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Friday 17 April 2020
Harrison County woman sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA –Ann Brennan, of Shinnston, West Virginia, was sentenced today to 24 months incarceration for a drug charge, U.S. Attorney Bill Powell announced.
Brennan, age 53, pled guilty to one count of “Distribution of Hydrocodone in Proximity of a Protected Location” in December 2019. Brennan admitted to selling hydrocodone near Lincoln Middle School and Lincoln High School in Harrison County in November 2017.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Greensboro, N.C. Man Is Sentenced to Prison for Conspiracy to Manufacture Thousands of Dollars in Counterfeit U.S. CurrencyRead the Press Release
STATESVILLE, N.C. – Joseph Haywood Smith, 45, of Greensboro, N.C., was sentenced to 41 months in prison late yesterday, for conspiracy to manufacture more than $7,000 in counterfeit U.S. currency, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also sentenced Smith’s co-defendant, Angela Kristen Shaw, 39, also of Greensboro, to time served, and ordered both defendants to serve two years of supervised release.
Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from February 2019 to March 2019, Smith and Shaw manufactured counterfeit U.S. currency, which they then used to purchase goods at various retail stores in the greater Statesville area. According to court records, the defendants purchased art supplies, and used them to manufacture more than 335 counterfeit $20 bills, and more than 63 counterfeit $10 bills. Court records show that during the relevant time period, the defendants used, or attempted to use, the counterfeit currency to buy merchandise at various retail stores, including at Burger King, CVS, and Dollar General located in Statesville, and elsewhere.
In pronouncing the sentence, Judge Bell noted that “counterfeiting is extremely serious,” and called Smith, who has a significant criminal history, a “career lifetime thief.”
In making today’s announcement, U.S. Attorney Murray thanked the U.S. Secret Service for their investigation of this case.
Assistant U.S. Attorney Jenny G. Sugar, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Government Seeks to Forfeit Fraudulently Obtained Items from Pawn Shop OwnerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that a civil forfeiture complaint has been filed in United States District Court for the Western District of New York seeking to forfeit assets which the government alleges that Devin Tribunella, 36, of Rochester, NY, obtained through fraud.
According to Assistant U.S. Attorney Grace M. Carducci, who is handling the civil case, the complaint seeks the forfeiture of:
• A 2014 Rolls Royce;
• A 2014 Mercedes Benz;
• A 2008 Lamborghini;
• A 2015 Porsche 911;
• $148,025 seized from two PayPal accounts;
• $7,157.87 seized from Canandaigua National Bank;
• A men’s Rolex watch;
• A men’s Patek Phillipe diamond encrusted watch;
• A 14k 21ct. diamond tennis chain;
• A 14k 2ct. diamond tennis bracelet;
• A 14k diamond cross;
• A 14k 41.5ct. diamond necklace; and
• A gold Cartier bracelet.On November 19, 2019, Tribunella was charged by criminal complaint with: wire fraud; conspiracy to commit wire fraud; selling and conspiring to sell stolen goods across state lines; engaging in financial transactions involving the proceeds of this unlawful activity; and aggravated identity theft. Tribunella owns and operates Royal Crown Pawn & Jewelry (Royal Crown) located at 3635 Dewey Avenue in Rochester. Royal Crown has one of the highest volumes of purchases and sales of any pawnshop in Monroe County.
The complaint against Tribunella states that individuals struggling with opiate addiction had been stealing merchandise from Rochester area retail stores, including CVS, Wegmans, Walmart, Kohl’s, Lowe’s, Circuit City, Target, Walmart, and Home Depot, and selling the stolen merchandise to pawnshops, including Royal Crown. Those stealing the property would then use the proceeds of their “sales” to Royal Crown in order to purchase illegal drugs. The defendant allegedly knowingly purchased stolen, new-in-box goods from these individuals for a fraction of the retail value. In order to perpetuate this scheme, Tribunella made false and fraudulent representations in an online database known as LeadsOnline as well as in his User Agreements with eBay and Amazon. The defendant would subsequently re-sell the stolen goods on eBay and Amazon and ship them to buyers, including to buyers located outside of New York State.
Between January 1, 2017, and September 16, 2019, Tribunella and a co-defendant are accused of purchasing and re-selling $3,248,426.79 in stolen goods on eBay. According to the civil complaint, Tribunella used $2,995,949.55 of these illegal proceeds to purchase the above-referenced vehicles and jewelry, and to fund financial accounts and cash withdrawals.
This cycle of theft and re-sale has also resulted in Monroe County having some of the highest incidents of retail theft in the country, according to statistics maintained by nationwide retailers.
The criminal and civil complaints are the result of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office; the Rochester Police Department, under the direction of Chief La’Ron D. Singletary; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Greece Police Department, under the direction of Chief Patrick Phelan; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
If convicted of the criminal charges, Tribunella faces 20 years in prison and a $250,000 fine.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Former Shreveport Police Officer Pleads Guilty to Anabolic Steroids ConspiracyRead the Press Release
SHREVEPORT, La. – U.S. Attorney David C. Joseph announced that Brian Skinner, 44, a former Shreveport police officer, appeared in federal court on April 16, 2020, before U.S. District Judge Elizabeth E. Foote, and pleaded guilty to conspiracy to distribute and possess with the intent to distribute anabolic steroids.
According to plea documents filed in the case, from January 2016 to May 2018, Skinner obtained anabolic steroids on multiple occasions from Brant Landry, an acquaintance he met at a Bossier City gym. In addition to obtaining the anabolic steroids from Landry for himself, Skinner also obtained them to distribute to a third party. Besides his own criminal conduct, Skinner failed in his duty as a law enforcement officer to report Landry’s steroid trafficking and related activity to the appropriate authorities.
On November 13, 2019, Skinner, along with his co-defendant and former Bossier Parish Deputy Jonathan Colgin, was indicted on charges of conspiracy to distribute and possess with the intent to distribute anabolic steroids. Colgin was also charged with misprision of a felony. Colgin entered a not guilty plea on December 4, 2019.
Following the plea hearing, Skinner was released to home incarceration. At sentencing on May 27, 2020, Skinner faces up to ten years in prison and a $500,000 fine.
This case is related to the prosecution in United States v. Brant R. Landry, and United States v. Mike Mosura, Criminal Docket No. 18-cr-00252. Press releases linked.
The DEA, High Intensity Drug Trafficking Areas (HIDTA) Task Force and Bossier Parish Sheriff’s Office investigated the case. Assistant U.S. Attorneys Earl M. Campbell and Jessica D. Cassidy are prosecuting case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Former Postal Employee Sentenced for Mail TheftRead the Press Release
ALBANY, NEW YORK – John R. Elbayeh, aka Jean Elbayeh, age 44, of Albany, was sentenced today to time served (about 6 months in jail), to be followed by 2 years of supervised release, for stealing Apple iPhones, gold coins, small gold bars and other valuable items from mailed packages while employed as a postal clerk.
The announcement was made by United States Attorney Grant C. Jaquith and Matthew Modafferi, Special Agent in Charge of the Northeast Area for the United States Postal Service (USPS), Office of the Inspector General (OIG).
Elbayeh worked as a lead mail processing clerk at the USPS Processing and Distribution Center in Albany, from December 2012 through December 2018. He admitted that for approximately 2 years ending in December 2018, he stole valuable items from the mail, including iPhones and gold coins, which he pawned for a total of $50,362.22.
Shortly after being interviewed by federal agents in December 2018, Elbayeh took a one-way flight to Beirut, Lebanon, and remained outside the United States until October 17, 2019. On that date, USPS-OIG Agents arrested him at Dulles International Airport in Virginia, where Elbayeh had just arrived from a flight originating in Cairo, Egypt. Elbayeh had been in custody since that time.
This case was investigated by the USPS, Office of the Inspector General, with assistance from the United States Postal Inspection Service, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Federal Prosecutors Team up with AARP to Provide Californians with Information on Scams Related to Coronavirus and COVID-19Read the Press Release
LOS ANGELES – Prosecutors from the four United States Attorney’s Offices in California, along with representatives from the FBI, will be participating in a telephonic town hall being coordinated by AARP to provide information to California residents to help them identify and avoid fraudulent schemes related to Coronavirus and COVID-19.
The telephonic town hall will happen on Monday, April 20 from 10 a.m. until 11 a.m. PDT. During the event, a special agent from the FBI and a federal prosecutor will make presentations, and participants from across California will be allowed to ask questions to a panel of Assistant United States Attorneys from the four offices that serve California.
AARP’s Fraud Watch Network is providing the infrastructure for the event. Approximately 100,000 AARP members will receive a phone call Monday morning inviting them to participate in the town hall. Those who wish to receive an invitation may sign up here.
During the current health crisis, federal investigators and prosecutors continue to fulfill their critical mission of protecting public safety. Federal officials have prioritized the disruption, investigation and prosecution of crimes related to Coronavirus and COVID-19, including fraudulent schemes, unapproved treatments, and scams related to stimulus money. During the town hall, federal officials will discuss the types of schemes currently being seen, along with tips on how to avoid becoming a victim.
“As part of our ongoing efforts to enhance security across our district, we are participating in this town hall to provide valuable information to help residents avoid scams that could cost them their hard-earned money,” said United States Attorney Nick Hanna. “Unfortunately, during a time when all Americans are coming together, there are some individuals who seek to exploit the current health emergency and prey on our seniors. Our public outreach efforts are designed to provide knowledge that will increase everyone’s level of safety.”
Soon after the town hall event, a recording will be available at https://vekeo.com/aarpcalifornia/#.
Nick Hanna is the United States Attorney for the Central District of California, which is comprised of seven counties – Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara and San Luis Obispo.
Federal Prosecutors Team up with AARP to Provide Californians with Information on COVID-19 ScamsRead the Press Release
NEWS RELEASE SUMMARY – April 17, 2020
SAN DIEGO – Prosecutors from the four United States Attorney’s Office in California, along with representatives from the FBI, will be participating in a telephonic town hall being coordinated by the AARP to provide information to California residents to help them identify and avoid fraudulent schemes related to Coronavirus and COVID-19.
The telephonic town hall will happen on Monday, April 20 from 10 a.m. until 11 a.m. PDT. During the event, a special agent from the FBI and a federal prosecutor will make presentations, and participants from across California will be allowed to ask questions of a panel of Assistant United States Attorneys from the four offices that serve California.
The AARP Fraud Watch Network is providing the infrastructure for the event. Approximately 100,000 AARP members will receive a phone call Monday morning inviting them to participate in the town hall. Those who wish to receive an invitation can sign up on this AARP registration page: https://vekeo.com/aarpcalifornia/#.
During the current health crisis, federal investigators and prosecutors continue to fulfill their critical mission of protecting public safety. Federal officials have prioritized the disruption, investigation and prosecution of crimes related to Coronavirus and COVID-19, including fraudulent schemes, unapproved treatments, and scams related to stimulus money. During the town hall, federal officials will discuss the types of schemes currently being seen, along with tips on how to avoid becoming a victim.
“This innovative outreach event will deliver valuable information designed to protect potentially vulnerable seniors from scams, cyber-attacks and fake cures,” said Robert Brewer, U.S. Attorney for the Southern District of California. “Community members will also learn how to report suspected fraud, which is critically important. We need to partner with educated consumers to identify and investigate despicable felons seeking to profit from the current health emergency by preying on the public.”
U.S. Attorney Brewer commended Assistant U.S. Attorney Robert Huie, Deputy Chief of the Major Frauds Section, for his participation in the AARP town hall and prosecution of significant COVID-19 scams.
Soon after the event, the recording will be available at https://vekeo.com/aarpcalifornia/#.
The FBI continues to warn the public about health care fraud schemes: https://www.fbi.gov/news/pressrel/press-releases/fbi-warns-of-emerging-health-care-fraud-schemes-related-to-covid-19-pandemic and other COVID-19 related crimes at: https://www.fbi.gov/coronavirus.
If you think you are a victim of COVID-19 fraud, immediately report it the FBI (visit ic3.gov, tips.fbi.gov, or call 1-800-CALL-FBI or the San Diego FBI at 858-320-1800.
In addition, the public is urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
Federal Prosecutors and FBI to Participate in Telephonic Town Hall to Provide Information About COVID-19 ScamsRead the Press Release
SAN FRANCISCO – Prosecutors from the four United States Attorney’s Offices in California, along with representatives from the FBI, will participate in a telephonic town hall to help California residents identify and avoid fraudulent schemes related to Coronavirus and COVID-19. The event is being coordinated by the American Association of Retired Persons (“AARP”).
The telephonic town hall will happen on Monday, April 20 from 10 to 11 a.m. PDT. During the event, a special agent from the FBI and a federal prosecutor will make presentations, and participants from across California will be allowed to ask questions to a panel of Assistant United States Attorneys from the four offices that serve California.
