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11 June 2020
Helena woman sentenced in robbery of heroin traffickersRead the Press Release
HELENA—A Helena woman convicted by a jury of participating in an armed home invasion to rob a couple involved in trafficking heroin was sentenced today to one year and one day in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
After a three-day trial in February, a jury found Arielle Rose Cowser, 27, guilty of conspiracy to commit robbery affecting commerce and robbery affecting commerce.
U.S. District Judge Donald W. Molloy presided.
In evidence presented at trial, the prosecution said the FBI learned of a home invasion robbery in Helena in which the victims, a couple, were involved in trafficking heroin. Co-defendant Kielan Brett Franklin, who pleaded guilty and is pending sentencing, provided the couple money to travel to Washington to buy an ounce of heroin. The couple returned to Montana with less than an ounce. When the couple did not immediately turn over the heroin, Franklin sent them threatening text messages.
On March 8, 2019, Cowser went to the victims’ residence and asked to enter, saying she had broken up with Franklin. The female victim let Cowser inside and a few minutes later, Cowser let in Franklin and two other co-defendants, Gerald Allen Hiler and Morgan Victor Pitsch. Hiler and Pitsch, who also pleaded guilty, wore masks. Hiler was sentenced to 11 years and seven months in prison, while Pitsch was sentenced to six years and six months in prison.
Hiler brandished a handgun and Pitsch possessed one during the robbery. The defendants fled when they realized the female victim had called 911. The robbers took a small amount of heroin, the female victim’s wedding ring, her cell phone and a purse.
Assistant U.S. Attorneys Tom Bartleson and Tim Racicot prosecuted the case, which was investigated by FBI, Montana Regional Violent Crime Task Force, Lewis and Clark County Sheriff’s Office and Missouri River Drug Task Force.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Harrison County man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Frank Horner, III, of Clarksburg, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Horner, age 27, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” Horner admitted to having methamphetamine in October 2019 in Harrison County.
Horner faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Probation Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Goshen Man Charged in Investment Fraud SchemeRead the Press Release
SOUTH BEND – Earl D. Miller, 40, of Goshen, Indiana was charged by way of an Indictment with 6 counts of wire fraud, 1 count of securities fraud, and 1 count of bankruptcy fraud, announced U.S. Attorney Kirsch.
According to documents in this case, it is alleged that Miller, a former real estate investor, began raising money for a new private investment firm named “5 Star Capital” in 2012. He began recruiting predominately novice investors, including members of the Amish community, for “investment opportunities” with 5 Star Capital, 5 Star Commercial and other real estate entities. Miller allegedly solicited funds to invest in “green energy saving product that save the American consumer hundreds of dollars each year.” It is alleged that from June 2014 to August 2015, Mr. Miller raised at least $4.3 million from at least 70 investors through lies. He falsely told investors that he would not get paid anything for managing their funds when, in truth, he misappropriated over $1 million dollars from 5 Star Commercial investors for his personal use including to pay off a former business partner. Mr. Miller also did not own “green product” patents and performed virtually no due diligence into the purported “green” companies before placing his investors’ assets. In addition, to the wire fraud, Mr. Miller is charged securities fraud and bankruptcy fraud for omissions made during bankruptcy proceedings.
“Investment fraud schemes, like the one charged today, ensnare hundreds of victims each year across the United States,” said United States Attorney Thomas L. Kirsch II. “This case is an excellent example of our law enforcement partners working together to seek justice on behalf of the defendant’s alleged victims. We will continue to aggressively investigate and prosecute cases involving all types of investment frauds.”
“I am grateful to U.S. Attorney Kirsch and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases as evidenced by today’s proceedings,” stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois, and Southern Illinois (Region 10). The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill. The charges resulted, in part, from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney. Assistance with the investigation was provided by members of the Northern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by Federal Bureau of Investigation and Security Exchange Commission in collaboration with the Northern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. This case is being prosecuted by Assistant U.S. Attorneys John Maciejczyk and Jerome McKeever.
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Georgia resident arrested for scheme to sell illegal products claiming to protect against COVID-19Read the Press Release
ATLANTA - Stephen Matthew Shumaker has been charged with mail fraud and knowingly distributing and selling a misbranded pesticidal device.
“Shumaker allegedly used the COVID-19 pandemic to sell a product that does not provide the benefits he advertised,” said U.S. Attorney Byung J. “BJay” Pak. “We are proud to be part of the Georgia COVID-19 Task Force, which continues to identify and prosecute those who attempt to perpetrate Coronavirus-related fraud schemes.”
“The U.S. Postal Inspection Service will remain vigilant in bringing to justice anyone that seeks to defraud individuals during this pandemic,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “This scheme highlights the importance of collaborating with our law enforcement partners to investigate and stop those seeking to take advantage of innocent victims.”
“The defendant is charged with knowingly selling a fraudulent product during the COVID-19 public health emergency in order to make a profit,” said Environmental Protection Agency Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “EPA and our partners in law enforcement remain vigilant to protect consumers from this kind of outrageous behavior. To find out how to protect yourself from fraudulent products please see EPA’s compliance advisory, available at https://www.epa.gov/sites/production/files/2020-05/documents/cornavirus-compliance-advisory.pdf.”
“Selling a misbranded pesticidal device as a protection for COVID-19 gives unsuspecting buyers a false sense of hope and places them in danger,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI is proud to support the Georgia COVID-19 task force in protecting our citizens from these fraudsters.”
“The Federal Trade Commission appreciates the opportunity to work with the U.S. Attorney’s Office and the COVID-19 Task Force on such an important case,” said Anna Burns, the Commission’s Southeast Regional Director. “Interagency cooperation is essential to ensuring U.S. consumers are protected from fraud associated with the coronavirus pandemic.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Shumaker allegedly engaged in a scheme to defraud by soliciting thousands of Georgia residents with false claims that the Beyond Guardian Air™ air purifier kills every major viral and bacterial infection, including the COVID-19 coronavirus disease, in the home. According to the EPA, the device for sale is also a misbranded pesticidal device, another violation of federal law.
Stephen Matthew Shumaker, 43, of Marietta, Georgia, appeared before U.S. Magistrate Judge Christopher C. Bly. Members of the public are reminded that a 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 Department of Justice recommends that Americans take the following precautionary measures to protect themselves from known and emerging scams related to COVID-19:
• Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.
• Check the websites and email addresses offering information, products, or services related to COVID-19. Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating. For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov.”
• Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes. Legitimate health authorities will not contact the general public this way.
• Do not click on links or open email attachments from unknown or unverified sources. Doing so could download a virus onto your computer or device.
• Make sure the anti-malware and anti-virus software on your computer is operating and up to date.
• Ignore offers from suspicious sources for a COVID-19 vaccine, cure, or treatment. Remember, if a vaccine becomes available, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.
• Check online reviews of any company offering COVID-19 products or supplies. Avoid companies whose customers have complained about not receiving items.
• Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving any donation. Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name or has reputable looking seals or logos on its materials. For online resources on donating wisely, visit the Federal Trade Commission’s website at www.ftc.gov.
• Be wary of any business, charity, or individual requesting payments or donations in cash, by wire transfer, gift card, or through the mail. Don’t send money through any of these channels.
• Be cautious of “investment opportunities” tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus. If you decide to invest, carefully research the investment beforehand. For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.
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 www.justice.gov/DisasterComplaintForm.
The U.S. Postal Inspection Service, the Environmental Protection Agency and the U.S. Immigration and Customs Enforcement, Homeland Security Investigations are investigating this case, with valuable assistance from the Federal Trade Commission.
Special Assistant United States Attorney Valerie M. Verduce is prosecuting the case.
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.
Gambian Man Indicted on Torture ChargesRead the Press Release
A Gambian man previously residing in Denver, Colorado was arrested today for torture charges stemming from his actions specifically intended to inflict severe physical pain and suffering on individuals in his custody and control in The Gambia in 2006.
An indictment was returned on June 2 and unsealed today charging Michael Sang Correa, 41, a national of The Gambia, with one count of conspiracy to commit torture and six counts of inflicting torture on specific individuals. Correa made his first court appearance on the charges today before U.S. Magistrate Judge N. Reid Neureiter in the District of Colorado.
“Michael Correa allegedly committed heinous acts of violence against victim after victim in a brutal effort to coerce confessions from suspected coup plotters in The Gambia,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “These charges underscore that the United States will not be a safe haven for perpetrators of torture and that human rights violators will be held accountable and brought to justice.”
“As federal prosecutors, our mission is to seek out injustice and to hold accountable those who perpetuate it, regardless of where it occurs,” said U.S. Attorney Jason R. Dunn of the District of Colorado. “With this arrest, we are not only holding accountable a man who has allegedly committed horrific acts of torture against his own people, but demonstrating to the people of The Gambia, and indeed the entire world, that the United States stands for the rule of law and against those who abuse human rights.”
“Michael Correa’s case is another example of our commitment to pursue those who attempt to evade accountability for their actions by fleeing to the United States,” said Assistant Director David C. Shaw of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), National Security Investigations Division, who oversees the Human Rights Violators and War Crimes Center. “HSI will continue to investigate perpetrators of torture, genocide, and other war crimes to ensure the United States does not serve as a safe haven for human rights violators.”
The indictment alleges that in 2006, Correa, a former member of a Gambian armed unit known as the Junglers, conspired with others to commit torture against individuals suspected of plotting a failed coup attempt against then-President Yahya Jammeh, and that he inflicted torture on six victims. The Junglers were comprised of individuals who had been selected from the ranks of The Gambia Armed Forces (GAF) but operated outside the regular GAF chain of command. The Junglers received orders from then-President Yahya Jammeh and answered to him.
In March 2006, the Jammeh government learned that individuals within The Gambia were attempting to overthrow the Jammeh government. The Jammeh government reacted by arresting numerous individuals believed to have been part of plotting the attempt to overthrow the Jammeh government. Individuals who were arrested were taken to a prison known as Mile 2 Prison and to the National Intelligence Agency (NIA) Headquarters to be interrogated about their role in the coup attempt, and were subjected to severe physical and mental abuses at NIA Headquarters.
The indictment alleges that during this time frame, in March and April 2006, the defendant and his co-conspirators severely and repeatedly beat their victims with their fists, feet, boots, and objects including plastic pipes, wires, and branches. The co-conspirators sometimes covered the victims’ heads with plastic bags, restricting their ability to breathe, and subjected some victims to electrocution on various parts of their bodies. The indictment further alleges that one victim was suspended over the ground in a rice bag and beaten severely by the co-conspirators. Others had molten plastic or acid dripped on their bodies.
The charges and allegations in the indictment are merely accusations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI Denver is leading the investigation of this case with support from HSI agents in Dakar, Senegal as well the Diplomatic Security Service at the U.S. Embassy in Banjul and the FBI Legal Attaché in Dakar. The Human Rights Violators and War Crimes Center (HRVWCC) significantly supported the case. Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate, and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation, and the use or recruitment of child soldiers.
Trial Attorney Erin Cox and Senior Counsel Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Greg Holloway of the District of Colorado are prosecuting the case with the assistance of HRSP historian Dr. Christopher Hayden and with the support of the Criminal Division’s Office of International Affairs. The department appreciates the assistance provided by the governments of The Gambia, the Netherlands, and Sweden in this investigation.
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.
Gambian Man Indicted on Torture ChargesRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that a Gambian man residing in Denver, Colorado was indicted on torture charges stemming from his actions specifically intended to inflict severe physical pain and suffering on individuals in his custody and control in The Gambia in 2006.
The indictment was returned on June 2, 2020, charging Michael Sang Correa, 41, a national of The Gambia, with one count of conspiracy to commit torture and six counts of inflicting torture on specific individuals. The defendant made his initial appearance today before a U.S. Magistrate Judge where he was advised of his rights and the charges pending against him.
“As federal prosecutors, our mission is to seek out injustice and to hold accountable those who perpetuate it, regardless of where it occurs,” said U.S. Attorney Jason R. Dunn. “With this arrest, we are not only holding accountable a man who has allegedly committed horrific acts of torture against his own people, but demonstrating to the People of The Gambia, and indeed the entire world, that the United States stands for the rule of law and against those who abuse human rights.”
“Michael Correa allegedly committed heinous acts of violence against victim after victim in a brutal effort to coerce confessions from suspected coup plotters in The Gambia,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “These charges underscore that the United States will not be a safe haven for perpetrators of torture and that human rights violators will be held accountable and brought to justice.”
“Michael Correa’s case is another example of our commitment to pursue those who attempt to evade accountability for their actions by fleeing to the United States,” said Assistant Director David C. Shaw of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), National Security Investigations Division, who oversees the Human Rights Violators and War Crimes Center. “HSI will continue to investigate perpetrators of torture, genocide, and other war crimes to ensure the United States does not serve as a safe haven for human rights violators.”
The indictment alleges that in 2006, Correa, a former member of a Gambian armed unit known as the Junglers, conspired with others to commit torture against individuals suspected of plotting a failed coup attempt against then-President Yahya Jammeh and that he inflicted torture on six victims. The Junglers were comprised of individuals who had been selected from the ranks of the Gambia Armed Forces but operated outside the regular GAF chain of command. The Junglers received orders from then-President Yahya Jammeh and answered to him.
