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5 June 2020
Gouldsboro Man Sentenced to 36 Months’ Imprisonment for Robbing Jefferson Township Bank with BB GunRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Petr Kostenetskiy, age 21, of Gouldsboro, Pennsylvania, was sentenced on June 2, 2020, by United States District Court Judge Malachy E. Mannion to thirty-six months’ imprisonment to be followed by two years of supervised release for armed bank robbery.
According to United States Attorney David J. Freed, on July 22, 2019, Kostenetskiy entered a bank in Jefferson Township armed with what was later determined to be a BB gun, pointed the weapon at a teller, demanded money and ultimately stole $7,537. Kostenetskiy was located and arrested shortly thereafter and the stolen funds were recovered.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorney Jeffery St John prosecuted the case.
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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Front Royal Man Sentenced for Role in Baltimore-Front Royal Heroin Pipeline Distribution ConspiracyRead the Press Release
ROANOKE, Va. – Nikolai Hall-Andujar, of Front Royal, Virginia, was sentenced yesterday to 46 months in prison for his role in a heroin distribution conspiracy that brought hundreds of grams of the drug from Baltimore to Front Royal between 2015 and 2018. United States Attorney Thomas T. Cullen and Jesse R. Fong, Special Agent in Charge of the Drug Enforcement Administration’s Washington Field Division made the announcement today.
“The scourge of heroin and other illicit drugs entering the Northern Shenandoah County community has caused pain, addiction, and death for years,” First Assistant United States Attorney Daniel P. Bubar said today. “Eradicating these potentially lethal substances remains a top priority for law enforcement and I am grateful to the Drug Enforcement Administration and all the agencies involved in the Northwest Virginia Regional Drug and Gang Task Force for continuing to embrace the challenge.”
“The effect that heroin has had on our communities and families across the DMV has been devastating. The sentencing in this case, along with the help of local and federal agencies across the DMV, is to be commended for the impact it’s had on communities across Maryland, DC, and Virginia,” Special Agent in Charge Fong said today. “The DEA Washington Division is dedicated to continuing combatting this deadly problem for our area by taking dangerous criminals and organizations like this off our streets and combatting drug trafficking across our area.”
According to court documents, Hall-Andujar, who previously pleaded guilty to one count of conspiracy to distribute heroin, was part of the “Chris” heroin distribution organization based out of Baltimore. Between summer 2015 and spring 2018, Hall-Andujar was responsible for distributing no less than 400 grams of heroin to individuals in Front Royal and Winchester.
Hall-Andujar obtained quantities of heroin ranging from 4 to 5 grams at a time, every other day, and sometimes up to 10 grams, from the “Chris” pipeline in Baltimore. Once the purchase was complete, Hall-Andujar returned to Front Royal and Winchester to use and redistribute the heroin he obtained.
The investigation of the case was conducted by the Drug Enforcement Administration’s Winchester Office, the Front Royal Office of the Virginia State Police Northwest Regional Drug and Gang Task Force, the Baltimore City Police Department, the Baltimore County Police Department, the Frederick, Maryland Sheriff’s Office, the Loudoun County, Virginia, Sheriff’s Office and the Howard County, Maryland, Sheriff’s Office. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Four Florida Men Charged for Their Roles in a $54 Million Compound Pharmacy Kickback SchemeRead the Press Release
Four Florida men were charged in an indictment unsealed Thursday for their alleged participation in a compound pharmacy kickback scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Special Agent in Charge Cyndy Bruce of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office, Special Agent in Charge Michael F. McPherson of the FBI’s Tampa Field Office, Special Agent in Charge Omar Aybar Perez of the U.S. Health and Human Services-Office of Inspector General (HHS-OIG) Miami Regional Office and Special Agent in Charge David Spilker of the Veterans Affairs-Office of Inspector General (VA-OIG) Southeast Field Office, made the announcement.
James Wesley Moss, 57, of Zephyrhills, Florida, Edward Christopher White, 38, of Panama City Beach, Florida, David Byron Copeland, 52, of Tallahassee, Florida, and Michael Alton Gordon, 56, of Ft. Myers, Florida, were each charged in an indictment filed in the Middle District of Florida with one count of conspiracy to defraud the United States and to pay or receive health care kickbacks.
In addition, Moss was charged with six counts of offering or paying health care kickbacks and one count of possession with intent to deliver a controlled substance, ketamine; White was charged with four counts of soliciting or receiving health care kickbacks; Copeland was charged with two counts of soliciting or receiving health care kickbacks and three counts of offering or paying health care kickbacks; and Gordon was charged with three counts of soliciting or receiving health care kickbacks. The defendants will be arraigned in the Middle District of Florida at a later date.
The allegations stem from the defendants’ participation in a multi-million dollar conspiracy to defraud TRICARE, a federal health care benefit program. TRICARE is the health care benefit program of the U.S. Department of Defense that provides health care coverage for active duty service members, National Guard and Reserve members, retirees, their families and survivors. The indictment alleges that Moss and others owned and operated Florida Pharmacy Solutions Inc. (FPS) for the purpose of targeting TRICARE beneficiaries and causing the submission to TRICARE of claims for expensive prescription compounded drugs that were not legitimately prescribed because they were induced and procured by the payment of illegal kickbacks and bribes. The indictment alleges that between approximately November 2012 and September 2015, the defendants caused the submission to TRICARE of more than $54 million in claims for prescription compounded drugs and that TRICARE paid approximately $41 million to FPS on those claims.
The indictment further alleges that Moss paid more than $20 million in health care kickbacks to White, Copeland and Gordon in return for their procuring and referring prescriptions for compounded drugs for TRICARE beneficiaries to be filled by FPS. FPS allegedly submitted claims for payment to TRICARE for providing prescription compounded drugs to TRICARE beneficiaries living in approximately 30 states and several foreign countries.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the DCIS Tampa Resident Agency, assisted by the FBI, the HHS/OIG and the VA/OIG. Trial Attorney John A. Michelich of the Criminal Division’s Fraud Section, National Health Care Fraud Strike Force, is prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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 Florida Prepaid College Program Contractor Indicted for Conspiracy, Mail Fraud, and Aggravated Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – Jamilla Ciar Hall, 30, of Tallahassee, Florida, was arrested yesterday after a federal grand jury in Tallahassee returned an indictment charging Hall with conspiracy to commit mail fraud, 5 counts of mail fraud, and aggravated identity theft. The offenses are alleged to have been committed in the Northern District of Florida. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
The indictment alleges that the Florida Prepaid College Board, which administers the Florida
Prepaid College Program (“Florida Prepaid”), contracted with Intuition College Savings Solutions
(“ICSS”) to provide customer service and records administration services for Florida Prepaid
College Program. The indictment further alleges that Hall was an employee of ICSS and that between on or about July 1, 2018, and on or about December 31, 2018, Hall accessed and viewed the personal identification information of Florida Prepaid account owners and beneficiaries, and then fraudulently changed mailing addresses, phone numbers, and email addresses associated with existing
Florida Prepaid plans. The indictment further alleges that Hall fraudulently completed cancellation forms using the personal identification information of Florida Prepaid account owners and beneficiaries. In doing so, Hall fraudulently caused Florida Prepaid refund checks to be mailed and delivered by the United States Postal Service, which she personally cashed or which she gave to others to fraudulently cash. In total, it is alleged that Hall fraudulently obtained and attempted to obtain approximately $42,000 in funds to which she was not entitled.Hall faces a potential maximum penalty of 20 years imprisonment for conspiracy to commit mail fraud and mail fraud, and a 2-year mandatory minimum prison sentence consecutive to any other sentence imposed for aggravated identity theft.
This case resulted from an investigation by the Florida Department of Law Enforcement and the
United States Secret Service. Assistant United States Attorney Justin M. Keen is prosecuting the case.The jury trial for Hall is scheduled for July 29, 2020, at 8:30 a.m. before the Honorable Judge
Alan Winsor at the United States Courthouse in Tallahassee.An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attor ey’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.Five Defendants Receive Federal Prison Sentences; Two Enter Guilty Pleas in Connection with Federal Gun Crimes and Drug OffensesRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced the resolution of several cases this week involving federal gun crimes and drug offenses, all of which are separately noted. The firearms cases were brought as part of the Project Safe Neighborhood (PSN) initiative. U.S. District Judge Terry A. Doughty presided over each hearing on June 3, 2020.
SENTENCING – BRADLEY KEITH CULP
Bradley Keith Culp, 55, of Monroe, was sentenced to seven and a half years in federal prison and three years of supervised release, for possession of a firearm by a convicted felon.
On August 31, 2018, Louisiana Probation and Parole agents and Winn Parish Sheriff’s Office deputies performed a residence check at the defendant’s home in Winnfield, Louisiana. Inside they found the defendant, a multiple-time convicted felon, in possession of approximately 14 firearms. It is a violation of federal law for a person previously convicted of a felony to possess firearms or ammunition.
At Culp’s guilty plea on January 21, 2020, he admitted that he knew his status as a convicted felon prohibited him from possessing firearms or ammunition. Culp’s prior felony convictions included distribution of methamphetamine (2006 and 2008), and illegal possession of a firearm by a convicted felon (2008).
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Louisiana Probation and Parole, and the Winn Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Mike Shannon prosecuted the case.
SENTENCING – MARTHONY MILLER
Marthony Miller, 24, of Rayville, Louisiana, was sentenced to 70 months in federal prison and five years of supervised release following his prison term, for conspiracy to possess methamphetamine with intent to distribute. Miller pled guilty on January 8, 2020.
On April 2, 2019, an investigator with the United States Postal Inspection Service intercepted a suspicious package at the Shreveport Processing and Distribution Center that contained approximately 50 grams of pure methamphetamine. The package had been mailed from Compton, California, addressed to a residence in Rayville, Louisiana. A controlled delivery of the package was made to Miller’s residence in Rayville on April 3, 2019. Following the delivery of the package, law enforcement officers executed a search warrant and found a vial of methamphetamine inside a toilet, which contained some of the methamphetamine. They also found a digital scale, a ledger with information about quantities and profits, and wire transfer receipts to a person in California.
The U.S. Drug Enforcement Administration (DEA), United States Postal Inspection Service, and the Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Leon H. Whitten prosecuted the case.
SENTENCING – NANDERRIOUS THOMAS
Nanderrious Thomas, 23, of Monroe, was sentenced to 63 months in federal prison, followed by three years of supervised release, for possession of a firearm by a convicted felon. Thomas pled guilty on December 13, 2019.
On November 16, 2018, Monroe Police Department officers were conducting an active warrant canvas when they spotted Nanderrious Thomas, who had outstanding felony warrants. Thomas fled when he saw the officers and crawled under an abandoned house. Immediately after he was apprehended, a detective recovered a loaded Smith & Wesson, Model SD.40 VE, semi-automatic handgun from underneath the house. The pistol contained 14 rounds of .40 caliber ammunition, with one round in the chamber and 13 rounds in the magazine. Thomas has a prior felony conviction in Ouachita Parish for aggravated battery.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshal’s Service, and Monroe Police Department conducted the investigation. Special Assistant U.S. Attorney Michelle A. Thompson prosecuted the case.
SENTENCING – RODRIGUEZ DEWAYNE COBBS
Rodriguez Dewayne Cobbs, 27, of Monroe, was sentenced to 41 months in federal prison and three years of supervised release following his prison term, for possession of a firearm by a convicted felon. Cobbs pled guilty on December 13, 2019.
On January 21, 2019, Ouachita Parish Sheriff’s deputies arrested Cobbs following a traffic stop of his vehicle. During the course of the traffic stop, Cobbs informed the officer that he had a gun in his right front jacket pocket. Officers retrieved a Smith & Wesson, Model SD.40 VE, semi-automatic handgun loaded with one round in the chamber and 13 rounds in the magazine, and a Glock .9mm magazine lying on the front passenger seat, loaded with two rounds.
Cobbs has prior felony convictions in Ouachita and Caddo Parishes for simple burglary of an inhabited dwelling, illegal possession of a firearm by a convicted felon, and unauthorized entry of an inhabited dwelling.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Ouachita Parish Sheriff’s Office conducted the investigation. Special Assistant U.S. Attorney Michelle A. Thompson prosecuted the case.
SENTENCING – DUSTIN McMILLIAN
Dustin McMillian, 27, of Monroe, was sentenced to four years in federal prison and three years of supervised release following his prison term, for possession of a firearm by a convicted felon. McMillian pled guilty on January 8, 2020.
On April 12, 2019, agents with the Monroe Metro Narcotics Unit arrested McMillian for active FBI warrants for methamphetamine distribution. During a search of the vehicle, officers found a Ruger 9mm handgun under the driver’s seat where McMillian was sitting, and a backpack containing a digital scale and multiple baggies. Officers also found $1,169 in cash in McMillian’s shorts pocket. McMillian told officers that the money came from selling a chainsaw. McMillian admitted that the gun, baggies, and digital scale belonged to him. McMillian also admitted that he knew he should not have a gun because he had just been released from jail for the same charge, but he needed the firearm for protection.
McMillian has multiple felony convictions that include unauthorized entry into an inhabited dwelling (2013), possession of methamphetamine (2015), aggravated flight from an officer (2018), and possession of a firearm while in possession of a controlled dangerous substance (2018).
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Monroe Metro Narcotics Unit conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
GUILTY PLEA – JERRY DAKOTA JOHNSON
Jerry Dakota Johnston, 35, of West Monroe, entered a guilty plea before U.S. District Judge Terry A. Doughty, to possession of a firearm by a convicted felon and possession of methamphetamine with intent to distribute.
