Kheop attempted to deposit at Merrill Lynch/Bank of America. Once again, the bank suspected the check was fraudulent and refused to release the funds to Kheop.
The false claims convictions are specifically related to three tax returns Kheop filed in 2018, one in his own name and two in the names of his minor children. The mail fraud convictions are specifically related to refund checks mailed to Kheop’s post office box. The aggravated identity theft conviction is specifically related to the use of his minor child’s name and Social Security number on a federal income tax return.
On Oct. 10, 2018, Kheop was released on bond after indictment in this case. While on pre-trial supervision, on Feb. 22, 2019, he filed yet another false tax return for tax year 2018, claiming he worked for “Michael Kheop,” that he earned $17,500, and withheld $1,451 in federal income taxes. Kheop also filed false unemployment claims with the state of Missouri in 2017 and 2018, while on pre-trial release, claiming he worked for (and was laid off from) yet another fictional company, Quddus. The state of Missouri paid Kheop a total of $7,680 based on his false unemployment claims. Based on these new law violations, the court revoked Kheop’s pre-trial supervision.
Today’s sentence includes an enhancement for obstruction of justice because Kheop testified falsely at his trial that he paid income tax withholding.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney and Special Assistant U.S. Attorney Bradley Cooper. It was investigated by IRS-Criminal Investigation.
Justice Department Files Lawsuit Against Stafford County, Virginia, over Blocking of Islamic CemeteryRead the Press Release
The Justice Department today announced that it has filed a lawsuit alleging that Stafford County, Virginia, violated the Religious Land Use and Institutionalized Persons Act (RLUIPA) by enacting overly restrictive zoning regulations prohibiting an Islamic organization from developing a religious cemetery on land it had purchased for that purpose.
“The United States of America must and will remain a nation committed to the right of all people to practice their faith free from unjustified governmental restrictions. Indeed, this nation exists to provide sanctuary to people seeking the religious freedom that is too often denied in other parts of the world, and the Department of Justice is committed to protecting the fundamental right of people of all faiths to practice their religion free from illegal governmental interference,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “That right protects the freedom of faith communities to use their land for religious purposes, including for cemeteries, houses of worship, and religious schools.”
“Honoring and burying the dead is a sacred religious act for many faith traditions,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The complaint that was filed in this case demonstrates this office’s commitment to ensuring that those of all faiths are not substantially burdened by improper local government actions in practicing their religious rituals.”
The complaint, filed in the Eastern District of Virginia, alleges that the county passed an ordinance in 2016 that blocked the All Muslim Association of America from developing an Islamic cemetery on a 29-acre parcel of land that it owns. When the association bought the property, it complied with all of the state and local requirements for use as a cemetery. But after learning of the association’s plans, the county amended its ordinance to require that cemeteries be no closer than 900 feet from private wells and certain types of streams, thus preventing the association from using its property as a cemetery. The United States’ complaint alleges that this requirement is far more restrictive than the Virginia Department of Health’s 100-foot distancing standard, has no legitimate health justification, imposes a substantial burden on the association’s religious exercise, and is not narrowly tailored to achieve a compelling governmental interest.
The complaint seeks injunctive relief, including a court order that the county allow the association to build its cemetery in conformity with the prior ordinance.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Juneteenth Message from Civil Rights Division Assistant Attorney General Eric DreibandRead the Press Release
Assistant Attorney General for Civil Rights Eric Dreiband issued the following statement today regarding Juneteenth:
“On June 19, 1865, the Emancipation Proclamation was first announced to enslaved African-Americans in Texas. On that day, Union soldiers, led by Major General Gordon Granger, landed at Galveston, Texas, with news that the Civil War was over and that the enslaved were now free. This was two and a half years after President Abraham Lincoln’s Emancipation Proclamation became the official policy of the United States on January 1, 1863.
“Today, “Juneteenth” has become a day to recognize the abolition of slavery and the continuing work to promote racial equality for all Americans.