In March 2006, the Jammeh government learned that individuals within The Gambia were attempting to overthrow the Jammeh government. The Jammeh government reacted by arresting numerous individuals believed to have been part of plotting the attempt to overthrow the Jammeh government. Individuals who were arrested were taken to a prison known as Mile 2 Prison and to the National Intelligence Agency (NIA) Headquarters to be interrogated about their role in the coup attempt, and were subjected to severe physical and mental abuses at NIA Headquarters.
The indictment alleges that in this time frame, in March and April 2006, the defendant and his co-conspirators severely and repeatedly beat their victims with their fists, feet, boots, and objects including pipes, wires, and branches. The co-conspirators sometimes covered the victims’ heads with plastic bags restricting their ability to breathe and subjected some victims to electrocution on various parts of their bodies. The indictment further alleges that one victim was suspended over the ground in a rice bag and beaten severely by the co-conspirators. Others had molten plastic or acid dripped on their bodies.
The charges and allegations in the indictment are merely accusations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI Denver is leading the investigation of this case with support from HSI agents in Dakar, Senegal as well as personnel at the U.S. Embassy in Banjul and the FBI Legal Attaché in Dakar. Correa was identified by the Human Rights Violators and War Crimes Center (HRVWCC) and it has significantly supported the case. Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation and the use or recruitment of child soldiers.
Assistant U.S. Attorney Greg Holloway of the District of Colorado and Trial Attorney Erin Cox and Senior Counsel Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) are prosecuting the case with the assistance of HRSP historian Dr. Christopher Hayden and with the support of the Criminal Division’s Office of International Affairs.
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.
Fort Mitchell Man Sentenced to 18 Months for Bank FraudRead the Press Release
COVINGTON, Ky. - Joseph Shockey, 53, of Fort Mitchell, Ky., was sentenced to 18 months in federal prison on Thursday, by Chief U.S. District Judge Danny C. Reeves, after previously pleading guilty, in January 2020, to bank fraud.
In his guilty plea agreement, Shockey admitted that, in 2014, he applied for and obtained a line of credit for $500,000 from Stock Yards Bank and Trust Company. Later that same year, Shockey was sued in Utah and ultimately a default judgment in the amount of $579,063 was entered against him in 2015. Shockey extended the line of credit from Stock Yards but failed to advise the bank, as he had agreed to do, of the judgment. Shockey defaulted on the loan and the bank suffered a loss of $463,000. As part of his plea agreement, Shockey agreed to pay $449,496.07, in restitution.
Under federal law, Shockey must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 5 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, jointly announced the sentencing
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Elaine Leonhard.
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 State Employee Sentenced to 30 Months for Mail Fraud, Identity Theft and Theft of FundsRead the Press Release
LEXINGTON, Ky. –Diana Baker, 53, of Louisville and a former employee of the Kentucky Commission (now Office) for Children with Special Care Needs, was sentenced to 30 months on Thursday, by U.S. District Judge Greg Van Tatenhove, for mail fraud, aggravated identity theft, and four counts of theft from the state agency.
Baker was a 28-year employee of the Commission, which is an agency within the Kentucky Cabinet for Health and Family Services that assists families with children with special health care needs in obtaining funding and care. According to the plea agreement, between 2007 and 2018, Baker, who was an Administrative Branch Manager in the Louisville office, manipulated software programs, to generate fraudulent payment vouchers, which purported to reimburse the families of special needs children for out of pocket expenses or pay third party vendors for services to children. These vouchers were sent in the regular course of business to the Kentucky State Treasurer’s Office, which issued checks that were actually used to make payments on Baker’s credit card accounts, to pay doctors and dentists for services to Baker’s family, and, in one instance, to pay a carpenter for work on a dock for lakefront property owned by Baker. The amount of the alleged theft is approximately $45,000.
Under federal law, Baker must serve 85 percent of her prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, Louisville Field Office, jointly made the announcement.
The investigation was conducted by the FBI and the Kentucky Cabinet for Health and Family Services, Office of the Inspector General. The United States was represented by Assistant U.S. Attorney Ken Taylor.
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 Rapides Parish Correctional Officer Pleads Guilty to Civil Rights Offense for Assaulting InmateRead the Press Release
Dominic Davidson, 27, a former Correctional Officer with the Rapides Parish Sheriff’s Office (RPSO), Detention Center 1, in Alexandria, Louisiana, pleaded guilty today to one misdemeanor count of using excessive force against a pretrial detainee housed at the facility.
“The Justice Department works to protect the civil rights of all citizens, including those in our custody,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “It is disheartening to hear of law enforcement officials who violate the civil rights of citizens instead of aiding in the department’s work to protect them.”
“Law enforcement, including correctional officers, are sworn to uphold and defend the laws of our nation,” said U.S. Attorney David C. Joseph for the Western District of Louisiana. “When they themselves break those laws, they violate not just the rights of their victims, but also compromise the public's trust in law enforcement. My office will hold public servants accountable when they break the law.”
According to court testimony and documents filed in connection with the guilty plea, on June 14, 2018, while on duty as a correctional officer, Davidson entered the locked holding cell of pretrial detainee K.F. and began punching K.F. repeatedly in the face and body. Prior to Davidson entering the cell, K.F., who was completely naked and locked securely inside his cell, had been banging on the door in an attempt to get officers’ attention. In response to the banging, Davidson put on a pair of rubber gloves, unlocked and entered K.F.’s cell, pushed K.F. to the ground, and struck K.F. numerous times in the head and body. At no point before, during, or after the assault did K.F. pose a threat to himself or others.
Davidson faces a maximum statutory penalty of up to 12 months in prison and a fine of up to $100,000. The sentencing will take place on Sept., 15, 2020.
This case was investigated by the FBI. Assistant U.S. Attorney Mary Mudrick of the Western District of Louisiana and Trial Attorneys Katherine DeVar and Thomas Johnson of the Civil Rights Division are prosecuting the case.
Former Rapides Parish Correctional Officer Pleads Guilty to Civil Rights Offense for Assaulting InmateRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that Dominic Davidson, 27, a former Correctional Officer with the Rapides Parish Sheriff’s Office (RPSO), Detention Center 1, in Alexandria, Louisiana, pleaded guilty today before Senior U.S. District Judge Dee D. Drell, to one misdemeanor count of using excessive force against a pretrial detainee housed at the facility.
“Law enforcement, including correctional officers, are sworn to uphold and defend the laws of our nation,” said U.S. Attorney David C. Joseph. “When they themselves break those laws, they violate not just the rights of their victims, but also compromise the public's trust in law enforcement. My office will hold public servants accountable when they break the law.”
“The Justice Department works to protect the civil rights of all citizens, including those in our custody,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “It is disheartening to hear of law enforcement officials who violate the civil rights of citizens instead of aiding in the department’s work to protect them.”
According to court testimony and documents filed in connection with the guilty plea, on June 14, 2018, while on duty as a correctional officer, Davidson entered the locked holding cell of pretrial detainee K.F. and began punching K.F. repeatedly in the face and body. Prior to Davidson entering the cell, K.F., who was completely naked and locked securely inside his cell, had been banging on the door in an attempt to get officers’ attention. In response to the banging, Davidson put on a pair of rubber gloves, unlocked and entered K.F.’s cell, pushed K.F. to the ground, and struck K.F. numerous times in the head and body. At no point before, during, or after the assault did K.F. pose a threat to himself or others.
Davidson faces a maximum statutory penalty of up to twelve months in prison and a fine up to $100,000. The sentencing date is set for September 15, 2020.
This case was investigated by the FBI. Assistant U.S. Attorney Mary Mudrick of the Western District of Louisiana and Trial Attorneys Katherine DeVar and Thomas Johnson of the Civil Rights Division are prosecuting the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Owner of Oil Field Construction Business Sentenced for Tax EvasionRead the Press Release
OKLAHOMA CITY – MICKEY ALVIN YOUNG, of Chico, Texas, has been sentenced to five years of probation for evading personal federal income taxes for the 2013 tax year, announced U.S. Attorney Timothy J. Downing. He will spend the first six months in home confinement and must pay $1,197,616.46 in restitution to the IRS.
A federal grand jury indicted Young on December 4, 2018, on two counts of tax evasion. According to the indictment, Young operated Mickey Young Construction, a sole proprietorship that built concrete pits to hold millings at oil and gas drilling sites. Evidence in the case showed that the business had gross receipts of more than $9 million in 2012 and more than $6 million in 2013. Young was required to report income from his business on his personal federal income tax return. He was charged with under-reporting his income in both 2012 and 2013 by treating money that he used for personal purposes as deductible business expenses of Mickey Young Construction. Documents filed in the case showed he improperly treated hundreds of thousands of dollars in each year as business expenses.
A trial in July 2019 resulted in a mistrial after a jury was unable to reach a unanimous verdict on either count. The court set the case for re-trial, but on January 30, 2020, Young pleaded guilty to the felony of tax evasion for the 2013 tax year. Pursuant to a plea agreement, the government moved to dismiss the charge for 2012.
On June 10, 2020, U.S. District Judge Robin J. Cauthron sentenced Young to five years of probation, with the first six months to be served in home confinement. While recognizing the seriousness of the crime, she explained that this sentence is based in part on the dangers that Covid-19 could pose to Young if he were incarcerated. She also ordered Young to pay $1,197,616.46 in restitution, which represents unpaid personal federal income taxes for 2011, 2012, and 2013.
This case is the result of an investigation by the Internal Revenue Service—Criminal Investigations, with assistance from the U.S. Secret Service. Assistant U.S. Attorneys Scott E. Williams and Amanda Green prosecuted the case.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
Former Owner of Construction Company Admits EmbezzlementRead the Press Release
CAMDEN, N.J. – The former owner of a construction company today admitted his role in defrauding a retirement plan set up by the company, U.S. Attorney Craig Carpenito announced.
Joshua Ferrell, 34, of Chatsworth, New Jersey, the former owner of Indian Mills Contracting Services Inc. (Indian Mills), pleaded guilty plea by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of embezzlement and theft from an employee pension or welfare benefit plan or a fund connected with such plan established for the company’s employees.
According to documents filed in this case and statements made in court:
Ferrell admitted that, between 2011 and February 2017, he was the president and owner of Indian Mills, which was a construction company in Chatsworth. Indian Mills was a family owned construction company that worked on federal, municipal, state, commercial and industrial projects throughout New Jersey. Indian Mills employed machine operators, carpenters, cement masons and labors.
In 2015, Ferrell established the Indian Mills Contracting Inc. 401K Plan which was established as a single employer profit sharing and 401K plan. The plan was covered by the Employee Retirement Income Security Act (ERISA) of 1974. Ferrell was the plan administrator.
Under the ERISA regulations, employers are permitted to establish and maintain employer sponsored retirement plans for the benefit of their employees. Once these plans are established, both employers and employees have the option of making regular contributions of funds to them. The accumulated plan assets are generally invested for the benefit of the plan and the plan participants, and any capital gains or income earned through such investment are added to the accumulated plan assets. Upon retirement, or when otherwise eligible, a plan participant may request and receive disbursements from the retirement plan assets. These disbursements correspond to contributions made to the plan by the participant, plus any associated gains made during the term of employment.
Ferrell admitted that the 401K plan allowed employees to defer portions of their salary before taxes from their bi-weekly paychecks and have that money earmarked for contribution into the plan’s trust.
Ferrell admitted that between Jan. 1, 2015, and February 2017, money which was deducted bi-weekly from Indian Mills employees’ paychecks and which was supposed to be contributed to the plan was instead kept by Ferrell and spent by him.
The charges to which Ferrell pleaded guilty carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled Oct. 19, 2020.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York; and investigators of the U.S. Department of Labor, Employee Benefits Security Administration (EBSA), under the direction of Philadelphia Regional Director Michael Schloss, with the investigation leading to today’s guilty plea.
The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Former Office Manager of Boston Dental Practice Pleads Guilty to Bank Fraud, Identity Theft and Tax FraudRead the Press Release
BOSTON – The former office manager of a Boston-based dental practice pleaded guilty yesterday in federal court in Boston to charges of bank fraud and tax fraud stemming from her embezzlement of funds from her former employer.
Yuliya Vaysglus, a/k/a Julia Vaysglus, 36, formerly of Hopkinton, now residing in Campbell, Calif., pleaded guilty to eight counts of bank fraud, one count of aggravated identity theft and three counts of filing false tax returns. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Nov. 17, 2020.
From 2009 until she was terminated in February 2015, Vaysglus was the office manager of a Boston-area dental practice where her duties included tracking client invoices, depositing insurance payments into the practice’s bank account, and recording those deposits for accounting purposes. Between 2009 and December 2014, Vaysglus embezzled more than $348,000 from the dental practice by diverting to herself at least 276 checks from various insurance companies for services rendered to patients. As part of the scheme, Vaysglus made the checks payable to herself, forged the signature of the dental firm’s owner on the checks, and deposited them into her bank account. Vaysglus failed to report the embezzled funds on her federal tax returns.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000. Aggravated identity theft carries a mandatory two-year sentence that must be served consecutively to any other sentence, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service in Boston; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Sara M. Bloom and Victor A. Wild of Lelling’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Former DEA Official Pleads Guilty to Elaborate $4M Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A former Drug Enforcement Administration (DEA) public affairs officer pleaded guilty today to defrauding at least a dozen companies of over $4.4 million by posing falsely as a covert officer of the Central Intelligence Agency (CIA).