On September 2, 2019, Union Parish Sheriff’s Office deputies observed Johnston, a non-resident, illegally dumping trash at a parish dumpsite adjacent to Camp T.L. James on Highway 15. While speaking with Johnston, the deputies observed in plain view a 9mm handgun, loaded with a 30-round extended magazine, stuffed between the driver’s seat and center console. The defendant claimed that the weapon was only a “BB gun,” but then, unprovoked, fled the scene on foot down the highway. After a brief chase, the deputies apprehended Johnston and placed him in custody. During a search of the vehicle, officers found approximately 12 grams of methamphetamine packaged for sale.
Prior to his arrest on September 2, 2019, Johnston, a convicted felon, was prohibited from possessing firearms because of convictions for drug offenses and domestic violence. At the time of his arrest, Johnston knew his status as a convicted felon.
Johnston faces up to 10 years in prison, three years of supervised release, and a $250,000 fine for the firearms charge, and up to 40 years in prison, four years of supervised release, and a $5,000,000 fine for the drug charge. Sentencing is scheduled for September 2, 2020.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Union Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Mike Shannon is prosecuting the case.
GUILTY PLEA – CEDRIC DEWAYNE COLEMAN
Cedric Dewayne Coleman, 35, of Monroe, entered a guilty plea before U.S. District Judge Terry A. Doughty, for possession of a firearm by a convicted felon.
On November 7, 2019, detectives with the Monroe Police Department were conducting a follow-up investigation of a domestic dispute involving Coleman. While speaking with Coleman in his bedroom, officers found a Colt pistol, Model 22, caliber: 22 at the head of the bed. Coleman admitted that the firearm belonged to him.
Coleman has a prior felony conviction from 2006 for possession of cocaine. At the time he possessed the firearm, he knew that as a convicted felon, he was prohibited from possessing a firearm or ammunition.
At sentencing on September 2, 2020, Coleman faces up to 10 years in prison, three years of supervised release, and a $250,000.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Monroe Police Department conducted the investigation. Assistant U.S. Attorney Jessica D. Cassidy is prosecuting the case.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition.
Project Safe Neighborhoods (PSN) is a program that has been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. PSN plays a major role in the Department of Justice’s violent crime reduction strategy. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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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.
Final Defendant in Methamphetamine Trafficking Conspiracy Pleads GuiltyRead the Press Release
LONDON, Ky. - A Mt. Vernon, Kentucky man, Brice Hubbard, 47, pleaded guilty in federal court on Friday, before Magistrate Judge Hanly A. Ingram, to conspiring with others to distribute 500 grams or more of a methamphetamine mixture.
Hubbard admitted that, from February 2019 to May 2019, he conspired with Dallas Clifford, Dustin Hurley, and Jordan Moore to distribute 500 grams or more of methamphetamine. Hubbard admitted to supplying pound level quantities of methamphetamine to co-conspirators, who would then sell the methamphetamine to middlemen and end-users. Hubbard also admitted to arranging the sale of a pound of methamphetamine in Berea, Ky.
Clifford and Hurley pleaded guilty in February 2020, and are scheduled to be sentenced on July 23, 2020 and June 12, 2020, respectively. Moore pleaded guilty in May 2020 and is scheduled to be sentenced on September 17, 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; and Jeffrey Todd Scott, Special Agent in Charge, DEA Louisville Field Division; jointly announced the guilty plea.
The investigation was conducted by the DEA. The United States was represented by Assistant U.S. Attorney Jenna Reed.
Hubbard is scheduled to be sentenced on a date yet to be determined by the court. He faces up to life in prison. However, any sentence will be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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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Eagle Butte Man Sentenced on Wildlife ChargeRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Violating the Lacey Act was sentenced on June 4, 2020, by U.S. Magistrate Judge Mark A. Moreno.
Dugan Traversie, age 39, was sentenced to 1 year probation, loss of his hunting privileges for one year, ordered to pay $9,000 restitution to Timberlake Elk Ranch, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Traversie was indicted by a federal grand jury on February 12, 2020. He pled guilty on June 4, 2020.
The conviction stemmed from an incident that occurred sometime between October 28, 2019, and November 4, 2019, when Traversie harvested a white-tailed deer outside of the tribal hunting season, in violation of the Cheyenne River Sioux Tribe hunting laws and regulations. After Traversie shot the deer, he left and returned the next day to remove the head and left the carcass behind.
This case was investigated by the U.S. Fish and Wildlife Service, and the Cheyenne River Sioux Tribe, Game, Fish and Parks Department. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Dubuque Man Who Possessed over 25,000 Images of Child Pornography Sentenced to Federal PrisonRead the Press Release
A Dubuque man who possessed over 25,000 images of child pornography was sentenced today to 139 months in prison.
Mark Curtis, Jr., age 37, from Dubuque, Iowa, received the prison sentence after pleading guilty to one count of receipt of child pornography and one count of transportation of child pornography.
Information disclosed at his court hearing today showed that between August 2017 and August 2018, Curtis, Jr. used terms commonly associated with child pornography to search for images and videos of child pornography on the internet. Curtis, Jr. downloaded a number of images and videos to his cellular telephone. Curtis, Jr. then moved some of these images and videos to a Dropbox account. In total, Curtis possessed over 25,800 images. The images depicted minors that ranged in age from infants to pre-teens. Some videos and images involved infants and toddlers engaged in sexual acts. Curtis, Jr. has no criminal history.
Curtis, Jr. was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Curtis, Jr. was sentenced to 139 months’ imprisonment. He was ordered to make payment of $200 to the special assessment fund. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Dubuque County Sheriff’s Office. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1046.
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Department of Justice Awards Almost $2 Million for Community Policing in Northern FloridaRead the Press Release
TALLAHASSEE, FLORIDA – Lawrence Keefe, the United States Attorney for the Northern District of
Florida, today announced that three local law enforcement agencies in the district will share in almost $2 million in federal grants to fund additional deputies and officers to keep their communities safe. The grants, through the Justice Department’s Office of Community Oriented
Policing Services (COPS Office) COPS Hiring Program (CHP), will provide additional personnel in
Jefferson and Walton counties and the City of Fort Walton Beach.The three agencies are among 26 in Florida and 596 around the nation to receive funding awards, part of are a portion of $51 million in grants announced in May as part of the Department of
Justice’s Operation Relentless Pursuit.“Sheriff’s offices and police departments across the Northern District of Florida are at the heart of keeping our communities safe, and these grants will make a meaningful difference in helping them protect and serve the good people of their cities and counties,” U.S. Attorney Keefe said.
The grants announced by Keefe are: • $329,595 to the Fort Walton Beach Police Department to fund 3 law enforcement positions
• $118,838 to the Jefferson County Sheriff’s Office to fund 1 law enforcement position
• $1,500,000 to the Walton County Sheriff's Department to fund12 law enforcement positions“The Department of Justice is committed to providing the police chiefs and sheriffs of our great nation with needed resources, tools, and support. The funding announced today will bolster their ranks and contribute to expanding community policing efforts nationwide,” said Attorney General
William P. Barr. “A law enforcement agency’s most valuable assets are the men and women who put their lives on the line every day in the name of protecting and serving their communities.”The COPS Hiring Program is a competitive award program intended to reduce crime and advance public safety through community policing by providing direct funding for the hiring of career law enforcement officers. In addition to providing financial support for hiring, the program provides funding to state and local law enforcement to enhance local community policing strategies and tactics. In a changing economic climate, this funding helps law enforcement agencies maintain sufficient sworn personnel levels to promote safe communities. Funding through this program had been on hold since the spring of 2018 due to a nationwide injunction that was lifted earlier this year.
COPS Hiring Program applicants were required to identify a specific crime and disorder problem focus area and explain how the funding will be used to implement community policing approaches to that problem focus area. Of the awards announced today, 43% will focus on violent crime, while the remainder of the awards will focus on a variety of issues including school-based policing to fund school resource officer positions, building trust and respect, and opioid education, prevention, and intervention. The COPS Office received nearly 1,100 applications requesting more than 4,000 law enforcement positions.
The complete list of awards can be found here. To learn more about the program, please visit https://cops.usdoj.gov/chp. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
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.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern
District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.Denver Man Sentenced to Federal Prison for Being Felon in Possession of A FirearmRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Jalonni Alexander Moore, of Denver, was sentenced yesterday to serve 16 months in federal prison, followed by 3 years on supervised release for being a felon in possession of a firearm. The charges were filed after Moore was involved in a shootout near downtown Denver where one individual was killed. The Denver Field Division of the ATF joined in today’s announcement.
According to the stipulated facts contained in the plea agreement, on March 10, 2019, Denver Police officers were dispatched to the intersection of 15th and Market Street on a report of a shooting. Upon arrival, officers found a large crowd and learned that multiple people had been shot, including Moore, who had been taken to a hospital in a personal vehicle. At the hospital, officers interviewed both the driver and his passenger and looked into their vehicle. Where Moore had been sitting was a loaded handgun that did not belong to the vehicle's other occupants, nor was it present before the defendant entered the vehicle. The defendant later admitted to firing the weapon at the original scene.
“This is a perfect example of how our close partnership with local law enforcement results in a safer community,” said U.S. Attorney Jason Dunn. “This arguably would have been a complex case for the state to prosecute. But our straight-forward federal felon-in-possession law allows us to prosecute these cases quickly and remove dangerous felons from the street for substantial periods of time.”
“It is unlawful for convicted felons to possess firearms and ammunition,” said ATF Special Agent in Charge David Booth. “ATF will continue to work with the Denver Police Department and all of our law enforcement partners to ensure the safety of our communities.”
This case was investigated by the ATF, with substantial assistance from the Denver Police Department’s Homicide Unit. The defendant was prosecuted by Assistant U.S. Attorney Celeste Rangel.
Delta County Bank President Guilty of Bank Fraud and Arson ViolationsRead the Press Release
SHERMAN, Texas – A 57-year-old former bank president has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Anita Gail Moody, of Cooper, Texas, pleaded guilty to conspiracy to commit bank fraud and arson today before U.S. Magistrate Judge Christine A. Nowak.
According to information presented in court, Moody was President of Enloe State Bank in Cooper, Texas. On May 11, 2019, the bank had a fire that was determined to be arson. The fire was contained to the bank’s boardroom, but the entire bank suffered smoke damage. Several files had been stacked on the boardroom table, all of which were burned in the fire. Coincidentally, the bank was scheduled for a review by the Texas Department of Banking the next day. Further investigation into the fire and the bank revealed that Moody had been creating false nominee loans in the names of several people, including some actual bank customers. Moody eventually admitted to setting the fire in the boardroom to cover up the criminal activity concerning the false loans. She also admitted to using the fraudulently obtained money to fund her boyfriend’s business, other businesses of friends, and her own lifestyle. The fraudulent activity, which began in 2012, resulted in a loss to the bank of approximately $11 million.
Moody has agreed to a sentence of 84 months in federal prison and will pay restitution in the amount of $11,136,241.82 A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the FDIC-OIG and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorneys Maureen Smith and Wes Wynne.
Community Leaders and Federal, State and Local Law Enforcement Call for Justice, Unity and PeaceRead the Press Release
SACRAMENTO, Calif. — Community leaders and federal, state and local law enforcement partners join together to condemn the death of George Floyd in Minneapolis and to call for justice, unity and peace, U.S. Attorney McGregor W. Scott, FBI Special Agent in Charge Sean Ragan, Sacramento County District Attorney Anne Marie Schubert, Sacramento County Sheriff Scott Jones, Sacramento Chief of Police Daniel Hahn, and the following community leaders announced.
Sacramento NAACP
President Betty WilliamsVallejo NAACP
President Jimmie JacksonMadera NAACP
President Gloria BrownKings County, Hanford Unit, NAACP
Dr. Crystal JacksonThe 100 Black Men of Sacramento
President Richard CorneliusMLK Celebration Committee
President Toni GreenwellOrganization of Chinese Americans Sacramento
President Jinky DolarChurch of Scientology of Sacramento
President Mike KlagenbergSacramento Afghan Community
President Abdul Karim YusufzaiWest Sacramento Gurdwara
Public Relations Officer Darshan MundyRacial Healing Project
President Jan MerrillShasta County Citizens Advocating Respect
Chair Susan Morris-WilsonCenter for Interfaith Studies in America
CEO Jon FishInterfaith Council of Sacramento
President Edrine Ddungu
Public Relations Officer Akram KevalInterfaith Council of Elk Grove
President Dr. Richard ShankarIslamic Center of Vallejo
Secretary Najim KhanSikh Community of Fresno
Ike GrewalJapanese American Citizens League
President Janice LuszczakInternational Faith Based Coalition
Bishop Ron AllenSacramento Regional Coalition for Tolerance
President Susie WongGethsemane Lutheran Church of Sacramento
Reverend Jason BenseTwin Rivers Unified School District
Trustee Ramona LanderosGreater Solomon Temple Community Church
Pastor Bishop Ron AllenLutheran Church of our Redeemer
Reverend Jason BenseCalifornia Council of Churches
Policy Advocate Libby SholesJewish Federation of Sacramento CEO Willie Recht
President Deborah GonzalezJewish Community Relations Council Chair Bruce Pomer
Benito Juarez Association of North Sacramento
Founder Ramona LandarosMi Familia Vota
Calif. State Director Samuel MolinaLa Raza Lawyers Foundation President Michael Terhorst
Sacramento Valley Family Federation for World Peace
Pastor Charles de WattevilleLeonard M. Friedman Bar Association
President Misha IgraNorth State Relief
Secretary Joshua CookInterfaith Explorers
President Rachel Lyman and Reverend Dave LymanYeshua Helping Hands, Inc.