“When President Lincoln issued the Emancipation Proclamation, it had little impact on Texans due to the minimal number of Union troops to enforce it. For over two years, 250,000 men, women, and children remained enslaved in Texas. When Confederate forces surrendered in April of 1865, and Union soldiers led by General Granger arrived in Texas, the Union army overcame the resistance.
“After General Granger arrived in Texas, he issued General Order Number 3. It began:
"The people of Texas are informed that in accordance with a Proclamation from the Executive of the United States, all slaves are free. This involves an absolute equality of rights and rights of property between former masters and slaves, and the connection heretofore existing between them becomes that between employer and hired laborer."
“The Juneteenth announcement in Texas sparked joyous celebrations of freedom that have grown in communities across our nation for the past 155 years. Today, forty-seven states and the District of Columbia officially commemorate Juneteenth.
“But even after the Juneteenth announcement, a regime of racial violence, intimidation, abuses of authority under color of law, and the use of debts, threats, and assaults held many of the ostensibly freed citizens in conditions of inequality.
“While Juneteenth is a joyous celebration of emancipation from enslavement, it also serves as a solemn reminder that words alone cannot deliver on the promises of freedom, individual rights, and equal justice for all. It is a reminder that, although our nation has come a long way from our history of state-sanctioned slavery and segregation, our work remains unfinished.
“It would be another century before the civil rights movement – in the second wave of Reconstruction – resulted in passage of the Civil Rights Act of 1964. That long overdue legislation was the result of courageous citizens who spoke out against injustice, made their voices heard, and propelled our nation toward a more complete embrace of freedom and equality.
“In the decades since 1964, the Civil Rights Division has served on the front lines of enforcing laws against racial injustice and deprivations of individual rights. It has been steadfast in its commitment to vindicating the rights of individuals who have suffered discrimination and holding perpetrators accountable for the violations they commit.
“This year, Juneteenth affords us an opportunity for somber reflection on our past and future as we continue to work for the realization of the promise of equal rights under the law for all African Americans, so celebrated at the first Juneteenth. The Civil Rights Division will continue to vigorously enforce the laws that protect the rights, lives, and freedoms guaranteed to all individuals under the law.
“Yet, Juneteenth also serves as a reminder of the grief and anguish our nation has experienced over the lives lost and the dreams destroyed by acts of racially-motived violence, abuses of power, and injustice.
“Just five years ago, as Juneteenth approached, our nation was reeling from the horrific act of racial violence that took the lives of nine worshippers at Mother Emmanuel AME Church in Charleston, South Carolina on June 17, 2015. The Department of Justice convicted and obtained the ultimate penalty against the perpetrator.
“This Juneteenth, we recognize the progress our country has made, and the work that remains unfinished. We pledge to continue to deliver, to all Americans regardless of race, on the promises of freedom and equal justice under the law enshrined in the Constitution and laws of the United States.”
Janesville Felon Sentenced for Possessing FirearmRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Deshawn Foreman, 24, Janesville, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 48 months in federal prison for possessing a firearm as a felon. This prison term will be followed by three years of supervised release.
On July 24, 2019, Foreman led Janesville police officers on a foot chase, during which he dropped a .45 caliber magazine. He was not apprehended that day, but on the following day, officers observed Foreman get in a car and drive towards the Town of Beloit, where he abandoned his vehicle and attempted to hide from officers for several hours in a wooded residential area. He was apprehended only after police officers found him pointing a .45 caliber Glock firearm at them.
At the time of this offense, Foreman was on state supervision for burglary.
In sentencing the defendant, Judge Conley noted that Foreman‘s offense was particularly serious and reflected a general disregard for his safety and that of the arresting officers. Judge Conley also considered the defendant’s significant criminal history for his age, and that prior terms of supervision and rehabilitation programs did not appear to create any discernable changes in the defendant’s behavior.