AARP’s Fraud Watch Network is providing the infrastructure for the event. Approximately 100,000 AARP members will receive a phone call Monday morning inviting them to participate in the town hall. Those who wish to receive an invitation may sign up here (https://vekeo.com/aarpcalifornia/).
During the current health crisis, federal investigators and prosecutors continue to fulfill their critical mission of protecting public safety. Federal officials have prioritized the disruption, investigation and prosecution of crimes related to Coronavirus and COVID-19, including fraudulent schemes, unapproved treatments, and scams related to stimulus money. During the town hall, federal officials will discuss the types of schemes currently being seen, along with tips on how to avoid becoming a victim.
Soon after the town hall event, a recording will be available at https://vekeo.com/aarpcalifornia/.
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REPORT COVID-19 CRIME. Contact the National Center for Disaster Fraud Hotline: 866-720-5721 or [email protected].
Coronavirus Fraud Task Force Committed to Protecting U.S. Postal Service Delivery of Economic Impact PaymentsRead the Press Release
ALEXANDRIA, Va. – The Virginia Coronavirus Fraud Task Force announced today that they are preparing for potential criminal activity, including theft and fraud, from the Economic Impact Payment checks or debit cards soon to be hand-delivered by the U.S. Postal Service.
“The U.S. Postal Inspection Service will be extra vigilant as Economic Impact Payments are mailed to approximately 80 million Americans across the country,” said Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service. “We are prepared to protect our employees, our customers, and the U.S. Mail from criminals who are looking to take advantage of our nation during the Coronavirus pandemic. We will continue to work in conjunction with the U.S. Attorney’s Office and our partners in the COVID-19 Task Force to investigate anyone who seeks to take advantage of consumers during these unprecedented times, and bring them to justice.”
In response to the significant economic challenges caused by the COVID-19 pandemic, the United States Government passed a $2 trillion stimulus package which includes providing Economic Impact Payments (EIPs) to millions of Americans. These EIPs will be distributed in two ways: direct deposit into recipient’s bank accounts and Treasury checks or debit cards mailed by the U.S. Treasury. The distribution of electronic direct deposits has already started. The mailings through the U.S. Postal Service of Treasury checks are expected to begin April 20.
“Fraudsters frequently prey upon vulnerable individuals during difficult times,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We are working closely with our law enforcement partners like the U.S. Postal Inspection Service to guard against fraudulent pandemic profiteers, as well as to ensure the rule of law and public safety is not eroded during this critical time. For anyone victimized by a COVID-19 scam, our office remains steadfastly committed to pursuing justice on your behalf.”
The U.S. Postal Service anticipates delivering over 80 million EIPs over the next few months. This is an unprecedented mailing the Postal Service is ready to deliver for the American public.
“We are committed to ensuring that economic-impact payments are safely delivered to the citizens of Virginia and prosecuting those who interfere with those efforts,” said U.S. Attorney Thomas T. Cullen. “We will aggressively investigate and prosecute mail theft and tampering related to these impact payments, as well as fraud schemes associated with the COVID-19 pandemic.”
The U.S. Postal Inspection Service will have a critical security and investigative role to ensure these checks make it to intended recipients. U.S. Postal Inspectors are preparing to protect against and prevent criminal activities that may arise relating to the distribution of these benefits. There will also likely be a variety of related fraud schemes to investigate as criminals attempt to exploit these EIP mailings for their own greed.
The U.S. Postal Inspection Service will partner with the Virginia Coronavirus Fraud Task Force on any investigations surrounding EIPs in continued partnership to bring criminals to justice.
The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. Under the leadership of Attorney General William Barr, U.S. Attorneys appointed Coronavirus Fraud Coordinators to work with federal, state, local and tribal law enforcement partners to protect the public from scammers who are attempting to prey upon fears. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected].
For More information about the Virginia Coronavirus Fraud Task Force, please visit:
https://www.justice.gov/usao-wdva/covid-19-fraud
Western Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Michael Baudinet, [email protected] or 540-278-1494.
Eastern Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Kaitlin G. Cooke, [email protected] or 804-819-5416.
To report a COVID-19 fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or sending an email to [email protected].
To file a complaint regarding theft of Economic Impact Payments from the mail or COVID-19 fraud involving the U.S. Mail, please contact the U.S. Postal Inspection Service at: www.uspis.gov/report or 1-800-ASK-USPS.
Economic Impact Payment Fraud can also be reported directly to the IRS at: [email protected]
For more information, visit the IRS website at www.irs.gov/coronavirus
FBI at: https://www.ic3.gov or 804-261-1044.
To report fraudulent activity to the Virginia State Police, Virginians can contact the Virginia Fusion Center (VFC) at [email protected].
For continuing information on the COVID-19 virus and the federal response, check https://www.cdc.gov/coronavirus/2019-ncov/index.html
Coronavirus Fraud Task Force Committed to Protecting U.S. Postal Service Delivery of Economic Impact PaymentsRead the Press Release
ROANOKE, Va. – The Virginia Coronavirus Fraud Task Force announced today that they are preparing for potential criminal activity, including theft and fraud, from the Economic Impact Payment checks or debit cards soon to be hand-delivered by the U.S. Postal Service.
“The U.S. Postal Inspection Service will be extra vigilant as Economic Impact Payments are mailed to approximately 80 million Americans across the country,” said Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service. “We are prepared to protect our employees, our customers, and the U.S. Mail from criminals who are looking to take advantage of our nation during the Coronavirus pandemic. We will continue to work in conjunction with the U.S. Attorney’s Office and our partners in the COVID-19 Task Force to investigate anyone who seeks to take advantage of consumers during these unprecedented times, and bring them to justice.”
In response to the significant economic challenges caused by the COVID-19 pandemic, the United States Government passed a $2 trillion stimulus package which includes providing Economic Impact Payments (EIPs) to millions of Americans. These EIPs will be distributed in two ways: direct deposit into recipient’s bank accounts and Treasury checks or debit cards mailed by the U.S. Treasury. The distribution of electronic direct deposits has already started. The mailings through the U.S. Postal Service of Treasury checks are expected to begin April 20.
“Fraudsters frequently prey upon vulnerable individuals during difficult times,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We are working closely with our law enforcement partners like the U.S. Postal Inspection Service to guard against fraudulent pandemic profiteers, as well as to ensure the rule of law and public safety is not eroded during this critical time. For anyone victimized by a COVID-19 scam, our office remains steadfastly committed to pursuing justice on your behalf.”
The U.S. Postal Service anticipates delivering over 80 million EIPs over the next few months. This is an unprecedented mailing the Postal Service is ready to deliver for the American public.
“We are committed to ensuring that economic-impact payments are safely delivered to the citizens of Virginia and prosecuting those who interfere with those efforts,” said U.S. Attorney Thomas T. Cullen. “We will aggressively investigate and prosecute mail theft and tampering related to these impact payments, as well as fraud schemes associated with the COVID-19 pandemic.”
The U.S. Postal Inspection Service will have a critical security and investigative role to ensure these checks make it to intended recipients. U.S. Postal Inspectors are preparing to protect against and prevent criminal activities that may arise relating to the distribution of these benefits. There will also likely be a variety of related fraud schemes to investigate as criminals attempt to exploit these EIP mailings for their own greed.
The U.S. Postal Inspection Service will partner with the Virginia Coronavirus Fraud Task Force on any investigations surrounding EIPs in continued partnership to bring criminals to justice.
The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. Under the leadership of Attorney General William Barr, U.S. Attorneys appointed Coronavirus Fraud Coordinators to work with federal, state, local and tribal law enforcement partners to protect the public from scammers who are attempting to prey upon fears. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected].
For More information about the Virginia Coronavirus Fraud Task Force, please visit:
https://www.justice.gov/usao-wdva/covid-19-fraud
Western Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Michael Baudinet, [email protected] or 540-278-1494.
Eastern Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Kaitlin G. Cooke, [email protected] or 804-819-5416.
To report a COVID-19 fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or sending an email to [email protected].
To file a complaint regarding theft of Economic Impact Payments from the mail or COVID-19 fraud involving the U.S. Mail, please contact the U.S. Postal Inspection Service at: www.uspis.gov/report or 1-800-ASK-USPS.
Economic Impact Payment Fraud can also be reported directly to the IRS at: [email protected]
For more information, visit the IRS website at www.irs.gov/coronavirus
FBI at: https://www.ic3.gov or 804-261-1044.
To report fraudulent activity to the Virginia State Police, Virginians can contact the Virginia Fusion Center (VFC) at [email protected].
For continuing information on the COVID-19 virus and the federal response, check https://www.cdc.gov/coronavirus/2019-ncov/index.html
Convicted Drug Trafficker Charged with Escaping Custody of Federal Bureau of PrisonsRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announces that today, RICHARD R. CEPHAS, of Wilmington, Delaware, was charged in a federal Criminal Complaint with escaping from the custody of the Federal Bureau of Prisons (BOP) in Butner, North Carolina on or about April 1, 2020. The Criminal Complaint was authorized by United States Magistrate Judge Robert T. Numbers, II, and supported by the sworn affidavit of a Deputy United States Marshal. The United States Marshals Service (USMS) has been investigating CEPHAS’ alleged escape since he was discovered missing on April 2.
In June 2017, CEPHAS was sentenced by the United States District Court for the District of Delaware to a term of 66 months in federal prison – for his violation of Title 21, United States Code, Sections 841 (a)(l) and (b)(l)(A) and 846, Conspiracy to distribute, and to possess with intent to distribute, five kilograms or more of cocaine. The conviction and sentence resulted from a long-term High Intensity Drug Trafficking Area (HIDTA) federal wiretap investigation spearheaded by the Drug Enforcement Administration’s (DEA) Drug Trafficking Task Force in Delaware. More about that investigation here.
As alleged in the publicly filed affidavit attached to the Criminal Complaint, CEPHAS had been serving the remainder of his prison sentence at the Federal Prison Camp in Butner, NC. On April 2, 2020, CEPHAS was placed in an escape status by the BOP following his absence from a bed count conducted by staff at the Butner facility. At the time of his absence, CEPHAS was not authorized to be away from the Federal Prison Camp. He remains in an escape status and law enforcement is working to determine his whereabouts.
U.S. Attorney Higdon issued the following statement:
“This morning, members of my office obtained a criminal complaint charging Richard R. Cephas with violation of Title 18, United States Code, Section 751(a), escape from the custody of a facility to which he was confined at the Direction of the Attorney General.
The complaint alleges that Mr. Cephas began planning his escape as early as March 30. At that time, he had email communication with at least one family member. Two days later, Mr. Cephas contacted another family member regarding his plan to escape. When a head count was conducted later that day, and again very early in the morning of April 2, Mr. Cephas was missing. A search of the entire prison complex resulted in a determination that Mr. Cephas had escaped.
Media reports surfaced late yesterday afternoon in which an individual identifying himself as Richard Cephas during a recorded video interview explained that he escaped from Butner because of health concerns related to the ongoing coronavirus pandemic and his belief that he is particularly vulnerable because of an ongoing chronic health condition. This, he explained, justified his escape and warrants a modification to his underlying sentence. He also argued that it requires the Justice Department to overlook and tolerate his escape.
Let me be clear, Mr. Cephas is a convicted drug trafficker who was sentenced to federal prison for his role in a wide-ranging drug conspiracy which imported cocaine and methamphetamine into the United States from Mexico. He was convicted in federal court in Delaware and sentenced to a term of imprisonment, which he was serving at the Butner facility. Mr. Cephas’ decision to escape federal custody is nothing more than an opportunistic move to use the coronavirus pandemic as an excuse to cut his prison term short. He is a fugitive from justice and federal law enforcement will find him and bring him to Court here in the Eastern District to answer these charges.
Should Mr. Cephas choose to turn himself in, he may do so at any law enforcement office; to the United States Marshal for the Eastern District of North Carolina (call 919-856-4153); or to the United States Marshal in any federal district in which he is currently located (call 877-WANTED-2). Otherwise, federal agents will pursue his arrest.
Mr. Cephas will, of course, be extended his Constitutional rights when he appears in Court, including the presumption of innocence and the requirement that the Government prove the escape case against him beyond a reasonable doubt. We look forward to presenting our case before the Court.
In the meantime, the public should assume that Mr. Cephas is dangerous and they should take caution if they encounter him. The public should also know that anyone who knowingly harbors or assists Mr. Cephas in avoiding arrest may be in violation of federal law as well.
I want to thank the law enforcement officers who have been tasked with investigating this case and pursuing Mr. Cephas’ arrest. His decision to escape has increased their already heavy workload and has raised the risk of illness and harm to them by drawing them out into the community at this difficult time. This is another example of the dedication of law enforcement who serve us no matter the circumstances.”
The charges and allegations contained in the Criminal Complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
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.
Christian County Man Arrested on Charges of Alleged Illegal Possession of Firearms by a FelonRead the Press Release
SPRINGFIELD, Ill. – An Assumption, Ill., man, Randall R. Burrus, 50, made his initial appearance in federal court via teleconference on April 16, following his arrest on April 15, 2020. Burrus is charged in a criminal complaint with possession of a firearm by a felon and with possession of a firearm after conviction for misdemeanor domestic violence.
According to the affidavit filed in support of the criminal complaint, in mid-March, the FBI National Threat Operations Center received an online tip via the www.tips.fbi.gov website. The tip reported an online chat by several unknown subjects on a chat platform used by gamers known as Discord. The tip reported that the subjects appeared to be making plans for some type of attack and/or shooting at a school, mosque, or synagogue in the United States, Canada and New Zealand.
An investigation of the username ‘Martyrdom,’ one of the usernames on the chat platform, led investigators to the IP address, phone number and email for Randall Burrus of Assumption, Ill., according to the affidavit. Burrus allegedly has both felony and misdemeanor convictions in Shelby and Christian counties for domestic battery and violation of orders of protection, which would make Burrus ineligible to legally possess firearms and ammunition.
On April 15, the FBI executed a search warrant related to hate crimes and illegal possession of firearms at Burrus’s residence in the 300 block of Sarah St. According to the affidavit, agents recovered a .223 Ruger Mini 14 rifle, a Smith and Wesson .40 handgun and numerous boxes of ammunition.
Burrus was taken into law enforcement custody, and appeared today before U.S. Magistrate Judge Eric I. Long, who ordered that Burrus remain detained pending a hearing scheduled on Monday, April 20.
Assistant U.S. Attorney Crystal C. Correa is representing the government in the prosecution. The FBI, Illinois State Police, and the Christian County Sheriff’s Office are conducting the investigation.
If convicted of the charges, Burrus faces up to 10 years in prison.
Members of the public are reminded that a complaint is merely an accusation; the defendant is presumed innocent unless proven guilty.
This case is brought as 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, and local authorities in investigating and prosecuting gun crimes; improves information-sharing by ATF when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System, to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
CBL/BFL Member Sentenced for Racketeering Conspiracy and Selling Crack CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Larquon Watkins, 27, of Buffalo, NY, who was convicted of racketeering conspiracy and distribution of crack cocaine, was sentenced to serve 57 months in prison by U.S. District Judge Lawrence J. Vilardo, Jr.
Assistant U.S. Attorneys Paul C. Parisi and Seth T. Molisani, who handled the case, stated that the defendant was a member of the CBL/BFL Gang, which was involved in the illegal possession and distribution of narcotics, was formed around 2009, and which operated primarily in the City of Buffalo at the Towne Gardens Housing Complex. The gang used violence, including murder and attempted murder, threats, and intimidation to defend their territory against rivals and anyone deemed to be a threat to the gang. Watkins is one of 12 CBL/BFL Gang members charged and convicted in this case. He is the 4th defendant to be sentenced.
On various occasions between 2010 and 2012, the defendant was stopped by Buffalo Police Officers and found to be in possession of marijuana, and between 2015 and 2016, the defendant sold crack cocaine at least 10 times and heroin at least 10 times in the Towne Gardens to an individual working investigators.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major James Hall; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Chief James Michel; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
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Billings man charged with drug trafficking crime after officers seize eight pounds of methRead the Press Release
BILLINGS—A Billings man suspected of trafficking methamphetamine for distribution in the community appeared on charges today after law enforcement officers intercepted a package containing about eight pounds of the drug that was sent through the U.S. Postal Service, U.S. Attorney Kurt Alme said.
Trevion Maurice Jones, 44, had an initial appearance on a criminal complaint charging him with possession with intent to distribute meth. If convicted of the most serious crime, Jones faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided and ordered Jones detained pending further proceedings.
The charging document is merely an accusation, and Jones is presumed innocent until proven guilty.
Court documents filed in the case said drug enforcement officers learned that Jones was a meth supplier and had sources in California and Las Vegas. Jones received some meth through the mail. On April 14, a U.S. Postal inspector located a priority express parcel addressed to Jones’ residence and sent from a California address. The package weighed 24 pounds. A K-9 alerted to the package, which officers opened after getting a search warrant. Inside the parcel was a safe, which contained five vacuum sealed packages that weighed about eight pounds and tested positive for meth. Eight pounds of meth is the equivalent of about 28,992 doses.
Officers replaced some of the meth in the safe, obtained a search warrant for Jones’ residence and made a controlled delivery. The postal inspector knocked on the door, delivered the package to Jones, who answered, and left. Law enforcement officers then served the search warrant at the residence and arrested Jones without incident.
The Drug Enforcement Agency, Eastern Montana High Intensity Drug Trafficking Area Task Force and U.S. Postal Service investigated the case.
Pacer case reference. MJ-20-35.
If the above cases is of interest to your media organization and the community it serves, we encourage you to monitor its progress 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.
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Beaverton Man Charged in Bank Fraud Scheme Targeting Local Credit Union MembersRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Beaverton, Oregon man has been charged with bank fraud in a scheme involving the impersonation of credit union employees in order to obtain members’ personal financial information.
Winston E. Gray, 30, has been charged by criminal complaint with bank fraud.
According to court documents, on March 30, 2020, a fraud investigator for Rivermark Credit Union in Portland contacted the Portland Police Bureau to report that numerous credit union members had received fraudulent text messages asking them to confirm or deny a recent transaction. When a victim member denied the transaction, they received a phone call from someone purporting to be a credit union employee asking for their debit card number and PIN in order to disable their card.
The personal financial information obtained was used to clone victims’ debit cards and make numerous purchases and ATM withdrawals throughout the Portland metro area. Using a list of fraudulent transactions provided by Rivermark, detectives from Portland Police Bureau and the Beaverton Police Department, with assistance from investigators with OnPoint Credit Union, Bank of America, Unitus Credit Union, and Fred Meyer, obtained video surveillance and photos of the unauthorized transactions from various ATMs and retail establishments.
Surveillance images of the suspect, later alleged to be Gray, were obtained from a Bank of America ATM on NW Cornell Road in Portland. On March 29, 2020, after making a balance inquiry on a victim member’s account, Gray made three consecutive withdrawals of $203 each from the ATM. Gray was later linked to a second fraudulent ATM withdrawal and two fraudulent money order purchases the same day.
As the investigation continued, detectives linked Gray to additional fraudulent transactions between March 30 and April 8, 2020 at locations throughout the Portland area. After reviewing body-worn camera footage from a previous traffic stop, detectives were able to positively identify Gray as the suspect responsible for the fraudulent bank transactions and obtain his home address.
On April 15, 2020, detectives obtained and served state search warrants on Gray’s Beaverton residence, person, and vehicle.
Detectives seized a Bluetooth card writer used to re-encode magnetic strips on credit cards; blank cards with magnetic strips; handwritten instructions on creating stolen identities and committing credit card fraud; multiple stolen credit cards, debit cards, and driver’s licenses; clothing matching those seen in the surveillance footage; more than $10,000 in cash; a 380 caliber handgun; a box of 380 caliber ammunition; and 26 grams of cocaine from Gray’s residence. Other related items were seized from his person and vehicle.
After conducting the searches, Gray was arrested without incident. Gray made his first appearance in federal court today and was ordered detained.
If convicted, Gray faces a maximum sentence of 30 years in federal prison, 5 years’ supervised release, and a $1 million fine.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Portland Police Bureau, Beaverton Police Department, and Homeland Security Investigations (HSI) and is being prosecuted by Quinn P. Harrington, Assistant U.S. Attorney for the District of Oregon.
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.
Thursday 16 April 2020
Virginia Coronavirus Fraud Task Force Warns of Stimulus Check ScamsRead the Press Release
ALEXANDRIA, Va. – Today the Virginia Coronavirus Fraud Task Force issued a warning to the public of financial scams regarding Economic Impact Payments currently being distributed by the IRS.
“Fraudsters are chomping at the bit to steal your money,” said G. Zachary Terwilliger, co-leader of the task force and U.S. Attorney for the Eastern District of Virginia. “We have reports of criminals attempting to use various phishing techniques, including text messages, emails, and letters delivered through the mail, all attempting to steal your personal information or swindle you out of your economic impact payment. Please be vigilant. Simply put: Hang up on robocalls, do not provide your personal identifying information to anyone, and always confirm you are accessing legitimate links from IRS.gov.”
For most Americans, the Economic Impact Payments will be directly deposited into their bank account. However, for those individuals who do not utilize direct deposit, and other groups who have traditionally received tax refunds via paper check, they will receive their economic impact payment as a hard check.
“Americans will receive their economic-impact payments in one of two ways: through the mail or by direct deposit into their bank accounts,” said Thomas T. Cullen, co-leader of the task force and U.S. Attorney for the Western District of Virginia. “These payments do not need to be confirmed, authorized, or activated, and you should assume that any unsolicited calls or emails from individuals or entities who claim to be associated with the IRS are fraudulent.”
Recently, IRS launched two new tools: “Non-Filers: Enter Your Payment Info Here” allows quick registration for Economic Impact Payments for those who don’t normally file a tax return and, “Get My Payment” which enables taxpayers to check the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to them. Both tools can be found here: https://www.irs.gov/coronavirus/economic-impact-payments
““Providing the community with knowledge about how economic impact payments are being distributed and warning of potential scams is key in helping prevent taxpayers from becoming victimized," said Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI). "Taxpayers needing assistance or information regarding the economic impact payments should visit IRS.gov. When taxpayers access the tool “Non-Filers: Enter Payment Info Here”, they will be taken from the IRS.gov site to Free File Fillable Forms, a certified IRS partner. This site is safe and secure as long as you access the site via IRS.gov. IRS-CI is working diligently with the United States Attorney’s Office and our federal and state law enforcement partners to help protect the citizens of Virginia and our tax system.”
IRS Criminal Investigation is actively working to combat scam artists trying to exploit economic impact payments and other provisions related to COVID-19. So far, the scams IRS-CI have seen look to prey on vulnerable taxpayers who are unaware of how the payments will reach them. IRS-CI is prioritizing these types of investigations to help protect taxpayers and the tax system.
There has been an increase in phishing schemes utilizing emails, letters, texts and links. These phishing schemes are using keywords such as “Corona Virus”, “COVID-19”, and “Stimulus” in varying ways.
The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. Under the leadership of Attorney General William Barr, U.S. Attorneys appointed Coronavirus Fraud Coordinators to work with federal, state, local and tribal law enforcement partners to protect the public from scammers who are attempting to prey upon fears. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected].
For More information about the Virginia Coronavirus Fraud Task Force, please visit:
https://www.justice.gov/usao-wdva/covid-19-fraud
Western Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Michael Baudinet, [email protected] or 540-278-1494.
Eastern Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Kaitlin G. Cooke, [email protected] or 804-819-5416.
To report a COVID-19 fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or sending an email to [email protected].
Economic Impact Payment Fraud can also be reported directly to the IRS at: [email protected]
For more information, visit the IRS website at www.irs.gov/coronavirus
FBI at: https://www.ic3.gov or 804-261-1044.
To report fraudulent activity to the Virginia State Police, Virginians can contact the Virginia Fusion Center (VFC) at [email protected].
For continuing information on the COVID-19 virus and the federal response, check https://www.cdc.gov/coronavirus/2019-ncov/index.html
Virginia Coronavirus Fraud Task Force Warns of Stimulus Check ScamsRead the Press Release
ROANOKE, Va. – Today the Virginia Coronavirus Fraud Task Force issued a warning to the public of financial scams regarding Economic Impact Payments currently being distributed by the IRS.
“Fraudsters are chomping at the bit to steal your money,” said G. Zachary Terwilliger, co-leader of the task force and U.S. Attorney for the Eastern District of Virginia. “We have reports of criminals attempting to use various phishing techniques, including text messages, emails, and letters delivered through the mail, all attempting to steal your personal information or swindle you out of your economic impact payment. Please be vigilant. Simply put: Hang up on robocalls, do not provide your personal identifying information to anyone, and always confirm you are accessing legitimate links from IRS.gov.”
For most Americans, the Economic Impact Payments will be directly deposited into their bank account. However, for those individuals who do not utilize direct deposit, and other groups who have traditionally received tax refunds via paper check, they will receive their economic impact payment as a hard check.
“Americans will receive their economic-impact payments in one of two ways: through the mail or by direct deposit into their bank accounts,” said Thomas T. Cullen, co-leader of the task force and U.S. Attorney for the Western District of Virginia. “These payments do not need to be confirmed, authorized, or activated, and you should assume that any unsolicited calls or emails from individuals or entities who claim to be associated with the IRS are fraudulent.”
Recently, IRS launched two new tools: “Non-Filers: Enter Your Payment Info Here” allows quick registration for Economic Impact Payments for those who don’t normally file a tax return and, “Get My Payment” which enables taxpayers to check the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to them. Both tools can be found here: https://www.irs.gov/coronavirus/economic-impact-payments
“Providing the community with knowledge about how Economic Impact Payments are being distributed and warning of potential scams is key in helping prevent taxpayers from becoming victimized,” said Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI). “Taxpayers needing assistance or information regarding the economic impact payments should visit IRS.gov. When taxpayers access the tool “Non-Filers: Enter Payment Info Here”, they will be taken from the IRS.gov site to Free File Fillable Forms, a certified IRS partner. This site is safe and secure. IRS-CI is working diligently with the U.S. Attorney’s Office and our federal and state law enforcement partners to help protect the citizens of Virginia and our tax system.”
IRS Criminal Investigation is actively working to combat scam artists trying to exploit economic impact payments and other provisions related to COVID-19. So far, the scams IRS-CI have seen look to prey on vulnerable taxpayers who are unaware of how the payments will reach them. IRS-CI is prioritizing these types of investigations to help protect taxpayers and the tax system.
There has been an increase in phishing schemes utilizing emails, letters, texts and links. These phishing schemes are using keywords such as “Corona Virus”, “COVID-19”, and “Stimulus” in varying ways.
The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. Under the leadership of Attorney General William Barr, U.S. Attorneys appointed Coronavirus Fraud Coordinators to work with federal, state, local and tribal law enforcement partners to protect the public from scammers who are attempting to prey upon fears. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected].
For More information about the Virginia Coronavirus Fraud Task Force, please visit:
https://www.justice.gov/usao-wdva/covid-19-fraud
Western Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Michael Baudinet, [email protected] or 540-278-1494.
Eastern Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Kaitlin G. Cooke, [email protected] or 804-819-5416.
To report a COVID-19 fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or sending an email to [email protected].
Economic Impact Payment Fraud can also be reported directly to the IRS at: [email protected]
For more information, visit the IRS website at www.irs.gov/coronavirus
FBI at: https://www.ic3.gov or 804-261-1044.
To report fraudulent activity to the Virginia State Police, Virginians can contact the Virginia Fusion Center (VFC) at [email protected].
For continuing information on the COVID-19 virus and the federal response, check https://www.cdc.gov/coronavirus/2019-ncov/index.html
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Virgin Islands U.S. Attorney’s Office, IRS Criminal Investigation, Virgin Islands Bureau of Internal Revenue, and the Virgin Islands Department of Justice Warn Taxpayers to be Alert for Scams Related to Covid-19 Economic Impact PaymentsRead the Press Release
St. Thomas, USVI – U.S. Attorney Gretchen C.F. Shappert, Special Agent in Charge Michael J. De Palma of the Internal Revenue Service – Criminal Investigation (IRS-CI), Director Joel A. Lee of the VI Bureau of Internal Revenue (the Bureau) and V.I. Attorney General Denise N. George, today warned taxpayers to be alert to possible scams relating to COVID-19, especially in connection with economic impact payments. The announcement is an effort to prevent taxpayers from being victimized by criminals using the recently approved COVID-19 payments as an opportunity to commit a crime.
U.S. Attorney Shappert stated, "Fraudsters who prey on vulnerable victims will be held accountable for their criminal conduct. Federal law enforcement and federal prosecutors urge the public to be aware of scams associated with the COVID-19 crisis and schemes designed to interfere with receipt of legitimate federal tax refunds and COVID-19 economic impact payments. We urge all Americans to be vigilant and to report any suspicious activity to federal law enforcement."
In the Virgin Islands, COVID-19 economic impact payments will be on their way during the month of May. For Virgin Islands taxpayers, this payment will be via check to the mailing address on the taxpayers’ 2018 individual income tax returns. Everyone receiving a COVID-19 related economic impact payment from the government is at risk.
Michael J. De Palma, Special Agent in Charge of the IRS-CI Miami Field Office warned, "Even as our Nation is enduring a State of Emergency, criminals will continue to engage in heinous acts to further enrich themselves demonstrating no sympathy by exploiting you during your most difficult circumstance."
Joel A. Lee, Director of the Bureau, reminded bona fide residents of the Virgin Islands that they should file and pay taxes to the Bureau. "The Economic Impact Payments, or the stimulus payments, will be coming directly to Virgin Islands taxpayers from the Department of Finance. Virgin Islands residents who fraudulently filed IRS returns or otherwise received an EIP from IRS must repay the IRS or be subject to possible criminal prosecution, since they are to receive their EIP directly from the US Virgin Islands," explained Director Lee.
"There is certainly a wave of COVID-19 fraud that focuses on all areas of consumer vulnerability. The Virgin Islands Department of Justice will vigorously prosecute violations of our anti-fraud laws. Nonetheless, it is more important than ever during these trying times that Virgin Islands residents remain vigilant by taking extra precautions to avoid becoming victimized," emphasized V.I. Attorney General Denise N. George.
These offices offer the following guidance to the public to warn about potential scams:
The Bureau, through the Department of Finance, will mail your check to the last known address on your 2018 tax return.
- Neither the Bureau nor IRS will call and ask you to verify your payment details. Do not give out your bank account, debit account, or PayPal account information – even if someone claims it’s necessary to get your check. The caller may be perpetrating a scam.
- If you receive a call relating to your tax return, don’t engage with possible scammers or thieves, even if you want to tell them that you know it’s a scam. The best advice is to just hang up the phone. If you receive texts or emails claiming that you can get your money faster by sending personal information or clicking on links, delete them. Don’t click on any links in those emails or texts.
- Reports are also circulating about bogus checks. It will take the Bureau and the Department of Finance several weeks to mail the checks out. If you receive a "check" for an odd amount (especially one with cents), or a check that requires that you verify the check online or by calling a number, it’s likely a fraud,
"During these unprecedented and uncertain times, Virgin Islanders need to come together and address the current challenges with a purpose," Shappert said. "Our citizens should not allow criminals to victimize innocent people by exploiting emotions during this crisis. Everyone is advised to stay connected and to inform law enforcement, family, and friends of any suspicious activity that may involve a fraud or financial scam."
"IRS Criminal Investigation will continue to pursue criminals who violate the law and attack our community. IRS-CI will work diligently alongside the Department of Justice and our law enforcement counterparts to identify scams, stop the con-artists in their tracks and bring them to justice." said. De Palma.
For more information, visit the IRS website at www.irs.gov/coronavirus. To learn more about Department of Justice resources, involving the COVID-19 crisis, visit the DOJ Website:
http://www.justice.gov/coronavirus.
You can also contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at disaster@leo,gov.
United States Attorney’s Office District of Arizona March 2020 Immigration and Border ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
946 individuals were charged in March with illegal reentry
A. 359 of those 946 individuals had previously been convicted of non-immigration criminal offenses in the U.S.
Of the 359 individuals with non-immigration criminal records:1. 74 had violent crime convictions, including:
2 individuals had homicide convictions
9 individuals had sex offense convictions
24 individuals had domestic violence convictions2. 52 had property crime convictions
3. 98 had DUI convictions
4. 132 had drug crime convictions
B. 264 of those 946 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
69 individuals were charged in March with alien smuggling
III. Illegal Entry (Criminal Consequence Initiative) (8 U.S.C. 1325)
405 individuals were charged in March with illegal entry on the CCI calendar
Criminal conviction information based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
*The Department of Homeland Security instituted a policy in late March of expeditiously returning aliens who illegally enter the United States rather than detaining them.
RELEASE NUMBER: 2020-049_March Immigration and Border Crimes Report
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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.United States Attorney William M. McSwain Seeks Partnerships with Health Care Institutions to Stop Coronavirus-Related FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain sent a letter to area health care institutions today to advise them that the U.S. Attorney’s Office for the Eastern District of Pennsylvania is working with its federal, state, and local law enforcement partners to investigate and prosecute those who seek to exploit the devastating effects of the coronavirus pandemic for their own financial benefit. In his letter addressed to hospital leaders across the District, U.S. Attorney McSwain asked for their assistance in identifying those suspected of perpetrating coronavirus-related crimes and urged them to report suspicious conduct to his Office.
In his letter, U.S. Attorney McSwain identified several types of coronavirus-related crimes. In addition to preventing and punishing hoarding and price gouging relating to critical health and medical supplies, he reiterated his commitment to prosecuting all types of coronavirus-related fraud scams, including fraudsters who advertise and sell fake or non-existent medical equipment or phony cures, steal personal identifying information, and engage in other cybercrimes related to the pandemic.
“If left unchecked, these bad actors can inhibit hospitals, physicians, and other health care professionals, as well as governmental agencies and the public, from mitigating the spread of the coronavirus and from successfully saving lives,” said U.S. Attorney McSwain. “We are all extremely grateful for the vital work these health care professionals are performing on a daily basis. I look forward to collaborating with area health care systems and hospitals to protect the community and enforce the laws of the United States during this time of national emergency.”
For health care institutions, illegal hoarding and price gouging of health and medical supplies is of critical concern. To that end, the letter identifies the health and medical supplies that the Secretary of Health and Human Services has designated as “scarce” pursuant to the Defense Production Act, and advises that hoarding or selling these supplies at exorbitant prices will trigger criminal penalties and civil enforcement remedies that the U.S. Attorney’s Office will aggressively pursue. There are fifteen (15) categories of critical health and medical supplies covered by the Act:
- N-95 filtering facepiece respirators
- Other filtering facepiece respirators (e.g., those designated as N99, N100, R95, R99, R100, P95, P99, or P100)
- Elastomeric, air-purifying respirators and appropriate particulate filters/cartridges
- Powered air purifying respirators (PAPR)
- Portable ventilators
- Drug products with active ingredient chloroquine phosphate or hydroxychloroquine HCl
- Sterilization services for any device as defined in Section 201(h) of the Food, Drug, and Cosmetics Act, and sterilizers as defined in Title 21, Sections 880.6860, 880.6870 & 880.6880 of the Code of Federal Regulations
- Disinfecting devices intended to kill pathogens and other kinds of microorganisms by chemical means or physical means, and other sanitizing and disinfecting products suitable for use in a clinical setting
- Medical gowns or apparel (e.g., surgical gowns or isolation gowns)
- Personal protective equipment (PPE) coveralls (e.g., Tyvek Suits)
- PPE face masks
- PPE surgical masks
- PPE face shields
- PPE gloves or surgical gloves
- Ventilators, anesthesia gas machines modified for use as ventilators, and positive pressure breathing devices modified for use as ventilators, ventilator tubing connectors, and ventilator accessories
U.S. Attorney McSwain encouraged hospital employees to report any coronavirus-related suspicious activity or fraud schemes to his Office and to the national hotline at The National Center for Disaster fraud at 1-866-720-5721 or at [email protected].
Read U.S. Attorney McSwain’s letter to hospital leadership here.
U.S. Attorney Urges Health Care Sector to Report Fraud Related to the COVID-19 PandemicRead the Press Release
BOSTON – As part of the comprehensive federal response to the COVID-19 outbreak, United States Attorney Andrew E. Lelling is urging leadership at Massachusetts hospitals to report individuals and companies that may be engaged in wrongdoing related to the COVID-19 pandemic.
In a letter to leadership at Massachusetts hospitals, U.S. Attorney Lelling encouraged health care facilities to report to federal authorities individuals and companies that may have acquired vital medical supplies in excess of what they would reasonably use, or for the purpose of charging exorbitant prices. This includes 15 categories of health and medical supplies designated by the Secretary of Health and Human Services (HHS) as “scarce,” thus triggering civil and criminal enforcement remedies that the U.S. Attorney’s Office will pursue. In addition, the U.S. Attorney’s Office will investigate any other fraudulent conduct designed to benefit from the pandemic (e.g., false treatments, tests, and/or vaccinations for COVID-19).
“In light of the COVID-19 pandemic, my office is prioritizing the investigation and prosecution of wrongdoing related to the COVID-19 pandemic, including those engaged in hoarding and/or price-gouging with regard to critical medical supplies,” said United States Attorney Lelling. “These practices are not only morally repugnant in light of the pandemic but also, if left unchecked, will inhibit hospitals, physicians, other health care professionals, and government agencies from fully implementing measures designed to save lives and mitigate the spread of the novel coronavirus.”
U.S. Attorney Lelling named Amanda Strachan, Chief of the Health Care Fraud Unit, as the COVID-19 Fraud Coordinator for the District of Massachusetts.
Massachusetts residents who believe they are victims of fraud or other criminal activity related to the pandemic should contact the United States Attorney’s Office at [email protected] or call 1-888-221-6023 and leave a message. Members of the public can also contact the FBI’s Internet Crime Complaint Center (IC3) by visiting www.IC3.gov. If you or someone you know are in immediate danger, please call 911.
U.S. Attorney DeVillers statement on arrest of former D.A.R.E. police officerRead the Press Release
“Kevin A. Kovacs, a former longtime Beavercreek police officer, was arrested this morning on federal charges of producing, distributing, receiving, transporting and possessing child pornography,” said U.S. Attorney David M. DeVillers. “Additionally, Kovacs is charged with tampering with a witness or informant.
Kovacs appeared in federal court at 1:30pm today and is scheduled to appear again at 1:30pm tomorrow for a detention hearing. This investigation remains ongoing. If you have any information related to this case, please contact the FBI at 513-421-4310 or the Fairborn Police Department at 937-343-8854.”
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Torrington Financial Advisor Sentenced to Prison for Misappropriating Funds from Elderly ClientsRead the Press Release
New Haven – John H. Durham, United States Attorney for the District of Connecticut, announced that LESTER BURROUGHS, 61, of Torrington, was sentenced today by U.S. District Judge Victor A. Bolden to 33 months of imprisonment, followed by three years of supervised release, for misappropriating approximately $575,000 from investment clients, most of whom were elderly.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, Burroughs owned Burroughs Investment Group, a full-service financial consulting firm based in Torrington, and was a registered securities broker with the Financial Industry Regulatory Authority. Beginning in at least 2012 and continuing through 2019, Burroughs misrepresented to certain clients that their money would be invested in legitimate guaranteed investment contracts. Instead, he used his clients’ money to pay business expenses and other clients’ “guaranteed” investment returns.
Burroughs began the scheme after an investment he recommended to a client failed to materialize an expected return and Burroughs feared the possible financial repercussions to his business should that client file a complaint with regulatory agencies. Burroughs then stole approximately $370,000 from an elderly client in order to pay the nonexistent returns of the failed investment to the first client. In 2018, after the elderly client’s daughter demanded a full accounting of her mother’s investments, Burroughs tried to cover up his conduct by providing his client’s daughter with fraudulent accounting statements and documents. When his client’s daughter demanded money, Burroughs provided the client with funds he had stolen from three other unsuspecting clients, all of whom were told by Burroughs that he was investing their money in guaranteed investment contracts.
Through this scheme, Burroughs defrauded clients of a total of approximately $575,000. Burroughs is required to pay full restitution.
On December 4, 2019, Burroughs pleaded guilty to one count of wire fraud.
Burroughs, who is released on a $100,000 bond, is scheduled to report to prison on June 1, 2020.
This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Heather L. Cherry.
The Securities and Exchange Commission filed related civil charges against Burroughs. (Securities and Exchange Commission v. Lester Burroughs, 3:19-cv-1913).
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
Three Indicted on Passport Fraud, Naturalization Fraud, Making False Statements in an Immigration Proceeding, and Violating the Sex Offender Registration and Notification ActRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Greenville has returned indictments charging MARIO SOTELO, age 48, a naturalized citizen of the U.S., born in Mexico, with passport fraud and possession of a fraudulent immigration document, and ZAW LIN LAY, age 42, a naturalized citizen of the U.S., born in Burma, with naturalization fraud, passport fraud, and making false statements in an immigration proceeding.
Additionally, the grand jury returned a superseding indictment charging HECTOR DANERI REGALADO, age 44, a naturalized citizen of the U.S., born in Honduras, with naturalization fraud, passport fraud, possession of a fraudulent immigration document, and violating the Sex Offender Registration and Notification Act.
If convicted of passport fraud, SOTELO, of Wake County, could face maximum penalties of 40 years’ imprisonment, a $1,000,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of naturalization fraud, and making false statements in an immigration proceeding, LAY, of Craven County, could face maximum penalties of 85 years’ imprisonment, a $2,500,000 fine, a term of supervised release following any term of imprisonment, and the revocation of his citizenship.
If convicted of naturalization fraud, passport fraud, possession of a fraudulent immigration document, and violating the Sex Offender Registration and Notification Act, REGALADO, of Sampson County, could face a maximum imprisonment term of 85 years, a $2,500,000 fine, a term of supervised release following any term of imprisonment, and the revocation of his citizenship.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
ICE’s Enforcement and Removal Operations and Homeland Security Investigations pursuant to Operation False Haven, an ongoing initiative to identify and prosecute felons who fraudulently obtained U.S. citizenship, are investigating the cases.
Three Canadian Men Sentenced for Sweepstakes FraudRead the Press Release
HARRISBURG – The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that three Canadian men were sentenced on April 15, 2020, for their roles in a bogus sweepstakes scam that defrauded 45 victims across the United States out of $302,045.
Konstantine Filippas, age 74, Michael Dissos, age 68, and Michael Pare, age 55, all from the greater Montreal, Canada area, were sentenced yesterday by Chief U.S. District Court Judge Christopher C. Conner after pleading guilty last year to conspiracy to commit mail and wire fraud charges. Dissos and Pare received a sentence of time served of approximately nine months each, and Filippas was sentenced to 18 months’ imprisonment.
According to United States Attorney David J. Freed, all three defendants were indicted in 2014, along with four other alleged co-conspirators. The seven defendants allegedly defrauded approximately 65 victims, most of whom were elderly, for losses exceeding $1.2 million. Filippas, Dissos and Pare were eventually extradited from Canada to the Middle District of Pennsylvania last summer. The defendants admitted during their guilty plea proceedings to allowing their Canadian bank accounts to be used to receive monies sent by victims who were lead to believe they had won substantial winnings in a fictitious sweepstakes contest. The defendants also admitted to cashing out Western Union and MoneyGram money transfers sent by some victims.
Chief Judge Conner also ordered Dissos to pay $34,080, Pare to pay $90,745, and Filippas to pay $177,220 in restitution to the 45 victims. Chief Judge Conner further ordered Dissos and Pare to self-deport back to Canada within seven days of their release from custody.
The case was investigated by the Harrisburg Office of the U.S. Postal Inspection Service. Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.
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Paducah Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
PACUCAH, Ky. – United States Attorney Russell Coleman today announced the charging of Salaam Muhammad AKA Wayne D. Askew, 46, for being a felon in possession of an AK-47 type assault rifle and ammunition via federal Criminal Complaint.
“This is exactly the type coordination between federal, state, and local law enforcement that best serves the people of the Purchase Region,” said U.S. Attorney Russell Coleman. “While much remains unknown during this pandemic, Kentuckians should rest assured that the professionals of the ATF, Paducah Police Department, and United States Attorney’s Office remain on the job to protect their families.”
According to the Criminal Complaint, Paducah Police Department officers responding to a call identified Muhammad in a vehicle with a Norinco, model BWK-92 Sporter, 5.56 X 45, semiautomatic rifle, with a loaded magazine and round in the chamber.
The defendant was previously convicted for possession with intent to distribute 50 grams or more of “crack” cocaine in case number 5:03-CR-17-R. Muhammad was convicted of the felony in United States District Court. The defendant was also convicted on December 18, 2000, in McCracken County Circuit Court in case number 00-CR-126, of 1st degree possession of a controlled substance, cocaine, a felony offense. He was also charged with assault resulting in a felony conviction in 1992.
If convicted at trial, the maximum sentence for unlawfully possessing a firearm is no more than ten years in prison, a $250,000 fine, and three years of supervised release.
This case is being prosecuted by Assistant United States Attorney Seth Hancock who also serves as the Branch Chief of U.S. Attorney’s Office-Paducah. The case is being investigated by the Paducah Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in support of the Paducah Police Department.
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A Criminal Complaint is an accusation only and
the person is presumed innocent until and unless proven guilty.
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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 Kentucky. A centerpiece of this effort is Project Guardian and Project Safe Neighborhoods, programs that bring together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
Operator of durable medical equipment company charged in multi-million-dollar telemedicine kickback schemeRead the Press Release
SAVANNAH, GA: A California man who operated a durable medical equipment (DME) company has been charged for his alleged participation in a massive healthcare fraud scheme. The defendant is the 22nd charged in the Southern District of Georgia as part of an investigation that uncovered more than $410 million in fraudulent claims to Medicare, the largest fraud case in the history of the Southern District of Georgia.
Scott M. Hirsch, the operator of JI Medical, Inc., a California company, is accused of conspiring to pay kickbacks in exchange for obtaining orders for DME that JI Medical, Inc. would then bill to Medicare. Those Medicare beneficiaries were located in the Southern District of Georgia and elsewhere. As part of this scheme, the physicians receiving the kickbacks from JI Medical, Inc. knowingly signed false medical records describing “consultations” of Medicare patients. The operator of JI Medical, Inc. was charged by way of an Information, filed in the U.S. District Court for the Southern District of Georgia.
“Telemedicine is an important tool for legitimate providers – but paying kickbacks is not part of telemedicine and will not be tolerated under any circumstances,” said U.S. Attorney Bobby L. Christine. “While many of our prosecutors and law enforcement partners may be working remotely during the COVID-19 pandemic, this office continues to work day and night to bring bad actors to justice.”
The healthcare fraud scheme charged is the largest in the history of the Southern District of Georgia. Previous charges in this string of cases include eight physicians, two nurse practitioners, two operators of telemedicine companies, and two brokers of patient data. The Medicare and Medicaid beneficiaries whose identities were used as part of the scheme are located throughout the Southern District of Georgia, including the Augusta, Brunswick, Dublin, Savannah, Statesboro, and Waycross Divisions, as well as elsewhere in the United States.
The $410 million fraud scheme charged in the Southern District of Georgia is part of nationwide operations by the Department of Justice that thus far has halted a multi-billion dollar fraud network involving fraudulent claims for genetic testing, orthotic braces, pain creams, and other items.
“The growing number of medical providers and equipment providers alleged to have been involved in this ongoing scheme is disheartening,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our federal partners will continue to root out such deceitful practices and protect taxpayers and the citizens who deserve the benefits from programs like Medicare, even as telemedicine becomes more common.”
“This investigation is a stellar example of inter-agency cooperation and working together to bring those who defraud the health care system to justice,” said FBI Birmingham Special Agent in Charge Johnnie Sharp Jr. “The public can be assured that the FBI and our partners will continue to seek to identify and pursue investigations against such egregious offenders.”
“In these trying times, it’s more important than ever that we safeguard the Medicare trust fund,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “HHS/OIG, along with our partners, will vigorously pursue any provider who puts their own financial gain above that of their patients.”
“Cases of this magnitude can only be tackled using a strategy that recognizes that the most effective way to fight these large criminal networks is by combining the strengths, resources, and expertise of our federal agencies,” said Resident Agent in Charge Glen M. Kessler of the U.S. Secret Service. “Our nation’s healthcare system cannot tolerate kickbacks to physicians and pharmacies while criminals line their pockets with taxpayer funded healthcare dollars.”
“The U.S. Postal Inspection Service aggressively conducts investigations of those who fraudulently use the U.S. Mail to facilitate complex fraud schemes,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division. “We will continue to support and work with our federal law enforcement partners to stop those who are engaged in these types of fraudulent activities and defend the U.S. Mail from criminal misuse.”
“The defendant in this case used the U.S. Mail to facilitate his elaborate criminal scheme. Postal Inspectors partnered with other agencies to quickly identify the scheme and worked aggressively with the U.S. Attorney's Office to dismantle this criminal enterprise. Through cases like these, the Postal Inspection Service upholds its longstanding mission of protecting the public and preventing criminal misuse of the U.S. Mail,” said Antonio J. Gomez, Inspector in Charge of the U.S. Postal Inspection Service - Miami Division.
Indictments or criminal informations contain only charges; defendants are presumed innocent unless and until proven guilty.
This investigation is ongoing. As telemedicine becomes an increasing part of our healthcare system, vigilance in ensuring that fraud and kickbacks do not usurp the legitimate practice of medicine by electronic means is more important than ever. If you are aware of any fraud or kickbacks relating to telemedicine, including COVID-19 fraud, please call the FBI hotline at 1-800-CALL-FBI.
This particular prosecution resulted from a joint investigation of multiple agencies and offices. U.S. Attorney Christine acclaimed the hard work of the investigatory team, led by FBI - Savannah, FBI - Birmingham, the Department of Health and Human Services Office of Inspector General, the United States Secret Service, and the United States Postal Inspection Service.
Assistant U.S. Attorneys J. Thomas Clarkson and Jonathan A. Porter are prosecuting these cases on behalf of the United States.
Niagara Falls Man Indicted by A Federal Grand Jury for Producing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 16 count indictment charging Jonathon R. Cassatt, 34, of Niagara Falls, NY, with 15 counts of production of child pornography and one count of possession of child pornography. The charges carry a minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Special Assistant U.S. Attorney Jeffrey T. Fiut, who is handling the case, stated that according to the indictment and a previously filed criminal complaint, in November 2019, the Niagara Falls Police Department received information that the defendant’s cell phone contained images and videos of child pornography. Subsequent investigation determined that Cassatt used his cell phone to produce child pornography involving a minor victim on 15 different occasions between 2017 and 2019.
Cassatt was arraigned this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and was detained.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Niagara Falls Police Department, under the direction of Chief 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.
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New Haven Man Sentenced for Possessing Stolen Firearm in StamfordRead the Press Release
New Haven – John H. Durham, United States Attorney for the District of Connecticut, announced that NYEJIRE REDMOND, also known as “Polo,” 20, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea to approximately 15 months of imprisonment, time already served, and three years of supervised release, for possessing a stolen firearm.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, in January 2019, Redmond’s associate, Joel Cruz-Berrios, arranged to trade firearms with an individual in Stamford. On January 22, 2019, Stamford Police officers arrested Redmond, Cruz-Berrios and Victor Berrios-Sanchez after they traveled from New Haven to a parking garage in Stamford. Redmond was sitting in the backseat of the vehicle next to a sleeping, unrestrained child who was approximately two years old. Berrios-Sanchez possessed a loaded .22 caliber revolver, a .25 caliber semi-automatic handgun and three .25 caliber rounds of ammunition, and Redmond possessed a loaded .45 caliber automatic handgun that had been reported stolen in New Britain in December 2018.
Redmond has been detained since his arrest. On December 5, 2019, he pleaded guilty to one count of possession of a stolen firearm.
Cruz-Berrios, of New Haven, previously pleaded guilty in federal court to possession of a firearm by a convicted felon and is detained while awaiting sentencing. Berrios-Sanchez, of New Haven, pleaded guilty in state court to firearm offenses and was sentenced to 31 months of incarceration.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Mission Woman Indicted on Drug Trafficking ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Jessi Barrera, age 33, was indicted on March 9, 2020. She appeared before U.S. Magistrate Judge Mark A. Moreno on April 14, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 5 years, up to 40 years in prison and/or a $5,000,000 fine, at least 4 years of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that Barrera knowingly and intentionally possessed with the intent to distribute methamphetamine, a Schedule II controlled substance, and aided and abetted others in the distribution of meth on the Rosebud Indian Reservation.
The charge is merely an accusation and Barrera is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Barrera was released on bond pending trial. A trial date has not been set.
Lancaster County Farm Agrees to Consent Decree to Remedy Continued Violations of Food Safety Laws and to Ensure Compliance with Terms of Court-Ordered Permanent InjunctionRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that United States District Judge Edward G. Smith has approved a Consent Decree between the United States and Miller’s Organic Farm of Bird-in-Hand, PA. Five months ago, on November 19, 2019, the court permanently enjoined Miller’s and its owner, Amos Miller, from obstructing federal health and safety oversight and from slaughtering, processing, and selling non-federally-inspected, misbranded meat and poultry products to Miller’s nationwide “private membership association” customers. In the Consent Decree, Miller’s acknowledges its recent violations of these prohibitions and agrees to enforceable remedial provisions.
The first of those violations came to light in December 2019, shortly after the injunction began, when investigators from the Food Safety and Inspection Service (FSIS) of the U.S. Department of Agriculture went to Miller’s to assess compliance with the injunction. They found approximately 2,000 pounds of fresh meat carcasses and products that Miller’s had recently slaughtered without federal inspection, in violation of the injunction. After FSIS “detained” these articles (by tagging them so that they could not be used, altered, moved, or sold in commerce while under detention), Miller’s voluntarily destroyed them.
FSIS investigators found more violations of the court’s permanent injunction in January 2020. Under the injunction, Miller’s had 60 days to sell, exclusively to its buyers’ club members, approximately 34,062 pounds of frozen meat-and-poultry-product inventory that was already in existence when the court entered the November 19, 2019 injunction. On January 22, 2020, just after that deadline had passed, the investigators found the inventory still at Miller’s, with Mr. Miller contending that he had sold all of it to only one of his buyers’ club members who runs both a Miller’s website and a Florida food Co-Op. FSIS maintained that Miller’s violated the injunction by failing timely to sell and ship the inventory directly to individual members in consumer quantities (rather than to a single member in bulk).
On that date, the investigators also observed and detained approximately 2,100 pounds of non-federally-inspected, freshly slaughtered beef carcasses. Two days later, when FSIS investigators returned to Miller’s to detain the 34,062 pounds of frozen inventory, Mr. Miller violated the injunction by initially denying them access to his facilities.
On February 10, 2020, the United States filed a separate action to seize and condemn the detained frozen inventory and fresh meat carcasses. The U.S. Marshals Service then legally seized those meat and poultry articles but left them in place (frozen and stored) at Miller’s pending a condemnation hearing.
Under the Consent Decree, Miller’s acknowledges that it has violated the injunction and agrees: (1) to pay the financial sanction ($2,500) that the court’s injunction order allows for denying FSIS access to Miller’s; (2) either to adhere to procedures for distributing the frozen inventory directly to Miller’s members in consumer quantities or to destroy the inventory; (3) to denature or destroy the fresh carcass meat, if Miller’s cannot sell it to a pet food manufacturer; and (4) to cease internet advertising of “fresh” or “unfrozen” meat and poultry products unless and until such offers for sale comply with federal and state laws. Meanwhile, the Decree contemplates a stay of the condemnation action while Miller’s has an opportunity to distribute and dispose of the articles under FSIS oversight.
FSIS is responsible for ensuring that commercially sold meat, poultry, and egg products are safe, wholesome, and correctly labeled and packaged. The Consent Decree and the condemnation action are part of the United States’ continuing efforts to bring Miller’s into compliance with the Federal Meat Inspection Act and the Poultry Products Inspection Act.
“This Office takes very seriously these violations of the court’s injunction order and is prepared to seek maximum penalties should violations continue. We are entering into today’s Consent Decree to give Miller’s an opportunity to remedy its non-compliance, to show that it is finally willing to follow food safety law requirements, to stop hindering FSIS from carrying out its food safety mission, and to operate within the rule of law that applies to all other similar businesses,” said U.S. Attorney McSwain. “Particularly during the coronavirus pandemic, when Americans have heightened concern about food safety and availability, my Office will remain vigilant in its efforts to ensure that our nation’s food safety laws are followed so that the public’s health is not further put at risk by allowing potentially unsafe food to enter our food supply.”
“FSIS inspection of meat, poultry, and processed egg products provides U.S. consumers with confidence in the safety of the products they serve their families,” said FSIS Administrator Paul Kiecker. “FSIS will continue to exercise its authority to implement and enforce food safety regulations to protect the American public and maintain the integrity of the USDA mark of inspection.”
The injunction action is captioned United States of America v. Miller’s Organic Farm and Amos Miller, EDPA No. 19-cv-1435. The condemnation action is captioned United States of America v. 2,100 Pounds of Meat Carcasses, Parts of Carcasses, and Meat Food Products, and 34,062 Pounds of Meat Food Products and Poultry Products, EDPA No. 20-757.
The United States Attorney’s Office received valuable assistance on these cases from FSIS’s Compliance and Investigations Division, Philadelphia Regional Office; USDA’s Office of the General Counsel; and FSIS’s Enforcement and Litigation Division, Office of Investigation, Enforcement and Audit. The injunction action and condemnation action were handled by Assistant United States Attorney Gerald Sullivan.
Justice Department Issues Business Review Letter to the Association of Independent Commercial ProducersRead the Press Release
The Department of Justice announced today that it will not challenge a proposal by the Association of Independent Commercial Producers (AICP) to operate an online platform for advertisers to solicit bids from companies that provide production services for commercial advertisements. The department’s position was stated in a business review letter from Assistant Attorney General Makan Delrahim of the Antitrust Division to counsel for the AICP.
According to representations made by the AICP, the AICP platform would allow an advertiser to upload details about its need for a commercial advertising production, including bid specifications and, at the advertiser’s option, budget parameters. The advertiser independently would identify the production company bidders to be invited to participate in the bidding process. Any submitted bids would remain private to both the bidder and the advertiser. After the advertiser has awarded the bids, no bidding data would be retained or collected.
Although exchanging price and other competitive information can facilitate anticompetitive coordination among competitors, the AICP has designed the proposed platform to prevent such information sharing. To this end, the proposed platform will contain numerous safeguards to ensure that neither the nonpublic information an advertiser provides to the platform nor the nonpublic information that bidders submit in response to an advertiser’s job specifications will be shared with other advertisers, bidders, or with third parties. Additionally, the AICP platform will include firewalls to ensure that neither the AICP nor its members can access that third-party information.
Based on the information submitted and representations made by the AICP, the department has no present intention to challenge the operation of the AICP’s proposed online bidding platform.
This statement is made in accordance with the department’s business review procedure, 28 C.F.R. § 50.6, and subject to the limitations and reservations of rights therein. Under the department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the division currently intends to challenge the action under the antitrust laws based on the information provided.
Copies of the business review request and the department’s response are available on the Antitrust Division’s website at https://www.justice.gov/atr/business-review-letters-and-request-letters, as well as in a file maintained by the Antitrust Documents Group of the Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 1010, Washington, D.C. 20530.
After a 30-day waiting period, any documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure. Supporting documents in the file will be maintained for a period of one year, and copies will be available upon request to the FOIA/Privacy Act Unit, Antitrust Documents Group at [email protected].
Jackson Man Pleads Guilty under Project EJECT to Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – Marlandow Johnson, 45, of Jackson, pled guilty today before U.S. District Court Judge Henry T. Wingate to possessing a firearm after having been previously convicted of a felony crime, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
On July 2, 2018, Jackson Police officers responded to a disturbance at Studio 7 hotel. Upon arrival, officers observed objects being thrown from a vehicle leaving the parking lot of the hotel. Officers stopped the vehicle and, while speaking with the driver, they observed a handgun on the front passenger seat. The driver was identified as Marlandow Johnson and officers discovered that he had been previously convicted of accessory after the fact to murder.
On October 24, 2018, Johnson was charged in a federal criminal indictment with possessing a firearm after having been previously convicted of a felony crime.
Johnson will be sentenced on June 30, 2020, by Judge Wingate, and faces a statutory penalty of up to 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Former employee of medical packaging company charged with sabotaging electronic shipping records leading to the delay of PPE to healthcare providersRead the Press Release
ATLANTA - Christopher Dobbins, a former employee of a medical device packaging company, has been charged by criminal complaint for conducting a computer intrusion into his former employer’s package shipping system and deleting shipping information.
“This defendant allegedly disrupted the delivery of personal protective equipment in the middle of a global pandemic,” said U.S. Attorney Byung J. “BJay” Pak. “Scarce medical supplies should go to the healthcare workers and hospitals that need them during the pandemic. The Department of Justice is dedicated to moving quickly on cases like this to bring criminal opportunists to justice and protect the public during these challenging times.”
“The FBI is making it a priority during the worldwide pandemic to make sure crucial supplies are not being disrupted or diverted from the front lines of medical care,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We are grateful to the medical packaging company for promptly reporting this disruption to their delivery of important medical supplies, so that we could react quickly.”
According to U.S. Attorney Pak, the criminal complaint, and other information presented in court: On March 29, 2020, Christopher Dobbins allegedly conducted a computer intrusion that disrupted and delayed the medical device packaging company’s shipments of personal protective equipment (“PPE”).
While employed at the company, Dobbins had administrator access to the computer systems containing the company’s shipping information. In early March 2020, Dobbins was terminated from his employment at the company, losing his access to the company’s computer systems. On March 26, Dobbins received his final paycheck from the company. Three days later, Dobbins used a fake user account that he had previously created while employed at the company to log into the company’s computer systems.
Once logged in through the fake user account, Dobbins allegedly created a second fake user account and then used that second account to edit approximately 115,581 records and delete approximately 2,371 records. After taking these actions, the complaint alleges, Dobbins deactivated both fake user accounts and logged out of the system. The edits and deletions to the company’s records disrupted the company’s shipping processes, causing delays in the delivery of much-needed PPEs to healthcare providers.
Christopher Dobbins, 40, of Duluth, Georgia, will have his initial appearance before U.S. Magistrate Judge Russell G. Vineyard. He was charged by criminal complaint on April 15, 2020.
Members of the public are reminded that the criminal complaint only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorney Samir Kaushal is prosecuting the case.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia and the Executive Counsel for the Governor’s Office serve on the task force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected].
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney's Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal Grand Jury Returns Superseding Indictment Charging Eights Defendants in Drug Trafficking Ring Stretching Across the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO - N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 22-count Superseding Indictment charging David Burgin, David Washington a/k/a Dirty Dave a/k/a Dirt a/k/a Wavy Davey a/k/a Brick Boy Dave, Eleazar Martinez Medina, Rodney Pierce, Torrance Bailey a/k/a Bird, Sherron Kye, Devante Nance a/k/a V-Dutch, and Devon Clark a/k/a Booski, with conspiring to possess with intent to distribute, and distributing, controlled substances, including five kilograms or more of cocaine, one kilogram or more of heroin, 400 grams of fentanyl, 280 grams or more of cocaine base, 100 grams or more of fentanyl analogues, and marijuana. Several defendants are also charged with possession with intent to distribute these same controlled substances and maintaining premises for the purposes of drug trafficking. The charges carry a mandatory minimum penalty of 10 years in prison, and a maximum of life in prison. Defendants Burgin and Pierce also face an additional consecutive five-year sentence for possessing firearms in furtherance of drug trafficking.
Assistant U.S. Attorneys Timothy C. Lynch and Laura A. Higgins, who are handling the case, stated that according to the Superseding Indictment, the defendants were involved in a drug trafficking ring that stretched from California to Buffalo and involved cocaine, crack cocaine, fentanyl analogues, and fentanyl being transported to the Buffalo, NY area for distribution and sale.
During the course of the investigation, search warrants were executed at 12 residences, and investigators seized $1,405,327 in United States currency in Buffalo and California. In addition, investigators seized:
• six firearms;
• 3.63 kilograms of fentanyl;
• 2.97 kilograms of cocaine;
• 309 grams of fentanyl analogues;
• 893 grams of heroin; and
• 268 grams of crack cocaine;
• six concealed traps—many of which were hydraulically operated;
• scales and drug packaging materials.The superseding indictment also seeks the forfeiture of multiple firearms, ammunition, and the financial proceeds of the drug trafficking conspiracy.
The indictment and criminal complaint are the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Erie County Sheriff’s Office, under the direction of Sheriff Tim Howard; the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge; and Customs and Border Protection Air and Marine Unit, under the direction of Director Brian Manaher.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Failing to Go to Halfway House after Being Released from Prison Results in Additional Prison TimeRead the Press Release
A woman who escaped from federal custody was sentenced on April 15, 2020, to more than four months in federal prison.
Aleania Clendineng, age 35, from Cedar Rapids, Iowa, received the prison term after a February 13, 2020 guilty plea to one count of escape from custody.
At the guilty plea, Clendening admitted she escaped from federal custody by intentionally failing to arrive at a residential reentry center in Cedar Rapids, Iowa. On July 25, 2015, Clendening was sentenced to 60 months’ imprisonment for conspiracy to manufacture methamphetamine. On September 3, 2019, she was ordered to travel from a federal prison in Aliceville, Alabama, to the residential reentry center in Cedar Rapids, but never showed up at the center. A month later, Clendineng was arrested in Davenport, Iowa.
Clendineng was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Clendening was sentenced to four months and fourteen days’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Clendening is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Dillan Edwards and investigated by the United States Marshals Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-111.
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Eastern District of Louisiana U.S. Attorney Peter G. Strasser Seeks Support of Southeastern Louisiana Hospital Administrators in Fight Against COVID-19 FraudRead the Press Release
NEW ORLEANS—Eastern District of Louisiana U.S. Attorney Peter G. Strasser, sent a letter to hospital executives throughout Southeast Louisiana on April 15, 2020, asking for their assistance in identifying individuals and companies that may have acquired vital medical supplies for the purpose of hoarding or price gouging.
The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. Under the leadership of Attorney General William Barr, U.S. Attorneys appointed Coronavirus Fraud Coordinators to work with federal, state, local and tribal law enforcement partners to protect the public from scammers who are attempting to prey upon fears. The Department is also committed to preventing hoarding and price gouging for critical supplies during this crisis. To address this, Attorney General Barr created the COVID-19 Hoarding and Price Gouging Task Force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected]. Members of the public in the Eastern District of Louisiana are also encouraged to call (504) 680-3000 or email [email protected] to reach their local Coronavirus Fraud Coordinator, Assistant U.S. Attorney Edward Rivera.
“Along with our federal, state and local law enforcement partners, we continue to stand ready to enforce the laws of the United States and to address the public safety needs of our community”, said U.S. Attorney Peter G. Strasser. “Unfortunately, during times of crisis, criminals continue their efforts to victimize the public. However, we are ready for them. During this pandemic, our office remains focused on the prevention, investigation, and prosecution of misconduct related to COVID-19 fraud, including hoarding and price-gouging of critical medical equipment.”
U.S. Attorney Strasser encourages the public to report COVID-19 related fraud to the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721or to the email address [email protected].
Eagle Butte Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on April 15, 2020, by U.S. Magistrate Judge Mark A. Moreno.
Silas Condon, age 24, was sentenced to 2 years probation with 4 months home detention, restitution of $349, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Condon was indicted by a federal grand jury on January 15, 2020. He pled guilty on April 15, 2020.
The conviction stemmed from an incident on December 6, 2019, when law enforcement was dispatched to remove Condon from a residence due to his intoxication. As law enforcement escorted Condon out of the residence, Condon was verbally abusive and spit on, kicked, and struck the officers multiple times.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Condon released following his sentencing hearing.
Dominican National Sentenced for Identity Theft and Stealing MassHealth BenefitsRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence was sentenced yesterday for Social Security fraud, aggravated identity theft and benefit fraud.
Jose Miguel Baez, 43, was sentenced via videoconference by U.S. District Court Judge William G. Young to two years and one day in prison and two years of supervised release. The defendant also was ordered to pay restitution of approximately $17,198 to MassHealth, the Massachusetts Department of Unemployment Assistance and various other utility and medical providers. Baez will be subject to deportation proceedings upon completion of his sentence. In December 2019, Baez pleaded guilty to one count each of false representation of a Social Security Number, aggravated identity theft and false statements in matters relating to health care.
On Aug. 7, 2017, Baez applied for and obtained a Massachusetts driver’s license in the identity of a Puerto Rican born United States citizen. Eight days later, Baez applied for MassHealth using the victim’s identity and obtained $3,727 in MassHealth benefits. Baez also used the victim’s identity in other instances, including to collect unemployment benefits and for utility and medical bills, which Baez defaulted on. Baez use of the identity resulted in a total loss of at least $17,194 to utility companies, medical providers, MassHealth and the state unemployment agency.
When Baez was arrested in April 2019, agents recovered the Massachusetts driver’s license issued to him in the fraudulent identity and a copy of his Dominican identification document in his true name bearing his photo. Baez was identified, among other things, from a fingerprint match with a Dominican Republic identification document issued to him.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigation, New York Regional Office; and Phillip Coyne, Special Agent in Charge of Department of Health and Human Services, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Criminal Division prosecuted the case.
Carmel Valley Physician Charged with Fraud for Selling Purported COVID-19 “Miracle Cure”Read the Press Release
NEWS RELEASE SUMMARY – April 16, 2020
SAN DIEGO – Dr. Jennings Ryan Staley, a licensed physician and the operator of Skinny Beach Med Spa in San Diego, was charged today with mail fraud in connection with the sale of what he described as a “100%” cure for COVID-19 that he said would render customers immune to the virus for at least six weeks. Staley is scheduled to be arraigned in federal court tomorrow at 2 p.m. before U.S. Magistrate Judge Jill L. Burkhardt.
FBI Agents began investigating this COVID-19 related fraud immediately upon receiving a tip from the public and shortly thereafter introduced an undercover agent. Today, FBI Agents also executed a search warrant at the business of Skinny Beach Med Spa located in Carmel Valley. As alleged in the criminal complaint, Skinny Beach Med Spa, based in Carmel Valley, offered a range of beauty-related services such as botox, hair removal, and fat transfer. In late March, Skinny Beach began sending emails advertising “COVID-19 treatment packs,” described as a “concierge medicine experience” priced at $3,995 for a family of four, that included among other things access to Dr. Staley, the medications hydroxychloroquine and azithromycin, and “anti-anxiety treatments to help you avoid panic if needed and help you sleep.” In a recorded call in which Dr. Staley was selling his services to a would-be customer – in fact, the undercover FBI agent – Dr. Staley described the medication he was offering as “an amazing cure” and a “miracle cure” that would cure COVID-19 “100%.” He added that if you take the medication without having the disease, “you’re immune for at least 6 weeks.” Staley referred to medication he offered as a “magic bullet,” and said, “It’s preventative and curative. It’s hard to believe, it’s almost too good to be true. But it’s a remarkable clinical phenomenon.” Staley also stated, “I’ve never seen anything like this in medicine, just so you know. Really, I can’t think of anything. That, you’ve got a disease that literally disappears in hours.”
Dr. Staley was interviewed a week later by the FBI as part of the overt investigation. When Dr. Staley was asked by agents whether Skinny Beach has told patients that the treatments are a 100% effective cure for COVID-19, Dr. Staley said, “No, that would be foolish. We would never say anything like that.” He also told the FBI that it was “not definitive” that the medication he offered cures COVID-19.
As set out in the complaint, Dr. Staley also offered the would-be customer Xanax (alprazolam) – a Schedule IV controlled substance – as part of his concierge package, and shipped the drug without conducting any sort of medical examination. He claimed that his broker was smuggling hydroxychloroquine from China to make his own pills, and had concealed the shipment from customs authorities by describing it as sweet potato extract. Shipping records confirmed that Dr. Staley was indeed importing a shipment of “yam extract,” scheduled to arrive in the U.S. in a matter of days.
“We will not tolerate COVID-19 fraudsters who try to profit and take advantage of the pandemic fear to cheat, steal and harm others,” said U.S. Attorney Brewer. “Rest assured: those who engage in this despicable conduct will find themselves in the crosshairs of federal prosecutors.”
“The sale of false cures, especially by a medical professional, will be vigorously investigated by the FBI,” said Omer Meisel, the Acting Special Agent in Charge of the FBI’s San Diego Field Office. “The FBI is using a variety of tools to identify anyone who exploits the current crisis with fraudulent scams or a variety of cyber schemes – and is proactively warning the public about products claiming to save lives, before losing their money or creating false hope. Scammers seeking to profit by exploiting fear and uncertainty during this COVID-19 pandemic will be brought to justice.”
“The FDA will continue to collaborate with our fellow law enforcement partners to bring to justice those who place profits above the public health during the Covid-19 pandemic,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office. “Today’s announcement should serve as a reminder that we will take appropriate action against bad actors who take advantage of a crisis while jeopardizing the health of Americans.”
The FBI continues to warn the public about health care fraud schemes: https://www.fbi.gov/news/pressrel/press-releases/fbi-warns-of-emerging-health-care-fraud-schemes-related-to-covid-19-pandemic and other COVID-19 related crimes at: https://www.fbi.gov/coronavirus.
If you think you are a victim of COVID-19 fraud, immediately report it the FBI (visit ic3.gov, tips.fbi.gov, or call 1-800-CALL-FBI or the San Diego FBI at 858-320-1800.
In addition, the public is urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
DEFENDANTS Case Number 20-mj-1407
Jennings Ryan Staley Age: 44 San Diego, CA
SUMMARY OF CHARGES
Title 18, United States Code, section 1341 (mail fraud)
Maximum penalty: 20 years in prison; fine; penalty assessment
AGENCY
Federal Bureau of Investigation
U.S. Food and Drug Administration
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
COVID-19 Concierge Medicine Pack (Criminal Complaint, Case No. 20-mj-1407, p. 9)Breman, Indiana Man SentencedRead the Press Release
SOUTH BEND - Charles Hartsell, age 48, of Bremen, Indiana was sentenced by United States District Court Judge Damon R. Leichty for conspiracy to sell and dispose of one or more firearms to an unlawful user of controlled substances, announced United States Attorney Thomas L. Kirsch II.
Hartsell was sentenced to 46 months in prison followed by 2 years of supervised release.
According to documents in this case, in February of 2019, Mr. Hartsell met a male associate at the Four Winds South Bend casino, which is located on tribal land of the Pokagon Band of Potawatomi Indians. The two men transferred a .22 rifle and a 9 mm pistol from the associate’s car to Mr. Hartsell’s car. Mr. Hartsell then drove with his associate to a location in South Bend in order to meet a man referred to as “J”, who was known by Mr. Hartsell to be a drug user. Mr. Hartsell tried to sell the two firearms to “J”, but “J” decided not to purchase the two firearms. Mr. Hartsell and his associate then purchased some heroin and methamphetamine from “J” and drove back to the casino. When they arrived back at the casino, Mr. Hartsell and his associate were detained by Pokagon Band tribal police officers. The two firearms were recovered from Mr. Hartsell’s car by police.
“The United States has an important relationship with the Pokagon Band of the Potawatomi Indians and crimes that occur on this federally-recognized tribal land of the Pokagon Band will be taken seriously by my Office,” said U.S. Attorney Thomas L. Kirsch. “We will continue to work in unison with the Pokagon Band to protect the safety of its tribal citizens, while respecting the Pokagon Band’s sovereignty and culture.”
Pokagon Police Chief William Lux said, “The Pokagon Band of Potawatomi Indians is a federally-recognized sovereign nation and is committed to working with our law enforcement partners in the U.S. government to protect all who visit its trust land and to prosecute those who violate the law on Pokagon land. This case is a great example of team work between our officers, Pokagon Tribal Police Investigations Unit and the St. Joseph County Police Department. We appreciate the support of the FBI and U.S. Attorney Kirsch in prosecuting Mr. Hartsell for crimes committed while at Four Winds South Bend, which is on sovereign Pokagon Band land.”
This case was investigated by the FBI and ATF with the assistance of the Pokagon Tribal Police Department and to St. Joseph County Police Department. The case was prosecuted by U.S. Attorney Thomas L. Kirsch II and Assistant U.S. Attorney Luke N. Reilander
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Attorney General William P. Barr’s Statement on FCC Chairman Pai’s Draft Order to Approve Ligado’s Application to Facilitate 5G and Internet of Things ServicesRead the Press Release
Attorney General William P. Barr issued the following statement:
“I applaud FCC Chairman Pai's proposal to make available L-band spectrum, to be used together with C-band spectrum, for deployment of advanced wireless services, including 5G. As I said in my speech at the Center for Strategic and International Studies, swift FCC action on spectrum is imperative to allow for the deployment of 5G. This is essential if we are to keep our economic and technological leadership and avoid forfeiting it to Communist China. Freeing up L-band spectrum for use in tandem with the C-band, as the Chairman proposes, should greatly reduce the cost and time it will take to deploy 5G throughout the country and would be a major step toward preserving our economic future. I hope the full Commission moves forward quickly.”
To view the draft order, click here.
An Op-Ed from United States Attorney Louis V. Franklin, Sr.Read the Press Release
With Americans adjusting their daily lives as we work to contain the Coronavirus pandemic, one thing that has not changed is law enforcement’s commitment to pursuing justice and keeping our communities safe. As the United States Attorney for the Middle District of Alabama, I am privileged to work closely with state and local police as well as agents from the FBI, ATF, DEA, United States Marshals Service, and our nation’s other preeminent law enforcement agencies to enforce federal law. Together with my staff of Assistant United States Attorneys and support personnel, we work with these agencies to investigate crimes, arrest those who commit them, and bring those perpetrators to justice in federal court. The job may look different in a pandemic, and it may bring with it an added degree of difficulty, but it hasn’t stopped.
We’ve taken precautions to help do our part to limit the spread of the Coronavirus. Most of my AUSAs are working from home, continuing to advance their cases toward a just end, albeit from a distance. Meetings that were once held in person are held by telephone. Instead of seeing judges on the bench during hearings, we see them on a television screen. Agents have prioritized work that does not require them to personally interact with each other or the public.
But one thing should be absolutely clear, especially to those who would threaten our community or who believe that they can use the Coronavirus as a cover to commit crimes with impunity. We’re still here, and we’re still watching you. Agents will still investigate you. U.S. Marshals will still pursue and arrest you. AUSAs will still prosecute you, and federal judges will still send you to prison if you break the law.
To do that job, we need your help.
There can be a tendency, especially when a crime is committed, for witnesses to do everything they can to avoid being involved or to tell themselves that someone else will take care of the problem. But in these trying times, we need everyone to do their part. If you see a crime committed, report it. If you have information about a crime that has already happened, call our offices and let us know.
And be vigilant in protecting yourselves, especially against fraud. Con artists have never seen a crisis they couldn’t find a way to exploit. Already, we’ve heard reports of fraudsters peddling fake Coronavirus vaccines, hawking counterfeit protective gear, and offering bogus financial schemes related to the passage of Congress’s recent relief legislation. If you receive a phone call or an email offering a product or service during this crisis that seems too good to be true or that you believe is illegal, call our office or the office of the Alabama Attorney General. We are here to serve you. You can also contact the National Center for Disaster Fraud (NCDF) Hotline at 1-866-720-5721 or e-mail them at [email protected].
Of course, those who would take advantage of this crisis are in the minority. What we’ve seen far more across our community and this state are people coming together to help one another. That’s what Americans have always done when we’ve met a challenge, and we haven’t found one yet that we can’t overcome together. The Coronavirus will be no different.
$1.6+ Million in DOJ Grants for Public Safety in Response to COVID-19Read the Press Release
MACON, Ga. – $1,648,580 in federal grant dollars is now available to multiple communities across the Middle District of Georgia in response to the public safety challenges posed by the outbreak of COVID-19, said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia.
The grants are available under the Coronavirus Emergency Supplemental Funding (CESF) program, authorized by the recent stimulus legislation signed by President Trump. The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs.
The following communities are allocated grants: Albany, Americus, Athens-Clarke County Unified Government, Baldwin County, Columbus, Dougherty County, Houston County, Lowndes County, Macon-Bibb County, Monroe, Sumter County, Tift County, Tifton, Valdosta, Walton County and Warner Robins. To view the allocation amounts for each community, please visit https://bja.ojp.gov/program/cesf/state-and-local-allocations. Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.
Any Georgia cities or counties not specifically listed, and are interested in receiving funding, can find updated information from the Criminal Justice Coordinating Council (CJCC) at https://bja.ojp.gov/program/cesf/state-and-local-allocations. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.
“Each community will have the opportunity to use this emergency funding to help address their most urgent public safety challenges during the COVID-19 pandemic,” said U.S. Attorney Charlie Peeler. “I want to thank the President and the Office of Justice Programs for making these grants available to our communities during this unprecedented time.”
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Wednesday 15 April 2020
U.S. Attorneys William D. Hyslop and Brian T. Moran Announce Nearly $11 Million to Address Covid-19 Pandemic in State of WashingtonRead the Press Release
Spokane/Seattle – William D. Hyslop, United States Attorney for the Eastern District of Washington, and Brian T. Moran, United States Attorney for the Western District of Washington, announced today that the state of Washington received almost $11 million in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grants, to the Washington Department of Commerce and the city of Olympia, are available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. An additional $5.7 million has been allocated for other local jurisdictions in Washington. Those jurisdictions can find out if they are eligible and apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.
“The Department of Justice is committed to providing significant resources to support our public safety professionals,” said United States Attorney William D. Hyslop. “These vital dollars will go directly to supporting the important work of public health and safety of the community.”
“Our first responders continue to answer the call every single day, to keep our communities safe, while risking exposure to this dangerous virus,” said U.S. Attorney Moran. “The Department of Justice provides this funding with significant flexibility, so that state and local departments can use it in the ways that best benefit their officers and their community.”
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
U.S. Attorney Shawn N. Anderson Announce $2,932,867.00 Award to Address Covid-19 Pandemic on GuamRead the Press Release
Hagatña – Shawn N. Anderson, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands today announced that Guam received $2,932,867.00 in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grant, awarded to the Guam Bureau of Statistics and Plans is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Donald J. Trump. Additional funds have been allocated for local jurisdictions on Guam. Those jurisdictions can find out if they are eligible and apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications. Funding is also available for the CNMI upon application and meeting grant requirements.
U.S. Attorney Anderson stated, “This important funding is an additional step in the ongoing efforts by the Department of Justice to respond to the COVID-19 outbreak. This particular allocation will support a broad range of activities by the Government of Guam. Other DOJ efforts include my appointing a Coronavirus Fraud Coordinator, who has joined our law enforcement partners in prioritizing criminal investigations related to coronavirus. At the national level, Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force to coordinate efforts with the Antitrust Division and U.S. Attorneys across the country where illegal activity is taking place.”
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
U.S. Attorney Jay Town Seeks Help from Local Hospitals in Reporting Hoarding and Price-Gouging of Medical SuppliesRead the Press Release
Birmingham, Ala. — U.S. Jay E. Town sent a letter to hospital executives in Northern Alabama today, encouraging employees and medical professionals to report individuals and companies that may be acquiring or selling medical supplies for the purpose of hoarding and/or price-gouging.
“While this pandemic has brought to the fore the very best among us, we are unfortunately becoming increasingly aware of myriad coronavirus-related criminal activities in our District and around the country,” Town said. “In relevant part to the medical providers, these crimes include Medicaid/Medicare billing manipulations, the sale of fake or counterfeit personal protective equipment, sale of bogus medicines related to COVID-19, and the hoarding and/or price gouging of critical medical supplies and materials. These practices are not only morally repugnant in light of the pandemic we are facing, but also, if left unchecked, can inhibit hospitals, physicians and other health care professionals, government agencies, and the public from fully implementing measures designed to save lives and mitigate the spread of the novel coronavirus.”
The letter was sent to hospitals and healthcare systems in Northern Alabama, as part of a coordinated, nationwide effort to combat COVID-19 related fraud. On March 20, Attorney General William Barr directed all 93 U.S. Attorneys to prioritize the investigation and prosecution of COVID-19 fraud.
U.S. Attorney Town encourages the public to report COVID-19 related fraud to the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721or to the email address [email protected].
Read U.S. Attorney Town's letter to hospital leadership below.
U.S. Attorney Ariana Fajardo Orshan Seeks Support of South Florida Hospitals in Fight Against COVID-19 FraudRead the Press Release
MIAMI, Fl. — U.S. Attorney Ariana Fajardo Orshan sent a letter to South Florida hospital executives on Monday, asking them to share information about individuals and companies that may be acquiring or selling medical supplies for the purpose of hoarding or price gouging.
“In light of the COVID-19 pandemic, our office is prioritizing the deterrence, investigation, and prosecution of wrongdoing related to the COVID-19 pandemic – including . . . hoarding and/or price-gouging with regard to critical medical supplies,” said U.S. Attorney Fajardo Orshan. She asked the hospital executives for help “in identifying individuals and companies that may have acquired vital medical supplies in excess of what they would reasonably use, or for the purpose of charging exorbitant prices,” and reiterated her office’s commitment to investigating and prosecuting fraud designed to benefit from the coronavirus pandemic.
On March 20, Attorney General William Barr directed all 93 U.S. Attorneys to prioritize the investigation and prosecution of COVID-19 fraud. U.S. Attorney Fajardo Orshan launched the Southern District of Florida COVID-19 Task Force, through which agencies can share information and coordinate law enforcement action, and appointed AUSA Jon Juenger to lead her Office’s COVID-19 response.
U.S. Attorney Fajardo Orshan encourages the public to report COVID-19 related fraud to the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721or to the email address [email protected].
Read U.S. Attorney Fajardo-Orshan’s letter to hospital leadership by clicking the attachment.
Attachment:
U.S. Attorney’s Letter to South Florida Hospitals
Statement of U.S. Attorney John C. Anderson on arrests of Susan and William Harris by U.S. Marshals Service in OklahomaRead the Press Release
“In keeping with its highest traditions and revered reputation, by tracking and apprehending these fugitives the United States Marshals service has demonstrated once again that any attempt to flee from justice is a fool’s errand,” said U.S. Attorney Anderson. “Thanks to the dedication of the Marshals Service, these defendants will face sentencing for their crimes, and their victims will be afforded some measure of closure to the lengthy ordeal they have endured. I also thank the Albuquerque and Oklahoma City divisions of the FBI, IRS-Criminal Investigation, the U.S. Attorney’s Office for the Western District of Oklahoma and the Bernalillo County Sheriff’s Office for their assistance in the fugitive investigation.”
For further information on the arrests of Susan and William Harris, contact the U.S. Marshals Service at (505) 346-6400.
Salvadoran National Sentenced for Passport FraudRead the Press Release
Boston – A Salvadoran national previously residing in Chelsea was sentenced today for passport fraud.
Eliseo Rivas, 47, was sentenced in a videoconference hearing before U.S. District Court Judge Patti B. Saris to three months in prison and three years of supervised release. Rivas will face deportation upon completion of his state and federal sentence. Rivas is currently serving a seven-year state sentence in Maryland for a September 2018 conviction of sexual abuse of a minor. In March 2020, Rivas pleaded guilty to making a false statement in a passport application.
On Sept. 30, 2016, Rivas submitted an application for a U.S. Passport using the name, Social Security number, and date of birth of a United States citizen. As proof of citizenship and identity, Rivas submitted a Puerto Rican birth certificate in the victim’s name and a Massachusetts Identification Card in the victim’s name but with Rivas’s photo. After reviewing the application, the Boston Passport Agency forwarded the application to federal authorities for investigation.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.