Pastor Elizabeth MassWestminster Presbyterian Church of Sacramento
Pastor Wes NordmanKutchi Cultural Association
Akram Keval and Aslam AhmePeaceful protest is a time-honored tradition in our country that is protected by the First Amendment. The peaceful protests in Sacramento, Fresno, Bakersfield, and around our country are addressing real and legitimate concerns about what happened to Mr. Floyd. Law enforcement supports the community’s right to peacefully protest and strives to protect this important right. But violence and destruction are not acceptable in our community nor in any other city in our country. It endangers our community, including those exercising their right to protest peacefully and those protecting that right.
“In this difficult time for our country, we stand together as one community to call for unity and peace, not division,” said U.S. Attorney Scott. “We stand together to call for justice, not violence and lawlessness. We call on our community to model peaceful protests like the one Chief Hahn and other community leaders joined in Sacramento on June 3.”
“Our mission is to protect the American people and uphold the Constitution,” said FBI Special Agent in Charge Ragan. “The FBI respects the First Amendment right to peacefully protest and be heard. Our investigative focus is on those who sow seeds of violence and destruction. These acts interfere with the rights of protestors and harm the community.”
On June 1, U.S. Attorney Scott convened the U.S. Attorney’s Hate Crimes Task Force, including community leaders, the FBI, and local law enforcement, to hear the concerns of community leaders and to identify positive steps to take going forward. The U.S. Attorney’s Office, FBI, Sacramento County District Attorney’s Office, Sacramento County Sheriff’s Department, Sacramento Police Department, and other federal, state, and local law enforcement are committed to safeguarding the constitutionally protected right to peaceful protest and continuing to work together with our community leaders to promote justice, unity, and peace for all.
Chinese Manufacturer Charged with Exporting Misbranded and Defective Masks Falsely Purporting to be N95 RespiratorsRead the Press Release
NEWARK, N.J. – A Chinese manufacturer was charged today with producing and exporting to the United States in the midst of the COVID-19 pandemic nearly half a million misbranded and defective masks that falsely purported to be N95 respirators, U.S. Attorneys Craig Carpenito, District of New Jersey, and Richard P. Donoghue, Eastern District of New York, announced.
King Year Packaging and Printing Co. Ltd. (King Year) is charged by complaint with three counts of violating the Federal Food, Drug and Cosmetic Act (FDCA) for causing misbranded and substandard respirators that falsely purported to meet the N95 standard to be imported into the United States. The complaint also charges the defendant with one felony count of making a false statement by filing misleading registration documents with the U.S. Food and Drug Administration (FDA). The criminal complaint was filed in Brooklyn federal court.
“These charges demonstrate the continued commitment of the Department of Justice and our partners to aggressively pursue those who sell misbranded and defective personal protective equipment, whether they are located here or abroad,” Carpenito said. “We will aggressively investigate and charge manufacturers that put our medical professionals and first responders at risk in fighting this crisis.”
“The charges alleged in this complaint show a blatant disregard for the safety of American citizens,” Acting FBI-Newark Special Agent in Charge Douglas Korneski said. “Had it not been for the actions of the investigative team, this defendant would have put first responders, hospital employees, and other front line workers directly in harm’s way with faulty equipment just to make a buck. The defendant tried to bypass the government's regulations by misbranding the quality of the equipment being peddled. The FBI remains vigilant in the pursuit of criminals trying to exploit the current crisis.”
Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by U.S. Attorney Carpenito, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs. The Secretary of Health and Human Services has issued a notice designating categories of health and medical supplies that must not be hoarded or sold for exorbitant prices.
“U.S. Customs and Border Protection is proud of the expertise we bring to support and assist investigations by our law enforcement partners,” Troy Miller, Director, CBP New York Field Office, said. “It is through interagency partnerships and collaborative efforts, like the one leading to today’s charges that we send a message to foreign manufacturers on the importance of understanding and complying with US health, safety, and import laws.”
“The FDA is actively monitoring the marketplace for fraudulent products related to our battle against COVID-19. The agency will continue to collaborate with our fellow law enforcement partners to bring to justice those who place profits above the public health during this pandemic,” Jeffrey J. Ebersole, Special Agent in Charge, FDA Office of Criminal Investigations’ New York Field Office, said. “Today’s announcement should serve as a reminder that we will take appropriate action against those who jeopardize the health of Americans while taking advantage of a crisis.”
According to the complaint:
From April 6, 2020, to April 21, 2020, King Year manufactured 495,200 defective and misbranded masks that claimed to be N95 respirators, and caused those defective products to be imported into the United States. King Year stamped the NIOSH and FDA logos on the packaging for its respirators, appealing directly to healthcare personnel, when in fact, its respirators were not NIOSH-approved, nor were they approved, cleared, or otherwise authorized by the FDA. King Year’s respirators also were embroidered with “N95,” even though they fell well below the minimum 95 percent filtration standard.
King Year’s misbranded and defective products had the potential to deceive U.S. consumers, including healthcare workers and first responders, into believing they were purchasing authentic N95 respirators, and put them at risk. To cover up the poor quality of its respirators, King Year disseminated false documents attesting to their authenticity and filed a fraudulent registration statement with the FDA.
Each charge carries a maximum fine of $500,000 or the greater of twice the gross gain or twice the gross loss from the offense.
Please report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or e-mail: [email protected].
The government is represented by Assistant United States Attorney Jonathan Fayer of the Economic Crimes Unit for the U.S. Attorney’s Office for the District of New Jersey.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Champaign, Ill., Man Arrested in Mississippi, Charged in Federal Complaint with Using Internet to Incite Rioting in ChampaignRead the Press Release
URBANA, Ill.–U.S. Marshals Service deputies arrested a Champaign, Ill., man, Shamar N. Betts, 19, early this morning in Tchula, Miss., on a state burglary warrant issued by Champaign county. Betts has also been charged in a federal criminal complaint with using the internet to incite rioting in Champaign, Ill., on May 31 to June 1, 2020. Betts will make his initial appearance in federal court in the Southern District of Mississippi, in Jackson, on a date to be determined by the court.
“The defendant, as alleged, used the peaceful demonstrations over the death of George Floyd, as cover to plan and carry out criminal activity,” said U.S. Attorney John Milhiser. “He incited riots and damage to businesses, and as a result of good police work by the Champaign Police Department and coordination with the FBI, he will be held accountable for his actions.”
“Champaign Police is committed to supporting and protecting lawful and peaceful protests, but rioting, looting and criminal activity that puts residents, visitors and businesses at risk will not be tolerated,” said Champaign Police Chief Anthony Cobb. “On behalf of the entire Champaign Police Department, I’d like to thank all of the law enforcement agencies who have supported us, both during the rioting and with the investigation that followed, so those responsible may be brought to justice.”
“As afforded under the 1st Amendment of the Constitution it is the right of all Americans to gather and peacefully protest. However, when any individual commits acts of violence in our communities under the guise of a protest, that type of activity is not a protected expression,” said Sean M. Cox, FBI Special Agent in Charge, Springfield Division. “The FBI is committed to working with our law enforcement partners to ensure those rights and our communities are protected. I want to commend and thank the Champaign Police Department and the U.S. Attorney’s Office, with whom we have worked in this instance, to hold this individual accountable for his alleged actions.”
According to the affidavit filed in support of the complaint, on May 31, 2020, Champaign police officers observed a Facebook post made by Shamar Betts at 10:31 a.m. The post included the statement, “We gotta put Champaign/Urbana on the map – expletive – gone hear and fear us too. Slide let’s get busy Justice for George – expletive.” The post was accompanied by a flyer of a stock image of a burning vehicle overlaid with a date and time, “Riot @ MarketPlace Mall” 3:00 p.m., and listed items to bring, including “friends, family, posters, bricks, bookbags, etc.” The flyer also said “After the mall we hitting the whole PROSPECT & NEIL.”
Champaign Police Department officers responded to the area at approximately 2:36 p.m., when a group of approximately 50 to 75 people were reported to be gathering at the mall. The group continued to grow in size, and at approximately 3:12 p.m., the group began breaking out windows at businesses located in the mall and looting merchandise from within.
The indictment alleges that during this time period, Facebook user Shamar Betts posted a Facebook Live video in which he repeatedly states, “Look what a … just started…” and “We out here…”
Additional law enforcement resources were deployed to the Market Place Mall to respond to the riot and attempt to control the group, which continued to grow in size and began vandalizing and / or looting other businesses in the area including Gordman’s, Kohls and TJ Maxx. The group then moved to the shopping portion of N. Prospect Ave., and continued vandalizing and / or looting numerous stores including Meijer (grocery store), Best Buy, Shoe Carnival and Walmart. This activity continued throughout the night and into the early morning hours of June 1, 2020. By the end of the night, approximately 50 businesses in the area had been vandalized and / or looted.
According to the complaint affidavit, Champaign Police Department investigators subsequently identified Betts as the same individual who allegedly made the Facebook posts and appeared in video footage of the riot activity that was recorded live and also was available later online.
The Champaign Police Department and the Federal Bureau of Investigation, Springfield Field Office, are conducting the investigation in coordination with the Champaign County State’s Attorney’s Office. Supervisory Assistant U.S. Attorney Eugene L. Miller is representing the government in the prosecution.
If convicted for the offense of inciting a riot, the statutory penalty is up to five years in prison, a fine of up to $250,000, and three years of supervised release following imprisonment.
Members of the public are reminded that a complaint is merely an accusation; the defendant is presumed innocent unless proven guilty.
Centralia Man Who Threatened to Shoot Police Charged with Unlawful Gun PossessionRead the Press Release
A Centralia man who allegedly threatened to shoot local police officers is behind bars this evening. Lashawn L. Wilks, 31, has been charged by federal complaint with unlawful possession of a firearm by a prohibited person. United States Magistrate Judge Gilbert C. Sison issued the warrant for Wilks’s arrest immediately after the complaint was filed. Wilks is expected to make his initial appearance in federal court early next week.
According to the complaint, at 2:55 a.m. on May 23, Centralia police officers responded to complaints of loud noise at a house party on North Maple Street. When officers approached to address the noise and multiple cars blocking the road, Wilks reportedly stood in front of a crowd of roughly 70 people and threatened the officers with physical violence if they came onto his property without a warrant. Wilks allegedly told one of the officers, “You all come up on my property there is going to be a shooting. I know my rights. You can’t come anywhere on my property and do a damn thing, or I will shoot a cop’s [expletive] ass.” Wilks also allegedly told police that if they tried to arrest him, they would have to shoot him. Officers were reportedly able to maintain calm with the crowd and avoid a violent incident.
The complaint alleges that in the days following, law enforcement received information from numerous sources that Wilks had several guns in the house during the party and that he had said he was going to “kill a cop” and have a shootout with police if the officers attempted to break up the party.
On May 25, George Floyd died in Minneapolis, Minnesota, after a police officer knelt on his neck for almost nine minutes while Floyd lay handcuffed face down in the street. This incident has led to widespread public outrage and ongoing protests across America.
On May 26, Wilks allegedly posted on Facebook, “This is exactly why I told them bitches Friday night I’ma put a shotgun shell in they ass if they step on my property [without] a warrant or some form of probable cause....” Officers also allegedly observed other recent posts where
Wilks appeared to threaten violence to police.On June 2, law enforcement officers were advised that Wilks and others were discussing plans to organize a protest and then cause a riot in Centralia. Wilks reportedly discussed shooting police officers and the individuals allegedly created a list of specific officers they planned to shoot.
On June 4, law enforcement executed a federal search warrant at the residence on North Maple Street and found a 9mm pistol, a rifle, and a 12 gauge shotgun. According to the complaint, someone had attempted to obliterate the serial number on the shotgun, but it was still visible. The complaint alleges that Wilks and one other adult were present at the home during the execution of the search warrant. Wilks allegedly has a prior conviction for domestic battery in Marion County. Federal law prohibits a person who has been convicted in any court of a misdemeanor crime of domestic violence from knowingly possessing a firearm.
“The complaint underscores the complexities faced when responding to civil protests,” said
U.S. Attorney Steven D. Weinhoeft. “Most people gather at these events to exercise their constitutional rights and demand that America live up to its promise of equal protection under law.
Those voices need to be heard. At the same time, however, there are those who misuse the protests and deepen social divisions by engaging in acts of violence.” Weinhoeft continued, “The right of the people peaceably to assemble is one of America’s most sacred civil liberties, and it must be protected from those who would corrupt that freedom with violence.”If convicted of the charge, Wilks faces a maximum penalty of 10 years imprisonment, three years of supervised release, and a fine of up to $250,000.
A complaint is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the
Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.The ongoing investigation is being conducted by the FBI and the Centralia Police
Department, with assistance from the Wamac Police Department.Camden County Felon Admits Unlawfully Possessing Fraudulent Law Enforcement Credentials and FirearmRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man previously convicted of multiple felony offenses including robbery, burglary, and aggravated assault today admitted possessing fraudulent law enforcement credentials and unlawfully possessing a handgun, U.S. Attorney Craig Carpenito announced.
Warren E. Shelton, 54, of Chesilhurst, New Jersey, pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an indictment charging him with one count of unlawful possession of imitation badges, identification cards, and other insignia prescribed for use by officers of a department or agency of the United States and one count of possession of a firearm by a previously convicted felon.
According to documents filed in this case and statements made in court:
In 2018, Shelton designed, ordered, and acquired counterfeit Department of Homeland Security, Federal Protective Service (FPS) credentials, business identification cards, and a badge falsely representing that he was employed as a special agent with FPS and authorized to carry a weapon and enforce federal laws. During a court-authorized search of Shelton’s home in May 2019, investigators located and seized these counterfeit items and also located and seized a Colt .45 caliber handgun and ammunition along with two blank guns that resembled real firearms. As a previously convicted felon, Shelton is prohibited from possessing a firearm.
Shelton faces a maximum potential penalty of 10 years in prison and a fine of up to $250,000 for the firearm offense. He also faces up to six months in prison and a fine of up to $5,000 for possession of the counterfeit FPS credentials, business cards, and badge. Sentencing is scheduled for Oct. 7, 2020.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security (DHS), Office of Inspector General (OIG), under the direction of Assistant Special Agent in Charge Julio Santana; special agents of the Department of Homeland Security, Federal Protective Services (FPS), under the direction of Supervisory Special Agent Anthony Fuscellaro; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason Molina; special agents of the U.S. Secret Service, Philadelphia Field Office, under the direction of Special Agent in Charge James Henry; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Charlie J. Patterson with the investigation leading to today’s guilty plea. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan, the Camden County Police Department, under the direction of Chief Joseph Wysocki, and the Chesilhurst Police Department, under the direction of Chief Wendell Smith for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Daniel A. Friedman of the U.S. Attorney’s Office Criminal Division in Camden.
Bozeman bookkeeper admits embezzling more than $400,000 from businessesRead the Press Release
MISSOULA–A Bozeman woman who worked as a bookkeeper for several businesses admitted this week to embezzling about $433,018 from the companies, U.S. Attorney Kurt Alme said.
Anna Michelle Niles, 47, pleaded guilty on June 3 to wire fraud. Niles faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Niles was released pending further proceedings.
The prosecution said in court documents that from 2009 until 2018, Niles embezzled from Cresent Cross, LLP, Clair W. Daines, Inc., Genesis Partners, LLC, Bitterroot Turf Farm, Inc., and other related business entities while performing bookkeeping and accounting services. Niles defrauded the firms by diverting funds through checks, stealing cash, claiming leave she was not entitled to obtain, receiving unauthorized 401(k) loan payments and using business credit cards on personal expenses, none of which was authorized. The investigation found that Niles embezzled about $433,018 from the businesses. When interviewed by the FBI, Niles admitted to stealing from Cresent Cross, LLP, and writing checks from other businesses to cover up the fraud.
Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the FBI.
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Bend Man Pleads Guilty for Placing Hoax Bomb at Deschutes County CourthouseRead the Press Release
EUGENE, Ore.—A Bend, Oregon man pleaded guilty today for placing a hoax bomb at the Deschutes County Courthouse on July 29, 2019, announced U.S. Attorney Billy J. Williams.
Jonathan Tyler Allen, 24, pleaded guilty to conspiring to use a telephone to make a threat to destroy a building with an explosive.
According to court documents, on or about July 28 to July 29, 2019, Allen and co-conspirator Kellie Cameron, 31, also of Bend, conspired with one another to shut down the Deschutes County Courthouse in Bend by planting a fake bomb and calling in a bomb threat. Around the same time, Cameron constructed a fake bomb using batteries, wiring, a circuit board, and a fuel filter, among other materials.
On July 29, 2019, Allen and Cameron drove to the courthouse and placed the hoax device on a ramp near the building. At approximately 7:18am the same day, Cameron, who was with Allen, used a cell phone to call 911. He told the operator, “I just want to let you know that there are two bombs, one’s in the courthouse and good luck finding the other one.” Less than an hour later, with Allen again present, Cameron called 911 a second time to repeat his threat. Allen later threw one of the phones used into a canal to avoid being caught.
On August 7, 2019, Allen and Cameron were charged by criminal complaint with conspiring to make a threat regarding explosive materials and conveying false information and hoaxes.
Allen faces a maximum sentence of 10 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on September 6, 2020 before U.S. District Court Judge Michael J. McShane. The U.S. Attorney’s Office will recommend Allen be sentenced to 18 months in federal prison.
Cameron made his first appearance in federal court on August 21, 2019. He entered a not guilty plea and was detained pending trial. Judge McShane continued the detention order pending sentencing.
This case was investigated by the FBI, the Deschutes County Sheriff’s Office and the Bend Police Department and is being prosecuted by Nathan J. Lichvarcik, Assistant U.S. Attorney for the District of Oregon.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Bay Area Hospitality and Automotive Executive Charged with FraudRead the Press Release
SAN FRANCISCO – Geoffrey M. Palermo was charged in a criminal complaint with wire fraud and making false statements in a loan application in connection with multiple schemes to defraud spanning from 2013 to 2020, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and U.S. Small Business Administration (SBA) Office of the Inspector General (OIG) Western Region Special Agent in Charge Weston King.
“What is particularly galling about the conduct alleged in the complaint is that while Geoffrey Palermo was wrongfully receiving PPP funds, he was not paying required payroll taxes for his employees, making it difficult or impossible for his employees to obtain the benefits to which they were rightfully entitled,” said U.S. Attorney Anderson. “PPP funds are intended to protect the many, not to enrich the few. The fraud alleged in the indictment reversed Congressional intent by depriving employees and enriching Palermo.”
"The FBI, along with our federal partners, will actively pursue this type of criminal behavior—especially of those seeking to fraudulently profit from the current health crisis,” said FBI Special Agent in Charge Bennett. “This case exemplifies how collaboration with our federal partners is vital to these investigations.”
“Our office will aggressively investigate any false statements made to gain access to SBA’s programs,” said SBA OIG Special Agent in Charge King. “OIG and its law enforcement partners are poised to root out fraud in SBA’s programs and bring wrongdoers to justice.”
According to the complaint, Palermo, 56, of Novato, Calif., is alleged to have orchestrated multiple schemes to defraud his victims. While working as the manager of the San Francisco Hilton hotel between 2013 and 2016, Palermo allegedly embezzled large sums of money, including through capital improvement kickback schemes. One contractor frequently hired by Palermo for projects at the hotel is suspected of paying Palermo approximately $1.5 million in kickbacks between March 2013 and June 2016. Palermo allegedly ensured that the contractor’s inflated or fraudulent invoices were paid by Justice Investors, LP, the owner of the hotel. After depositing Justice Investor checks to his business banking account, the contractor transferred funds into an illegitimate living trust bank account and then wrote checks back to Palermo or entities associated with Palermo.
After leaving the Hilton in 2016, Palermo worked for GMP Cars, a set of collision and auto repair centers in the Bay Area that he owned and operated. The complaint alleges that Palermo used GMP Cars funds to pay for lavish expenditures, including a Ferrari racing car and personal travel. The complaint explains that Palermo’s reliance on the company’s funds to finance his personal expenditures left the company in financial distress.
Then, in 2019, Palermo applied to an SBA Preferred Lender for two loans to GMP Cars for a total of approximately $5 million. The SBA guaranteed 75% of the loans. According to the complaint, Palermo made several material omissions and false statements during the 2019 loan application process. For example, Palermo failed to disclose that in September 2019—during the loan application process—he had overdrawn his business bank accounts by more than $700,000. Palermo also misrepresented amounts he owed German Motors Corporation in connection with GMP Cars’ acquisition of a collision center in San Francisco, going so far as to submit an altered promissory note to the Preferred Lender.
Most recently, in April 2020, Palermo made false and misleading statements when he applied for and received approximately $1.7 million through the SBA’s Paycheck Protection Program (PPP). The PPP is a relief program offered through participating lenders to aid small businesses during the COVID-19 pandemic. In the PPP application, Palermo falsely certified that GMP Cars had employees for whom it paid salaries and payroll taxes. The criminal complaint includes an internal GMP Cars spreadsheet showing that Palermo had decided not to pay required payroll taxes since at least mid-2019. According to the complaint, laid-off GMP Cars employees have had difficulty in recent months collecting their full unemployment benefits due to GMP Cars’ failure to pay payroll taxes and accurately report employee wages to California’s Employment Development Department (EDD).
In sum, the complaint alleges that the investigation is ongoing and that, to date, the evidence has established that since 2013 Palermo fraudulently obtained at least $8 million through his illegal conduct.
Palermo is charged with honest services wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346; wire fraud, in violation of 18 U.S.C. § 1343; and making a false statement in a loan application to an FDIC-insured lender, in violation of 18 U.S.C. § 1014. The wire fraud charges each carry maximum statutory penalties of up to 20 years in prison and a $250,000 fine, while the false statement charge carries a maximum of 30 years in prison and a $1,000,000 fine. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Palermo is scheduled to make his initial appearance in federal court on June 10, 2020 before U.S. Magistrate Judge Laurel Beeler.
The case is being prosecuted by the Corporate Fraud Strike Force of the U.S. Attorney’s Office. The case is being investigated by the FBI and SBA OIG.
Arrest Made for the Arson of Fayetteville’s Historic Market HouseRead the Press Release
RALEIGH, N.C. – A Fayetteville man was arrested today for taking part in the arson of Fayetteville’s Market House after an otherwise peaceful demonstration over the death of George Floyd in Minneapolis, Minnesota, turned violent, Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina announced.
Charles Anthony Pittman, of Fayetteville was arrested by special agents of the ATF and is charged by complaint with one count of maliciously damaging property owned or possessed by an institution receiving federal financial assistance. Pittman will make his initial appearance June 8, 2020, by videoconference before U.S. Magistrate Judge Robert T. Numbers, II.
According to the complaint, on May 30, 2020, an otherwise peaceful protest in downtown Fayetteville turned violent when several individuals set fire to the Market House. A local television crew caught Pittman on camera showing a red gasoline container to the crowd below before he poured its contents throughout the floor of the second story. Pittman ran out of the Market House as the floor caught on fire with other individuals, including an employee, still inside. As a result of the fire, the Market House sustained charring and mass wood loss to the second story floor.
Earlier that same day, Pittman broadcasted a Facebook Live video while he drove around the Market House traffic circle. Pittman claimed to be scoping out the scene, as he discussed whether the Market House should come down. After noting the inaction of the peaceful protesters, saying they would just “barbeque and mildew,” Pittman promised the Facebook Live audience that he would be back. Pittman wore the same shirt in the Facebook Live video that he wore later at the Market House fire.
The count charged in the criminal complaint carries a statutory mandatory minimum term of imprisonment of seven (7) years, a maximum potential penalty of forty (40) years in prison, and a maximum fine of $250,000.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina credited the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Fayetteville Police Department (FPD) with the investigation leading to today’s arrest. Assistant U.S. Attorneys Chad Rhoades and J.D. Koesters of the U.S. Attorney’s Office’s Criminal Division are representing the government.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Arkansas Inmate Indicted for Threatening to Kidnap and Kill Federal JudgesRead the Press Release
LITTLE ROCK, Arkansas – A 36-year-old Arkansas Department of Corrections inmate has been indicted for federal violations in the Eastern District of Arkansas, announced Eastern District of Texas U.S. Attorney Stephen J. Cox today.
Jeffrey S. Williams was indicted by a federal grand jury in Little Rock, AR, on June 4, 2020 and charged with mailing threatening communications.
According to the indictment, in March 2018, Williams is alleged to have mailed a letter to the federal courthouse in Memphis, TN, in which he threatened a U.S. District Judge. Then in May 2018, February 2019, and March 2020, Williams is alleged to have mailed letters to the federal courthouse in Little Rock in which he threatened two U.S. District Judges and an Assistant U.S. Attorney. Each threatening letter was mailed in violation of the laws of the United States.
Williams is currently an inmate in the Arkansas Department of Corrections as a result of a robbery and theft conviction in the Pulaski County Circuit Court.
If convicted, Williams faces up to 40 years in federal prison.
This case is being investigated by the Little Rock office of the U.S. Postal Inspection Service and prosecuted by Eastern District of Texas Assistant U.S. Attorney Jonathan R. Hornok.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Androscoggin and York Counties Awarded Funds to Address COVID-19 PandemicRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that the Department of Justice’s Office of Justice Programs (OJP) has awarded $58,008 each to Androscoggin County and York County to address the public safety challenges posed by the outbreak of COVID-19.
OJP awarded the grants as part of $850 million available under the Coronavirus Emergency Supplemental Funding program, authorized by the stimulus legislation President Trump signed in March. This program allows eligible state, local and tribal governments to apply immediately for these critical funds. Since the program’s launch in early April, OJP has awarded over $753 million to 1,367 state, local and tribal agencies and organizations. Fifteen Maine jurisdictions have received a total of $4.2 million.
“Androscoggin and York counties are among the areas in Maine most deeply affected by the coronavirus pandemic,” said U.S. Attorney Frank. “I hope the funds the Department of Justice is able to provide through these grants assist the dedicated public safety professionals in those counties.”
The Coronavirus Aid, Relief and Economic Security, or CARES, Act gives jurisdictions considerable latitude in the use of funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment and distributing resources to hard-hit areas. Grant recipients may also use funds to help correctional facilities cover costs related to COVID-19, including, but not limited to, sanitation, contagion prevention and measures designed to address the related medical needs of inmates, detainees and correctional personnel.
OJP, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information is at www.ojp.gov.
Alaska Neurology Center LLC and Its Owner to Pay $2 Million to Settle False Claims Act Allegations Regarding Fraudulent Medical BillingRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Anchorage-based Alaska Neurology Center LLC and its owner, Franklin Ellenson, M.D., have agreed to pay $2 million to resolve False Claims Act allegations that the medical practice knowingly submitted false billing claims to federal healthcare programs. Contemporaneous with the civil settlement, Alaska Neurology Center LLC and Dr. Ellenson agreed to a three-year Integrity Agreement with the U.S. Department of Health and Human Services.
“Healthcare providers who submit false bills hurt honest providers and the nation’s taxpayers,” said U.S. Attorney Schroder. “I commend the collaborative efforts of our federal partners to use all available remedies, both civil and criminal, to address waste and abuse in the healthcare market. I am particularly pleased that the public healthcare programs will be made whole, which will help ensure their continued vitality for future generations.”
The settlement resolves allegations that, from March 2013 through June 2018, Alaska Neurology Center LLC engaged in multiple fraudulent billing schemes, including: (1) submitting claims with false dates of service in order to obtain reimbursement beyond program caps, (2) submitting claims for infusion services provided by an unqualified medical assistant, (3) submitting claims for physical therapy when the service provided was non-reimbursable massage therapy, (4) submitting claims using multiple, unbundled billing codes, rather than a single required billing code, to obtain overpayment for the service, (5) submitting claims with false names of performing and/or referring medical providers, and (6) re-submitting claims with false service or diagnosis information, and without consulting a medical provider, after an original claim was rejected.
The allegations stem from a lawsuit filed under the whistleblower, or qui tam, provision of the False Claims Act, which allows private parties to bring suit on behalf of the government and to share in any recovery. The whistleblower will receive approximately $380,000 of the settlement.
The government’s pursuit of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the U.S. Department of Health and Human Services at 1-800-HHS-TIPS (800-447-8477) or https://oig.hhs.gov/fraud/report-fraud.
The settlement was the result of an investigation conducted by the Civil Division of the U.S. Attorney’s Office for the District of Alaska, in conjunction with the U.S. Department of Health and Human Services Office of Inspector General. Investigative support was also provided by the Defense Health Agency, U.S. Office of Personnel Management, U.S. Department of Veterans Affairs, and the Federal Bureau of Investigation.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit is captioned United States of America ex rel. Thomas Fidler v. Alaska Neurology Clinic, LLC [sic], et al., No. 3:18-cv-00057-HRH (D. Alaska).
Additional Violations of the Clean Water Act Filed Against Former Greenfield Township Sewer Authority ManagerRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Bruce Evans, Sr., age 67, former Greenfield Township Sewer Authority Manager, Greenfield Township, Pennsylvania, was charged on May 28, 2020, in a thirty-six count superseding indictment by the federal grand jury with additional violations of the Clean Water Act.
According to United States Attorney David J. Freed, Evans, Sr. and his son, Bruce Evans, Jr., age 38, both of Greenfield Township, were previously charged in an initial indictment returned in January 2019. The superseding indictment alleges that at times material to the charges, Evans, Sr. was a Greenfield Township Supervisor, a Greenfield Township Sewer Authority Board Member, Manager of the Greenfield Township Sewer Authority, and the Township’s “roadmaster.” Evans, Jr. was an employee of both Greenfield Township and the Greenfield Township Sewer Authority. It is alleged that on various dates between April 2013 and December 2017, Evans, Sr. and Evans, Jr. failed to operate and manage the municipality’s waste water treatment plant in accordance with regulations and limitations specified in a permit issued by the Pennsylvania Department of Environmental Protection (PADEP) and the Environmental Protections Agency (EPA). The permit requires that the permittee at all times maintain in good working order, and properly operate and maintain all facilities and systems, which were installed and used by the permittee to achieve compliance with the terms and conditions of the permits. It is also alleged that as a result of such failures, pollutants were discharged in violation of the permit.
The superseding indictment charges Evans, Sr. with additional violations of the Clean Water Act specifically related to the Greenfield Township Sewer Authority’s pump station located at State Route 106. It is alleged that Evans, Sr., rather than the licensed operator hired by the Authority to operate the treatment plant, managed and operated the sewer lines and pump stations. It is alleged that Evans, Sr. was not certified by the PADEP to operate or manage the pump stations. The violations associated with the State Route 106 pump station involve multiple unlawful bypasses of sewage, sanitary sewage overflows, and Evans, Sr.’s failure to report the same to the PADEP. It is also alleged that Evans, Sr. failed to notify the PADEP of the actual amount of hauled-in waste dumped directly into the State Route 106 pump station by an outside hauler, all in violation of the PADEP permit issued to the Authority. The PADEP learned that the Greenfield Township Sewer Authority was accepting hauled-in waste when it received complaints about odors and sewage overflows at that location, and started to investigate.
The superseding indictment further alleges that Evans, Sr. engaged in a scheme to defraud the Greenfield Township Sewer Authority by fraudulently converting funds and property of the Sewer Authority for his own personal benefit and for the benefit of a family member, including unlawful payments for a personal cell phone and internet service, fueling of personal vehicles, educational expenses, and unlawful use of Greenfield Township Sewer Authority labor. Evans, Sr. is also charged with obstructing U.S. Mail correspondence.
“When citizens elect officials at any level, we put our trust in them to act on behalf of their constituents – not against their interests,” said U.S. Attorney Freed. “Theft, fraud, self-dealing and nepotism are not part of the job description. And what makes this case worse is the environmental damage inflicted on top of the other crimes. I commend and appreciate the hard work of our state and local partners in this case and look forward to presenting our case in court.”
“It's a problem when a municipal employee views their job as not just a paycheck, but a personal piggy bank,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “The fraud and serious environmental violations alleged here indicate both a disdain for the rule of law and a clear-cut case of greed. The FBI stands ready to investigate and hold accountable anyone engaged in such criminal activity.”
“Proper operation of sewage treatment plants is essential to protect human health and the environment”, said Special Agent in Charge Jennifer Lynn of the EPA Criminal Investigations Division in Pennsylvania. “The EPA holds those accountable for their conduct which puts our communities infrastructure at risk.”
The charges stem from an investigation jointly conducted by the Environmental Protection Agency, the Pennsylvania Department of Environmental Protection, and the Federal Bureau of Investigation. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the Clean Water Act violations are punishable by up to 3 years’ imprisonment and a sliding scale for fines of $5,000 to $25,000 per violation, per day. The maximum penalty under the Wire Fraud statute is 20 years’ imprisonment and a $250,000 fine. The maximum penalty under the Obstruction of Correspondence statute is 5 years’ imprisonment and a $250,000 fine. Each crime also carries a term of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Nancy D. Freudenthal sentenced MEGA LESTARI SETIYANINGSIH (a.k.a. Mega Lestari Black, Mega L. Schlautmann, Candy), 33, of Gillette, Wyoming on June 1, 2020 for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Setiyaningsih was arrested in Gillette, Wyoming. She received one hundred eighty 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 $200.00 special assessment. The Wyoming Division of Criminal Investigation and the Campbell County Sheriff’s Office investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced BRIAN LEE EDWARDS, 50, of Sheridan, Wyoming on June 2, 2020 for failure to register as a sex offender. Edwards was arrested in Sheridan, Wyoming. He received twelve months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $100.00 special assessment. The Sheridan County Sheriff’s Office and the United States Marshals Service investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced RIGOBERTO VENTURA-LEMUS (a.k.a. Victor Angel Demayuga-Luna), 33, of Copala, Guerrero, Mexico on June 3, 2020 for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine and heroin and aiding and abetting. Ventura-Lemus was arrested in Cheyenne, Wyoming. He received one hundred twenty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay community restitution in the amount of $400.00 and a $200.00 special assessment. The Wyoming Highway Patrol and the U.S. Drug Enforcement Administration investigated this case.
4 June 2020
Winnebago Man Charged with ManslaughterRead the Press Release
United States Attorney Joe Kelly announced the unsealing of a criminal complaint charging Jonathan Daniel Rooney, age 25, of Winnebago, Nebraska with Manslaughter occurring in Indian Country for the death of Kozee Decorah. Rooney’s arrest occurred on June 1, 2020. The maximum punishment for the offense is 15 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Rooney appeared before United States Magistrate Judge Susan M. Bazis on June 3, 2020. A preliminary hearing and a detention hearing will be held at a date to be determined. As this matter concerns an ongoing investigation, the United States Attorney’s Office is unable to provide additional comment at this time.
This case was investigated by the Winnebago Police Department, the Nebraska State Fire Marshal, and the Federal Bureau of Investigation.
A complaint is a formal accusation of conduct, not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Welcomes HIDTA Designation for Eau Claire CountyRead the Press Release
MADISON, WIS. – Scott. C. Blader, United States Attorney for the Western District of Wisconsin, announced today that Eau Claire County has been designated as a High Intensity Drug Trafficking Area (HIDTA) by the White House’s Office of National Drug Control Policy. The designation means Eau Claire County will receive more resources to coordinate federal, state, and local governments’ efforts to fight drug trafficking and abuse.
“This designation will result in the expansion of law enforcement efforts to combat deadly drugs such as methamphetamine and heroin in northwest Wisconsin by providing critical federal support and funding to state and local agencies,” said U.S. Attorney Blader. “These additional resources will be used to disrupt the flow of drugs in northern Wisconsin and hold distribution networks accountable for the deaths and addictions they cause.”
“The Drug Enforcement Administration has been a long time partner with law enforcement agencies in Eau Claire County to fight the scourge of drug trafficking and the violence associated with it. This HIDTA designation will provide much needed support in our efforts to keep the communities in and around Eau Claire County safe from violent drug trafficking organizations,” said DEA Milwaukee District Office Assistant Special Agent in Charge Paul E. Maxwell, Jr.
To secure this designation, the U.S. Attorney’s Office partnered with the Eau Claire County Sheriff’s Department, the West Central Drug Task Force, the St. Croix Valley Drug Task Force, the Eau Claire County District Attorney’s Office and the Drug Enforcement Administration. In addition, all these agencies will continue to partner with the Eau Claire County Alliance for Drug Endangered Children to respond to children who are endangered by caregivers who use, manufacture, or distribute drugs.
Created by Congress in 1988, the High Intensity Drug Trafficking Areas (HIDTA) Program coordinates and assists federal, state, local, and tribal law enforcement agencies to address regional drug threats with the purpose of reducing drug trafficking and drug production in the United States. The HIDTA program oversees regional HIDTAs in all 50 states, Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.
U.S. Attorney Keefe and FBI Warn That Those Inciting Violence and Crime Will Face Federal ChargesRead the Press Release
TALLAHASSEE, FLORIDA – Attorney General William P. Barr has directed federal law enforcement actions aimed at apprehending and charging violent criminal agitators who have taken over peaceful protests and are engaging in violations of federal law. While to date, communities within the
Northern District of Florida have not encountered the level of unrest seen in other parts of the state and nation, United States Attorney Lawrence Keefe and the Federal Bureau of Investigation
(FBI) are employing the FBI’s Joint Terrorism Task Force (JTTF) to identify any criminal organizers and instigators, coordinate federal resources with state and local partners, and seek federal prosecutions.“Citizens across the Northern District of Florida are exercising their right to protest guaranteed by the Constitution, and we will do everything possible to ensure that they are allowed to do so in a safe, secure environment,” U.S. Attorney Keefe said. “However, we cannot condone – and will not tolerate – agitators who attempt to hijack peaceful rallies in order to incite violence and criminal behavior. Working with our federal, state, and local partners, we will stop them, arrest them, and prosecute them whenever and wherever necessary.”
“A duty and privilege of the FBI is to protect citizens as they exercise their First Amendment rights," said Rachel Rojas, Special Agent in Charge of the FBI Jacksonville Division. "While we fully support the rights of peaceful protestors, when people abuse those rights to invoke violence, federal law will be enforced. We will continue to work with our local, state, and federal partners to apprehend and charge violent instigators, and coordinate with the U.S. Attorney’s offices to address any federal violations. We advise individuals taking part in protest activities to remain aware of their immediate surroundings and to report any suspicious activity to law enforcement.”
Attorney General Barr’s May 31 statement is available here: https://www.justice.gov/opa/pr/attorney-general-william-p-barrs-statement-riots-and-domestic-terrorism.
For more information on the FBI Joint Terrorist Task Force, go to https://www.fbi.gov/investigate/terrorism/joint-terrorism-task-forces.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern
District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.U.S. Attorney Brady Announces HIDTA Designation for Westmoreland CountyRead the Press Release
PITTSBURGH – United States Attorney Scott W. Brady announced today that Westmoreland County has been officially designated as a High Intensity Drug Trafficking Area (HIDTA) by the White House’s Office of National Drug Control Policy. Westmoreland joins three other southwestern Pennsylvania counties - Allegheny, Beaver and Washington - in receiving dedicated federal resources to coordinate federal, state and local governments to fight drug trafficking and abuse.
"Law enforcement across western Pennsylvania will be strengthened through this HIDTA designation," said U.S. Attorney Brady. "Westmoreland County will be able now to access critical funding to decrease the availability of illicit drugs, to investigate and prosecute the leaders of drug trafficking organizations, and to significantly reduce the violence that results from illegal drug trafficking."
According to U.S. Attorney Brady, drug trafficking organizations from multiple cities from New York to Chicago utilize Westmoreland County and its throughways to facilitate illegal drug trafficking. Those throughways include Interstate 76 (the Pennsylvania Turnpike) and Interstate 70, as well as U.S. Routes 22, 119, 66, and 30, along with numerous state routes which serve as connectors between Westmoreland County and other local and out of state source areas for heroin, fentanyl, cocaine and methamphetamine.
"With the presence of major highways in Westmoreland County, drug traffickers from outside our county have easy access to our communities," said Westmoreland County District Attorney John Peck. "HIDTA funds will be a great resource to fight the ever-challenging efforts of drug traffickers."
"Too many families in southwestern Pennsylvania have been tragically affected by the opioid epidemic," said Congressman Guy Reschenthaler (PA-14). "Our law enforcement officers are on the front lines battling this epidemic every day, working to keep our communities safe. I was proud to support Westmoreland’s HIDTA designation request, and am grateful to U.S. Attorney Scott Brady and Westmoreland County District Attorney John Peck, as well as the Trump Administration, for ensuring our region has the resources necessary to combat this crisis and save lives."
"The Pennsylvania State Police is a strong partner with all of the law enforcement agencies who are working daily to combat drug trafficking, and this HIDTA designation will help expand our efforts," added Major Stephen Eberle of the Pennsylvania State Police.
"The designation of Westmoreland County as a HIDTA county will bring federal funding, increased sharing of intelligence, analytical support, enhanced training opportunities, and a cooperative effort between the local, state and federal partners," said Derek M. Siegle, Executive Director of the Ohio HIDTA.
U.S. Attorney Brady thanked Pennsylvania’s United States Senators Pat Toomey and Robert Casey, Governor Tom Wolf, Rep. Guy Reschenthaler, Westmoreland County District Attorney John Peck, the Department of Homeland Security/Homeland Security Investigations, the Pennsylvania State Police, the Drug Enforcement Administration, the US Postal Inspection Service, the Federal Bureau of Investigation, as well as local law enforcement who supported and worked in concert to receive this designation.
Westmoreland County is the second largest county in the Western District of Pennsylvania, covering over 1,027 square miles with a population of 350,611. The County joins the program’s Ohio HIDTA region, which includes Ohio, Western Pennsylvania and Northern Kentucky.
Two Wisconsin Men Charged with Illegally Possessing Firearm During Madison ProtestsRead the Press Release
MADISON, WIS. – Two men have been charged with federal firearms crimes in complaints filed today in U.S. District Court for the Western District of Wisconsin. According to United States Attorney Scott C. Blader, the two defendants have been charged with being a felon in possession of a firearm after allegedly being found with a firearm during Madison protests. The cases are not related.
“It is important to speak plainly and give fair warning to those who might consider using legitimate protesters as ‘cover’ for criminal conduct. Every American has a right for their voice to be heard, especially during these challenging times, and my office defends the right of individuals to speak, assemble, and protest,” said U.S. Attorney Blader. “However, public safety is a necessary prerequisite for the free exercise of First Amendment rights. My office will prosecute those who exploit legitimate protests to commit federal crimes.”
Kyle C. Olson, also known as Kyle Charles Quade, 28, Edgerton, Wisconsin, is charged with being a felon in possession of a .45 caliber handgun. The affidavit accompanying the complaint alleges that at approximately 11:00 p.m. on Sunday, May 31, 2020, police officers stationed in the area of 220 West Gilman Street to respond to the civil unrest occurring in downtown Madison observed an individual later identified as Olson remove a handgun from the trunk of his car and place the handgun in his back waistband.
Anthony R. Krohn, 36, Madison, is charged with being a felon in possession of a .22 caliber handgun. The affidavit accompanying this complaint alleges that at approximately 2:12 a.m. on Monday, June 1, 2020, police officers were dispatched to the area of South Fairchild and West Doty Streets in Madison in reference to a person with a gunshot wound, and found a person later identified as Krohn bleeding from a wound in his leg with a gun on the ground next to him. The affidavit further alleges that Krohn told a law enforcement officer that he had shot himself.
Olson and Krohn are currently in custody at the Dane County Jail. Their initial appearances in federal court have not been scheduled and will take place by videoconference.
If convicted, Olson and Krohn each face a maximum penalty of 10 years in federal prison. The charges against them are the result of investigations by the Madison Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey C. Stephan is handling the prosecution of these cases.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Three Men Face Federal Arson Charges for Setting Fire to Police Patrol Vehicle During Protest in Downtown Las VegasRead the Press Release
LAS VEGAS, Nev. — Three men were arrested Wednesday and charged today for conspiring to and setting fire to a Las Vegas Metropolitan Police Department patrol vehicle during a protest in Las Vegas, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Special Agent in Charge Aaron C. Rouse of the Federal Bureau of Investigation (FBI).
Tyree Walker (23), Devarian Haynes (23), and Ricardo Densmore (24), all of Las Vegas, were each charged in a federal criminal complaint with one count of conspiracy to commit arson and one count of arson. The defendants are scheduled to make their initial appearance before U.S. Magistrate Judge Brenda Weksler on June 5, 2020.
“Agitators who are using the camouflage of lawful protests to commit violence against law enforcement will be prosecuted,” said U.S. Attorney Trutanich. “Violence places protesters, first responders, and bystanders in danger, and steals focus away from the messages that peaceful protesters are striving to deliver.”
“Any individual that is engaging in an act of arson is engaging in extremely dangerous behavior,” said Special Agent in Charge Gorman for ATF. “In addition to the destruction of property, acts of arson put the lives of the public at great risk. ATF takes these acts of violence very seriously and is working alongside our local, state, and federal law enforcement partners to protect the public and uphold the rule of law. We will continue to work diligently to ensure the safety of the community and prevent incidents like this from occurring.”
The criminal complaint alleges that, shortly after midnight on May 31, 2020, Las Vegas Fire & Rescue responded to a fire involving a Las Vegas Metropolitan Police Department (LVMPD) patrol vehicle. The patrol vehicle was parked near the intersection of South Ninth St. and East Carson Avenue, during protests relating to Mr. Floyd’s death. A social media video captured the event, leading LVMPD investigators to Walker, Haynes, and Densmore. The video, which was filmed by Densmore, showed Haynes pouring a flammable liquid from a gas can through a broken or missing front passenger side window of the patrol vehicle. Walker lit an object to ignite the liquid, and then Haynes dropped the gas can into the patrol vehicle. All three defendants fled when they heard sirens from an approaching LVMPD vehicle.
If convicted, Walker, Haynes, and Densmore each face: (a) a mandatory minimum sentence of five years; (b) a mandatory maximum sentence of 20 years in prison; and (c) up to a $250,000 fine. The minimum and maximum statutory sentences are prescribed by Congress, and are provided here for informational purposes only. If convicted of any offense, the sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. Every defendant is presumed innocent unless and until proven guilty in a court of law.
This case was the product of an investigation by the ATF, the Las Vegas Metropolitan Police Department, Las Vegas Fire & Rescue, and the FBI-led Criminal Apprehension Team in conjunction with the Joint Terrorism Task Force. Assistant U.S. Attorneys Lisa Cartier-Giroux and Stephanie Ihler are prosecuting the case.
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Three Men Charged in Separate and Unrelated Bank Robbery CasesRead the Press Release
OKLAHOMA CITY – Three men have been charged in separate and unrelated bank robbery cases, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.
On June 3, 2020, a federal grand jury indicted Keith Lamar Carter, 37, of Oklahoma City, for bank robbery. The indictment alleges that on December 23, 2019, Carter entered Credit Union One of Oklahoma, located at 3300 N. Lincoln Boulevard, Oklahoma City, Oklahoma, and handed a demand note to a teller, who provided money to Carter. He then fled on a BMX style bicycle. After bank surveillance photos were published in the media and additional investigation was conducted, law enforcement received information that pointed to Carter. On February 13, 2020, he was charged by criminal complaint and arrested on February 25, 2020. If convicted, Carter faces a maximum penalty of twenty years in prison, three years of supervised release, a fine of up to $250,000, and restitution. Assistant U.S. Attorneys Ashley Altshuler and Stanley West are prosecuting the case.
On June 3, 2020, a federal grand jury indicted Brandon Scott Newberry, 39, of Ada, of bank robbery. The indictment alleges that on May 12, 2020, Newberry entered City National Bank and Trust, located at 9011 NE 23rd Street, Oklahoma City, Oklahoma and that he handed a demand note to a teller, who provided money to Newberry. On May 15, 2020, law enforcement arrested Newberry based on an arrest warrant that arose out of a criminal complaint. If convicted, Newberry faces a maximum penalty of twenty years in prison, three years of supervised release, a fine of up to $250,000, and restitution. Assistant U.S. Attorney Stanley West is prosecuting this case.
On June 3, 2020, a federal grand jury indicted John Scott Brooks, 36, of Lawton, for bank robbery. The indictment alleges that on March 23, 2020, Brooks robbed the Southwest Oklahoma Federal Credit Union (SOFCU), located at 6714 West Gore Boulevard, Lawton, Oklahoma, and that he used a fake bomb during the robbery. Law enforcement had previously arrested Brooks on April 2, 2020 for the robbery. If convicted on Count 1, Brooks faces a maximum penalty of twenty years in prison, three years of supervised release, a fine of up to $250,000, and restitution. In Count 2 of the indictment, Brooks is charged with conveying a bomb threat during the robbery. If convicted on Count 2, Brooks faces a maximum penalty of up to a 10-year sentence, three years of supervised release, and a fine of up to $250,000. Assistant U.S. Attorney Edward J. Kumiega is prosecuting the case.
These cases are the result of investigations by the Federal Bureau of Investigation Oklahoma City Field Office, the Lawton Police Department, and the Oklahoma City Police Department.
Reference is made to court filings for further information. An indictment is only a charge and is not evidence of guilt. Each defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt. To download a photo of U.S. Attorney Downing, click here.
The Department of Justice Files Sexual Harassment Lawsuit Against Owners of Rental Properties in Muskegon, MichiganRead the Press Release
The Department of Justice announced today that it has filed a lawsuit alleging that the owners of rental properties in Muskegon, Michigan, violated the Fair Housing Act by subjecting female tenants to sexual harassment and retaliation.
The lawsuit, filed in the U.S. District Court for the Western District of Michigan, alleges that Darrell Jones sexually harassed female tenants of rental properties that he owned from at least 2008 to 2018. According to the complaint, Jones made repeated and unwelcome sexual comments, touched female tenants’ bodies without their consent, requested sexual favors, offered reduced or free rent in exchange for sex, and retaliated against female tenants who refused his sexual advances. The lawsuit also names as defendants Fatima Jones and Jones Investing LLC, co-owners of several of the rental properties where the harassment occurred.
“No woman should be forced to suffer sexual harassment to keep her home,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department will vigorously pursue those who engage in such reprehensible and illegal conduct.”
“My office looks forward to vindicating the rights of these tenants,” said U.S. Attorney Andrew Birge for the Western District of Michigan. “I would like all tenants in West Michigan to know that we are here to help if they experience sexual harassment by a landlord or property manager. No one should have to choose between housing and freedom from sexual harassment.”
Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties to vindicate the public interest, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The Attorney General recently reaffirmed this commitment by directing the Justice Department to deploy all available enforcement tools against anyone who tries to capitalize on the COVID-19 crisis by sexually harassing people in need of housing. The goal of the initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. As part of the initiative, the Justice Department developed a public service announcement and formed a joint task force with HUD to combat sexual harassment in housing. Since launching the Initiative in October 2017, the Department of Justice has filed 15 lawsuits alleging a pattern or practice of sexual harassment in housing.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by the Joneses or Jones Investing, LLC, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select option number 91 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at [email protected]
The Department of Justice Files Sexual Harassment Lawsuit Against Owners of Rental Properties in Muskegon, MichiganRead the Press Release
GRAND RAPIDS, MICHIGAN – The Department of Justice announced today that it has filed a lawsuit alleging that the owners of rental properties in Muskegon, Michigan, violated the Fair Housing Act by subjecting female tenants to sexual harassment and retaliation.
The lawsuit, filed in the U.S. District Court for the Western District of Michigan, alleges that Darrell Jones sexually harassed female tenants of rental properties that he owned from at least 2008 to 2018. According to the complaint, Jones made repeated and unwelcome sexual comments, touched female tenants’ bodies without their consent, requested sexual favors, offered reduced or free rent in exchange for sex, and retaliated against female tenants who refused his sexual advances. The lawsuit also names as defendants Fatima Jones and Jones Investing LLC, co-owners of several of the rental properties where the harassment occurred.
"No woman should be forced to suffer sexual harassment to keep her home," said Assistant Attorney General Eric Dreiband of the Civil Rights Division. "The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department will vigorously pursue those who engage in such reprehensible and illegal conduct."
"My office looks forward to vindicating the rights of these tenants," said U.S. Attorney Andrew Birge. "I would like all tenants in West Michigan to know that we are here to help if they experience sexual harassment by a landlord or property manager. No one should have to choose between housing and freedom from sexual harassment."
Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties to vindicate the public interest, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The Attorney General recently reaffirmed this commitment by directing the Justice Department to deploy all available enforcement tools against anyone who tries to capitalize on the COVID-19 crisis by sexually harassing people in need of housing. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. As part of the Initiative, the Justice Department developed a public service announcement and formed a joint Task Force with HUD to combat sexual harassment in housing. Since launching the Initiative in October 2017, the
Department of Justice has filed 15 lawsuits alleging a pattern or practice of sexual harassment in housing.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by the Joneses or Jones Investing, LLC, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select option number 91 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at [email protected].
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Statement from United States Attorney Russell ColemanRead the Press Release
LOUISVILLE, Ky. – These last few months have been tough for Kentuckians, particularly those who call Louisville home. From fears of the virus’ impact on loved ones, to lost jobs and shuttered businesses, to nauseating images of death in Minneapolis, to recent confusing loss of life here at home, the term “Commonwealth” seems anything but to many of our neighbors.
In recent days, many in Louisville have gathered to voice their anger, confusion, and frustration; protest activity so sacred as to be present in our country’s founding document. Those cries of protest continue and must be protected by those of us who have taken an oath to do so. Sadly, there are individuals who are undermining the efforts of these peaceful protestors and placing citizens and police at risk, who are inciting violence and destroying the very physical infrastructure of our city.
Over the last six nights in Louisville two groups have emerged: those forcefully and peacefully demanding that their voices be heard, and simply put, criminals. These criminals have been using the cover of the protests to burglarize drug stores for their controlled substances and gun shops seeking firearms, loot almost half a dozen ATMs, carjack vehicles, and shoot at police. This is violence and mayhem, not constitutionally-protected protest.
Working with our state and local law enforcement partners, federal law enforcement here will be seeking out those that put peaceful protestors and Louisville itself in harm’s way. Looting pharmacies for drugs, breaking into businesses seeking guns, shooting at police, carrying a firearm as a convicted felon, or committing arson, have nothing to do with justice or honoring the lives of others. As Attorney General Barr stated earlier today, “When the rule of law breaks down, the promise of America does too.”
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Springfield Man Sentenced to 12 Years for Meth Trafficking, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man has been sentenced in federal court for methamphetamine trafficking and illegally possessing firearms.
Tyler J. Brown, 29, was sentenced by U.S. District Judge M. Douglas Harpool on Wednesday, June 3, to 12 years in federal prison without parole.
On Sept. 11, 2019, Brown pleaded guilty to possessing methamphetamine with the intent to distribute and to possessing firearms in furtherance of a drug-trafficking crime.
Brown was arrested on Dec. 25, 2017, when Springfield police officers found him passed out in the driver’s seat of a Pontiac Grand Am. The vehicle was parked, with the engine running, at the intersection of North Grant Avenue and West Calhoun Street. Officers found two firearms in the car with Brown.
A loaded Pioneer Arms 7.62mm semi-automatic pistol was sitting muzzle-end down, in the passenger floorboard, with the handle of the firearm leaning toward the driver’s seat. Brown’s right hand rested next to the firearm, with his last two fingers touching the end of the firearm. While removing the first firearm, an officer saw a loaded Smith and Wesson 9mm semi-automatic pistol resting near Brown’s right side.
Officers were able to wake Brown up and place him under arrest. Brown was in possession of $2,666 and had a plastic baggie in his pocket that contained 1.45 grams of methamphetamine. He was wearing body armor beneath his shirt. Officers searched the car and found a black backpack in the front passenger seat. Inside the backpack was a glass jar that contained 71.44 grams of methamphetamine, a distributive amount, and a black and silver box that contained 3.46 grams of methamphetamine.
This case was prosecuted by Assistant U.S. Attorneys Nhan D. Nguyen and Josephine L. Stockard. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Springfield, Mo., Police Department.
OCDETF
This case is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.Serial Bank Robber Sentenced to 11 Years in Federal PrisonRead the Press Release
PORTLAND, Ore.—A serial bank robber with three prior bank robbery convictions was sentenced today to federal prison after robbing three additional Pacific Northwest banks and making threats by mail.
Stanley Carl Green, 57, transient, and formerly a resident of Washington state, was sentenced to 140 months in federal prison and three years’ supervised release. United States District Court Judge Ann Aiken also ordered Green to pay $11,570 in restitution.
According to court documents, in December 2015, while on escape status from supervision, Green robbed a Federal Savings Bank in Olympia, Washington of $4,897. He was arrested for the robbery six months later and charged in Thurston County, Washington. Released on bond, Green again fled and a warrant was issued for his arrest.
In November 2017, Green mailed threatening letters to two people who had restraining orders against him.
In December 2017, Green robbed a Rogue Federal Credit Union in Port Orford, Oregon. With his face partially masked by a towel, Green brandished a box cutter and ordered the bank tellers to kneel on the floor. He fled with $3,833.
Later the same month, Green robbed a Columbia Bank in Waldport, Oregon. His face was again partially covered and he brandished and displayed to the tellers what appeared to be a handgun. Green fled with $2,840.
On January 17, 2018, investigators located and arrested Green at a campground in Curry County, Oregon. They seized $848 and BB ammunition. Green admitted to the three robberies and a fourth in Salem, Oregon. He told investigators that the gun used in the Waldport robbery was a BB gun he purchased at Walmart.
On November 27, 2018, Green pleaded guilty to one count of bank robbery and two counts of armed bank robbery. Prior to being sentenced today, Green pleaded guilty to one count of transmitting a communication containing a threat to injure.
This case was investigated by FBI, USMS, Port Orford Police Department, Bandon Police Department, Coos County Sheriff’s Office, Lincoln County Sheriff’s Office, Tumwater Police Department and the Lewis County Sheriff’s Office, and was prosecuted by Jeffrey Sweet, Assistant U.S. Attorney for the District of Oregon and the Lewis County Prosecuting Attorney’s Office, the Thurston County Prosecuting Attorney’s Office, the Lincoln County District Attorney’s Office and the Curry County District Attorney’s Office.
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.
Rochester Man Indicted on Fraud Charges for Allegedly Operating a Medical Equipment Reseller Business that Defrauded Victims of More Than $250,000Read the Press Release
SPRINGFIELD, Ill. – A federal grand jury has indicted a Rochester, Ill., man, Chase Brown, 20, of the 1000 block of Heathrow Lane, Rochester, Ill., on fraud charges for allegedly operating a medical equipment reseller business that defrauded businesses from various states of more than $250,000. Brown was previously arrested and charged in a criminal complaint filed in March 2020. Brown was arrested on March 10, 2020, in the Middle District of Florida and made his initial appearance in federal court in Tampa, Fla. Brown has been transferred to the Central District of Illinois and has been ordered to remain detained in the custody of the U.S. Marshals Service.
The indictment alleges Brown established a business known as Midwest Surgical, LLC, in May 2019, purportedly to engage in the purchase and resale of medical equipment. As part of the scheme, in December 2018, seven months after forming the business, Brown applied for an aviation credit card. In the application, the indictment alleges that Brown falsely stated that Midwest’s annual revenue was more than $18 million and that it employed 26 employees. After obtaining the credit card, Brown incurred more than $200,000 in charges for fuel, private charter flights and plane maintenance, including approximately $4,500 from an aviation company in Springfield, Ill.
Brown allegedly made repeated false and fraudulent promises and representations to various persons and businesses throughout the country that he would buy or sell medical equipment that he had no intention or ability to sell or purchase. After falsely representing that he would sell medical equipment, Brown used the buyers’ credit card information for personal purchases for himself and one or more of his friends but never provided the equipment to the buyer, Similarly, after falsely representing to a seller that he would purchase medical equipment, Brown provided false or fraudulent payment information, knowing that he had no intention or ability to legitimately fund the purchases.
As alleged in the indictment, Brown contacted and defrauded victim businesses in Pennsylvania, Illinois, Texas and Idaho, including in October 2019, when Brown entered into a consignment agreement with an Illinois hospital to liquidate its equipment. As part of the agreement, Brown was required to make two payments of $375,000 to the hospital. Although Brown received the equipment, the $375,000 check he provided bounced and he falsely represented that he submitted a separate $375,000 wire transfer that never occurred. Brown ultimately returned most of the equipment to the hospital but retained approximately $10,000 worth of equipment for which he made no payment.
The indictment alleges Brown used another victim’s credit card information to purchase a used Jeep Wrangler, a set of tires for the vehicle, to pay a bill at a Springfield sports bar, payment to a law firm, and the purchase of a second vehicle for a friend.
The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General and the Springfield Police Department conducted the investigation. Assistant U.S. Attorney Timothy A. Bass represents the government in the prosecution.
If convicted, the statutory penalty for each count of wire fraud (two counts) is up to 30 years in prison; for access device fraud, the penalty is up to 10 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Page Man Charged with Threatening to Burn Page Magistrate CourtRead the Press Release
PHOENIX, Ariz. – Loren Reed, 26, of Page, Arizona, was arrested on Tuesday, June 2, and charged in a complaint with a violation of Title 18, United States Code, Section 844(e) for using the internet and telephone to willfully threaten to unlawfully damage or destroy a building by fire. Reed appeared on the charges today before United States Magistrate Judge Camille Bibles of the District of Arizona.
According to the complaint:
On May 30, a concerned citizen called the Page Police Department and reported that Loren Reed had created a private Facebook chat group. In the chat, Reed was trying to convince people to join a meet up at the Page Courthouse and participate in a riot. Page Police Department officers then began monitoring the chat group in response to this report.
Between May 30 and June 2, Reed sent numerous messages in the chat group related to burning government buildings, including the Page Magistrate Courthouse and Page Police Department office. Reed suggested June 2 at 9:00pm as the date and time for carrying out the plan. Reed encouraged others in the chat group to bring gas and other flammables. He also discussed the use of Molotov cocktails.
Reed was arrested on June 2, at approximately 7:00 p.m. on the charge outlined in the complaint.
A conviction for using the internet and telephone to willfully threaten to unlawfully damage or destroy a building by fire carries a maximum penalty of ten years in prison, a $250,000 fine, or both.
A criminal complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The charges resulted from an investigation by the Page Police Department and the Federal Bureau of Investigation. The prosecution is being handled by Assistant U.S. Attorneys Todd Allison and David Pimsner, District of Arizona, Phoenix.
CASE NUMBER: 20-4089MJ
RELEASE NUMBER: 2020-55_Reed# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Natchez Man Sentenced to 21 Months in Federal Prison under Project EJECT for Possessing a Short-Barreled Machine GunRead the Press Release
Jackson, Miss. – Jamarhi Raheem Lucas, 23, of Natchez, was sentenced today by Senior U.S. District Judge David C. Bramlette, III to 21 months in federal prison, followed by three years of supervised release, for possessing a machine gun, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Lucas was also ordered to pay a $1,500 fine.
On September 22, 2018, Jamarhi Raheem Lucas, who was one of two men standing outside of a residence on Ouachita Street in Natchez, attempted to flee from law enforcement officers as they approached him. Officers detained him and while they were identifying him, they observed a short-barreled, fully automatic rifle, commonly-known as a machine gun, in a car that belonged to him. Officer seized the short-barreled machine gun.
On March 5, 2020, Jamarhi Raheem Lucas pleaded guilty to illegally possessing the machine gun.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorneys Bert Carraway and Glenda Haynes.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Michigan Real Estate Developer Indicted for Tax and Bank FraudRead the Press Release
A federal grand jury in Grand Rapids, Michigan, returned an indictment yesterday charging a Michigan businessman with tax evasion, filing false documents with the Internal Revenue Service (IRS), making false statements to IRS Criminal Investigation (IRS-CI) agents, and mortgage fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Andrew B. Birge for the Western District of Michigan.
According to the indictment, Scott Allan Chappelle, of Okemos and East Lansing, Michigan, was an attorney and former Certified Public Accountant who operated Terra Management Company LLC, Strathmore Development Company Michigan LLC, and Terra Holding LLC, companies involved in real estate development and property management. Chappelle allegedly failed to pay over to the IRS employment taxes that were withheld from the wages of the companies’ employees. After the IRS attempted to collect the unpaid taxes, from 2010 through 2019, Chappelle allegedly evaded the payment of more than $830,000 in unpaid taxes by making false statements to the IRS about his and his companies’ assets and income, failing to disclose his vacation house on Lake Michigan, and purchasing real property in nominee names instead of his own.
Chappelle is also charged with making false statements to IRS-CI agents during its criminal investigation. As alleged, Chappelle told investigators that he had not personally purchased any real estate during the last three years when in fact he had purchased both a condominium in East Lansing and a house in Powell, Ohio, during that time. The indictment further alleges that Chappelle falsely told investigators that the condominium was for his son and paid for with student loan funds. Chappelle is also charged with filing a tax return for Terra Holdings on which he falsely claimed that the company had no employees and paid no wages.
The indictment also charges that Chappelle made false statements and submitted fraudulent documents to a bank when refinancing his lake house mortgage. Chappelle allegedly falsely represented that he was not a party to a lawsuit or owed any federal debt when in fact, Chappelle was a party to at least two lawsuits and had outstanding tax liabilities. Chappelle is also alleged to have submitted fraudulent bank statements that showed a substantially higher balance in an account than the account actually had at that time.
If convicted, Chappelle faces a maximum term of imprisonment of five years for tax evasion and making a false statement, three years for filing a false document with the IRS, and 30 years for bank fraud. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Birge commended agents of IRS-CI, who investigated the case, and Trial Attorney Melissa S. Siskind of the Tax Division and Assistant U.S. Attorney Timothy P. VerHey, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Michigan Real Estate Developer Indicted for Tax and Bank FraudRead the Press Release
Lansing-Area Real Estate Developer Lied and Hid Income and Assets
GRAND RAPIDS, MICHIGAN – A federal grand jury in Grand Rapids, Michigan returned an indictment today charging a Michigan businessman with tax evasion, filing false documents with the Internal Revenue Service (IRS), making false statements to IRS Criminal Investigation (IRS-CI) agents, and mortgage fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Andrew B. Birge for the Western District of Michigan.
According to the indictment, Scott Allan Chappelle, of Okemos and East Lansing, Michigan, was an attorney and former Certified Public Accountant who operated Terra Management Company LLC, Strathmore Development Company Michigan LLC, and Terra Holding LLC, companies involved in real estate development and property management. Chappelle allegedly failed to pay over to the IRS employment taxes that were withheld from the wages of the companies’ employees. After the IRS attempted to collect the unpaid taxes, from 2010 through 2019, Chappelle allegedly evaded the payment of more than $830,000 in unpaid taxes by making false statements to the IRS about his and his companies’ assets and income, failing to disclose his vacation house on Lake Michigan, and purchasing real property in nominee names instead of his own.
Chappelle is also charged with making false statements to IRS-CI agents during its criminal investigation. As alleged, Chappelle told investigators that he had not personally purchased any real estate during the last three years when in fact he had purchased both a condominium in East Lansing and a house in Powell, Ohio during that time. The indictment further alleges that Chappelle falsely told investigators that the condominium was for his son and paid for with student loan funds. Chappelle is also charged with filing a tax return for Terra Holdings on which he falsely claimed that the company had no employees and paid no wages.
The indictment also charges that Chappelle made false statements and submitted fraudulent documents to a bank when refinancing his lake house mortgage. Chappelle allegedly falsely represented that he was not a party to a lawsuit or owed any federal debt when in fact, Chappelle was a party to at least two lawsuits and had outstanding tax liabilities. Chappelle is also alleged to have submitted fraudulent bank statements that showed a substantially higher balance in an account than the account actually had at that time.
If convicted, Chappelle faces a maximum term of imprisonment of five years for tax evasion and making a false statement, three years for filing a false document with the IRS, and 30 years for bank fraud (the mortgage fraud scheme). He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Birge commended agents of IRS-CI, who investigated the case, and Trial Attorney Melissa S. Siskind of the Tax Division and Assistant U.S. Attorney Timothy P. VerHey, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Man Charged in Federal Court with Illegally Possessing Loaded Handgun in ChicagoRead the Press Release
CHICAGO — A man has been charged with a federal firearm offense for allegedly illegally possessing a loaded semiautomatic handgun in Chicago this past weekend.
ADAM WALTON was arrested early Monday morning near the 11700 block of South Marshfield Avenue after Chicago Police officers observed him exit a store through a broken window, according to a criminal complaint filed in U.S. District Court in Chicago. He was later taken into custody while in possession of a loaded semiautomatic handgun and a case of .22-caliber long-rifle ammunition, the complaint states. A city of Chicago curfew took effect at 9:00 p.m. Sunday, and Walton was arrested more than three hours later.
Walton, 40, of Chicago, is charged with one count of illegal possession of a firearm by a convicted felon. Walton was previously convicted of multiple criminal felonies, including two firearm-related offenses, and was not lawfully allowed to possess a firearm. An initial appearance in federal court in Chicago has not yet been scheduled.
The federal charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Cook County State’s Attorney’s Office in bringing this charge. The government is represented by Assistant U.S. Attorney Paul Mower.
Holding gun offenders accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategies. Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, including by prosecuting individuals who illegally possess firearms.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Illegal possession of a firearm by a convicted felon is punishable by up to ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Lecompte Man Sentenced to Two Years in Federal Prison for Stealing over $100,000 from Alexandria Medical Services CompanyRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that William Britt Harvey, 45, of Lecompte, Louisiana, was sentenced on June 3, 2020, by Senior U.S. District Judge Donald E. Walter to serve two years in federal prison and three years of supervised release following his prison term for stealing over $100,000 from a medical services company. Judge Walter also ordered Harvey to pay $114,738.77 in restitution. Harvey pled guilty on January 22, 2020, to one count of wire fraud.
William Harvey was employed by LA Imaging (“LAI”), a medical services company based in Alexandria that preformed mobile imaging services throughout the state of Louisiana. Harvey was employed by LAI to maintain and repair x-ray equipment used by LAI in its medical imaging business. In order to perform his duties, which included purchasing equipment and supplies to maintain LAI’s imaging equipment, Harvey had access to LAI’s credit card and bank account information. Between December 2012 and October 2014, Harvey embezzled company funds from LAI through a scheme in which he illicitly transferred money to himself using numerous PayPal accounts, including accounts under the fictitious names of “Global Imaging” and “CFA.” In order to support his scheme, Harvey presented fake invoices to LAI from Global Imaging and CFA.
While working at LAI, between September 2013 and October 2015, Harvey also defrauded LAI by opening a rival imaging company called Southern Elite Imaging. Through Southern Elite, Harvey contracted with Cenla Occupational Medicine Services and leased older x-ray equipment owned by LAI to Cenla, without LAI’s consent. The x-rays taken with that equipment were then sent to a radiologist for interpretation. Harvey billed Cenla for the radiologist “read fees” and also collected lease fees from Cenla for LAI’s imaging equipment. Harvey used false invoices and caused LAI to pay the radiologists’ interpretation fees, while keeping the “read fees” and lease equipment fees paid by Cenla for his own personal use.
The United States Secret Service investigated the case. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Kyle Man Sentenced to Life in Prison for First Degree MurderRead the Press Release
United States Attorney Ron Parsons announced that a Kyle, South Dakota, man convicted of First Degree Murder was sentenced on June 2, 2020, by Jeffrey L. Viken, U.S. District Judge.
Clarence Yellow Hawk, age 30, was sentenced to a term of the remainder of his life in federal prison, a $200 special assessment to the Federal Crime Victims Fund, and ordered to pay restitution in an amount to be determined at a later date based on evidence presented at Tuesday’s hearing.
Yellow Hawk was indicted by a federal grand jury on June 14, 2017. He was found guilty of First Degree Murder and Discharge of a Firearm During a Crime of Violence following a jury trial in federal court which concluded on May 3, 2019.
The conviction stemmed from a homicide that occurred on May 27, 2017, on the Pine Ridge Reservation. Scott Benson, Jamie Shoulders, and Clarence Yellow Hawk travelled to a driveway approach off the highway, just north of Sharps Corner where Benson was planning on meeting a man named Christopher Janis and another person. While Benson was in Janis’ vehicle speaking with him, Shoulders approached the driver’s side door and fired several bullets at Christopher Janis. Yellow Hawk then took the same gun and fired additional shots at Janis, killing him, before fleeing the scene.
Scott Benson later pleaded guilty to Accessory After the Fact and was sentenced on May 24, 2018, to 10 years in federal prison. Jamie Shoulders later pleaded guilty to Second Degree Murder and was sentenced to 25 years in federal prison.
This case was investigated by the Federal Bureau of Investigation and Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Kathryn N. Rich and Gregg Peterman prosecuted the case.
KCK Man Arrested for Attacking Officers at Protest Charged with Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Kansas, man who initially was arrested after throwing water bottles at police officers during protests at the Country Club Plaza was charged in federal court today with illegally possessing a firearm.
“Hijacking a peaceful protest by attacking police officers engaged in their duty to protect the public carries significant consequences in this district,” said U.S. Attorney Tim Garrison. “Illegally carrying a loaded handgun to a public demonstration multiplies those consequences with federal penalties. I have no tolerance for anyone who hides behind the lawful exercise of constitutional rights as cover for their criminal acts. We are working alongside our local law enforcement partners to protect the public and maintain order.”
Matthew E. Madden, 22, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Missouri, with one count of being a drug user in possession of a firearm.
Today’s criminal complaint alleges that Madden, who is a habitual user of, or addicted to, marijuana, was in possession of a Glock .40-caliber semi-automatic handgun on June 2, 2020.
According to an affidavit filed in support of the federal criminal complaint, Madden traveled from Kansas City, Kansas, to participate in the protests at the Country Club Plaza in Kansas City, Missouri, on Tuesday, June 2. During the protests over the previous five days, police officers who monitored the crowd and participated in crowd control reported some violent protesters threw bottles and rocks at them, causing injury to officers and damage to personal and public property. On Tuesday, law enforcement officers observed Madden throwing water bottles at officers who were providing security in the area of 47th Street and J.C. Nichols Parkway. Later the same evening, officers observed Madden throwing waters bottles from the southwest corner of Mill Creek Park (located at 47th Street and J.C. Nichols Parkway).
Police officers approached Madden as he walked away from the crowd and asked him to stop so they could talk to him. Madden immediately ran away through the park, but officers captured him near a tree line on the east side of the park. During the pursuit, an officer saw Madden discard the black fanny pack that he had been previously observed carrying over his shoulder. Officers recovered the fanny pack, which contained a .40-caliber semiautomatic handgun loaded with 15 round of ammunition, another magazine containing an additional 27 rounds of ammunition, and 1.23 grams of marijuana.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Justice Department Resolves Fair Housing Act Lawsuit Against Guam's Government for Racial and National Origin DiscriminationRead the Press Release
The U.S. Department of Justice announced today an agreement with the Government of Guam, as well as the Chamorro Land Trust Commission (CLTC) and its Administrative Director, to resolve claims that Guam’s Chamorro Land Trust Act (CLTA) discriminated against non-Chamorros on the basis of race and national origin in the allocation of Government of Guam land.
The department’s lawsuit, filed in 2017, alleged that the CLTC, which is part of the Government of Guam and controls approximately 15 percent of Guam’s total land area, violated the Fair Housing Act through its program of granting 99-year residential leases for one-acre tracts, at a cost of one dollar per year, solely to “native Chamorros.”
Under the terms of the settlement agreement, Guam has agreed to stop taking race and national origin into account in awarding the land leases. The CLTA will be amended to award leases based on whether individuals lost land or use of land, including during World War II and its aftermath, instead of whether an applicant is a “native Chamorro.” The CLTC will also be required to collect information to verify eligibility based on the new, race-neutral criteria. Finally, the agreement prohibits future housing-related discrimination, mandates training on the requirements of the Fair Housing Act, and requires record keeping and reporting so that the Justice Department can ensure compliance with the settlement agreement.
“The Department of Justice is committed to fighting race and national origin discrimination through vigorous enforcement of the Fair Housing Act,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This settlement will ensure that Guam does not discriminate on the basis of race or national origin against non-Chamorros in the administration of its land lease program.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination may call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected], or contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at www.hud.gov.
Jacksonville Man Indicted for Defrauding A Religious Organization and Filing False Income Tax ReturnsRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Charles Jon David (57, Jacksonville) with three counts of wire fraud and four counts of tax fraud. If convicted, David faces a maximum penalty of 20 years in federal prison for each wire fraud count and up to 3 years’ imprisonment for each tax fraud count. The indictment also notifies David that the United States intends to forfeit at least $273,500, as well as to two parcels of real property, which are alleged to be the proceeds of the wire fraud.
According to the
indictment , from at least May 2012 and continuing through late 2018, David was employed as the Director of Construction of Business Operations for a Jacksonville religious organization that provided services to more than 140,000 members through numerous churches in the Northeast Florida area. The organization owned many parcels of real property, some of which David was tasked with selling on behalf of the organizationDespite his fiduciary duties to work in the best financial interests of the religious organization, David, along with three other individuals, engaged in a scheme to defraud the organization in connection with the sales by offering two of the individuals exclusive opportunities to purchase the religious organization’s property at below market-value prices. In exchange, the two individuals agreed to pay kickbacks to David. The kickbacks (totaling at least $204,500) were paid to David by check, from one of the two individuals, on at least five occasions.
The indictment further alleges that the scheme also included a transaction with a third individual in which David fraudulently represented to the religious organization that the third individual was a bona fide purchaser of the organization’s property. In fact, at the time the religious organization sold the piece of property to the third individual, David had also arranged for a second purchaser to buy the real property from the third individual at a higher price, with the two sales closing on the same day. After the two sales closed, David received a check for $44,000 from the third individual.
David did not include kickback payments from the first two individuals, or money he received from the third individual, as income on his federal income tax returns for tax years 2015, 2016, and 2018. Additionally, David falsely underreported his income on his tax year 2013 return.
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 Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the St. Johns County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Jackson Man Sentenced for Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Charles Jones, 27, of Jackson, was sentenced yesterday by U.S. District Judge Henry T. Wingate to 41 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michele Sutphin with the Federal Bureau of Investigation in Mississippi. Jones was also ordered to pay a $1,500 fine.
On April 27, 2019, officers with the Jackson Police Department stopped Jones after he had been identified causing a disturbance at a residence. Officers recovered a firearm from his person during a search incident to his arrest. It is illegal for Jones to possess a firearm as he has felony convictions in Hinds County for armed robbery and vehicle burglary in 2011 and for another vehicle burglary in 2012. He pled guilty before Judge Wingate on March 5, 2020.
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Lynn Murray.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Indictments Charge Two Men in Separate Cases for Alleged Attempted Child Sex CrimesRead the Press Release
URBANA, Ill. – The grand jury has returned indictments against two men in separate, unrelated cases resulting from FBI Springfield Field Office undercover operations.
A four-count indictment charges James Russian, 55, of the 400 block of north Niles Avenue, Tuscola, Ill., with attempted enticement of a child to engage in illegal sexual activity; attempted sexual exploitation of children; attempted sex trafficking of minors; and, attempted receipt of child pornography. Russian was previously arrested and charged in a criminal complaint on April 24, 2020, and was ordered detained in the custody of the U.S. Marshals Service.
In a separate case, a three-count indictment charges Caleb Hickman, 45, of Granger, Ind., with attempted enticement of a minor; attempted sexual exploitation of children; and, attempted receipt of child pornography from Feb. 14 to May 26, 2020, in Kankakee and Champaign counties. Hickman was previously charged in a criminal complaint and was arrested on May 26, 2020, in Indiana. Hickman made an initial appearance on May 29, 2020, in the Northern District of Indiana. Hickman deferred his detention hearing to the Central District of Illinois and was remanded to the custody of the U.S. Marshals Service for transfer to Central Illinois.
According to the affidavits filed in support of the criminal complaints, each of the men allegedly used social media applications to contact and engage with FBI online covert employees. Russian allegedly communicated with an adult who purported to have access to an eight-year-old girl, and offered to pay to have sex with the minor. Hickman communicated with an FBI online covert employee who was posing as a 14-year-old minor and allegedly made arrangements for the minor to travel from Champaign, Ill., to South Bend, Ind., to engage in sexual activity.
The cases were investigated by the FBI Springfield Field Office. The FBI Indianapolis Field Office assisted in the investigation of Hickman. Assistant U.S. Attorney Elly M. Peirson is representing the government in the case prosecutions.
If convicted, for the offense of attempted enticement of a minor, the statutory penalty is 10 years and up to life in prison; for attempted sexual exploitation of a child, the penalty is 15 to 30 years in prison. Sex trafficking of minors carries a penalty of 15 years to life for a minor under 14 years of age. Attempted receipt of child pornography carries a penalty of five years to 20 years in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
These cases were brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.