The charge against Foreman was the result of an investigation conducted by the Janesville Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on June 15 was:
Terry Lee Wells, Jr., 34, of Havre, on charges of prohibited person in possession of a firearm and possession with intent to distribute methamphetamine. If convicted of the most serious crime, Wells faces a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. Wells was detained pending further proceedings. The FBI, Great Falls Police Department, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and Tri-Agency Drug Task Force investigated the case. Pacer case reference. 20-36.
Randal James Whitford, 37, of Box Elder, on charges of possession with intent to distribute meth and conspiracy to possess with intent to distribute meth. If convicted of the most serious crime, Whitford faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Whitford was detained pending further proceedings. The FBI, Tri-Agency Drug Task Force and Chippewa Cree Law Enforcement Services investigated the case. Pacer case reference. 20-37.
Appearing on June 18 was:
Kyle Frank Russette, 25, of Box Elder, on charges of possession with intent to distribute meth, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm. If convicted of the most serious crime, Russette faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Russette was detained pending further proceedings. The FBI and Chippewa Cree Law Enforcement Services investigated the case. Pacer case reference. 20-29.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Independence Man Sentenced to 17 Years in Prison for Illegal Firearm Used to Shoot His GirlfriendRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, man was sentenced in federal court today for illegally possessing a firearm that he used to shoot his girlfriend.
William C. McGee, 45, was sentenced by U.S. Chief District Judge Beth Phillips to 17 years in federal prison without parole. McGee was sentenced as an armed career criminal due to his prior felony convictions.
On April 4, 2019, McGee was found guilty at trial of being a felon in possession of a firearm.
Police officers were called to the Great Western Motel in Independence on June 13, 2018, in response to a report from a motel guest who heard gunshots. The caller also told police that the suspected shooter was in a green Toyota Camry, last seen traveling west on 24 Highway.
Officers located the green Toyota Camry in a nearby driveway. McGee was standing beside the vehicle. When he saw the police officers, McGee reached behind his back, pulled out a black Hi-Point 9mm handgun, and threw it over the vehicle. McGee, who had an active arrest warrant for domestic assault, was placed under arrest. The firearm was loaded with one round of 9mm ammunition.
McGee’s girlfriend, who was standing beside him, told officers that McGee had shot her outside their camper home, which was parked at that location, and she had a gunshot wound to her buttocks. Located in the camper were multiple rounds of 9mm ammunition – the same brand of ammunition as found in the firearm.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. McGee has three prior felony convictions for delivery of a controlled substance and prior felony convictions for distributing a controlled substance, possessing a controlled substance, and carrying a concealed weapon.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther and Special Assistant U.S. Attorney Sean T. Foley. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Independence, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Hattiesburg Drug Traffickers Get Significant Sentences in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss – Justin Williams, 30, of Hattiesburg, was sentenced yesterday by Senior U.S. District Judge Keith Starrett to 84 months in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Homeland Security Investigations in New Orleans.
Williams’ co-defendant, Rodney Renchie, 31, also of Hattiesburg, was sentenced by Judge Starrett last week, on June 11, 2020 to serve 240 months in federal prison, followed by five years of supervised release. Both defendants were also ordered to pay a $5,000 fine.
“These individuals put kids, families, neighbors and entire communities at a significant risk of harm by slinging this poison throughout the Hattiesburg area. I applaud our HSI agents and our federal prosecutors for taking these criminals off our streets, as their hard work has literally saved people’s lives,” said U.S. Attorney Hurst.
“These sentences reflect the seriousness of the charges and the danger this drug poses to our communities,” said Jere T. Miles, Special Agent in Charge of HSI New Orleans. “It is also a gratifying outcome for the diligent work our special agents and law enforcement partners put into keeping our neighborhoods and community members safe.”
On June 19, 2019, HSI agents discovered that Renchie and Williams had sold 1.7 kilograms of methamphetamine, commonly known as “ICE,” to individuals in the parking lot of a hotel on Hardy Street in Hattiesburg. When HSI agents arrived to arrest Renchie and Williams, Renchie attempted to flee in his vehicle, but backed into another car in the parking lot. Williams attempted to flee on foot and threw a bag containing methamphetamine as he ran from agents. Williams was apprehended a short time later.