According to court documents, Garrison Kenneth Courtney, 44, of Florida, falsely claimed to be a covert officer of the CIA involved in a highly-classified program or “task force” involving various components of the United States Intelligence Community and the Department of Defense. According to the false story told by Courtney, this supposed classified program sought to enhance the intelligence gathering capabilities of the United States government. In truth, Courtney had never been employed by the CIA, and the task force that he described did not exist.
To accomplish the fraud, Courtney approached numerous private companies with some variation of this false story, and claimed that the companies needed to hire and pay him to create what Courtney described as “commercial cover,” i.e., to mask his supposed affiliation with the CIA. Courtney also fraudulently claimed that the companies would be reimbursed in the future for these salary payments, sometimes by the award of lucrative contracts from the United States government in connection with the supposedly classified program.
Courtney went to extraordinary lengths to perpetuate the illusion that he was a deep-cover operative. Among other things, he falsely claimed that his identity and large portions of his conduct were classified; directed victims and witnesses to sign fake nondisclosure agreements that purported to be from the United States government and that forbade anyone involved from speaking openly about the supposedly classified program; told victims and witnesses that they were under surveillance by hostile foreign intelligence services; made a show of searching people for electronic devices as part of his supposed counterintelligence methods; demanded that his victims meet in sensitive compartmented information facilities (SCIFs) to create the illusion that they were participating in a classified intelligence operation; and repeatedly threatened anyone who questioned his legitimacy with revocation of their security clearance and criminal prosecution if they “leaked” or continued to look into the supposedly classified information. Courtney further created fake letters, purporting to have been issued by the Attorney General of the United States, which claimed to grant blanket immunity to those who participated in the supposedly classified program.
As a further part of the scheme, Courtney created a fraudulent backstory about himself, claiming that he had served in the U.S. Army during the Gulf War, had hundreds of confirmed kills while in combat, sustained lung injuries from smoke caused by fires set to Iraq’s oil fields, and that a hostile foreign intelligence service had attempted to assassinate him by poisoning him with ricin. All of these claims were false.
Courtney also convinced several real governmental officials that he was participating in this “task force,” explained that they had been selected to participate in the program, and then used those officials as unwitting props falsely to burnish his legitimacy. For example, he directed his victims to speak with these public officials to verify his claims, and separately instructed the government officials as to exactly what to say. Courtney thereby created the false appearance to the victims that the government officials had independently validated his story, when in fact the officials merely were echoing the false information fed to them by Courtney. At times, Courtney also convinced those officials to meet with victims inside secure government facilities, thereby furthering the false appearance of authenticity.
Through the scheme, Courtney also fraudulently gained a position working as a private contractor for the National Institutes of Health Information Technology Acquisition and Assessment Center (NITAAC), a branch of NIH that provides acquisition support services to federal agencies. Once he had installed himself at NITAAC, Courtney gained access to sensitive, nonpublic information about the procurements of other federal agencies being supported by NITAAC. Courtney thereafter used that information to attempt to corrupt the procurement process by steering the award of contracts to companies where he was then also on the payroll, and used the false pretext of national security concerns to warp the process by preventing full and open competition.
Courtney pleaded guilty to wire fraud and faces a maximum sentence of 20 years in prison when sentenced on October 23. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; and James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after Senior U.S. District Judge Liam O'Grady accepted the plea. Assistant U.S. Attorneys Matthew Burke, Heidi Boutros Gesch, and Raj Parekh, and Todd Gee, Deputy Chief of the Department of Justice’s Public Integrity Section, are prosecuting the case.
Investigative agency partners include CIA OIG; Intelligence Community OIG; National Geospatial-Intelligence Agency OIG; Air Force Office of Special Investigations; U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU); Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; Department of Justice OIG; U.S. Department of Health and Human Services (HHS) OIG; and Naval Criminal Investigative Service (NCIS) Washington Field Office.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-84.
Former DEA Official Pleads Guilty to Elaborate $4 Million Fraud SchemeRead the Press Release
A former Drug Enforcement Administration (DEA) public affairs officer pleaded guilty today to defrauding at least a dozen companies of over $4.4 million by posing falsely as a covert officer of the Central Intelligence Agency (CIA).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, and Special Agent in Charge James A. Dawson of the FBI’s Washington Field Office Criminal Division made the announcement
Garrison Kenneth Courtney, 44, of Tampa, Florida, pleaded guilty before Senior U.S. District Judge Liam O'Grady. Sentencing has been scheduled for Oct. 23, 2020.
According to court documents, Courtney falsely claimed to be a covert officer of the CIA involved in a highly-classified program or “task force” involving various components of the United States Intelligence Community and the Department of Defense. According to the false story told by Courtney, this supposed classified program sought to enhance the intelligence gathering capabilities of the United States government. In truth, Courtney had never been employed by the CIA, and the task force that he described did not exist.
To accomplish the fraud, Courtney approached numerous private companies with some variation of this false story, and claimed that the companies needed to hire and pay him to create what Courtney described as “commercial cover,” i.e., to mask his supposed affiliation with the CIA. Courtney also fraudulently claimed that the companies would be reimbursed in the future for these salary payments, sometimes by the award of lucrative contracts from the United States government in connection with the supposedly classified program.
Courtney went to extraordinary lengths to perpetuate the illusion that he was a deep-cover operative. Among other things, he falsely claimed that his identity and large portions of his conduct were classified; directed victims and witnesses to sign fake nondisclosure agreements that purported to be from the U.S. government and that forbade anyone involved from speaking openly about the supposedly classified program; told victims and witnesses that they were under surveillance by hostile foreign intelligence services; made a show of searching people for electronic devices as part of his supposed counterintelligence methods; demanded that his victims meet in sensitive compartmented information facilities to create the illusion that they were participating in a classified intelligence operation; and repeatedly threatened anyone who questioned his legitimacy with revocation of their security clearance and criminal prosecution if they “leaked” or continued to look into the supposedly classified information. Courtney further created fake letters, purporting to have been issued by the Attorney General of the United States, which claimed to grant blanket immunity to those who participated in the supposedly classified program.
As a further part of the scheme, Courtney created a fraudulent backstory about himself, claiming that he had served in the U.S. Army during the Gulf War, had hundreds of confirmed kills while in combat, sustained lung injuries from smoke caused by fires set to Iraq’s oil fields, and that a hostile foreign intelligence service had attempted to assassinate him by poisoning him with ricin. All of these claims were false.
Courtney also convinced several real governmental officials that he was participating in this “task force,” explained that they had been selected to participate in the program, and then used those officials as unwitting props falsely to burnish his legitimacy. For example, he directed his victims to speak with these public officials to verify his claims, and separately instructed the government officials as to exactly what to say. Courtney thereby created the false appearance to the victims that the government officials had independently validated his story, when in fact the officials merely were echoing the false information fed to them by Courtney. At times, Courtney also convinced those officials to meet with victims inside secure government facilities, thereby furthering the false appearance of authenticity.
Through the scheme, Courtney also fraudulently gained a position working as a private contractor for the National Institutes of Health (NIH) Information Technology Acquisition and Assessment Center (NITAAC), a branch of NIH that provides acquisition support services to federal agencies. Once he had installed himself at NITAAC, Courtney gained access to sensitive, nonpublic information about the procurements of other federal agencies being supported by NITAAC. Courtney thereafter used that information to attempt to corrupt the procurement process by steering the award of contracts to companies where he was then also on the payroll, and used the false pretext of national security concerns to warp the process by preventing full and open competition.
Investigative agency partners include CIA Office of Inspector General (OIG); Intelligence Community OIG; National Geospatial-Intelligence Agency OIG; Air Force Office of Special Investigations; U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit; Defense Criminal Investigative Service’s Mid-Atlantic Field Office; Department of Justice OIG; U.S. Department of Health and Human Services OIG; and Naval Criminal Investigative Service Washington Field Office.
Deputy Chief Todd Gee of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Matthew Burke, Heidi Boutros Gesch, and Raj Parekh are prosecuting the 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.
Former Calexico City Officials Admit to Accepting BribesRead the Press Release
NEWS RELEASE SUMMARY – June 11, 2020
SAN DIEGO – Former Calexico City Councilman David Romero and Bruno Suarez-Soto, a former commissioner on the city’s Economic Development and Financial Advisory Commission, pleaded guilty in federal court today to corruption charges, admitting that they accepted cash bribes in exchange for promises of official action by the city.
The defendants entered their pleas before U.S. Magistrate Judge Bernard G. Skomal, who set sentencing for September 4, 2020 before District Judge Cathy Ann Bencivengo. Romero and Suarez-Soto were allowed to remain free on $10,000 personal appearance bonds secured by their own signatures.
According to their plea agreements, Romero and Soto accepted $35,000 in cash bribes from an undercover FBI agent who they believed represented investors seeking to open a cannabis dispensary in Calexico. In return, Romero and Soto guaranteed the rapid issuance of a city permit for the dispensary, and to revoke or hinder other applicants if necessary to ensure that the bribe payer’s application was successful. Both men admitted they had taken bribes from others in the past. Referring to this $35,000 payment, they told the undercover agent, “This isn’t our first rodeo.”
In addition to being a councilman, Romero served as Calexico’s Mayor Pro Tem, meaning he was set to become Mayor in July 2020. Soto recently resigned from the City commission responsible for promoting business and community growth and coordinating with prospective developers to help them invest in the City of Calexico. Romero resigned his position with the City of Calexico as part of his plea agreement, effective Monday, June 8.
“David Romero was about to become the highest-ranking public official in the city of Calexico, but he and his partner-in-crime sold their power and influence to the highest bidder in a secret pay-to-play scheme,” said U.S. Attorney Robert Brewer. “They are the ones who will pay now.”
“The corruption, lies, and greed of Romero and Suarez-Soto were uncovered by FBI Agents working in our Imperial Valley Office,” said Omer Meisel, Acting FBI Special Agent in Charge of the San Diego Division and Imperial County Resident Agency. “The community in Imperial Valley has a right to leaders who put the public's interest first and serve the community honorably. The FBI is committed to investigating those who violate their position of trust.”
According to their plea agreements, during a December 19, 2019 meeting at a restaurant in Calexico with the undercover FBI agent, Romero and Soto agreed to fast-track the agent’s purported application for a cannabis dispensary permit and guaranteed its rapid issuance in exchange for a $35,000 bribe. The defendants also offered to delay permit applications by competitors.
Toward the conclusion of the December 19, 2019 meeting, when the undercover agent asked if Romero and Soto might later ask for more than the $35,000 payment, Romero assured him that they would not, per court filings. “This is done. Set and sealed,” Romero said. Romero explained that he and Soto would require the money to be paid up front, however, because they had done similar work for other people, and those people had not paid the agreed-upon fee after the favors had been rendered. Romero and Soto agreed to accept payment of the $35,000 from the agent in two installments, however: half up front, and half “when it’s a for sure thing.”
At this meeting the undercover agent asked whether the payment of $35,000 would “get us in front of the line” of applicants. Soto answered, “Hell yeah,” according to court records. Romero added that he “didn’t want to say it in front of everybody, but it will.”
On January 9, 2020, Romero and Soto attended a second meeting with the undercover agent at a restaurant in El Centro, California. During the meeting, according to court filings, Romero reminded the undercover agent how difficult it was to work with the City of Calexico, and how fortunate it was that the agent was working with Romero. Soto later added that in return for the bribe, Romero would cut through “so much bullshit [red] tape that exists” with the City.
During a discussion of the approval process for the permit application referenced in court records, Romero explained that the people who have to approve the undercover agent’s license were “my best friends at the entire City Hall.” When asked if the “best friends” had already signed off on the plan, Romero responded “Fuck, yeah!” and laughed.
According to admissions in the plea agreements and documents filed in court, at the conclusion of the January 9, 2020 meeting, in the parking lot outside the restaurant, with Romero looking on, the undercover agent handed Soto $17,500 in cash and explained that he divided the first installment of the bribe into two envelopes: one with $8,800 and another with $8,700. The agent asked whether “we’re good,” and Romero responded, “Trust me” and added, “In my line of business, I can’t fuck up. Which means he [Soto] can’t fuck up.”
The defendants accepted the second installment, $17,500 in cash, during a third meeting on January 30 in a parking lot outside a restaurant in El Centro, per the plea agreements. Both men also admitted to creating a shell corporation to launder the proceeds of their bribery scheme.
The charges filed in the case also allege that both men lied to the FBI when interviewed by agents at the conclusion of the January 30 meeting. Romero falsely denied being part of any agreement with the undercover agent, and denied that anyone had made any “guarantees” to the agent. Similarly, Soto falsely denied making any “guarantees” to the undercover agent and denied receiving any prior payments from the agent.
U.S. Attorney Brewer praised Assistant U.S. Attorney Nicholas Pilchak, DOJ Public Integrity Section trial attorney Joshua Rothstein and FBI agents for working hard to achieve justice in this matter.
The case against Romero and Suarez-Soto is a public corruption investigation being conducted by the FBI and the U.S. Attorney’s Office. Any member of the public who has information related to this or any other public corruption matter in Imperial County or San Diego is encouraged to provide information to the FBI’s email tip line at tips.fbi.gov or to contact their local FBI Field Office. In Imperial County, the FBI can be reached 24 hours a day at 858-320-1800 or 1-877-NO-BRIBE (662-7423).
DEFENDANTS Case Number 20cr1215
Calexico City Councilman David Romero Age: 36 Residence: Calexico, CA
Calexico City Commissioner Bruno Suarez-Soto Age: 28 Residence: Calexico, CA
SUMMARY OF CHARGES
Conspiracy to Commit Federal Program Bribery, in violation of Title 18, United States Code, Sections
371 and 666 (a) (1) (B)
Maximum Penalty: Five years in prison; $250,000 fine.
AGENCY
Federal Bureau of Investigation
Florida man charged in telemedicine schemeRead the Press Release
SAVANNAH, GA: A Florida man who supplied Medicare patient information to his co-conspirators to ultimately bill Medicare for durable medical equipment claims has been charged for his alleged participation in a kickback and telemedicine fraud scheme.
Daniel Craig Hallam, a/k/a Daniel Craig, 41, of Palm Beach Gardens, Fla., is accused of conspiring to pay kickbacks for “leads,” or patient identifications and insurance information, of persons who may need durable medical equipment, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. According to court filings, Craig then received a percentage of the profit from a durable medical equipment company – which billed Medicare for the durable medical equipment – in exchange for supplying leads.
The financial total for orders facilitated through this scheme is alleged to be more than $6 million. Medicare beneficiaries whose patient data was brokered were located in the Southern District of Georgia and elsewhere. Hallam was charged by way of an Information, filed in the U.S. District Court for the Southern District of Georgia.
“As the number of defendants identified through this white-collar fraud investigation in the Southern District continue to grow, taxpayers should be aware that it is a priority of this office to work with our dedicated law enforcement partners to vigorously pursue those who would illegally exploit government safety-net programs for personal enrichment,” said U.S. Attorney Christine.
This prosecution, arising out of the related “Operation Brace Yourself” and “Operation Double Helix,” together with those previously announced, continue to add to the largest fraud operation prosecuted in the history of the Southern District of Georgia. Previous charges in this string of cases include eight physicians, two nurse practitioners, three operators of different telemedicine companies, two other brokers of patient data, and several owners of durable medical equipment companies. The Medicare and Medicaid beneficiaries whose identities were used as part of the scheme are located throughout the country, including in the Southern District of Georgia.
The combined total of more than $480 million in fraud charged in the Southern District of Georgia is part of nationwide operations by the Department of Justice that thus far has included allegations involving billions of dollars in fraudulent claims for genetic testing, orthotic braces, pain creams, and other items.
“The FBI is determined to protect all tax paying citizens who are affected by these kickback schemes, especially those who need government assistance for their health care needs," said Chris Hacker, Special Agent in Charge of FBI Atlanta. This case is just a small piece of a much larger operation that has put tremendous pressure on those seeking to take advantage of our federally subsidized health care programs.”
“Now more than ever, it’s vitally important that the health care our Medicare beneficiaries seek is based on sound medical advice, not monetary kickbacks,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Together with our law enforcement partners, we will continue in the fight to ensure that government programs are only used for legitimate purposes.”
“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.”
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, particularly during the COVID-19 pandemic, 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, 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, the Department of Health and Human Services Office of Inspector General, and the U.S. Secret Service.
Assistant U.S. Attorneys J. Thomas Clarkson and Jonathan A. Porter are prosecuting these cases on behalf of the United States.
Five Bay Area Residents Face Federal Charges for Vacaville Gun Store BurglaryRead the Press Release
SACRAMENTO, Calif. —, Five individuals face federal charges for the burglary of a Vacaville gun shop, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 1, police responded to reports of suspicious activity at Guns, Fishing and Other Stuff, a two-story gun and outdoor recreation store in Vacaville. Guns, Fishing and Other Stuff is a federally licensed firearms dealer. When officers responded, four vehicles fled the scene. After a high-speed chase, one vehicle, a rented minivan, was stopped, and its five passengers were arrested after a foot pursuit.
According to the criminal complaint, inside the minivan were bolt cutters, a power saw, and 13 handguns with price tags from Guns, Fishing and Other Stuff still attached. Donte Marcel Anderson, 31, of Antioch; Desteny Estrella Leilani Salazar, 22, of San Francisco; Donley Thompson, 27, of Pinole; Tracy Whitfield, 31, of Pittsburg; and Adrian Oscar Duran, 23, of San Francisco, were arrested. They are charged with possession of a stolen firearm and burglary of a federally licensed firearms dealer
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Vacaville Police Department. Assistant U.S. Attorney Justin Lee is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for both counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Fifteen Defendants Plead Guilty to Racketeering Conspiracy in International Cyber Fraud SchemeRead the Press Release
Fifteen defendants have pleaded guilty to-date for their roles in a transnational and multi-million dollar scheme to defraud American victims through online auction fraud.
Four of the guilty pleas took place in the past 24 days before U.S. Magistrate Judge Matthew A. Stinnett of the U.S. District Court for the Eastern District of Kentucky.
Bogdan-Stefan Popescu, 30, of Romania, pleaded guilty on June 11, 2020, to one count of RICO conspiracy. According to plea documents, Popescu operated a car wash in Bucharest, Romania, where he managed coconspirators in the RICO enterprise. From at least December of 2013, Popescu oversaw an operation whereby he knowingly negotiated fraudulently obtained Bitcoin. He did so in many ways. For example, he would sometimes receive cryptocurrency from coconspirators who obtained the funds through online fraud scams, transfer the cryptocurrency to other conspirators such as codefendant Vlad-Călin Nistor. He would then direct that Nistor exchange the cryptocurrency for fiat currency, and deposit the fiat currency into bank accounts held in the names of various employees and family members. According to court documents, in addition to providing money laundering services, Popescu also coordinated the dissemination of tools used to defraud American-based victims, such as the language and photographs for fake advertisements as well as usernames and passwords for IP address anonymizing services. Popescu also assisted members of the RICO conspiracy by connecting them with other members who could provide call center services—that is, who would impersonate eBay customer service representatives over the phone.
Liviu-Sorin Nedelcu, 34, of Romania, pleaded guilty on June 11, 2020, to one count of RICO conspiracy. According to court documents, Nedelcu worked in conjunction with others to post advertisements for goods online. To maintain the appearance of legitimacy, Nedelcu created fictitious entities through which he purported to sell vehicles. Once Nedelcu and his coconspirators convinced victims to purchase falsely advertised goods, they sent the victims invoices for payment that appeared to be from legitimate sellers, such as eBay Motors. Upon receiving payment, Nedelcu and his coconspirators engaged in a sophisticated money laundering scheme to convert the victim payment into Bitcoin.
Vlad-Călin Nistor, 33, of Romania, pleaded guilty on May 19, 2020, to one count of RICO conspiracy. According to plea documents, Nistor was the founder and owner of the Romania-based Bitcoin exchange Coinflux Services SRL. He exchanged cryptocurrency into local fiat currency on behalf of the Romania-based members of the conspiracy, knowing that the Bitcoin represented the proceeds of illegal activity. According to plea documents for example, Nistor exchanged over $1.8 million worth of Bitcoin for co-defendant Bogdan Popescu.
Beniamin-Filip Ologeanu, 30, of Romania, pleaded guilty on May 19, 2020, to one count of RICO conspiracy. According to court documents, Ologeanu worked in conjunction with others in the conspiracy to post advertisements for goods to auction websites, including eBay, and sales websites, including Craigslist. Once Ologeanu or his coconspirators convinced victims to purchase and provide payment for falsely advertised items, Ologeanu reached out to U.S.-based conspirators to convert the victim payment into other forms of payment and transfer part of it to Ologeanu in Bitcoin. Ologeanu also purchased fraud proceeds from other coconspirators, typically in the form of prepaid debit cards, to be laundered by U.S.-based coconspirators.
“Today’s modern cybercriminals rely on increasingly sophisticated techniques to defraud victims, often masquerading as legitimate businesses,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “These guilty pleas demonstrate that the United States will hold accountable foreign and domestic criminal enterprises and their enablers, including crooked bitcoin exchanges that swindle the American public.”
“The guilty pleas announced today are a direct result of the extraordinary cooperation and partnership among law enforcement agencies at the local, state, federal, and international levels,” said U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky. “These partnerships helped dismantle a sophisticated organized crime group who preyed upon victims across the United States. I commend the exceptional work conducted by our law enforcement partners and trial team members who worked diligently to hold these defendants accountable.”
“Through the use of digital currencies and trans-border organizational strategies, this criminal syndicate believed they were beyond the reach of law enforcement,” said Assistant Director Michael D’Ambrosio, U.S. Secret Service, Office of Investigations. “However, as this successful investigation clearly illustrates, with sustained, international cooperation, we can effectively hold cyber criminals accountable for their actions, no matter where they reside. I commend the hard work and perseverance of all those who joined together in this investigation and prosecution. This includes our partners in Europe, as well as those closer to home.”
“Today’s guilty pleas serve as a reminder that IRS-CI special agents will uncover illegal activity here and abroad, pierce the perceived veil of anonymity provided by cryptocurrencies, and bring those responsible for unlawful acts to justice,” said Special Agent in Charge Jonathan Larsen of the IRS-Criminal Investigation (IRS-CI) New York Field Office. “We will continue to push the agency to the forefront of complex cyber investigations and work collaboratively with our law enforcement partners to ensure the United States financial system is protected.”
“These are scam artists who hide behind a wall of technology which allows them to prey upon innocent victims throughout the United States,” said Kentucky State Police Commissioner Rodney Brewer. “The dismantling of this criminal enterprise was made possible because of the incredible level of cooperation between the law enforcement community here in Kentucky.”
According to court documents, the defendants participated in a criminal conspiracy that engaged in a large-scale scheme of online auction fraud. Specifically, Romania-based members of the conspiracy posted false advertisements to popular online auction and sales websites—such as Craigslist and eBay—for high-cost goods (typically vehicles) that did not actually exist. Members of the conspiracy would convince American victims to send money for the advertised goods by crafting persuasive narratives, for example, by impersonating a military member who needed to sell the advertised item before deployment.
According to court documents, members of the conspiracy created fictitious online accounts to post these advertisements and communicate with victims, often using the stolen identities of Americans to do so. They also delivered invoices to the victims bearing trademarks of reputable companies in order to make the transaction appear legitimate. Members of the conspiracy also set up call centers, impersonating customer support, to address questions and alleviate concerns over the advertisements.
Once victims were convinced to send payment, the conspiracy participants engaged in a complicated money laundering scheme wherein domestic associates would accept victim funds, convert these funds to cryptocurrency, and transfer proceeds in the form of cryptocurrency to foreign-based money launderers.
The 15 defendants who have pleaded guilty in this case have yet to be sentenced. Two other defendants in the case are scheduled for trial starting on Sept. 14, 2020, before the Honorable Robert E. Wier of the U.S. District Court for the Eastern District of Kentucky. Three others are fugitives.
In addition to pleading guilty in this case, on Jan. 13, 2020, Adrian Mitan pleaded guilty in a related money laundering conspiracy, arising from online schemes, including a credit card phishing and brute-force attack scheme, designed to steal money from Americans. According to court documents, Mitan phished for payment card information of U.S. customers, hacked into the electronic systems of American businesses, and then conducted a brute-force attack on their point-of-sale systems for the purpose of stealing the remaining payment card information. Mitan then directed American money launderers to create clone payment cards with the stolen information, which were used to extract money from the customers’ accounts. These fraudulent proceeds were then returned to Mitan in the form of Bitcoin.
The investigation was conducted by the U.S. Secret Service, Kentucky State Police, Lexington Police Department, IRS Criminal Investigation, and U.S. Postal Inspection Service, and supported by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and the International Organized Crime Intelligence and Operations Center (IOC-2). Assistance was provided by the Romanian National Police (Service for Combating Cybercrime) and the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime). The Criminal Division’s Money Laundering and Asset Recovery Section provided significant support and the Criminal Division’s Office of International Affairs provided significant support in securing and coordinating the arrests and extraditions from Romania of more than a dozen defendants.
This case is being prosecuted by Senior Trial Attorney Timothy C. Flowers and Senior Counsel Frank H. Lin of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Kathryn M. Anderson and Kenneth R. Taylor of the U.S. Attorney’s Office for the Eastern District of Kentucky.
Individuals believing they may be victims of the advanced fee and online auction fraud or brute-force attack schemes described herein are encouraged to visit the following website to obtain more information: https://justice.gov/usao-edky/information-victims-large-cases. Tips to avoid becoming a victim of online auction fraud can be found here on the U.S. Secret Service’s website.
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.
Felon Sentenced to 66 Months for Possessing Loaded FirearmRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jamohn Barney, 25, Madison, Wisconsin was sentenced today by U.S. District Judge James D. Peterson to 66 months in federal prison, followed by a three-year term of supervised release, for unlawfully possessing a loaded firearm as a felon. Barney pleaded guilty to this charge on February 5, 2020.
On August 10, 2019, Barney was passed out behind the wheel of his car, which was running, at a McDonald’s in Monona. He had an open bottle of champagne between his legs. He resisted law enforcement requests to cooperate with sobriety tests, so he was placed in handcuffs. While placing him in handcuffs, officers saw a bag of “white rock-like substance” on the driver's floorboard. Based on their training and experience, they believed the substance was crack cocaine. The car was lawfully searched and in the center console was a loaded Taurus 9mm pistol, wrapped in a blue bandana.
The Bureau of Alcohol, Tobacco, Firearms and Explosives traced the firearm and found that it had been purchased by Lidia Molina on July 12, 2019. Further investigation led to the prosecution of Molina for the purchase of numerous firearms for her boyfriend, a felon (“straw purchases”). In this instance, he sold the Taurus pistol to Barney, who is a friend and associate. Molina is scheduled to be sentenced July 18, 2020.
Barney was convicted of robbery with use of force in 2014, and battery by prisoners in 2015. He was serving a term of extended supervision in Dane County Circuit Court when he unlawfully possessed the Taurus.
The charge against Barney was the result of an investigation conducted by the Monona Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
Felon Sentenced for Illegal Possession and Manufacture of Machine Guns and SilencersRead the Press Release
A 30-year-old Tulsa man was sentenced in U.S. District Court today for firearms charges, including illegally possessing and manufacturing machine guns and silencers, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Christopher Joseph Kiss to 37 months in federal prison to be followed by three years of supervised release. On Jan. 13, 2020, Kiss pleaded guilty to being a felon in possession of a firearm and ammunition, illegal possession of a machine gun, making unregistered machine guns and silencers, and possession of unregistered silencers.
“The availability of illegal guns all too often leads to violent crime. My office along with our partners at the ATF will continue to target illegal gun manufacturers like Christopher Kiss in order to keep these dangerous firearms off the streets,” said U.S. Attorney Trent Shores.
“Manufacture of unregistered NFA devices is illegal. Possession of unregistered NFA devices is illegal. Manufacture, transfer and possession of any firearm or ammunition by a previously convicted felon is illegal,” stated ATF Special Agent in Charge Jeffrey C. Boshek II. “Mr. Kiss is a trifecta in disregard of the law.”
In his plea agreement, Kiss, a felon, admitted that he possessed, manufactured, and modified multiple firearms. Kiss possessed a .25 auto caliber pistol and a container with a sampling of 95 pounds of ammunition. He also possessed a homemade Glock-style .22 caliber pistol equipped with a Glock switch that enabled the pistol to fire in fully-automatic mode. In addition, investigators discovered an AR-15 style short-barreled 9 mm rifle that Kiss modified to fire in fully-automatic mode. The defendant further illegally manufactured at least four silencers and possessed a total of 26 silencers. In his statement, Kiss agreed that he failed to properly register these machine guns and silencers in the National Firearms Registration and Transfer Record.
Kiss will remain in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant U.S. Attorney Mark R. Morgan prosecuted the case.
The case was prosecuted as part of the Justice Department’s Project Guardian, a nationwide initiative leveraging critical law enforcement partnerships to enforce federal firearms laws. Project Guardian is the Department’s signature initiative to reduce gun violence and enforce federal firearms laws. Project Guardian draws upon the Justice 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). This includes 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.
Federal Inmate Sentenced to 30 Months for Possessing a Weapon in Butner PrisonRead the Press Release
RALEIGH, N.C. – An inmate housed at the Federal Correctional Complex in Butner, North Carolina (“FCC Butner”) was sentenced yesterday to 30 months of incarceration for possessing weapons inside the federal prison.
According to court documents, Gerald Wayne Timms, 59, was found by Federal Bureau of Prisons (“BOP”) staff to be in possession of multiple homemade sharpened objects on two separate occasions in May, 2019 and again in September, 2019. BOP staff found the weapons inside Timms’ assigned cell during routine searches. Timms was charged by way of a two count indictment for violation of 18 U.S.C. § 1791, possession of contraband in prison. On February 19, 2020, a jury found Timms guilty of both counts. Timms received 30 months on each count to be served concurrently.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. BOP Special Investigative Services investigated the case and Special Assistant U.S. Attorneys Mallory Brooks Storus, Genna D. Petre, and Michael Bredenberg prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00428-FL.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Fairbanks Woman Sentenced to Federal Prison for Bank Fraud and Identity TheftRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Fairbanks woman has been sentenced to federal prison for multiple crime sprees involving identify theft, mail theft, bank fraud, and credit card fraud.
Natascha Sabrina Clark, 36, of Fairbanks, was sentenced today by U.S. District Judge Ralph R. Beistline to serve 68 months in prison, followed by five years of supervised release, after previously pleading guilty to one count of bank fraud, two counts of aggravated identity theft, and one count of fraudulent transactions with an access device. As part of her sentence, Clark was also ordered to pay $10,429.21 in restitution to the victims, as well as costs associated with credit monitoring services.
According to court documents, on May 25, 2017, Clark made several fraudulent transactions using a stolen credit card, including a $2,439.90 purchase at Evolve Skateboards. The investigation revealed that Clark had stolen C.B.’s credit card from his mailbox, ordered a skateboard online using C.B.’s name, billing address, and credit card, and subsequently pawned the skateboard in order to purchase illegal narcotics.
Clark’s illegal activity continued in November 2018, when she stole checks for an Alaska USA Federal Credit Union account from M.P.’s mailbox and created a counterfeit identification document bearing M.P.’s name, address, and driver’s license number, but with Clark’s photograph. Using M.P.’s stolen checks, Clark then began executing fraudulent transactions at Ulta Salon and other businesses.
The investigation further revealed that, from November 2018 to January 2019, using a Hawaiian Airlines credit card belonging to business R.C.C., which she had previously stolen from a mailbox, Clark made 61 fraudulent transactions totaling $4,854.14. The majority of these transactions occurred at three Holiday Gas Stations in Fairbanks.
The Federal Bureau of Investigation (FBI), the Fairbanks Police Department (FPD), the Alaska State Troopers (AST), and the North Pole Police Department (NPPD) conducted the investigation leading to successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Ryan D. Tansey of the U.S. Attorney’s Office for the District of Alaska.
Erie Man Sentenced to Nine Years’ Imprisonment for Firearms ViolationRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 10, 2020, Ted Johnson, Jr., age 38, of Erie, Pennsylvania, was sentenced by U.S. District Court Judge Matthew W. Brann to 108 months’ imprisonment for discharging a firearm during a crime of violence.
According to United States Attorney David J. Freed, Johnson pleaded guilty to using a firearm during a crime of violence in connection with a January 2017 armed robbery of a Unimart in State College, PA. The robbery consisted of two co-conspirators entering the store and firing their weapons while Johnson acted as a lookout and getaway driver.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ferguson Township Police Department. Assistant United States Attorney Geoffrey W. MacArthur prosecuted.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Dominican National Sentenced for Illegal Possession of a Firearm and Illegal ReentryRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for illegal possession of a firearm and ammunition and illegal reentry.
Twaldo Baez was sentenced by U.S. District Court Chief Judge F. Dennis Saylor to 15 months in prison and three years of supervised release. Upon completion of his sentence, Baez will be placed into removal proceedings and deported to the Dominican Republic. In February 2020, Baez pled guilty to being an alien in possession of a firearm and ammunition and illegal reentry.
Baez was first encountered by immigration officials in 2006 while he was serving a sentence for domestic assault and battery and breaking and entering. Upon completion of his sentence, Baez was deported to the Dominican Republic on Aug. 5, 2007.
Sometime after his 2007 removal, Baez illegally reentered the United States. In March 2019, Baez was encountered by law enforcement officers following a high-speed vehicle chase. The vehicle Baez was operating was eventually stopped. During a subsequent search of the vehicle, law enforcement recovered a 9mm semi-automatic firearm and 8 rounds of ammunition. Baez was charged with by the state with possession of the firearm and ammunition. His prints were later obtained and found to match the prints on his 2007 removal. Baez appeared in the Lawrence District Court and was held on bail. In September 2019, Baez posted bail, was then released to ICE, and has been in federal custody since.
United States Attorney Andrew E. Lelling; Todd Lyons, Acting Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Lawrence Police Chief Roy Vasque; and Essex County District Attorney Jonathan W. Blodgett made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
District Man Charged in Federal Court for Vandalizing the Lincoln Memorial During ProtestsRead the Press Release
WASHINGTON – Micah Avery, 26, of Washington, D.C., was arraigned today in federal court on charges of destruction of federal property, resisting a federal officer, and obstructing a law enforcement officer during a civil disorder, announced Acting U.S. Attorney Michael R. Sherwin and Acting Chief of the United States Park Police (USPP) Gregory T. Monahan.
The complaint alleges that on the afternoon of May 30, 2020, officers with the U.S. Park Police witnessed Avery graffiti the words “Yall not tired yet?” with black spray paint on the Lincoln Memorial (see photo below). Avery fled as the officers approached him. After a chase, officers apprehended and handcuffed Avery. Officers attempted to put the defendant into a patrol car, but he resisted their attempts. A crowd converged on the officers and began pushing and striking the officers. During this melee, Avery broke free and ran away. One of the officers sustained an injury to his hand. A look-out was broadcast, and Avery was located shortly thereafter by other officers back at the Lincoln Memorial, still wearing the handcuffs.
The defendant was arraigned today before United States Magistrate Robin M. Meriweather in the United States District Court for the District of Columbia. Judge Meriweather released Avery pending trial, but ordered that he stay away from the Lincoln Memorial. A Criminal Complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
“The United States Attorney’s Office for the District of Columbia is dedicated to protecting the vital First Amendment right of individuals who choose to peacefully protest the horrific killing of George Floyd in Minneapolis last month. Moreover, as the prosecution of Avery illustrates, the United States Attorney’s Office will not tolerate those who under the guise of the First Amendment exploit peaceful demonstrations to break the law, deface our national monuments, and threaten the safety and security of our nation’s capital. In its commitment to protect the rule of law, this Office will not leave unchecked any criminal activity, whether committed by civilians or law enforcement, that infringes on the fundamental civil rights and ability of any person to be free of violence or fear,” said Acting U.S. Attorney Michael R. Sherwin.
“The defacing of the Lincoln Memorial, one of our national icons, could not be tolerated. We are committed to safeguarding the First Amendment rights of those who come to the District of Columbia to peacefully demonstrate. This crime shows how the actions of one individual can distort and tarnish a message through vandalism and other crimes of opportunity. This case is an example of excellent police work, under challenging conditions, and meets one of the core missions of the United States Park Police,” said Gregory T. Monahan, Acting Chief of the United States Park Police.
In announcing the charges, Acting U.S. Attorney Sherwin and Acting Chief Monahan commended the work of the USPP officers who apprehended Avery and are investigating the incident. The case is being prosecuted by Assistant U.S. Attorney James B. Nelson of the U.S. Attorney’s Office for the District of Columbia.
Department of Justice awards more than $2 million in COVID-19 emergency supplemental funding to New Mexico cities and countiesRead the Press Release
ALBUQUERQUE, N.M. – U.S. Attorney John C. Anderson announced today the Department of Justice has awarded a combined $2,044,990 to the City of Albuquerque, the City of Espanola, the City of Gallup, the City of Rio Rancho, the County of Santa Fe and the County of San Juan as part of the Office of Justice Program’s Coronavirus Emergency Supplemental Funding Program.
“The COVID-19 pandemic continues to present many public safety challenges for New Mexico,” said U.S. Attorney Anderson. “The grant funds awarded to these cities, counties, and law enforcement agencies will assist them in meeting the specific needs of their communities. I am thankful to the Office of Justice Programs for making these urgently needed resources available to our state.”
City of Albuquerque – $1,644,717
City of Espanola – $70,596
City of Gallup – $94,413
City of Rio Rancho – $50,098
County of Santa Fe – $58,008
County of San Juan – $127,158
Coronavirus Emergency Supplemental Funding Program has dedicated $850 million nationally to assist eligible states, local units of government, and tribes in preventing, preparing for, and responding to the coronavirus. The New Mexico Department of Public Safety received a $6 million grant last month.
Allowable projects and purchases include overtime, equipment (including law enforcement and medical personal protective equipment), hiring, supplies (such as gloves, masks, sanitizer), training, travel expenses, and addressing the medical needs of inmates in state, local, and tribal prisons, jails, and detention centers.
Dayton Man Pleads Guilty to Methamphetamine and Fentanyl TraffickingRead the Press Release
ASHLAND, Ky. - A Dayton, Ohio man, Robert Amos, 33, pled guilty in federal court on Tuesday, before U.S. District Judge David Bunning, to possession with intention to distribute 50 grams of more of methamphetamine and fentanyl.
In his guilty plea, Amos admitted that, when was stopped by law enforcement, he was in possession of 50 grams or more of methamphetamine and a quantity of fentanyl for distribution.
Amos was indicted in March 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and J.T. Scott, Special Agent in Charge, DEA Louisville Field Division, jointly announced the guilty plea.
The investigation was conducted by DEA and the FADE Drug Task Force. The United States was represented by Assistant U.S. Attorney Cynthia Rieker.
Amos is scheduled to be sentenced on September 14, 2020. He faces a minimum of five years in prison and a maximum of 40 years in prison. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Craig M. Young sentenced to71 months in prison in $11 million Ayudando Guardians financial fraud schemeRead the Press Release
ALBUQUERQUE, N.M. – A federal judge in Santa Fe, New Mexico sentenced Craig M. Young, 55, of Albuquerque to 71 months in federal prison today for conspiracy and conspiracy to commit money laundering in connection with the operation of Ayudando Guardians, Inc., a non-profit corporation based in Albuquerque that previously provided guardianship, conservatorship, and financial management to hundreds of people with special needs.
Young pleaded guilty on Nov. 12, 2019. In his plea agreement, he admitted committing these crimes while employed as a guardian for Ayudando. Young used a business American Express card to pay personal expenses. He knew that Sharon Moore, 64, of Albuquerque, who served as co-owner and chief finance officer at Ayudando, paid his American Express bill each month from at least 2010 to June 2017 using funds from Ayudando’s client reimbursement and petty cash accounts.
Young further admitted acting with Moore and his mother, Susan K. Harris, 73, of Albuquerque, who was the of 95% owner and president of Ayudando, to write and endorse numerous checks from Ayudando accounts to themselves, to cash, and to family members and to other payees for their own benefit. Young admitted paying his monthly mortgage in this manner. Young further admitted selling a motor home purchased with proceeds from the fraud scheme because he believed federal investigators could seize the motor home as proceeds of criminal activity.
Young must serve a 3-year term of supervised release following imprisonment. He must also pay approximately $6.8 million in restitution to the victims of the fraud scheme.
Moore pleaded guilty on July 9, 2019, to conspiracy, mail fraud, aggravated identity theft, money laundering, and conspiracy to commit money laundering. She is currently serving a 20-year prison sentence.
Harris pleaded guilty on July 11, 2019, to conspiracy, mail fraud, aggravated identity theft, money laundering, and conspiracy to commit money laundering. Young’s stepfather, William S. Harris, 59, of Albuquerque, who also worked as a guardian, pleaded guilty on June 25, 2019, to conspiracy and conspiracy to commit money laundering.
Susan and William Harris are currently in custody awaiting sentencing. The U.S. Marshals Service arrested them in Shawnee, Oklahoma on April 15 after they fled New Mexico and failed to appear for sentencing on March 2.
The Complex Assets Unit of the U.S. Marshals Service is continuing to work to locate assets and funds that can be seized and returned to victims through the forfeiture and restitution process. Additionally, the VA and SSA are working to provide reimbursement of stolen government benefits to those Ayudando clients that received benefits from those agencies, consistent with federal law and regulations.
The Albuquerque offices of the FBI and IRS Criminal Investigation conducted the investigation, which resulted in the charges in the indictment, and are leading the continuing investigation. The Complex Assets Unit and the Albuquerque office of the USMS, the Criminal Investigations Division of the Department of Veterans Affairs Office of Inspector General, and the Dallas Field Division of the Social Security Administration Office of Inspector General are assisting in the investigation. Assistant U.S. Attorneys Jeremy Peña and Brandon L. Fyffe are prosecuting the case.
Corvallis Man Accused of Fraud Scheme Falsely Claiming to Support Christian Missionaries and OrganizationsRead the Press Release
EUGENE, Ore.—U.S. Attorney Billy J. Williams announced today that a Corvallis, Oregon, man has been charged with defrauding members of his church, coworkers, and others by soliciting investments under the false pretense of supporting Christian missionaries and organizations.
A federal grand jury in Eugene has returned an 8-count indictment charging Erik J. Hass, 50, with wire fraud, mail fraud, and money laundering.
According to court documents, in January 2013, Hass is alleged to have founded Simply Gains, Inc., an organization he claimed supported Christian missionaries and organizations while offering significant returns for investors. Hass solicited personal acquaintances to invest in the organization via self-directed retirement and cash accounts. In exchange, he gave investors unsecured promissory notes and promised “monthly interest rate gain around 1.5-2% compounding to approximately 25%-30% per year.”
Hass also claimed that he would only profit from the investment scheme if monthly returns were higher than 2%. Yet, from the start, Hass began taking a salary drawn from investors’ funds, using the proceeds to pay for his own personal expenses. Throughout the scheme, Hass sent investors email statements reflecting their monthly interest gained and account balance. He also sent investor’s false IRS 1099-INT forms.
Hass continued accepting investments well into 2018, knowing he could not honor his investment claims. Instead, these new investments were used as Ponzi payments to older investors who had requested withdrawals from their accounts. In total, at least 20 investors lost more than $1,000,000 investing in Hass’ scheme.
Hass will make his initial appearance in federal court on July 1, 2020 before a U.S. Magistrate Judge.
This case was investigated by the FBI and the Oregon Division of Financial Regulation. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
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.
Convicted Felon Sentenced to Prison for Illegal Re-Entry, False Representation of Social Security NumberRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of OLGA MARINA FRANCO DEL-CID, 35, to 24 months in prison for illegal re-entry after removal and false representation of social security account number. FRANCO DEL-CID, who pleaded guilty on February 3, 2020, was sentenced earlier today before Judge Susan Richard Nelson in U.S. District Court, in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, FRANCO DEL-CID was previously removed from the United States on May 4, 2016, following a felony conviction on August 8, 2008, in Lyon County, for criminal vehicular homicide. On November 26, 2019, FRANCO DEL-CID was found in the United States in violation of the previous removal. FRANCO DEL-CID also admitted to falsely representing a social security number on an Employment Eligibility Verification Form I-9.
This case was the result of an investigation conducted by U.S. Immigration and Customs Enforcement.
Assistant U.S. Attorney Laura M. Provinzino prosecuted the case.
Defendant Information:
OLGA MARINA FRANCO DEL-CID, 35
Inver Grove Heights, Minn.
Convicted:
- Illegal re-entry after removal, 1 count
- False representation of social security account number, 1 count
Sentenced:
- 24 months in prison
- Two years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Convicted Felon Arrested for Federal Firearm OffenseRead the Press Release
Ocala, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Malcolm Jerome Straughter (34, Ocala) with possessing a firearm as a convicted felon. If convicted, Straughter faces a maximum penalty of 10 years in federal prison. Federal agents arrested Straughter yesterday.
According to court records, on March 19, 2020, officers from the City of Ocala Police Department conducted a traffic stop on Straughter’s vehicle, during which officers found Straughter in possession of a loaded 9mm firearm and multiple small bags of marijuana. The firearm had an obliterated serial number and was later confirmed to be stolen.
Straughter has prior state felony convictions for possession of cocaine, possession of a short-barreled shotgun, and robbery with a firearm. Because of his prior felony convictions, he is prohibited from possessing firearms or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Tyrie Boyer.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
City Officials Admit to Accepting BribesRead the Press Release
A former Calexico City, California councilman along with a former commissioner on the city’s Economic Development and Financial Advisory Commission, pleaded guilty in federal court today to corruption charges, admitting that they accepted cash bribes in exchange for promises of official action by the city.
David Romero and Bruno Suarez Soto entered their pleas before U.S. Magistrate Judge Bernard G. Skomal, who set sentencing for Sept. 4, 2020, before U.S. District Judge Cathy Ann Bencivengo. Romero and Soto, who were charged in federal court in May, were allowed to remain free on $10,000 personal appearance bonds secured by their own signatures.
According to their plea agreements, Romero and Soto accepted $35,000 in cash bribes from an undercover FBI agent who they believed represented investors seeking to open a cannabis dispensary in Calexico. In return, Romero and Soto guaranteed the rapid issuance of a city permit for the dispensary, and to revoke or hinder other applicants if necessary to ensure that the bribe payer’s application was successful. Both men admitted they had taken bribes from others in the past. Referring to this $35,000 payment, they told the undercover agent, “This isn’t our first rodeo.”
In addition to being a councilman, Romero served as Calexico’s mayor pro tem, meaning he was set to become Mayor in July 2020. Soto recently resigned from the city commission responsible for promoting business and community growth and coordinating with prospective developers to help them invest in the City of Calexico. Romero resigned from office on June 8, 2020.
The charges filed in the case also allege that both men lied to the FBI when interviewed by agents at the conclusion of a January 30 meeting. Romero falsely denied being part of any agreement with the undercover agent, and denied that anyone had made any “guarantees” to the agent. Similarly, Soto falsely denied making any “guarantees” to the undercover agent and denied receiving any prior payments from the agent.
The FBI investigated the case. Trial Attorney Joshua Rothstein with the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Nicholas Pilchak of the Southern District of California prosecuted the 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.
Chicago and Tennessee Man Sentenced to 101 Months’ Imprisonment for Veteran’s Unemployment Compensation FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Earl Lafayette Hall, III, age 38, previously of Chicago and Arlington, Tennessee, was sentenced to 101 months’ imprisonment and ordered to pay $96,431 in restitution on June 9, 2020, by U.S. District Court Judge Sylvia H. Rambo for veteran’s unemployment compensation fraud.
According to U.S. Attorney David J. Freed, Hall was convicted in November 2019 by a federal jury on two counts of conspiracy, 12 counts of mail fraud, 10 counts of money laundering, and 4 counts of aggravated identity theft.
The evidence presented during the trial and the sentencing hearing, showed that Hall applied for and received $96,431 in unemployment compensation benefits under the Unemployment Compensation for Ex-Service Members Program, commonly known as “The UCX Program,” under the assumed identities (first name, last name, date of birth and Social Security Number) of eleven other individuals.
The UCX Program is a federally funded, U.S. Department of Labor program administered by the States. The jury found that Hall fraudulently obtained the benefits paid on 7 false UCX claims submitted to Pennsylvania, 3 false UCX claims submitted in Utah, and another false identity UCX claim submitted to Hawaii in 2013 and 2014.
“On behalf of the investigative team, we are very pleased with the serious sentence and restitution order imposed in this case,” said U.S. Attorney Freed. “As I said at the time of conviction, it takes an especially devious and brazen criminal mind to defraud a program established to benefit those who have sacrificed so much for their fellow citizens. Fortunately the Defense Criminal Investigation Service, the United States Department of Labor Office of Inspector General, the United States Postal Inspection Service and numerous other federal, state and local partners were on the case.”
“The UCX Program, which provides unemployment benefits for eligible unemployed former service members following their separation from the military, is extremely important," stated Special Agent in Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service (DCIS) Northeast Field Office. "The sentencing announced today marks the conclusion of a successful joint investigation and confirms the DCIS' ongoing commitment to work with its law enforcement partners and the U.S. Attorney's Office, Middle District of Pennsylvania, to protect the integrity of DoD programs and the men and women who serve in our Armed Forces."
“Earl Lafayette Hall III schemed to defraud the Unemployment Compensation for Ex-Service Members Program in order to personally enrich himself at the expense of former military service members and tax payers,” said Derek Pickle Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General. “We will continue to aggressively pursue prosecution of those who seek to defraud our nation’s veterans and the DOL programs that support them.”
The investigation was conducted by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering & Fraud Investigations, the U.S. Defense Criminal Investigative Service, and the U.S. Postal Inspection Service in Harrisburg. The investigation was assisted by the Pennsylvania Department of Labor and Industry, Internal Audits Division, the Pennsylvania Department of Labor and Industry, Office of Unemployment Compensation Benefits and Policy, and the Pennsylvania Department of Treasury, Office of Unemployment Compensation Disbursements. Assistant U.S. Attorney Kim Douglas Daniel prosecuted the case.
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CEO and CFO of Lexington Medical Companies Plead Guilty to Defrauding the United StatesRead the Press Release
LEXINGTON, Ky. - Ann Sonderman Giles, 56, and Lu Anne Wallace, 66, both of Lexington, pled guilty on Thursday, before U.S. District Judge Karen Caldwell, to conspiring to defraud the United States.
According to their plea agreements, from January 2014 through July 2017, Wallace and Giles served as the Chief Executive Officer and Chief Financial Officer, respectively, for multiple healthcare-related companies registered in Kentucky. Giles and Wallace admitted to conspiring to defraud the United States by failing to pay over IRS mandated trust fund taxes for the companies. Additionally, the companies run by Giles and Wallace failed to pay over their required matching portions of Social Security and Medicare taxes. In total, Giles and Wallace conspired to defraud the United States out of tax revenue in the amount of approximately $1,595,726.
Giles and Wallace were indicted in June 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Milton Goff III, Senior Advisor Criminal Investigations, U.S. Department of Labor; Rod Owens, Special Agent-in-Charge, SSA Office of the Inspector General, Atlanta Field Division—Nashville; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation; jointly announced the guilty plea.
The investigation was conducted by the Department of Labor, Social Security Administration, and IRS. The United States was represented by Assistant U.S. Attorney Will Moynahan.
Giles and Wallace are scheduled to be sentenced on September 21, 2020. They face a maximum of five years in prison and a fine of not more than $250,000, or twice the amount of loss. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Billings woman admits transporting persons for prostitutionRead the Press Release
BILLINGS – A Billings woman accused of taking three people to the bus station in Billings for a trip to Georgia to engage in commercial sexual activity pleaded guilty to charges today, U.S. Attorney Kurt Alme said.
Destiny Lachelle Nilsen, also known as "Diamond", 26, pleaded guilty to transportation of a person with intent to engage in prostitution. Nilsen faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Nilsen was released pending further proceedings.
Court records filed by the prosecution said the evidence showed that in August 2019 Nilsen was affiliated with a co-defendant and was aware that the co-defendant was involved in commercial sex in Billings and elsewhere, including other states.
In August 2019, Nilsen drove the co-defendant and two women, identified as Jane Does, to the bus station. The co-defendant and the two Jane Does were going to Georgia to engage in commercial sex. Prostitution is illegal in Georgia. In a subsequent jail call, Nilsen admitted her participation.
Assistant U.S. Attorneys Zeno Baucus and Bryan Dake are prosecuting the case, which was investigated by the FBI.
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Baltimore Businessman Facing Federal Charges for Using a Phone and the Internet to Promote a Prostitution BusinessRead the Press Release
Baltimore, Maryland – Charles “Chuck” Nabit, age 64, of Baltimore, Maryland, has been charged by federal criminal complaint for using a phone and the Internet to promote a prostitution business. Specifically, the criminal complaint alleges that Nabit arranged for commercial sex workers to be brought to his office in Baltimore to engage in commercial sex acts in exchange for payments made to the man who allegedly trafficked the women. Nabit, who owns the Westport Group, LLC, located on Commerce Street in Baltimore, was arrested on June 10, 2020, and had his initial appearance in U.S. District Court in Baltimore. U.S. Magistrate Judge Beth P. Gesner ordered that Nabit be released under the supervision of U.S. Pretrial Services, after posting a property bond.
The criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI), Baltimore Field Office; and Chief Lisa Myers of the Howard County Police Department.
“We will investigate and prosecute those who participate in the crime of sex trafficking, whether through trafficking commercial sex workers or by paying traffickers for commercial sex from vulnerable victims,” said U.S. Attorney Robert K. Hur.
According to the affidavit filed in support of the criminal complaint, as part of a federal sex trafficking investigation which led to the indictment of alleged sex trafficker, Deangelo Johnson, commercial sex workers whom Johnson trafficked described their interactions with Nabit. One victim stated that Nabit would use a GoPro camera to record the sex acts and described Nabit as having a “fetish for young females.” The affidavit alleges that Nabit used a cash app to pay Johnson directly for commercial sex acts performed by the women who worked for Johnson. The affidavit documents 52 transactions between Nabit’s cash app and Johnson beginning in March 2019. Further, the affidavit alleges that Nabit engaged in commercial sex acts with at least four commercial sex workers, using his office in downtown Baltimore and his vehicle to facilitate the activity. The affidavit alleges that there are numerous transactions on Nabit’s cash app beginning August 28, 2018 and continuing through May 12, 2020 involving various females, including four alleged sex trafficking victims. The payments made by Nabit for commercial sex during that time frame total more than $90,000.
If convicted, Nabit faces a maximum sentence of five years in federal prison for use of an interstate facility to promote a prostitution business. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended HSI and Howard County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Mary W. Setzer and Ayn B. Ducao, who are prosecuting the case.
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Assistant Attorney General Eric Dreiband Sends Letter to Montgomery County Maryland Executives Expressing First Amendment Concerns Regarding County OrdersRead the Press Release
The Justice Department today announced that Assistant Attorney General for Civil Rights Eric Dreiband sent a letter to Montgomery County Maryland executives expressing First Amendment concerns regarding county orders. The letter urges county Executive Elrich and the County Council to ensure that the county’s executive orders and enforcement of them respect both the right of residents to assemble and practice their faith.
The letter applauds Montgomery County for allowing gatherings for political protest, but urges the county to allow gatherings for religious exercise on equal terms. The letter specifically references Montgomery County’s Executive Order No. 070-20, which banned all gatherings larger than 10 persons, County Executive Elrich’s June 1, 2020 statement supporting freedom of assembly and public safety, which nevertheless committed the County to providing a protected environment for peaceful protests. The letter notes that the executive order would have prohibited the protest held in Bethesda, Maryland, on June 2 that reportedly involved hundreds of people packed into a library and urged the County to amend its order to protect its residents’ First Amendment rights. In doing so, the letter cautioned that the County should treat religious gatherings no less favorably than similar secular gatherings.
“During a crisis it is important for people of faith to be able to exercise their religion,” said Assistant Attorney General for Civil Rights Eric Dreiband. “Montgomery County has shown no good reason for not trusting congregants who promise to use care in worship the same way it trusts political protesters to do the same. The Department of Justice will continue to take action if states and localities infringe on the free exercise of religion or other civil liberties.”
Alien Indicted on Illegal Reentry Charges and Illegal and Unlawful Alien in Possession of a FirearmRead the Press Release
GREENVILLE, N.C. – A federal grand jury returned an indictment today charging Erik Daniel Gonzalez-Ramirez, age 30, of Mexico, with illegal reentry and alien in possession of a firearm.
Therefore, if convicted, Gonzalez-Ramirez, previously deported three times and found in Brunswick County, would face a maximum imprisonment term of twelve years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the case.
A copy of this press release is located on our website.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Activity in the United States Attorney's OfficeRead the Press Release
Chief Federal District Court Judge Scott W. Skavdahl sentenced PEYTONN M. SUCHOR, 31, of Rozet, Wyoming on June 5, 2020 for retaliation against an informant. Suchor was arrested in Gillette, Wyoming. He received forty-two months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay community restitution in the amount of $500.00. The Gillette Police Department and the Wyoming Division of Criminal Investigation investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced AMBER DAWN BUNDY, 23, of Bridgeport, Nebraska on June 5, 2020 for possession of stolen firearms and aiding and abetting. Bundy appeared via writ. She received twenty-seven months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay community restitution in the amount of $500.00 and a $100.00 special assessment. The Cheyenne Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.
Federal District Court Judge Alan B. Johnson sentenced KEVIN RICHARD VALLEE, 39, of Cheyenne, Wyoming on June 8, 2020 for possession with intent to distribute methamphetamine and carrying a firearm during and in relation to a drug trafficking crime. Vallee was arrested in Laramie County, Wyoming. He received one hundred twenty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $200.00 fine. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced RICHARD MOISES PENA-BERTHO, 36, of Mexico on June 10, 2020 for illegal re-entry of a previously deported alien into the United States. Pena-Bertho was arrested in Gillette, Wyoming. He received time served plus ten days to allow for deportation proceeding and ordered to pay a $100.00 special assessment. Pena-Bertho had been previously deported from the United States to Mexico in October of 2016. The U.S. Immigration and Customs Enforcement investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced JACOB LEE DAVIS, 54, of Fort Collins, Colorado on June 9, 2020 for violating asbestos work practice standards. Davis appeared on a summons. He received a $9,000.00 fine and was ordered to pay a $100.00 special assessment with restitution to be determined within ninety days. Davis will serve thirty-six months of supervised probation. The Environmental Protection Agency investigated this case.
Federal District Court Judge Alan B. Johnson sentenced MICHAEL ANGELO PEREZ, 37, of Casper, Wyoming on June 9, 2020 for conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Perez was arrested in Cheyenne, Wyoming. He received one hundred eighty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $200.00 special assessment. The Casper Police Department, Mills Police Department, and the Wyoming Division of Criminal Investigation investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced LAWRENCE SAUNDERS, Sr. a/k/a Larry Saunders, 68, of Riverton, Wyoming on June 10, 2020 for two counts of abusive sexual contact. Saunders was arrested in Lander, Wyoming. He received thirty months of imprisonment, to be followed by one hundred twenty months of supervised release. The Federal Bureau of Investigation investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced LISA DANETTE KRUSE, a/k/a Lisa Danette Stobert , 46, of Roseburg, Oregon on June 1, 2020 for conspiracy to distribute methamphetamine. Kruse was arrested in Cheyenne, Wyoming. She received forty-six months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay community restitution in the amount of $200.00 and a $100.00 special assessment. The Wyoming Highway Patrol, Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration investigated this case.
10 June 2020
Woman Who Embezzled More Than $800,000 from Her Employer Pleads GuiltyRead the Press Release
A woman pleaded guilty today in U.S. District Court for embezzling $823,714 from her Tulsa employer. Leslie Michelle Clark, 53, of Tulsa, pleaded guilty to one count of bank fraud.
“Leslie Clark exploited her position of trust to personally pocket more than $800,000 of ill-gotten gains,” said U.S. Attorney Trent Shores. “She created a fake consulting company and issued fraudulent billing invoices as part of her criminal scheme. Our white collar prosecution team is to be commended for their excellent work on this case.”
Clark was hired as a financial controller at a Tulsa company in 2014. As controller, she supervised all financial matters for the company. In July 2018, Clark created a fictitious consulting company called “Alliance Consulting.” She also opened an account at Arvest Bank for the fictitious company and caused checks to be paid from her employers customer account at Wells Fargo to Alliance Consulting for fabricated services never rendered. Clark falsely and fraudulently told colleagues at the company that the payments were for consulting services and presented false and fraudulent invoices from Alliance Consulting in support of her scheme.
As part of her plea agreement, Clark agreed to pay $823, 714 in restitution. U.S. District Judge Gregory K. Frizzell will make the final restitution determination at her sentencing hearing set for Sept. 16, 2020.
The FBI conducted the investigation. Assistant U.S. Attorney Richard M. Cella is prosecuting the case.
West Bloomfield Doctor Charged with Illegal Distribution of Prescription Drugs Resulting in Death of PatientRead the Press Release
An indictment was returned today charging a doctor with illegally prescribing controlled substances, resulting in the death of a patient. The doctor was also charged in twenty-two separate counts of illegally prescribing prescription drug controlled substances to several different patients, U.S. Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Special Agent in Charge Keith Martin, U.S. Drug Enforcement Administration (DEA).
Charged in the indictment is Dr. Scott Henry Cooper, 58, of West Bloomfield, Michigan.
The indictment alleges that from March 31, 2014 to December 31, 2018, Dr. Scott Cooper wrote more than 20,000 prescriptions for controlled substances, totaling over 800,000 dosage units. The street value of the pills prescribed by the defendant was in excess of $5.5 million. The defendant is alleged to have knowingly prescribed prescription drug controlled substances outside the course of legitimate medical practice and for no legitimate medical purpose, in furtherance of the scheme, and in combinations that were known to be dangerous and medically unnecessary.
The indictment further alleges that Dr. Cooper often prescribed with cursory examinations, or without bothering to examine the patient at all. As a result of this practice, he allegedly authorized monthly controlled substance prescriptions for one patient while that patient was incarcerated for almost two years. It is not known who actually received and filled that patient’s prescriptions while he was in custody.
The indictment alleges that Dr. Cooper prescribed dangerous combinations of controlled drugs, including multiple central nervous system (CNS) depressants such as oxycodone, Xanax and Soma. This sought-after combination is referred to on the street as the “trinity.” The defendant is alleged to have ignored warning signs that his patients were addicted or selling the drugs, and frequently failed to take commonly accepted steps such as requiring drug screens or checking MAPS before prescribing.
One of Dr. Cooper’s patients did not survive. Dr. Cooper is charged with prescribing this patient a prescription for 478 methadone 10 mg pills on June 17, 2015. The patient died of a methadone overdose in the early morning hours of June 18, 2015.
“Doctors who provide prescription drugs to people for no legitimate medical reason are fueling the opioid epidemic in Michigan,” stated United States Attorney Matthew Schneider. “This case should serve as a message to doctors who choose profit over their pledge to do no harm – we are focusing our law enforcement attention on you and we will do everything we can to bring you to justice.”
“Prescription drug misuse and abuse leads to addiction, suffering, and in too many unfortunate occasions death,” said DEA Special Agent in Charge Keith Martin. “While the vast majority of doctors provide legitimate health care, some choose to violate their oath and the law. DEA and our law enforcement partners will continue to identify and investigate medical professionals who engage in the criminal distribution of prescription drugs.”
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Wellsville Man Charged with Sending Messages Threatening to Kill Another IndividualRead 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 Jonathan Kemp, 21, of Wellsville, NY, was arrested and charged by criminal complaint with interstate communication threatening to injure a person. The charge carries a maximum penalty of five years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that according to the complaint, in November 2018, an individual (Victim) told the New York State Police that the defendant had previously physically assaulted the Victim on many different occasions. On one occasion, Kemp allegedly choked and threatened the Victim with a pocket knife if the Victim didn’t shut up. The victim stated that Kemp asked “if I wanted him to kill me.” The victim also stated that Kemp began sending threatening text messages on the morning of November 5, 2018. One message stated: “I WILL ACTUALLY KILL YOU.”
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and was released on conditions.
The complaint is the result of an investigation by the New York State Police, under the direction of Major James Hall, and the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Robert Guyton.
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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Washington County Man Charged with Distributing and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Scott Eckrote, age 36, of Granville, New York, appeared in federal court this week on charges that he distributed and possessed child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to a criminal complaint, between January 28, 2020 and March 9, 2020, Eckrote distributed images of child pornography through a group messaging application on his phone. An examination of his phone revealed that it contained numerous files depicting child pornography, as well as text messages with another individual arranging for Eckrote to meet and have sex with a person he believed to be a 12-year-old girl. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Eckrote had a detention hearing yesterday before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending further proceedings.
If convicted, Eckrote faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police and Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
U.S. Files Civil Forfeiture Complaint in COVID-19 Fraud CaseRead the Press Release
ROANOKE, Va. – The United States filed a civil complaint here today to recover more than $543,000 from individuals based in China who purported to sell face masks and N-95 respirators at inflated prices but never shipped the products.
According to court documents, a number of fraudulent websites were established to purportedly sell N-95 respirators and other protective facemasks in February and March of 2020, just as the number of COVID-19 cases were rising in the United States and the demand for this type of equipment was increasing. The websites were a fraud.
“It is unconscionable that anyone would exploit the increased demand for personal protective equipment brought on by the COVID-19 international pandemic,” First Assistant United States Attorney Daniel P. Bubar said today. “Today’s complaint demonstrates our Office’s commitment to aggressively pursue those who attempt to defraud individuals and entities during this public health crisis. I am proud of Coronavirus Fraud Task Force and the way we have worked together across Virginia to hold fraudsters accountable.”
Payments for the masks were made through four separate PayPal accounts, all associated with telephones numbers and internet protocol addresses based in China. Law enforcement in the United States became aware of these websites when customers began to notice irregularities with their orders. Some customers simply never received the masks they ordered. Other customers, instead of receiving masks or respirators, received toys or rhinestone necklaces. Victims of the fraud include individuals in the Western District of Virginia, a Florida municipality, and a Wisconsin sheriff’s office.
“The Virginia Coronavirus Fraud Task Force is committed to identifying and pursuing fraudsters seeking to exploit this pandemic,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “As today’s action shows, we will continue to use all available tools to disrupt overseas criminals who defraud our citizens as they try to protect themselves and their families.”
Today’s filing will forfeit $205,242 from one account, $128,868 from another, $194,982 from a third, and $13,923 from a fourth account. All of these PayPal accounts were associated with the fraudulent websites.
“Criminals have taken advantage of the COVID crisis for months to steal money from unsuspecting victims,” said David W. Archey, Special Agent in Charge of the FBI’s Richmond Division. “Investigation by the Virginia Coronavirus Fraud Task Force (VCFTF) identified several fraudulent websites that marketed protective equipment at high mark-up but then never shipped the goods to customers. The forfeiture complaint filed today by the U.S. Attorney will prevent these fraudsters from profiting from the pandemic, as well as provide restitution to their victims. The FBI encourages anyone who suspects fraud or has been victimized to report those events to the FBI’s Internet Crime Complaint Center (www.IC3.gov).”
“The fraud perpetuated by these entities is unacceptable and put countless lives at stake during the height of the COVID-19 pandemic,” said Virginia Secretary of Public Safety and Homeland Security Brian Moran. “I am proud of the fact that our state and federal public safety partners had the foresight to recognize the potential for foreign and domestic entities to prey on Virginians during a worldwide crisis. Due to the quick and effective actions by law enforcement and the U.S. Attorney’s Office, these fraudulent entities will be now held responsible for their harmful, deceptive practices.”
Mr. Bubar thanked the Department of Justice’s COVID-19 Hoarding and Price Gouging Task Force. Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by Craig Carpenito, United States Attorney for District of New Jersey, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs.
The investigation of the case was conducted by the FBI’s Richmond Division. Assistant U.S. Attorneys Krista Consiglio Frith and Michael Baudinet are litigating the case.
The Virginia Coronavirus Fraud Task Force:
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) at http://justice.gov/disastercomplaintform.
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
FiledCivilComplaintU.S. Attorney’s Office Launches Project Safe Neighborhoods Grant ProgramRead the Press Release
ROANOKE, Va. – United States Attorney Thomas T. Cullen announced today his office’s plan to make available $178,759 in grant funds to help improve offender intervention and rehabilitation efforts in three areas of the Western District of Virginia. The grant money is part of the Department of Justice’s Project Safe Neighborhoods [PSN] a nationwide program designed to create and foster safer neighborhoods through a sustained reduction in violent crime by, among other means, addressing criminal gangs and the illegal use of firearms. More information regarding the U.S. Attorney’s Office PSN program, the available grant funds, and the grant-application process can be found at www.vachiefs.org/psn-wdva.
“Community-focused prevention, outreach, and rehabilitation efforts play an important role in reducing violent crime and gang-related activity,” U.S. Attorney Cullen stated today. “I am excited that my friend and former U.S. Attorney Tim Heaphy has agreed to oversee our grant-selection process and am confident that he will deploy these resources wisely.”
The PSN Grant Program is eligible to nonprofits, community organizations and services providers, faith-based groups, and units of local or state governments that operate or have the ability to serve one of the three PSN target enforcement areas for the Western District of Virginia- the City of Danville, the City of Lynchburg, and the Roanoke County/Roanoke City region.
In recent years, violent crime has risen in Roanoke, Danville, and Lynchburg. For example, in 2016 the homicide rate in Danville spiked from an average of four murders per year to 16 total. Per capita, this homicide rate exceeded that of major Virginia urban areas like Richmond and Hampton Roads. Intelligence and evidence attributes this violence to increased street gang activity, which is consistent with statewide crime trends.
In response, the United States Attorney’s Office for the Western District of Virginia implemented PSN. Called Project Community Justice, the backbone of PSN is the collaboration of community organizations as well as federal, state, and local law-enforcement agencies to build evidence-based and intelligence-led approaches to identifying the most violent gangs and offenders in each community and deploying their combined resources not only to prevent violent crimes but also, through offender intervention and rehabilitation efforts, to help break the cycle of violence by addressing its underlying causes. The Grants Program is just one component of multiple concerted efforts the U.S. Attorney’s Office has implemented in Danville, Roanoke, and Lynchburg.
The United States Attorney’s Office recognizes that local government leaders, social service providers, neighborhood leaders, and members of the faith community are an essential part of a successful PSN program, especially those focused on at-risk youth and gang intervention efforts, and hopes that the available grant funds will enable local entities and nonprofits to further their missions of crime prevention and offender intervention and rehabilitation.
Under the program, $178,759 is available to eligible entities in the Western District of Virginia. Those funds will be divided between Danville, Roanoke, and Lynchburg.
In order to administer its PSN grant funds, the United States Attorney’s Office has selected community members to serve as members of an independent Grants Committee. The Committee is chaired by Timothy J. Heaphy, a former United States Attorney for the Western District of Virginia and the current General Counsel for the University of Virginia, and is composed of community-outreach experts, grant experts, community leaders, and former law-enforcement personnel. None of the members are current federal employees, and no member will be eligible to apply for or receive PSN funding. This Grants Committee has selected the Virginia Association of Chiefs of Police and Foundation, Inc. (VACP) to serve as its Fiscal Agent for these funds.
Complete applications should be submitted to [email protected] by 5:00 p.m., on July 17, 2020.
U.S. Attorney Bill Powell announces $58,008 award to address COVID-19 pandemic in Ohio CountyRead the Press Release
WHEELING, WEST VIRGINIA – U.S. Attorney Bill Powell of the Northern District of West Virginia today announced that Ohio County received $58,008 in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grant, awarded to Ohio County is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. 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.
“Ohio County was once designated a hot spot by the Governor, and though the number of positive tests have dropped, this funding will allow the county to continue to effectively address public health during this pandemic,” said Powell.
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.
Trio Charged in Conspiracy to Defraud U.S. Department of AgricultureRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Ghasan Awad (58, Safety Harbor); Ahmad Al Saleh (56, Tampa); and Bassam Al Saleh (63, Tampa) with conspiracy to defraud the United States Department of Agriculture (“USDA”) and making false statements to the USDA regarding the Supplemental Nutrition Assistance Program (“SNAP”). The indictment also charges Awad alone with three counts of wire fraud and three counts of obtaining SNAP benefits in violation of federal law and USDA regulations, and Ahmad Al Saleh and Bassam Al Saleh each with three counts of making certain false statements to the USDA. If convicted, each individual faces up to 5 years in federal prison for the conspiracy offenses. Awad also faces up to 5 years in prison for each of the charged SNAP benefits violations, and up to 20 years’ imprisonment on each wire fraud count, and Ahmad Al Saleh and Bassam Al Saleh each face a maximum of 5 years in prison for each false statement count. The indictment notifies the defendants that the United States is seeking a money judgment as to the proceeds of the charged criminal conduct.
According to the
indictment , Awad was the former owner of Express Meat Market, a grocery store in St. Petersburg, Florida that accepted SNAP benefits. After his disqualification from SNAP, Awad conspired with the other defendants to fraudulently transfer ownership of the store to Ahmad Al Saleh, so that Awad could conceal his ongoing, active role in the store’s operations. The indictment further alleges that, after the fraudulent transfer, Awad unlawfully violated SNAP by paying cash to store customers in exchange for their SNAP benefits, in violation of federal statutes and the USDA regulations governing SNAP. The indictment also includes allegations that the conspirators made a number of false and fraudulent statements to the USDA to effect the fraudulent transfer of the store’s ownership.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the USDA-Office of Inspector General and the Department of Homeland Security, with assistance from the St. Petersburg Police Department. It will be prosecuted by Assistant United States Attorney Jay L. Hoffer.
Three Individuals Indicted in June 2020 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the June 2020 Federal Grand Jury.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
DONALD RAY LOGSDON, JR., age 39, of McAlester, Oklahoma
Felon In Possession Of Firearm & Ammunition
The Indictment alleges that on or about March 5, 2020, in the Eastern District of Oklahoma, the defendant, DONALD RAY LOGSDON, JR., having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of such conviction, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Pittsburg County Sheriff’s Office and the United States Marshals Service - Violent Crimes Fugitive Taskforce.
Assistant United States Attorney Dean Burris
DERRICK LERON JORDAN, age 49, of Okmulgee, Oklahoma
Failure To Register As Sex Offender
The Indictment alleges that from on or about December 14, 2018, until on or about March 24, 2020, in the Eastern District of Oklahoma, and elsewhere, the defendant, DERRICK LERON JORDAN, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Oklahoma on or about April 22, 1999, for Rape First Degree and Oral Sodomy, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Okmulgee Police Department and the United States Marshals Service.
Assistant United States Attorney Nalani Ching
KENNETH ROY NESTER, age 26, of Okmulgee, Oklahoma
Possession With Intent To Distribute Methamphetamine
Possession Of Firearm In Furtherance Of Drug Trafficking Crime
Felon In Possession Of Firearm And Ammunition (2 counts)The Indictment alleges that on or about December 30, 2019, in the Eastern District of Oklahoma, the defendant, KENNETH ROY NESTER, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, a fine up to $1,000,000.00, or both.
The Indictment further alleges that on or about December 30, 2019, in the Eastern District of Oklahoma, the defendant, KENNETH ROY NESTER, did knowingly possess a firearm, to wit: one Herman Weirach, Model Arminius HW 38, .38 Special caliber, revolver, serial number 402323, in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine as alleged in Count One, in violation of Title 18, United States Code, Section 924(c), punishable by not less than 5 years to run consecutive to any other term of imprisonment imposed, a fine up to $250,000.00, or both.
The Indictment further alleges that on or about December 30, 2019, in the Eastern District of Oklahoma, the defendant, KENNETH ROY NESTER, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of such conviction, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment further alleges that on or about January 22, 2020, in the Eastern District of Oklahoma, the defendant, KENNETH ROY NESTER, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Okmulgee Police Department and the Federal Bureau of Investigation.
Special Assistant United States Attorney David Youll
Third Individual Arrested and Charged with Arson of St. Paul Health and Nutrition StoreRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal criminal complaint against MCKENZY ANN DEGIDIO DUNN, 19, charging her with conspiracy to commit arson. DUNN made her initial appearance earlier today before Magistrate Judge Hildy Bowbeer in U.S. District Court in St. Paul, Minnesota. DUNN’s co-conspirators, SAMUEL ELLIOTT FREY and BAILEY MARIE BALDUS, have also been charged with one count each of conspiracy to commit arson.
According to the allegations in the complaints, on May 28, 2020, a health and nutrition store located in St. Paul, Minnesota, sustained damage due to vandalism and fire. On June 3, 2020, investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) examined the store and determined that the fire and smoke damage was caused by arson. ATF investigators obtained video surveillance footage from inside the store on the night of the arson. Following ATF’s public request for tips and identifying information, investigators were able to identify DUNN, FREY and BALDUS in the surveillance video footage. FREY can be seen pouring flammable hand sanitizer onto a shelving unit and lighting it on fire. DUNN can be seen standing near the shelving unit holding a bottle of flammable hand sanitizer.
The ATF and FBI urge the public to report suspected arson, use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information specifically related to business fires in the Twin Cities can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com. In addition to fires, the FBI is looking for people who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALLFBI (800-225-5324) or visit tips.fbi.gov.
This case is the result of an investigation conducted jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the St. Paul Police Department, the St. Paul Fire Department, and the Minnesota State Fire Marshal Division.
This case is being prosecuted by Assistant U.S. Attorneys Matthew S. Ebert and Joseph S. Teirab.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
MCKENZY ANN DEGIDIO DUNN, 19
Rosemount, Minn.
Charges:
- Conspiracy to commit arson, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600