On July 10, 2019, Williams and Renchie were charged in a federal criminal indictment with conspiracy to possess with intent to distribute methamphetamine. Williams pled guilty before Judge Starrett on October 3, 2019, and Renchie pled guilty on December 5, 2019.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Shundral H. Cole.
Greensburg Medical Lab Owner Pleads Guilty in $1.6M Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to defraud the United States, United States Attorney Scott W. Brady announced today.
William J. Hughes, 73, pleaded guilty to one count of conspiracy to defraud the United States before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Hughes owned and operated Universal Oral Fluid Labs (UOFL), a clinical drug testing laboratory located in Greensburg, Pennsylvania. From October 2011 to August 2013, Hughes, through his lab UOFL, entered into kickbacks-for-referrals arrangement with the co-defendant. Pursuant to this arrangement, Hughes agreed to pay the co-defendant to refer patients, including patients who were covered under the Medicare Program and Kentucky Medicaid Program, to UOFL for drug testing services in exchange for cash payments. Between September 2012 and August 2013, UOFL obtained $1,672,422.84 from the Kentucky Medicaid Program based on these referrals.
Judge Cercone scheduled sentencing for November 9, 2020 at 1:00 p.m. The law provides for a total sentence of not more than 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rachael L. Mamula is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, Internal Revenue Service Criminal Investigation, and Pennsylvania Office of Attorney General Medicaid Fraud Control Section conducted the investigation that led to the prosecution of Hughes.
Former Yellowstone Partners’ CEO Sentenced to 5 Years in PrisonRead the Press Release
POCATELLO – David Hansen, 49, of Idaho Falls, was sentenced to 60 months in prison for wire fraud, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also imposed a term of three years of supervised release to follow Hansen’s prison sentence. The Court will determine what amount Hansen must pay in restitution at a hearing scheduled for June 26, 2020.
According to court records, Hansen was the Chief Executive Officer and a 90-percent partner in Yellowstone Partners, LLC, an investment management firm headquartered in Idaho Falls. Clients of Yellowstone Partners entrusted their monies to Yellowstone Partners to invest and manage on their behalf. In exchange, Yellowstone Partners earned fees for its services. Yellowstone Partners’ fees were set forth in investment agreements between Yellowstone Partners and its clients. Yellowstone Partners’ clients’ monies were kept in accounts at third party custodians. Yellowstone Partners directed how the monies in client accounts were invested and how they were disbursed. This included submitting email billing requests to the third party custodians to take fees from client accounts and to deposit them into Yellowstone Partners’ own accounts.
According to court records, from 2008 through April 2016, Hansen knowingly and intentionally devised a scheme to defraud clients of Yellowstone Partners by overbilling their investment accounts. Specifically, Hansen fraudulently billed clients for fees to which Yellowstone Partners was not entitled under the terms of the investment agreements or otherwise. Through this overbilling scheme, Hansen fraudulently obtained client funds from a third party custodian and used them to enrich himself and to fund Yellowstone Partners’ operations. For certain identified victims, Hansen personally submitted 51 fraudulent overbilling requests, which resulted in a loss of $2,675,856.
As part of the plea agreement, Hansen agreed to pay full restitution to the victims of the wire fraud scheme, in an amount to be determined by the court at the June 26, 2020 hearing. Further, Hansen agreed to a forfeiture judgment in the amount of restitution ordered by the court. Finally, Hansen agreed to cooperate with an Internal Revenue Service civil tax examination and assessment, and pay any unpaid tax due and owing, and accrued interest for his 2012 and 2013 Form 1040 joint income tax returns.
“This significant sentence sends a strong message to any investment manager who might consider taking advantage of the trust their clients place in them,” said U.S. Attorney Davis. “When an investment manager like Mr. Hansen steals from his clients, this office and our law enforcement partners will leave no stone unturned until justice is done and victims are repaid. I commend the FBI and IRS for their thorough investigation and tireless efforts in this case.”
“Mr. Hansen was greedy; defrauding his clients so that he could fund a lavish lifestyle,” said Special Agent in Charge Paul Haertel of the FBI’s Salt Lake City Field Office. “This case highlights the FBI’s commitment to aggressively investigating fraudsters who abuse the trust of their clients. We value the relationships we have with our law enforcement partners and agencies, including the U.S. Securities and Exchange Commission. The SEC referred the case to us, allowing us to pursue some measure of justice for Hansen’s victims.”
“David Hansen will now reap the rewards of his fraudulent activities by going to prison,” said IRS-Criminal Investigation Special Agent in Charge Andy Tsui. “This sentence reflects the serious repercussions of abusing one’s position of trust to defraud investors and the government for personal gain.”
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation Division.
# # #
Former Norfolk Doctor Sentenced for Role in Internet Pharmacy OrganizationRead the Press Release
A former Norfolk physician has been sentenced for his role in a long-running Internet pharmacy operation, the Department of Justice announced.
U.S. District Judge Robert G. Doumar sentenced Lawrence B. Ryan, 48, to 10 months’ incarceration and ordered him to forfeit $316,153, which constitutes the proceeds from the offense. Ryan pleaded guilty in January to conspiracy to distribute controlled substances and to introduce misbranded drugs into interstate commerce.
As part of his guilty plea, Ryan admitted that from October 2007 to September 2010, he approved more than 158,000 online drug orders for RX Limited, an international Internet pharmacy organization that sold prescription drugs without valid prescriptions to consumers in the United States. Ryan admitted that the drugs included Fioricet (which contains butalbital, a barbiturate that is a controlled substance), carisoprodol (Soma), and tramadol (Ultram). RX Limited sent Ryan drug orders for approval as a participating physician. These drugs were sold to customers without a valid prescription, because there was no legitimate doctor-patient relationship between Ryan and the customers. Specifically, there was no face-to-face contact, no physical examination, no taking of patient histories, and no checking of the accuracy of information provided by the customers, including qualifying medical conditions. The drugs sold were therefore mis-branded because they were introduced into interstate commerce without valid prescriptions.
“The Department of Justice has long been committed to protecting consumers from those who unlawfully sell potentially harmful and addictive drugs to American consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Ordering drugs on the Internet in the absence of a valid doctor-patient relationship is risky to consumers and can lead to impairment and addiction.”
Senior Litigation Counsel Linda I. Marks of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Alan M. Salsbury of the U.S. Attorney’s Office for the Eastern District of Virginia prosecuted the case. The Drug Enforcement Administration’s Minnesota office investigated the case, with assistance from the Internal Revenue Service and the Food and Drug Administration’s Office of Criminal Investigations.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of Virginia, visit https://www.justice.gov/usao-edva.
Former Cressona Borough Treasurer Indicted for Tax EvasionRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Erin Hossler, age 50, of Pottsville, Pennsylvania, the former treasurer for Cressona Borough, Schuylkill County, was indicted on June 17, 2020, by a federal grand jury on three counts of tax evasion for 2015, 2016, and 2017 and 12 counts of failure to account for and pay over employment tax.
According to United States Attorney David J. Freed, the indictment alleges that Hossler took hundreds of thousands of dollars between 2015 and 2018 from the Borough of Cressona, where she used to work as the Secretary/Treasurer. It is alleged that Hossler had numerous checks issued to herself, forged signatures on checks, and used online banking for the borough’s bank accounts to pay her personal bills. The indictment further alleges that Hossler concealed her activities by altering federal records, withholding payment of federal employment taxes for Cressona Borough employees, and altering an audit from an independent accounting firm to make it appear that the firm approved of the borough’s finances.
The case was investigated by the Pennsylvania State Police and the IRS. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each of these offenses is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #