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21 May 2020
Defendant sentenced to prison for stealing aircraft trade secrets now faces charges for lyingRead the Press Release
SAVANNAH, GA: A North Carolina man who took part in a conspiracy to steal design information from aircraft companies faces additional prison time after his indictment for lying to the court while being sentenced and for lying to the FBI.
Craig German, 59, of Kernersville, N.C., was indicted by a grand jury in U.S. District Court on charges of Perjury and False Statements to a Government Agency, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. If found guilty, the charges could add up to five years to German’s current sentence of 70 months in federal prison, handed down in February after his guilty plea on a charge of Conspiracy to Steal Trade Secrets.
“It’s against the law for any person to lie while under oath, but it’s even more disturbing when that person lies after promising to cooperate in an investigation,” said U.S. Attorney Christine.
According to court documents and testimony, German admitted that he and his co-conspirators agreed to steal trade secrets from aircraft companies in order to assist a competitor company in developing their own anti-ice aircraft technology. After pleading guilty, German voluntarily met with the FBI in an effort to cooperate, but falsely denied copying, taking or otherwise transferring numerous trade secret documents. At the sentencing hearing, testimony showed that German had, in fact, copied the trade secret documents onto a removable USB drive. German elected to testify at the hearing and falsely testified that he was directed by a supervisor to copy and move the trade secret files.
“It is alleged that this defendant promised to fully cooperate truthfully, but instead chose to lie about his involvement in a conspiracy to steal trade secrets,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “That type of behavior will not deter us from pursuing the truth and seeking justice for our citizens.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case was investigated by the FBI and prosecuted for the United States by Assistant U.S. Attorneys Jennifer G. Solari and Steven H. Lee.
Cumberland County Woman Charged in Conspiracy to Collect Federal Student Aid Funds Using Fake TranscriptsRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, BRENDA JOYCE HALL, 51, of Godwin, NC, had an initial appearance on an indictment charging her with, among other things, Conspiracy to Commit Student Loan Fraud and Wire Fraud, and Aggravated Identity Theft.
United States Attorney Higdon stated, “This defendant is charged with helping to orchestrate a long-standing fraud upon one of our institutions of higher learning by fabricating high school transcripts. A scheme that is alleged to have resulted in in substantial federal education funding being used by Hall for her own personal interests and gain.”
“Per the indictment, Ms. Hall seems to have viewed Federal student aid as a private slush fund rather that what it is – funding to help students make their dream of a higher education a reality,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Southern Regional Office. “As the law enforcement arm of the U.S. Department of Education, we are committed to fighting student aid fraud and ensuring that those who steal student aid or game the system for their own selfish purposes are stopped and held accountable for their criminal actions.”
The Indictment alleges that HALL and various others resided at a place referred to as “The Ranch” in Cumberland County, that was owned and operated by a tent revival preacher. According to the Indictment, The Ranch consisted largely of several related families, but outsiders and their children were also invited to, and did, reside there over time. The owner of The Ranch also owned various fish markets in the same area. HALL, who is alleged to have worked at The Ranch and at the fish markets, also operated a non-public home school, known as “Halls of Knowledge”, from The Ranch.
The Indictment further alleges that HALL and others carried out a scheme to fraudulently acquire hundreds of thousands of dollars in Federal Student Aid to fund the operations of the Ranch, the fish markets, and to make other purchases. To carry out the scheme, Hall and others would approach individuals residing on the Ranch and solicit their enrollment in an online course of college-level studies at Wake Tech. The individuals solicited are referred to in the Indictment as the “Student Participants.”
To attend the online course of college level studies at Wake Tech, the Student Participants were required to have successfully completed their high school level of education. But most of the Student Participants never graduated from high school, and none completed their high school education through HALL’s home school, the Halls of Knowledge. Many of the Student Participants had no genuine desire nor intention to attend college courses and graduate from Wake Tech. None had the financial means to attend college without federal student aid.
Nevertheless, the Indictment charges that HALL and others provided various assurances to the Student Participants to get them to agree to be enrolled at Wake Tech. For example, various Student Participants were told: (1) they would receive a high school diploma; (2) would receive a laptop or would get to keep some money; (3) they would not have to actually do the coursework; or (4) they would not be responsible for the student loans.
The Indictment then alleges that HALL fabricated high school transcripts for the Student Participants. The transcripts represented that each of the Student Participants successfully completed four years of high school education through Halls of Knowledge. The transcripts also fraudulently represented, for each year of study, the courses allegedly taken by the Student Participant, and the grade the Student Participant received in each course. HALL directed another resident of The Ranch to notarize these transcripts.
The Indictment alleges that HALL assisted the Student Participants to become enrolled at Wake Tech by, among other things, causing the fake transcripts and other documents to be delivered to Wake Tech. In addition to becoming enrolled in Wake Tech by fraud, Federal Student Aid was also awarded to the Student Participants based on the fraud. As much as $700,000 in federal student aid was awarded based on the fake transcripts.
The Indictment alleges that funds left over after the payment of tuition were supposed to support other educational costs for the students. But the students were not permitted by HALL and the Ranch owner to keep all of the funds. Instead, the Student Participants were directed, in some instances, to cash out the remaining funds and pay them over to The Ranch. The remaining student aid monies were then used to fund the operations of the Ranch, the fish markets, and other ventures.
The Indictment further alleges that after the Student Participants were enrolled at Wake Tech, the Students did not, in fact, attend all of the courses in which they were enrolled. Instead HALL, and others at The Ranch, would fraudulently attend and complete online courses for the Student Participants. This allowed the scheme to go on, undetected, for several years.
For her role in the conduct, HALL is charged with various federal offenses, carrying different maximum penalties. Conspiracy to Commit Student Loan Fraud, and Student Loan Fraud, in violation of Title 18, United States Code, Section 371, and Title 20, United States Code, Section 1097(a), are punishable by up to five years in prison. Conspiracy to Commit Wire Fraud, and Wire Fraud, in violation of Title 18, United States Code, Sections 1349 and 1343, are punishable by up to twenty years in prison. Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A(a)(1), is punishable by not less than 2, nor more than two, years in prison, consecutive to any other sentence.
An indictment is an allegation of a crime. The defendant is presumed under the law to be innocent until proven guilty.
The investigation of this case is being conducted by the United States Department of Education Office of the Inspector General. Assistant United States Attorney William M. Gilmore represents the United States.
Convicted Felon Charged with Federal Firearm and Ammunition OffenseRead the Press Release
Ocala, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Curtis Duncan (30, Ocala) with possessing a firearm and ammunition as a convicted felon. If convicted, Duncan faces a maximum penalty of 10 years in federal prison. The indictment also notifies Duncan that the United States intends to forfeit the firearm and ammunition.
According to the indictment, on March 30, 2020, Duncan was in possession of a firearm and ammunition. With two prior state convictions for armed home invasion robbery and a principal to armed home invasion robbery, Duncan was prohibited from possessing firearms or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
This case was investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Tyrie Boyer.
Cleveland man indicted for attempted plot to kidnap law enforcementRead the Press Release
The U.S. Attorney’s Office for the Northern District of Ohio announced today that a federal grand jury returned a two-count indictment charging Christian Stanley Ferguson, age 20, of Cleveland, Ohio with attempted kidnapping. Ferguson was arrested on May 8, 2020, for an attempted plot to ambush and kidnap law enforcement officers responding to a false distress call.
“Christian Ferguson was actively planning to ambush, kidnap, and even kill law enforcement officers in order to carry out his plot of a violent uprising," said U.S. Attorney Justin Herdman. "We must demonstrate that these types of threats to law enforcement or to commit such heinous acts of violence in our community will not be tolerated.”
“The primary mission for law enforcement officers and special agents is to protect the public,” said FBI Cleveland Special Agent in Charge Eric B. Smith. “Christian Ferguson's primary mission was to kill as many law enforcement personnel as he could, an unfathomable concept. Thanks to the public for advising the FBI of the hateful and violent feelings Ferguson held for law enforcement. This information led to the swift disruption of Ferguson's plans and his reckoning with the criminal justice system. Law enforcement reminds the public: see something, say something!”
“We were happy to assist the FBI with this case, especially due to the seriousness of the threats,” said Cuyahoga Falls Police Chief Jack Davis. “The Cuyahoga Falls Police Department members have always enjoyed a great working relationship with the local agents, and this was yet another opportunity for local and federal law enforcement to work together.”
"The National Park Service is deeply appreciative of the work of the FBI and United States Attorney on this case,” said CVNP Chief Ranger Bruce Gagnon. “This indictment is good news for the men and women of law enforcement across the region."
According to the criminal complaint filed in this matter, over the course of several weeks, Ferguson engaged in violent and extremist postings made on cross-platform social media communication applications. In these postings, Ferguson discussed his desire to call police to report a false crime was in progress to prompt a response by law enforcement.
Specifically, he expressed an interest in a response by federal law enforcement because he believed they had better quality firearms and body armor to steal. He made statements about tactical options for killing multiple targets and the disposal of their bodies. He reaffirmed his plan to ambush law enforcement, kill them, rob them of their weapons, and start an uprising.
As a result of online conversations in a chatroom controlled by Ferguson, he met on several occasions with individuals to further discuss Ferguson’s plan in order to see it to fruition. Ferguson then engaged in practice drills with an AR-15 rifle and, on one occasion, conducted reconnaissance in a dry run. He ultimately facilitated a hoax distress call within the boundaries of the National Park to gauge response time by Park Rangers. Ferguson believed four federal officers arrived and indicated that if that many officers respond to the actual event, they would likely have to kill them all.
Ferguson was arrested, without incident, on May 8th and is currently in federal custody.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
This case was investigated by the Cuyahoga Valley National Park Rangers, Cuyahoga Falls Police Department, City of Cuyahoga Falls Prosecutor’s Office, and the Cleveland Division of the FBI and is being prosecuted by Assistant U.S. Attorneys Duncan Brown and Daniel Riedl.
Clearfield Couple Indicted in Project Safe Childhood Case for Producing and Possessing Sexually Explicit Images of MinorsRead the Press Release
JOHNSTOWN, Pa. – A married couple from Clearfield, Pa., have been indicted by a federal grand jury in Pittsburgh on charges of production and possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
The five-count Indictment, returned on May 19, named Jackson Curtis Martin, III, 44, and Amanda Michelle Downs, 28, both of Clearfield, Pa.
According to the Indictment presented to the court, from December 2018 to Sept. 1, 2019, Martin and Downs produced images of a minor female engaged in sexually explicit conduct using materials that were shipped or transported in interstate or foreign commerce. Further, from Jan. 8, 2019 to Nov. 24, 2019, Martin and Downs possessed images of minors engaged in sexually explicit conduct, which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
"One of the highest priorities of my office is to protect the safety and well-being of every child in western Pennsylvania, "said U.S. Attorney Brady. "I want to thank Clearfield County District Attorney Ryan Sayers for his partnership. District Attorney Sayers and I are fully committed to investigating and prosecuting all sexual predators, abusers and pornographers who prey upon our children, and we will use all of the tools at our disposal to put such predators in prison."
"I would like to thank the U.S. Attorney for prosecuting these individuals on the charges of child pornography production and possession," said Ryan P. Sayers, Esq., District Attorney of Clearfield County. "This referral was made because the federal mandatory periods of incarceration for child pornography production and possession are more significant than here at the state level, and could potentially result in a life sentence. Simultaneously, I will be moving forward with the charges of rape and statutory sexual assault in Clearfield County. This relationship with U.S. Attorney Brady and his staff is an invaluable asset to the people of Clearfield County."
The law provides for a maximum sentence of not less than 30 years and up to 80 years in prison, a fine of $1,000,000, or both for Martin, and a maximum sentence of not less than 30 years and up to 40 years in prison, a fine of $750,000, or both for Downs. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Clearfield Borough Police Department and the Department of Homeland Security, Homeland Security Investigations, conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
City Officials Charged with Accepting BribesRead the Press Release
A Calexico City, California councilman and mayor pro tem, along with a commissioner on the city’s Economic Development and Financial Advisory Commission, were charged in federal court today with accepting cash bribes in exchange for promises of official action by the city.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert S. Brewer Jr., and Acting Special Agent in Charge Omer Meisel of the FBI’s San Diego Field Office made the announcement.
According to a charging document, David Romero 36, and Bruno Suarez Soto, 28, both of Calexico, California, accepted $35,000 in cash bribes from an undercover FBI agent who they believed represented investors seeking to open a cannabis dispensary in Calexico. In return, Romero and Soto “guaranteed” the rapid issuance of a city permit for the dispensary, and to revoke or hinder other applicants if necessary to ensure that the bribe payer’s application was successful. Moreover, both men admitted they had taken bribes from others in the past, according to the charging document.
In addition to being a councilman, Romero serves as Calexico’s mayor pro tem, meaning he was set to become mayor in July 2020. Soto was recently appointed to the city commission responsible for promoting business and community growth and coordinating with prospective developers to help them invest in the city of Calexico.
The charges allege that during a Dec. 19, 2019, meeting at a restaurant in Calexico with the undercover FBI agent, Romero and Soto agreed to fast-track the agent’s purported application for a cannabis dispensary permit and guaranteed its rapid issuance in exchange for a $35,000 bribe. The defendants also offered to delay permit applications by competitors, court records said.
The charging document further alleges that toward the conclusion of the Dec. 19, 2019 meeting, when the undercover agent asked if Romero and Soto might later ask for more than the $35,000 payment, Romero assured him that they would not. “This is done. Set and sealed,” Romero allegedly said. Romero explained that he and Soto would require the money to be paid up front, however, because they had done similar work for other people, and those people had not paid the agreed-upon fee after the favors had been rendered. Soto later added, “This isn’t our first rodeo.” Romero and Soto agreed to accept payment of the $35,000 from the agent in two installments, however: half up front, and half “when it’s a for sure thing.”
According to court filings, at this meeting the undercover agent asked whether the payment of $35,000 would “get us in front of the line” of applicants. Soto answered, “Hell yeah.” Romero added that he “didn’t want to say it in front of everybody, but it will.”
On Jan. 9, 2020, Romero and Soto attended a second meeting with the undercover agent at a restaurant in El Centro, California. During the meeting, according to court records, Romero reminded the undercover agent how difficult it was to work with the city of Calexico, and how fortunate it was that the agent was working with Romero. Soto later added that in return for the bribe, Romero would cut through “so much [expletive] [red] tape that exists” with the city.
During a discussion of the approval process for the permit application referenced in court records, Romero explained that the people who have to approve the undercover agent’s license were “my best friends at the entire City Hall.” When asked if the “best friends” had already signed off on the plan, Romero responded “[expletive], yeah!” and laughed.
Court filings reveal that at the conclusion of the Jan. 9, 2020 meeting, in the parking lot outside the restaurant, with Romero looking on, the undercover agent handed Soto $17,500 in cash and explained that he divided the first installment of the bribe into two envelopes: one with $8,800 and another with $8,700. The agent asked whether “we’re good,” and Romero responded, “Trust me” and added, “In my line of business, I can’t [expletive] up. Which means he [Soto] can’t [expletive] up.”
According to the charging documents, the defendants allegedly accepted the second installment, $17,500 in cash, during a third meeting on January 30 in a parking lot outside a restaurant in El Centro. Court documents further allege both men also admitted to creating a shell corporation to launder the proceeds of their bribery scheme.
The charging document also alleges that both men lied to the FBI when interviewed by agents at the conclusion of the January 30 meeting. According to court filings, Romero falsely denied being part of any agreement with the undercover agent, and denied that anyone had made any “guarantees” to the agent. Similarly, Soto falsely denied making any “guarantees” to the undercover agent and denied receiving any prior payments from the agent.
The FBI investigated the case. Trial Attorney Joshua Rothstein of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Nicholas Pilchak are prosecuting the case.
A federal charge is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Chinese National Arrested for $20 Million Scheme to Fraudulently Obtain Loans Intended to Help Small Businesses During COVID-19 PandemicRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Kevin Kupperbusch, Eastern Region Special Agent-in-Charge of the Office of the Inspector General of the U.S. Small Business Administration (“SBA”), and Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the arrest of MUGE MA, a/k/a “Hummer Mars,” a Chinese national residing in Manhattan, for a fraudulent scheme to obtain over $20 million in Government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic. In connection with loan applications for relief available from the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) Program, MA falsely represented to the SBA and five financial institutions that his companies, New York International Capital LLC (“NYIC”) and Hurley Human Resources LLC (“Hurley”), had hundreds of employees and paid millions of dollars in wages to those employees, when, in fact, MA appears to have been the only employee of his companies. MA’s company NYIC also fraudulently represented that it was representing New York State in procuring COVID-19 test kits and personal protective equipment to respond to the COVID-19 pandemic. MA was arrested this morning and will be presented later today before U.S. Magistrate Judge Kevin Nathaniel Fox.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Muge Ma, a/k/a ‘Hummer Mars,’ allegedly attempted to secure over $20 million in Government-guaranteed loans intended for businesses devastated by the coronavirus/COVID-19 pandemic. In furtherance of the scheme, Ma allegedly falsely represented in his applications to banks and the SBA to own two companies with hundreds of employees to whom he paid millions in wages. As alleged, Ma described one of the companies as a ‘patriotic American’ firm, and said of the other company that it would ‘help the country reduce the high unemployment rate caused by the pandemic by helping unemployed American workers and unemployed American fresh graduates find jobs as quickly as possible.’ In truth, Ma appears to be the only employee of either company and had no legitimate claim to the funds for which he applied. Ma’s alleged attempts to secure funds earmarked for legitimate small businesses in dire financial straits are as audacious as they are callous, and now he now faces federal prosecution. Small businesses are facing uncertainty and unprecedented challenges, the least of which should be opportunists attempting to loot the federal funds meant to assist them. This Office, along with our law enforcement partners, will continue to vigilantly protect the integrity of those critical loan programs.”
FBI Assistant Director William F. Sweeney Jr said: “There are many people in desperate need of federal money right now to get them through an unbelievably difficult time. The last thing they need to hear is that a fraudster allegedly tried to steal millions of dollars for his own selfish use. We hope this serves as a demonstration to other criminals plotting a similar scam – we are acting and investigating in real time to stop anyone using this crisis as a means to rip off the federal government and the tax payers who fund that government.”
SBA OIG Eastern Region Special Agent-in-Charge Kevin Kupperbusch said: “Providing false statements to gain access to SBA’s programs will be aggressively investigated by our office. SBA OIG and its law enforcement partners are poised to root out fraud in SBA’s programs and bring wrongdoers to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “As many American businesses are struggling to survive during these difficult times, it is alleged that Mr. Ma sought to steal millions of dollars in loans intended to assist legitimate businesses. Make no mistake about it, IRS-CI is committed to investigating and bringing to justice those individuals who defraud coronavirus relief programs.”
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court:
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s PPP. Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and their average payroll costs. Businesses applying for a PPP loan must provide documentation to confirm that they have previously paid employees the compensation represented in the loan application. The CARES Act also expanded the separate EIDL Program, which provides small businesses with low-interest loans of up to $2 million that can provide vital economic support to help overcome the temporary loss of revenue they are experiencing due to COVID-19. To qualify for an EIDL loan under the CARES Act, the applicant must have suffered “substantial economic injury” from COVID-19.
From at least in or about March 2020 through at least on or about May 15, 2020, MA applied to the SBA and at least five banks for a total of over $20 million in Government-guaranteed loans for the his companies NYIC and Hurley (together, the “Ma Companies”) through the SBA’s PPP and EIDL Program. In connection with these loan applications, MA represented, among other things, that he was the sole owner and executive director of the Ma Companies, that the Ma Companies were located on the sixth floor of his luxury condominium building in New York, New York, and that NYIC and Hurley together had hundreds of employees and paid millions of dollars in wages to those employees on a monthly basis. In fact, however, MA appears to have been the only employee of NYIC since at least in or about 2019, and Hurley does not appear to have any employees. In order to support the false representations made by MA in the loan applications about the number of employees at, and the wages paid by, the Ma Companies, MA submitted fraudulent and doctored bank records, tax records, insurance records, payroll records, and/or audited financial statements to five different banks, and also provided links to the Ma Companies’ websites, which describe them as purportedly “global” companies. In the course of these loan applications, MA also misrepresented that he was a United States citizen, when, in fact, he is a Chinese national with lawful permanent resident status in the United States.
Before the discovery of the fraudulent conduct by MA, the SBA approved a $500,000 EIDL Program loan for NYIC and a $150,000 EIDL Program loan for Hurley, and at least a $10,000 loan advance was provided to NYIC. In addition, a bank approved and disbursed over approximately $800,000 in PPP loan funds for Hurley, which were frozen in connection with this investigation. As a result, MA sought to withdraw his loan applications from the banks and return the funds.
MA and individuals purporting to work for NYIC have also fraudulently represented to a COVID-19 test kit manufacturer and a medical equipment supplier that NYIC is representing the New York State Government and the Governor of New York in procuring COVID-19 test kits and personal protective equipment (“PPE”) to respond to the COVID-19 pandemic. Among other incidents, in a recorded call that took place on or about May 18, 2020, MA represented, in substance and in part, that his company NYIC was a registered vendor for New York State, among other state governments, and that NYIC had a big team working on a deal for the State. NYIC is not, however, an authorized vendor of New York State, nor has NYIC been authorized to represent New York State in connection with the procurement of COVID-19 supplies.
* * *
MA, 36 of New York, New York, is charged with one count of bank fraud, one count of wire fraud, and one count of making false statements to a bank, each of which carries a maximum sentence of 30 years in prison, one count of major fraud against the United States, which carries a maximum sentence of 10 years in prison, one count of making false statements, which carries a maximum sentence of five years in prison, and one count of making false statements to the SBA, which carries a maximum sentence of two years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Any businesses or individuals who believe they may have been a victim in this investigation or have information regarding this investigation should call the FBI’s 24/7 Cyber Complaint Center at (855) 292-3937.
Mr. Berman praised the investigative work of the FBI’s Financial Cybercrimes Task Force, SBA-OIG, and IRS-CI, and noted that the investigation remains ongoing. Mr. Berman also thanked the New York City Police Department, the Office of the New York State Comptroller, and the New York State Department of Labor for their assistance with the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Cedar Rapids Teen Sentenced to Five Years in Federal PrisonRead the Press Release
A Cedar Rapids teenager who was arrested for possessing a firearm for the fourth time in little more than two years, and while on state court probation for possessing a firearm as a felon, was sentenced on May 18, 2020 to five years in federal prison.
Untario Devonte McGhee, also known as “Memphis” and “Tario Nolove,” age 19, from Cedar Rapids, Iowa, originally from Memphis, Tennessee, received the prison term after a January 6, 2020, guilty plea to one count of possession of a firearm by a felon.
At the plea and sentencing hearings, the evidence showed that, on April 10, 2019, Cedar Rapids Police Department officers attempted to arrest McGhee on a probation violation warrant and found McGhee in a vehicle in Cedar Rapids. As the officers neared McGhee, he locked the vehicle’s door. The officers saw a firearm in McGhee’s right hand. An officer ordered McGhee to raise his hands, but McGhee lowered his right hand and, when he raised it, it was empty. Officers pulled McGhee from the vehicle and, where his right hand had been, located a loaded and stolen handgun.
At the time, McGhee was on probation in state court after he was convicted of possessing a loaded stolen firearm as a felon in November 2018. McGhee was arrested for carrying firearms illegally in June 2018 and February 2017, as well. McGhee also has prior arrests for possessing marijuana with intent to deliver, disorderly conduct, providing false identification information, and assault.
McGhee was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. McGhee was sentenced to 60 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
McGhee is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-54.
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Career Criminal Sentenced for Bank Robbery SpreeRead the Press Release
Kevin Turner was still on parole for his last bank robbery
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced that Kevin Delando Turner, 50, of Benton Harbor, was sentenced today to 180 months’ imprisonment and 3 years’ supervised release by U.S. District Judge Janet T. Neff. Turner pled guilty in February to robbing an Old National Bank branch in Kalamazoo with his nephew Draper Turner. Draper pled guilty, cooperated with the government, and was sentenced in November 2019 to 51 months’ imprisonment.
On March 25, 2019, Kevin recruited and drove Draper to the Old National Bank. On the drive to Kalamazoo, Kevin told Draper how to rob the bank. Kevin waited in his car outside the Old National Bank, while Draper went in, told the teller he had a gun, and obtained $3,150 in cash. A bystander saw Draper run from the bank to Kevin’s car, and gave the Kalamazoo Department of Public Safety a description of the vehicle. An off-duty police lieutenant spotted the car, and noted the license plate number before losing the robbers in traffic.
Police determined the car was registered to Kevin, who was still on parole for a 2009 bank robbery in Kalamazoo. Police found and arrested Kevin in Benton Harbor, in possession of several thousand dollars in cash. Kevin initially denied being near the bank, but when police told him a witness saw the robber getting in his car, Kevin fabricated a story about a carjacker abducting him at gunpoint.
Police separately found and arrested Draper, whose parole officer recognized him from bank surveillance footage. Draper confessed robbing the Old National Bank with his uncle Kevin, and told FBI agents Kevin had bragged about robbing two other banks in Michigan and two in Indiana. Using surveillance footage and cellular phone location techniques, FBI determined Kevin was responsible for four open robbery cases. When Kevin robbed the two other banks in Michigan, he told showed the tellers a device with wires, and led them to believe it was a bomb he would detonate if they did not comply. Kevin received a longer sentence because of his long history of crimes against people and property, his leadership role in the offense, and because he waited until shortly before trial to plead guilty.
Steven M. D’Antuono, Special Agent in Charge of the FBI in Michigan stated, "The sentences imposed on these two defendants reflect the serious nature of bank robberies. The FBI is proud of the role it played alongside our law enforcement partners to get two violent offenders off of the streets, making our community a safer place for all."
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Canadian National Sentenced to Federal Prison for Maritime Possession of MethamphetamineRead the Press Release
PORTLAND, Ore.—John Philip Stirling, 66, a Canadian citizen, was sentenced today to 40 months in federal prison and five years’ supervised release for possession with intent to distribute methamphetamine under the Maritime Drug Law Enforcement Act (MDLEA).
According to court documents, on April 9, 2019, while on a routine patrol, the U.S. Coast Guard Cutter Alert detected a sailing vessel traveling north, from Mexico to Canada, 225 nautical miles from Newport, Oregon in international waters. The vessel, named Mandalay, had a home port of Seattle, Washington. When Coast Guard personnel attempted to communicate with Stirling, he would only respond via VHF radio. Once Coast Guard personnel determined the Mandalay was a vessel within the jurisdiction of the U.S., they boarded and found Stirling to be the vessel’s sole occupant.
Stirling stated he did not have vessel documentation and refused to produce identification. Upon further questioning, Stirling’s speech began to deteriorate and he displayed signs of a possible drug overdose. Shortly before Coast Guard personnel boarded the vessel, Stirling consumed a large amount of what he believed to be pure fentanyl, but was later determined to be pentobarbital. Coast Guard personnel administered medical aid to Stirling and evacuated him by helicopter to Astoria, Oregon. He was later transported by ambulance to Adventist Health Portland for additional treatment.
The Mandalay was towed to port and later searched pursuant to a federal warrant. Investigators searched the vessel and discovered 28 jugs containing more than seven gallons of liquid methamphetamine each and a duffel bag containing several plastic-wrapped bricks of pentobarbital. Investigators later learned the drugs had been loaded onto the Mandalay from another vessel in the Sea of Cortez for delivery to Canada.
On January 13, 2020, Stirling pleaded guilty to one count of possession with intent to distribute methamphetamine under the MDLEA.
This case was investigated by the U.S. Coast Guard Investigative Service (CGIS) and Homeland Security Investigations (HSI) with assistance from U.S. Customs and Border Protection (CBP).
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.
California man admits to trafficking crime for meth found hidden in peanut butter, piñataRead the Press Release
GREAT FALLS – A California man admitted to a drug distribution charge today after investigators found almost two pounds of methamphetamine hidden in a peanut butter jar and a piñata that were bound for the Fort Peck Indian Reservation, U.S. Attorney Kurt Alme said.
Don Fred Baldwin, 47, of Merced, CA, pleaded guilty to distribution of meth. Baldwin faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release.
Chief U.S. District Judge Brian Morris presided and set sentencing for Sept. 17. Baldwin was detained.
The prosecution said in court documents that Baldwin mailed a package on Nov. 7, 2019 from California to Brockton, located on the Fort Peck Indian Reservation. Law enforcement officers intercepted the package, obtained a search warrant and found meth hidden inside a jar of peanut butter and a piñata. The amount of meth totaled about 776 grams, which is about 1.7 pounds and the equivalent of approximately 6,208 doses. When interviewed, Baldwin told law enforcement that he mailed the meth. Baldwin clarified later that he provided the meth to another person who mailed it to Montana.
Assistant U.S. Attorney Cassady Adams is prosecuting the case, which was investigated by the FBI, Fort Peck Tribal Criminal Investigators and the Merced, CA, Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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California Couple in College Admissions Case Agrees to Plead GuiltyRead the Press Release
BOSTON – Lori Loughlin and Mossimo Giannulli have agreed to plead guilty to conspiracy charges in connection with securing the fraudulent admission of their two children to the University of Southern California as purported athletic recruits.
Loughlin, 55, and Giannulli, 56, both of Los Angeles, Calif., will plead guilty before U.S. District Court Judge Nathaniel M. Gorton on a date to be specified by the Court. Loughlin will plead guilty to one count of conspiracy to commit wire and mail fraud, while Giannulli will plead guilty to one count of conspiracy to commit wire and mail fraud and honest services wire and mail fraud.
Under the terms of Loughlin’s plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of two months in prison, a $150,000 fine and two years of supervised release with 100 hours of community service. Under the terms of Giannulli’s plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of five months in prison, a $250,000 fine and two years of supervised release with 250 hours of community service.
Loughlin and Giannulli are the 23rd and 24th parents to plead guilty in the college admissions case.
“Under the plea agreements filed today, these defendants will serve prison terms reflecting their respective roles in a conspiracy to corrupt the college admissions process and which are consistent with prior sentences in this case. We will continue to pursue accountability for undermining the integrity of college admissions,” said United States Attorney Andrew E. Lelling.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Calexico City Officials Charged with CorruptionRead the Press Release
Assistant U. S. Attorney Nicholas Pilchak (619) 546-9709
NEWS RELEASE SUMMARY – May 21, 2020
EL CENTRO – Calexico City Councilman and Mayor Pro Tem David Romero, along with Bruno Suarez-Soto, a commissioner on the city’s Economic Development and Financial Advisory Commission, were charged in federal court today with accepting cash bribes in exchange for promises of official action by the city.
The defendants were arraigned today via video teleconference before U.S. Magistrate Judge Bernard G. Skomal. They were released on $10,000 personal appearance bonds secured by their own signatures. The next court date is July 2, 2020 at 10:30 a.m. before U.S. District Judge Cathy Ann Bencivengo.
According to a charging document, Romero and Soto accepted $35,000 in cash bribes from an undercover FBI agent who they believed represented investors seeking to open a cannabis dispensary in Calexico. In return, Romero and Soto “guaranteed” the rapid issuance of a city permit for the dispensary, and to revoke or hinder other applicants if necessary to ensure that the bribe payer’s application was successful. Moreover, both men admitted they had taken bribes from others in the past, according to the charging document. Referring to this $35,000 payment, it is alleged they told the undercover agent, “This isn’t our first rodeo.”
In addition to being a Councilman, Romero serves as Calexico’s Mayor Pro Tem, meaning he was set to become Mayor in July 2020. Soto was recently appointed to the City commission responsible for promoting business and community growth and coordinating with prospective developers to help them invest in the City of Calexico.
“Public officials must act with honesty and integrity when doing the public’s business,” said U.S. Attorney Robert Brewer. “If civic leaders won’t uphold these standards, we will. We allege that these defendants traded on their positions of trust, selling the integrity of government in exchange for thousands of dollars. We will vigorously enforce the law whenever a public official puts his own greed ahead of the interests of his constituents.”
“Public corruption remains the FBI's top criminal priority. As such, the FBI in San Diego and Imperial County has a robust public corruption program that is dedicated to uncovering criminal conduct of public officials,” said Acting FBI SAC Omer Meisel. “The investigation of Mr. Romero and Mr. Suarez-Soto serves as another example of the FBI's commitment toward accountability for those serving the public and holding positions of trust.”
The charges allege that during a December 19, 2019 meeting at a restaurant in Calexico with the undercover FBI agent, Romero and Soto agreed to fast-track the agent’s purported application for a cannabis dispensary permit and guaranteed its rapid issuance in exchange for a $35,000 bribe. The defendants also offered to delay permit applications by competitors, court records said.
The charging document further alleges that toward the conclusion of the December 19, 2019 meeting, when the undercover agent asked if Romero and Soto might later ask for more than the $35,000 payment, Romero assured him that they would not. “This is done. Set and sealed,” Romero allegedly said. Romero explained that he and Soto would require the money to be paid up front, however, because they had done similar work for other people, and those people had not paid the agreed-upon fee after the favors had been rendered. Soto later added, “This isn’t our first rodeo.” Romero and Soto agreed to accept payment of the $35,000 from the agent in two installments, however: half up front, and half “when it’s a for sure thing.”
According to court filings, at this meeting the undercover agent asked whether the payment of $35,000 would “get us in front of the line” of applicants. Soto answered, “Hell yeah.” Romero added that he “didn’t want to say it in front of everybody, but it will.”
On January 9, 2020, Romero and Soto attended a second meeting with the undercover agent at a restaurant in El Centro, California. During the meeting, according to court records, Romero reminded the undercover agent how difficult it was to work with the City of Calexico, and how fortunate it was that the agent was working with Romero. Soto later added that in return for the bribe, Romero would cut through “so much bullshit [red] tape that exists” with the City.
During a discussion of the approval process for the permit application referenced in court records, Romero explained that the people who have to approve the undercover agent’s license were “my best friends at the entire City Hall.” When asked if the “best friends” had already signed off on the plan, Romero responded “Fuck, yeah!” and laughed.
Court filings reveal that at the conclusion of the January 9, 2020 meeting, in the parking lot outside the restaurant, with Romero looking on, the undercover agent handed Soto $17,500 in cash and explained that he divided the first installment of the bribe into two envelopes: one with $8,800 and another with $8,700. The agent asked whether “we’re good,” and Romero responded, “Trust me” and added, “In my line of business, I can’t fuck up. Which means he [Soto] can’t fuck up.”
According to the charging documents, the defendants accepted the second installment, $17,500 in cash, during a third meeting on January 30 in a parking lot outside a restaurant in El Centro. Court documents further allege both men also admitted to creating a shell corporation to launder the proceeds of their bribery scheme.
The charging document also alleges that both men lied to the FBI when interviewed by agents at the conclusion of the January 30 meeting. According to court filings, Romero falsely denied being part of any agreement with the undercover agent, and denied that anyone had made any “guarantees” to the agent. Similarly, Soto falsely denied making any “guarantees” to the undercover agent and denied receiving any prior payments from the agent.
U.S. Attorney Brewer praised Assistant U.S. Attorney Nicholas Pilchak, DOJ Public Integrity Section trial attorney Joshua Rothstein and FBI agents for working hard to achieve justice in this matter.
The case against Romero and Suarez-Soto is a public corruption investigation being conducted by the FBI and the U.S. Attorney’s Office. Any member of the public who has information related to this or any other public corruption matter in Imperial County or San Diego is encouraged to provide information to the FBI’s email tip line at tips.fbi.gov or to contact their local FBI Field Office. In Imperial County, the FBI can be reached 24 hours a day at 858-320-1800 or 1-877-NO-BRIBE (662-7423).
DEFENDANTS Case Number 20cr1215
Calexico City Councilman David Romero Age: 36 Residence: Calexico, CA
Calexico City Commissioner Bruno Suarez-Soto Age: 28 Residence: Calexico, CA
SUMMARY OF CHARGES
Conspiracy to Commit Federal Program Bribery, in violation of Title 18, United States Code, Sections
371 and 666 (a) (1) (B)
Maximum Penalty: Five years in prison; $250,000 fine.
AGENCY
Federal Bureau of Investigation
Buffalo Woman Pleads Guilty to Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Maylin Santiago, 23, of Buffalo, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to conspiring to distribute 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Charles J. Volkert, Jr., who is handling the case, stated that beginning in November 2017 and continuing until April 2018, the defendant conspired with others to possess with the intent to distribute over 500 grams of cocaine. In January 2018, the Drug Enforcement Administration conducted a controlled purchase of cocaine from Santiago.
On at least two occasions in March 2018, the defendant conspired with others to obtain, or attempted to obtain, postal packages from Puerto Rico that contained kilograms of cocaine. Investigators seized over four kilograms of cocaine sent from Puerto Rico to be distributed in the Buffalo area.
Santiago was charged along with co-defendant Rosa Merced who was previously convicted and awaiting sentencing on June 3, 2020.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division; the New York State Police, under the direction of Major James Hall; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for August 26, 2020, at 9:00 a.m. before Judge Skretny.
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Browning man sentenced to prison for raping, sexually abusing two womenRead the Press Release
GREAT FALLS—A Browning man convicted by a jury of raping and sexually abusing two women on the Blackfeet Indian Reservation under the guise of offering each a ride home was sentenced today to 54 months in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
A jury in January found Alphonse Bird, 85, guilty of one count of aggravated sexual abuse and one count of sexual abuse.
Chief U.S. District Judge Brian Morris presided.
"American Indian women face far too much violence. The violence must stop, and offenders, regardless of their age, will be held accountable," U. S. Attorney Alme said.
During trial, the prosecution presented evidence that Bird sexually assaulted two women on separate occasions within two months in 2018 on the Blackfeet Indian Reservation. On Sept. 15, 2018, the first victim approached a Blackfeet Law Enforcement officer near the Town Pump in Browning and reported that Bird had just raped her. Bird had picked her up near the Blackfeet Care Center and she thought he was giving her a ride home. Instead, Bird drove toward East Glacier Park, parked the vehicle and raped her. The victim couldn’t get Bird to stop until she got sick. He dropped her off near Advanced Towing and witnesses helped her. The victim promptly reported the assault.
In the second assault, a witness called law enforcement on Nov. 4, 2018 to report an incident she had just observed south of Browning in which a vehicle was parked on the side of the road. The witness pulled up to the passenger side to see if the occupants needed assistance. Bird was in the driver’s seat and the victim was a passenger. The victim attempted to sit up but was unable to do so. Bird drove away. The witness tried to follow but could not keep up and called law enforcement. A law enforcement officer located the vehicle and when she approached, she saw Bird, who had his right arm in a sling and was putting a glove on his left hand. Bird said he was bringing his passenger home and was just turning around.
The victim told the officer that Bird had picked her up and she thought he was going to take her home. The victim was intoxicated and had trouble recounting what happened, but said Bird sexually assaulted her despite her telling him to stop. The victim said Bird kept telling her she was going to be okay.
DNA analysis linked Bird to evidence collected from both of the victims.
Assistant U.S. Attorney Kalah Paisley prosecuted the case, which was investigated by the FBI, the Bureau of Indian Affairs and Blackfeet Law Enforcement.
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Batavia Man Sentenced on Enticement ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Guillermo Torres-Acevedo, 23, of Batavia, NY, who was convicted of enticing a minor to travel to engage in criminal sexual activity, was sentenced to serve 84 months in prison and 10 years supervised release by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that on November 25, 2018, the defendant, then a 22 year old man, had sexual relations with Victim 1, a 14 year old girl. Torres-Acevedo was arrested the following day for, among other charges, rape in violation of New York Penal Law.
Following his arrest, the defendant persuaded Victim 1 to travel with him out of state to continue their relationship. On November 29, 2018, Torres-Acevedo picked up Victim 1 from school in Genesee County, NY, and drove her to Pennsylvania, where they had sexual intercourse. Under Pennsylvania law, that constituted the crime of statutory sexual assault.
The sentencing is the result of an investigation by the Genesee County Sheriff’s Office, under the direction of Sheriff William A. Sheron, Jr.; the New York State Police, under the direction of Major Eric Laughton; the Pennsylvania State Police, under the direction of Commissioner Lieutenant Colonel Robert Evanchick; and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.# # # #
Atlanta man charged for misrepresenting to his employer that he had tested positive for COVID-19Read the Press Release
ATLANTA – Santwon Antonio Davis has been charged with defrauding his employer by allegedly faking a positive COVID-19 medical excuse letter, causing the employer to stop business and sanitize the workplace. Davis has since admitted that he did not have COVID-19.
“The defendant caused unnecessary economic loss to his employer and distress to his coworkers and their families,” said U.S. Attorney Byung J. “BJay” Pak. “We will take quick action through the Georgia COVID-19 Task Force to put a stop to criminals preying on Georgia companies and the public with Coronavirus-related fraud schemes.”
“Scammers continue to take advantage of the COVID-19 pandemic through a variety of means,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We receive numerous complaints every day and this case is a reminder that we remain vigilant in detecting, investigating and prosecuting any wrongdoing related to the crisis.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The defendant, who was employed by a Fortune 500 company with a facility located in the Atlanta, Georgia area, falsely claimed to have contracted COVID-19 and submitted a falsified medical record to his employer. In concern for its employees and customers, the corporation closed its facility for cleaning and paid its employees during the shutdown. This caused a loss in excess of $100,000 to the corporation and the unnecessary quarantine of several of the defendant’s coworkers.
Santwon Antonio Davis, 34, of Morrow, Georgia, made his initial appearance before U.S. Magistrate Judge Justin S. Anand. Members of the public are reminded that the complaint only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorneys Russell Phillips and Sarah Klapman are prosecuting the case.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia, and the Executive Counsel for the Governor’s Office serve on the task force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at www.justice.gov/DisasterComplaintForm.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Arkansas Woman Held Without Bond After Being Charged with Aiding and Abetting the Attempted Murder of a Deputy US MarshalRead the Press Release
Oxford, Miss. – A United States Magistrate Judge has ordered that an Arkansas woman be held without bond following her arrest last Friday for aiding and abetting the attempted murder of a Deputy U.S. Marshal who was acting in the line of duty.
Xaveriana Cook, 23, appeared in U.S. Magistrate Court on Wednesday, May 20, 2020, for a preliminary and detention hearing on multiple charges stemming from a shoot-out that occurred on South Lamar Boulevard in Oxford on Friday, May 15, 2020, when U.S. Marshals attempted to arrest Cook’s boyfriend, Hunter Carlstrom, on an outstanding murder warrant out of Arkansas. The arrest warrant charged Carlstrom with the May 5, 2020, murder of James Sartorelli, a/k/a “Caveman,” who was killed with a gunshot wound to the head in his Smithville, Arkansas residence.
Testimony revealed that Carlstrom and Cook were together in Cook’s vehicle on Friday when members of the U.S. Marshal’s Gulf Coast Regional Fugitive Task Force conducted a traffic stop on the vehicle in an attempt to arrest Carlstrom on the outstanding murder warrant. During the lunch-hour traffic stop, Carlstrom shot a Deputy U.S. Marshal, who sustained severe internal injuries as a result of the gunshot wound and required emergency surgery. Carlstrom was shot by return fire from law enforcement and died on scene. Cook, who had been driving the vehicle, was taken into custody by law enforcement.
Cook is charged by criminal complaint with transportation of stolen firearms, possession of stolen firearms, and aiding and abetting the attempt to kill an officer of the United States while the officer was engaged in the performance of official duties. Evidence was presented at the hearing that Carlstrom told Cook of his plan to kill Sartorelli and rob him of drugs, guns and cash, and that he used Cook’s vehicle to travel to Sartorelli’s house and commit the murder. Upon returning, Carlstrom told Cook he killed Sartorelli, and Cook observed Carlstrom in possession of firearms, cash and drugs. Testimony established that law enforcement officers in Arkansas located the body of James Sartorelli on May 7, 2020, and an Arkansas County Circuit Court issued a warrant for the arrest of Hunter Carlstrom for that murder on May 11, 2020. However, by that time, Cook and Carlstrom had fled Arkansas, traveling in Cook’s car to Mississippi, where they stayed with acquaintances from May 7, 2020, until May 15, 2020.
An investigating agent testified at Cook’s detention hearing that Cook admitted Carlstrom had told her on multiple occasions that he would not go back to prison and that he would have a shoot-out with the cops if he and Cook were ever stopped by law enforcement. On May 15, 2020, after the attempt to arrest Carlstrom and the ensuing shoot-out, law enforcement officers searched the scene and found a stolen Glock, 9mm handgun. In addition, officers searched the residence where Carlstrom and Cook had been staying for the previous week, and located two firearms that had been stolen from James Sartorelli’s house.
After hearing approximately three hours of testimony on Wednesday afternoon, U.S. Magistrate Judge Roy Percy found that Cook presented a risk of flight and ordered that Cook be held in jail without a bond pending trial. The case is being prosecuted by AUSA Clyde McGee and AUSA Clay Dabbs.
The public is reminded that all charges are merely accusations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Arizona Man Sentenced to Eleven Years in Prison for Fentanyl Worth over $6 MillionRead the Press Release
LITTLE ROCK—An Arizona man was sentenced today to 132 months in federal prison for his involvement in a fentanyl conspiracy that took him through Russellville, Arkansas. Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced that Herbierto Felix Ruiz, 48, was sentenced for conspiracy to possess fentanyl with intent to distribute.
On September 28, 2017, Arkansas State Police conducted a traffic stop in Russellville when a silver Hyundai Santa Fe crossed the center line on Interstate 40. Ruiz was the front seat passenger, and his name was on the car’s rental agreement. Ruiz had rented the car two days earlier in California. When the driver of the car and Ruiz gave conflicting stories to the officer, the officer asked to search their vehicle, and Ruiz consented to the search.
The officer found six packages wrapped in duct tape and hidden in the vehicle’s spare tire. The spare tire was a 15-inch tire, but the vehicle required 17-inch tires. The packages turned out to be over 15 pounds of fentanyl, which had a street value of over $6 million.
In November 2017, a grand jury charged Ruiz with conspiracy to possess with intent to distribute fentanyl. Then, in February 2018, an auto salvage business contacted law enforcement to report they had located a suspicious package in a vehicle they had purchased at auction from a car rental company. The vehicle was the same Hyundai Santa Fe from Ruiz’ previous traffic stop, and it contained an additional five kilograms of fentanyl that had not been found in the initial search.
On April 3, 2018, a grand jury charged Ruiz, and others, in a Superseding Indictment to increase the amount of fentanyl involved in the offense. Ruiz pleaded guilty on October 10, 2019. Today, United States Chief District Court Judge D. Price Marshall, Jr., sentenced Ruiz to eleven years in prison, followed by five years of supervised release. There is no parole in the federal system. Chief District Court Judge Marshall stated at the sentencing hearing that part of the basis for his sentencing decision was due to the danger involved with fentanyl.
"Fentanyl is an incredibly dangerous drug, and our office remains focused on removing it from our streets,” stated U.S. Attorney Hiland. “Today’s lengthy sentence is an example of the continued pressure we will apply to drug traffickers, especially those who bring this deadly substance into our communities.”
Fentanyl is the greatest and most significant synthetic opioid threat to the United States, including here in Arkansas, where as little as two milligrams is a lethal dose. This conviction and lengthy sentence should send a message to all drug traffickers that DEA will continue to work with all of our law enforcement partners to aggressively pursue those who ruthlessly traffic fentanyl and other dangerous drugs,” said DEA Assistant Special Agent in Charge Justin King.
The U.S. Attorney’s Office has placed significant focus on fentanyl in the Eastern District of Arkansas, especially highlighted by three separate takedown operations in October 2019. Those operations resulted in criminal charges against 49 people and seizure of over 1,600 grams of fentanyl. A single dose of fentanyl can be as small as one-sixteenth of a gram.
The Ruiz investigation was conducted by the Drug Enforcement Administration, Arkansas State Police, and the Fifth Judicial Drug Task Force.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edar
Twitter:
@EDARNEWS
Alaska’s U.S. Attorney and U.S. Marshal Issue Statements in Support of Dept. of Public Safety’s Plan to Enhance 911 Services in Rural AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder and U.S. Marshal Rob Heun today issued the following statements in support of the Alaska Department of Public Safety’s (DPS) initiative to enhance 911 services in rural Alaska:
“The primary duty of Alaska’s law enforcement community is to protect all of us in the Great Land,” said U.S. Attorney Schroder. “In most urban areas of Alaska, if a 911 call is dropped, dispatchers will still have the caller’s location and can send help. Currently, the same cannot be said for rural Alaska; however, under this initiative, DPS will soon have location information in rural areas covered by cell phones. For callers off the road system, knowing their location plays a pivotal role in dispatching first responders.”
“The enhanced 911 services will not only save lives for those who live in rural communities, but also for Alaskans and visitors who take part in recreational activities off the road system,” said U.S. Attorney Schroder. “DPS’s initiative strengthens the Rural Alaska Anti-Violence Enforcement Network’s (RAAVEN) ongoing efforts to reduce violent crime and address public safety needs in rural Alaska. I support and commend Commissioner Amanda Price’s efforts to provide better public safety services to all Alaskans.”
“As active partners with the Alaska State Troopers in rural Alaska, the U.S. Marshals Service appreciates the enhanced 911 services. These services will play a major role in law enforcement, contribute to increased officer safety and the protection to all of Alaska’s citizens and visitors,” said U.S. Marshal Heun.
On May 13, 2020, DPS announced plans to enhance 911 communication services to improve law enforcement services to all Alaskans. The initiative will improve 911 services across 80 percent of Alaska.
Akron man indicted for possession with intent to distribute THC vape cartridges and illegal fireman possessionRead the Press Release
The U.S. Attorney’s Office for the Northern District of Ohio announced today that a federal grand jury in Cleveland returned a three-count indictment charging Justin Michl, age 23, of Akron with intent to distribute Tetrahydrocannabinol (THC), possession of firearms in furtherance of a federal drug trafficking offense and money laundering.
According to the criminal complaint filed in this matter, On July 12, 2019, federal agents executed a search warrant at the defendant’s residence in Akron and recovered over 3,500 THC vape cartridges. These cartridges contained a liquid that, according to the Drug Enforcement Administration (DEA), may contain extraordinarily high THC levels ranging from 40% to 80%. This form of marijuana can be up to four times stronger in THC content than high-grade marijuana, which normally measures around 20% THC levels.
In addition to the THC cartridges, agents recovered four firearms, ammunition, and $85,627 in United States currency. Agents also discovered that Michl purchased an all-terrain vehicle with drug trafficking proceeds in February of 2019.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
The investigation was conducted by the FDA – Office of Criminal Investigations in conjunction with the Ohio Attorney General’s Organized Crime Commission Major Crimes Task Force which consists of the Cuyahoga County Sheriff’s Department, Cuyahoga County Prosecutor’s Office, U.S. Food and Drug Administration, U.S. Postal Inspection Service and the Department of Homeland Security, Homeland Security Investigations. This case is being prosecuted by Assistant U.S. Attorney Aaron Howell.
20 May 2020
West Valley City, Midvale Receive Emergency DOJ Funding to Support Law Enforcement, First RespondersRead the Press Release
SALT LAKE CITY – Two Utah more cities are receiving U.S. Department of Justice funding to support a broad range of activities as they respond to the coronavirus. The funding is coming from DOJ’s Bureau of Justice Assistance through the Coronavirus Emergency Funding Program.
West Valley City will receive $333,508 and Midvale is getting $46,274. West Jordan and Murray received grants last week.
“The Department of Justice is providing communities with funding to use for critical public safety needs they have for police officers and medical personnel as they work on the front lines to keep us safe through this challenging crisis,” U.S. Attorney John W. Huber said today. “These aren’t one-size-fits all grants. Each city has flexibility to use these dollars to support the challenges they are facing in their communities.”
The Emergency Supplemental Funding Program allows states, local governments, and federally recognized tribal governments to apply for critical funds to use as they respond to the coronavirus. Those receiving grants have considerable latitude in the use of the funds. The grant funding can support things like law enforcement overtime, equipment, hiring, supplies such as gloves, masks, and sanitizer for police officers and medical personnel, training, travel expenses, and addressing the needs of inmates in state, local, and tribal prisons, jails, and detention centers.
Funding for other Utah cities and counties is pending. Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for this emergency supplemental funding.
West Plains School Employee Charged with Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – An employee of the West Plains, Missouri, R-7 School District was charged in federal court today with soliciting children to send him sexually explicit photos and videos through Snapchat and Instagram.
Cody Ashton Ary, 29, of West Plains, was charged in a criminal complaint filed in the U.S. District Court in Springfield, Missouri, with one count of producing child pornography. Ary is employed with the West Plains R-7 School District as a paraprofessional and commonly assists with special need students.
According to an affidavit filed in support of the federal criminal complaint, Instagram initiated a CyberTip with the National Center for Missing and Exploited Children on Dec. 3, 2019, after Ary allegedly uploaded a sexually explicit video of an 8-to-10-year-old boy to his account. Investigators found a total of 92 chat conversations between Ary and other Instagram users. According to the affidavit, Ary used the screen name “15anime_boy” and identified himself as a 15-year-old male to other users. He allegedly solicited sexually explicit videos and images from other users who identified to be minor males. Ary allegedly received dozens of images and videos of child pornography through his Instagram account. Ary asked the child victims to send him videos and images of them stripping, the affidavit says, in exchange for Ary providing Internet links to folders that contained child pornography.
Law enforcement officers executed a search warrant at Ary’s residence today, where he was arrested.
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 Ami Harshad Miller. It was investigated by the West Plains, Mo., Police Department, the Southwest Missouri Cyber Crime Task Force, and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Waterloo Man Sentenced to a Year in Prison After Escape from Halfway HouseRead the Press Release
A Waterloo man who escaped from a Waterloo halfway house and spent over two weeks on the lam was sentenced to a year in federal prison on May 19, 2020. Lonnel Porter, age 36, from Waterloo, Iowa, received the prison term after a bench trial and a January 16, 2020 verdict finding him guilty of escape from custody.
The evidence at trial and prior court proceedings showed that, in 2009, Porter was convicted in federal court of possessing a firearm as a felon after an incident wherein he displayed an assault-rifle during a neighborhood dispute. At that time, Porter had prior convictions for burglary, domestic assault causing injury, and false imprisonment. Porter was sentenced to nearly nine years in prison and three years of supervised release. In 2012, while an inmate in federal prison, Porter was sentenced to an additional two years of prison after assaulting a correctional officer and causing injury to the officer. When Porter was released from prison in 2019, he was required to spend time at a local halfway house, the Waterloo Residential Reentry Center (WRRC), with work-release privileges. On September 16, 2019, about six weeks after he arrived at the WRRC, Porter signed out for his job, left the WRRC, and never returned. When Porter’s probation officer called Porter on the telephone and instructed him to return to the WRRC, Porter refused to do so and would not reveal his location. On October 2, 2019, the United States Marshal’s Service arrested Porter, and Porter was returned to prison for 14 months for violating the terms of his supervised release.
Porter was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Porter was sentenced to 12 months and one day of imprisonment. This sentence is in addition to his prior 14 month term. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Porter is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-2069.
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U.S. Attorney Scott W. Brady Requests Public to Report Sexually Predatory Housing Practices Amid COVID-19 PandemicRead the Press Release
PITTSBURGH - U.S. Attorney Scott W. Brady is asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing to report that conduct to the Department of Justice.
The COVID-19 Pandemic has impacted the ability of many people to pay rent on time and has increased housing insecurity. The Department of Justice is investigating reports of housing providers trying to exploit the crisis to sexually harass tenants. Sexual harassment in housing is illegal, and the U.S. Attorney’s Office for the Western District of Pennsylvania stands ready to investigate such allegations and pursue enforcement actions where appropriate.
"While many landlords are responding to these circumstances with understanding and care, trying to work with their tenants to weather the current crisis, others are responding to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual misconduct," stated U.S. Attorney Brady. "Such behavior is despicable, illegal, and will not be tolerated. Tenants should never have to choose between housing and sexual harassment."
Launched in 2017, DOJ’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 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.
The Department of Justice enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act. Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department of Justice may be able to help.
U.S. Attorney Brady encourages anyone who has experienced sexual harassment by a landlord, or other person who has control over housing, resulting from the COVID-19 crisis, to contact the U.S. Attorney’s Office for the Western District of Pennsylvania by calling (412) 644-3500 or emailing [email protected].
U.S. Attorney J. Douglas Overbey Announces $36,437 Award to Address Covid-19 Pandemic in TennesseeRead the Press Release
Knoxville, Tenn. – U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee today announced that the City of Oak Ridge received $36,437 in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grant is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. Other jurisdictions can determine if they are eligible for funds and may apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.
“As this country continues to fight COVID-19, our office remains committed to deterring, investigating, and prosecuting those who seek to take advantage of the COVID-19 pandemic. This funding will help many of the communities struggling in these trying times and provide some much-needed relief to our district,” said U.S. Attorney Overbey.
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
The law gives jurisdictions considerable latitude using these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs.
Agencies eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
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U.S. Attorney Brady Announces $51K Grant to Address COVID-19 Pandemic in Penn HillsRead the Press Release
PITTSBURGH - U.S. Attorney Scott W. Brady today announced that the Municipality of Penn Hills, Pennsylvania, received $51,535 in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grant is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. In addition, the Pennsylvania Commission on Crime and Delinquency has been awarded $17.6 million in grants that can be distributed to eligible governmental agencies throughout Pennsylvania, including western Pennsylvania. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications, which are not due until May 29, 2020.
From the moment these grants became available, U.S. Attorney Brady has dedicated staff to ensure that all eligible agencies in western Pennsylvania have the opportunity to apply and receive funds promptly. Since then, the Office has worked with eligible applicants to assist them in the grant process.
"The men and women on the front line of this pandemic deserve our deepest appreciation for answering the call to serve regardless of the danger," U.S. Attorney Brady said. "I am hopeful this $51,535 from the Justice Department will help Penn Hills police officers in their public safety duties while also ensuring their own health and safety. I also encourage all of our local law enforcement agencies to apply for these critical grants."
"This funding is crucial to Penn Hills Police Department’s preparedness and response to corona virus," said Scott Andrejchak, Penn Hills Borough Manager. "Penn Hills is thankful to our partners at the U.S. Attorney’s office for working with us to secure these funds."
The public safety funds being made available through DOJ’s Coronavirus Emergency Supplemental Funding program can be used for the most pressing needs of our state and local partners, including new hiring and overtime pay, training, critical personal protective equipment and supplies, and the medical needs of prisoners.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Two “SCO” Gang Members Sentenced to PrisonRead the Press Release
PITTSBURGH, PA - Two Western Pennsylvania residents have been sentenced in federal court on convictions of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence of four years imprisonment, and six years supervised release, on Keenan Williams, age 22, formerly of Duquesne, PA; and the sentence of six years imprisonment and four years supervised release on Reginald Brown, age 29, formerly of East Pittsburgh, PA.
According to information presented to the Court, the FBI Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. Williams and Brown, and other individuals were identified as members and/or associates of a neighborhood based street gang, self-titled "SCO", which illegally distributed controlled substances in the Greater Pittsburgh Region.
In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019. Williams and Brown, along with 30 others were indicted in June of 2019 by a federal grand jury in three separate, but related, Indictments.
As to Williams, the Court was informed that intercepted communications confirmed that he served as a drug runner for members of the conspiracy, namely, his half-brother, Richard Coto-Wheat, distributing controlled substances in the North Versailles and Braddock neighborhoods.
As to Brown, the Court was informed that intercepted communications confirmed that he was conspiring with others to possess with intent to distribute and distribute cocaine base, commonly known as crack. Brown, who admitted that he was a member of SCO, also admitted to obtaining items used in processing cocaine into crack for McFadden, SCO’s leader. Moreover, law enforcement seized the following items from the kitchen of Brown’s residence: a Ruger 9mm pistol, with a loaded magazine and a chambered round, and $5,490.00 in United States currency as well as numerous other items indicative of drug-trafficking. As a part of the judgment in this case, Brown was required to forfeit these items to the government.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the multi-agency team, which was led by the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Moore. Partners in this investigation included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies included the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Two Mint Hill Residents Plead Guilty to Federal Charges for Stealing More Than $400,000 from an Elderly, Dementia-Afflicted VictimRead the Press Release
CHARLOTTE, N.C. – Gerald Maxwell Harrison, 53, and Elizabeth Robin Williams, 55, both of Mint Hill, N.C., have pleaded guilty to federal charges for conspiring with each other and other individuals to steal more than $400,000 from an elderly victim who suffered from dementia, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Tommy D. Coke, Inspector in Charge of the of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, John A Strong, Special Agent in Charge for the FBI in North Carolina, and Chief Tim W. Ledford of the Mint Hill Police Department join U.S. Attorney Murray in making today’s announcement.
According to Harrison and Williams’ plea agreements, court documents filed in the case, and court proceedings, from January 2015 through September 2019, Harrison, Williams, and their co-conspirator, Donna Graves, engaged in a scheme to defraud a victim identified in court documents as “K.T.” The victim was an elderly widow who lived alone and suffered from dementia and other physical and mental challenges.
According to court records, beginning in February 2014, Graves and Williams provided housekeeping services for the victim through a business owned and operated by Graves. Court records show that Harrison, Williams, and Graves isolated the victim from her friends and family, and induced the victim to give them power and control over her financial and personal affairs. Once they gained access and control, Williams, Harrison, and Graves engaged in numerous illegal and unauthorized financial transactions that substantially depleted the victim’s money and property. Specifically, the co-conspirators emptied the victim’s bank accounts and used the money to pay for personal expenses, they fraudulently “maxed out” at least one credit card in the victim’s name, they fraudulently transferred or attempted to transfer the victim’s assets to themselves, they pawned the victim’s jewelry, and they stole the victim’s federal benefits. Additionally, Williams unlawfully used the victim’s money to set up other businesses in her name, including a business selling handbags online and a business selling weight loss-related services. As a result of the fraudulent scheme, the co-conspirators defrauded the victim of more than $400,000.
Harrison pleaded guilty today to wire fraud conspiracy, interstate transportation of stolen property, and money laundering conspiracy. His co-defendant, Williams, pleaded guilty to the same charges on May 14, 2020. The wire fraud conspiracy charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The interstate transportation of stolen property charge carries a maximum prison term of 10 years and a $250,000 fine. The statutory maximum penalty for the money laundering conspiracy charge is 20 years in prison and a $500,000 fine.
The charges in the indictment for the alleged conduct of the third co-defendant, Donna Gravers, are still pending and they are considered allegations. The defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray commended the FBI, USPIS, and the Mint Hill Police Department for their investigation of this case.
Assistant United States Attorneys Kenneth M. Smith and Caryn D. Finley, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: /usao-wdnc/elder-justice-initiative
Tulsa Man Faces Child Pornography ChargesRead the Press Release
A Tulsa man made an initial appearance today in federal court for child pornography charges stemming from a Carter County Sheriff’s Office investigation, announced U.S. Attorney Trent Shores.
Kevin Edward Swarthout, 47, is charged with possession of child pornography and distribution of child pornography.
“There are no more serious criminal allegations than those involving the sexual exploitation of children. The possession and distribution of child pornography is not only criminal, it is abhorrent,” said U.S. Attorney Trent Shores. “This investigation is a reminder that even during these uncertain times, state, local, county, and federal law enforcement officials are working to protect our children from child predators.”
On Dec. 25, 2019, the Carter County Sheriff’s Department conducted an online investigation through a file sharing network. They received 21 files of child pornography from a specific IP address during the course of their investigation. On Feb. 18, 2020, officers received the subscriber’s information for the IP address. The subscriber was located at a physical address in Tulsa.
On May 12, 2020, the Tulsa Police Department Cyber Crimes Unit, Oklahoma State Bureau of Investigation, and Homeland Security Investigations executed a search warrant of the premises. Swarthout was present during the search. Detectives and agents located multiple digital devices allegedly belonging to Swarthout, including a Samsung tablet and SD cards. According to the Criminal Complaint, investigators discovered 100 images and videos of child pornography on the tablet, many depicting adults engaging in sexual intercourse with prepubescent children. They also found an additional 124 images of child pornography on a micro SD card. Investigators are continuing to search other SD cards discovered.
The National Center for Missing and Exploited Children will analyze the images found by investigators in order to identify known and unknown child sexual assault victims.
The Complaint also alleges that during the search, Swarthout stated that he lived at the residence, paid half the utilities including the cable bill, and had previous convictions for child pornography. A Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days of the defendant’s initial appearance in federal court. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt.
The Carter County Sheriff’s Department, Tulsa Police Department, Oklahoma State Bureau of Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations are the investigative agencies. Assistant U.S. Attorney Christopher J. Nassar is prosecuting the case.
Every day, law enforcement and U.S. Attorneys’ Offices across our nation dedicate themselves to finding justice for missing and exploited children. On May 25, our country recognizes National Missing Children’s Day. President Ronald Reagan proclaimed May 25, 1983, the first National Missing Children’s Day in memory of 6-year-old Etan Patz, who disappeared while walking to his bus stop in lower Manhattan on May 25, 1979. National Missing Children’s Day honors his memory as well as those children still missing. Etan’s killer was convicted in February 2017 for the 1979 murder, but the case remains active with the National Center for Missing & Exploited Children because his body was never found.
Toledo couple indicted for fraudulent medical care schemeRead the Press Release
A federal grand jury in Toledo, Ohio returned a four-count indictment today charging Sherry-Ann Jenkins, age 55, and Dr. Oliver H. Jenkins, age 57, both formerly of Ottawa Hills, Ohio, on one count each of conspiracy, mail fraud, wire fraud, and health care fraud in connection with their development and operation of the Toledo Clinic Cognitive Center from approximately 2013 through 2016.
According to the indictment filed for this case, from November 2013 to March 2016, Dr. Sherry-Ann Jenkins and Dr. Oliver Jenkins operated a business known as the Toledo Clinic Cognitive Center to diagnose and treat patients with cognitive disorders, particularly those suspected of suffering from dementia and Alzheimer ’s disease. The Center would later become a formal part of the Toledo Clinic. Dr. Oliver Jenkins was to serve as the Cognitive Center’s Medical Director, and Dr. Sherry-Ann Jenkins would serve as the Center’s Director, responsible for overseeing the day-to-day operations. Dr. Sherry-Ann Jenkins had no clinical education, training, or certification. Defendant Sherry-Ann Jenkins had no medical background, affiliation, or licenses to provide medical care of any type.
Immediately following the opening of the Cognitive Center in 2014, Dr. Sherry-Ann Jenkins began performing as a fully qualified and licensed physician or psychologist. She began assessing, diagnosing, and treating patients for perceived cognitive disorders. She would often order PET scans, which she was unqualified to do, for her patients, and then used the scan results to diagnose a patient with a cognitive disorder. She would then bill these patients for her time as a physician using Dr. Oliver Jenkins National Provider Identifier (NPI) number. Dr. Oliver Jenkins never saw these patients for cognitive care.
The defendants never disclosed that Dr. Sherry-Ann Jenkins was neither trained nor licensed to provide any type of medical care or that Dr. Oliver Jenkins, who was licensed to provide medical care, was rarely present.
Dr. Sherry-Ann Jenkins billed patients and federal health care benefits programs, Medicare and Medicaid, for services for which she was not eligible to bill, were unnecessary, or never performed, and made it appear that Dr. Oliver Jenkins was the rendering provider.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, each defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation in Toledo, Ohio, the United States Department of Health and Human Services, Office of Inspector General in Cleveland, Ohio, the Ohio Attorney General’s Medicaid Fraud Control Unit, and the Ohio State Medical Board. The case is being prosecuted by Assistant U.S. Attorneys Gene Crawford and Brian McDonough.
Three Deer Hunters Charged with Lacey Act Violations on Fort RileyRead the Press Release
TOPEKA, KAN. – Three men are charged in federal court on Fort Riley with illegally hunting whitetail deer in off-limit areas located on Fort Riley where explosives are discharged during training exercises, U.S. Attorney Stephen McAllister said.
The misdemeanor charges allege the men violated the federal Lacey Act while hunting white-tail deer on the grounds of the Army base over the past few years. An investigator’s affidavit alleges the hunters disregarded the posted “off-limits” area, entering before daylight and leaving after dark.
Charged in the case are:
Gregory J. Frikken, 55, Wamego, Kan., one count of criminal trespass, two counts of conspiracy to commit criminal trespass, four counts of Lacey Act violations, one count of conspiracy to commit Lacey Act violations.
James C. Nunley, 32, Wamego, Kan., five counts of Lacey Act violations, one count of criminal trespass and one count of conspiracy to commit criminal trespass.
Michael J. Smith, 55, Watertown, N.Y., one count of criminal trespass, one count of conspiracy to commit criminal trespass, three counts of Lacey Act violations, one count of conspiracy to violate the Lacey Act.
Investigators recovered evidence including deer mounts, antlers, phone data and equipment allegedly used to harvest eight whitetail deer, three of which are considered trophy class.
If convicted, the defendants could face up to one year in jail, maximum $10,000 fine and a mandatory $25 special assessment fee for each Lacey Act Violation which also could include, civil forfeiture and a loss of their federal hunting privileges.
Investigating agencies included the Directorate of Emergency Services, Fort Riley Conservation Law Enforcement Officers, the Kansas Department of Wildlife, Parks and Tourism and the New York State Environmental Conservation Office. Special Assistant U.S. Attorney Robin A. Graham is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
St. Louis Woman Sentenced to Two Years' Imprisonment for Identity Theft and Credit Card TheftRead the Press Release
St. Louis, MO – Laronda Louis, 32, of St. Louis, Missouri, was sentenced to a mandatory term of twenty-fourth months in prison and 1 year of supervised release in prison for aggravated identity theft in connection with credit card theft. Louis appeared in federal court today before U.S. District Judge Henry Autrey.
According to court documents, Louis and her co-defendant, Deandre Dugger, worked together to steal credit cards from staff at local boutiques and retail stores. Louis would distract the boutique staff as Dugger stole personal credit cards from staff members. Louis and Dugger then used the stolen credit cards to make purchases at various area stores, all without the knowledge of the victims. Louis was ordered to pay $35,865.98 in restitution for the losses she and Dugger caused through their theft.
The case was investigated by the Secret Service, and Assistant U.S. Attorney Gwendolyn Carroll handled the case for the U.S. Attorney’s Office.
St. Louis Man Sentenced for Felon in Possession of a FirearmRead the Press Release
St. Louis, MO –Carlos O’Connor, 22, St. Louis, Missouri, was sentenced to 26 months in prison for being a felon in possession of a firearm. O’Connor appeared today before U.S. District Judge Henry E. Autrey.
According to the plea agreement, on June 20, 2019, O’Connor was a passenger in a speeding Mustang. An officer with the Maryland Height Police Department observed O’Connor throw a firearm from the vehicle. After the officer conducted a traffic stop, two firearms were located in the rear seat of the Mustang, a 9mm Taurus pistol and a .22 caliber Beretta pistol.
Officers recovered the gun that O’Conner was seen throwing out the window, a stolen Colt .32 pistol. O’Conner admitted to possession of the stolen Colt .32 pistol.
This case was investigated by the Maryland Heights Police Department and the Drug Enforcement Administration.
Springfield Man Pleads Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man pleaded guilty in federal court today to his role in a conspiracy that distributed at least 15 kilograms of methamphetamine in a three-county area.
Jordan H. Williamson, 31, pleaded guilty before U.S. District Judge M. Douglas Harpool to participating in a conspiracy to distribute methamphetamine.
By pleading guilty today, Williams admitted that he participated in a conspiracy to distribute methamphetamine in Cass, Greene, and Miller counties from May 14, 2017, to June 20, 2018. Williamson received methamphetamine to distribute from co-conspirator Christina E. Gauger, 39, of Springfield.
According to today’s plea agreement, Gauger was obtaining at least one pound of methamphetamine for distribution every week of the conspiracy. Investigators seized approximately 2.5 kilograms of methamphetamine during the investigation.
Williamson is the fourth defendant to plead guilty in this case. Gauger and Robin L. Self, 37, of Springfield, have pleaded guilty and await sentencing. Jacob B. Piatchek, 26, of Springfield, pleaded guilty and was sentenced to four years in federal prison without parole.
Under federal statutes, Williamson is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Cass County, Mo., Sheriff’s Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Somerset Man Sentenced to 128 Months for Drug TraffickingRead the Press Release
LONDON, Ky.- A Somerset, Kentucky, man, Tommy Vaughn, 42, was sentenced in federal court on Tuesday to 128 months in prison, by U.S. District Judge Robert Wier, for conspiring to distribute five grams or more of methamphetamine and heroin.
According to Vaughn’s plea agreement, he admitted that beginning in October 2018 through February 2019, Vaughn conspired to others to distribute five grams or more of methamphetamine and heroin that he obtained from a source of supply in Richmond, Kentucky. Vaughn was previously convicted of Trafficking in a Controlled Substance- First Degree in Kentucky state court in 2006. .
Under federal law, Vaughn must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 8 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Special Agent in Charge, FBI Louisville Field Office; and Sheriff Greg Speck, Pulaski County Sheriff’s Department, jointly made the announcement.
The investigation was directed by the FBI and Pulaski County Sheriff’s Department. The United States was represented by Assistant U.S. Attorney Jenna Reed.
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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Scottish Man Pleads Guilty to Obstruction of JusticeRead the Press Release
BOSTON – A Scottish man who was previously employed by Global Premier Soccer LLC (GPS), a youth soccer organization, pleaded guilty today in federal court in Boston to obstructing justice.
Gavin MacPhee, 34, pleaded guilty to one count of destruction, alteration, or falsification of records in a federal investigation. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Sept. 21, 2020.
MacPhee used his access to GPS’s information technology platform to delete an email account and other files related to an ongoing criminal investigation. A search at GPS’s corporate headquarters was executed in October 2019. Thereafter, with full knowledge of the federal investigation and the relevance of those materials, MacPhee deleted at least one email account for an individual who had since left the company, and with whom he had a close relationship.
The charging statute provides for a sentence of 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation, New York Regional Office; and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security Service, Boston Field Office made the announcement today. Valuable assistance was also provided by the United States Citizenship and Immigration Services, Fraud Detection and National Security Unit. HSI’s Document and Benefit Fraud Task Force, a specialized investigative group comprised of various local, state and federal agencies, conducted this investigation. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities and Financial Fraud Unit, and Assistant U.S. Attorney Mackenzie Queenin of Lelling’s Cybercrime Unit are prosecuting the case.
San Diego, California Woman Sentenced to 7 Months for Possession of Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Marilyn Murillo, age 24, of San Diego, California was sentenced to 7 months’ imprisonment, and 2 years of supervised release for Possession Of Counterfeit Obligation Of The United States, in violation of Title 18, United States Code, Section 474(a). The charges arose from an investigation by the United States Secret Service and the Oklahoma Highway Patrol.
The Information alleged that on April 19, 2019, in the Eastern District of Oklahoma, the Defendant knowingly had in her possession and custody, with intent to sell or otherwise use, approximately seventeen falsely made and counterfeited one-hundred-dollar Federal Reserve Notes, Series 2009, Serial No. JK74046183A, made after the similitude of obligations issued under the authority of the United States.
United States Brian J. Kuester said, “The Oklahoma Highway Patrol and the United States Secret Service prevented thousands in counterfeit currency from entering the stream of commerce. The defendant was brought to justice and countless would-be victims were protected from loss that could have resulted if the counterfeit had not been intercepted.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Rob Wallace represented the United States at the sentencing hearing.
Residence searched; Warwick Man Arrested on Child Pornography ChargesRead the Press Release
PROVIDENCE – FBI agents, members of the FBI Boston Division’s Human Trafficking Child Exploitation Task Force, and members of local and state law enforcement today executed a federal court authorized search of a Warwick residence, culminating in the arrest of a Warwick man on child exploitation charges.
James Diggins, 47, made an initial appearance Wednesday afternoon before U.S. District Court Magistrate Judge Patricia A. Sullivan on a federal criminal complaint charging him with receiving and distributing child pornography and possession of child pornography, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
According to court documents, it is alleged that an undercover FBI Task Force Officer in Green Bay, Wisconsin, posing in an undercover capacity as a 40-year old female from Wisconsin, entered multiple online public groups which appeared to have been created for individuals interested in child sexual abuse material. It is alleged that Diggins was a member of one of those groups when multiple videos and images containing child sexual exploitation materials were shared, at one point commenting on the recycling of videos he shared with the group.
It is also alleged in court documents that during a private online chat with the undercover law enforcement officer, Diggins sent the officer videos depicting child exploitation and a live photo of himself.
During a search of Diggins' residence today, an FBI agent seized an electronic device allegedly belonging to Diggins which was found to contain images and videos of child pornography.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Diggins was released on unsecured bond to home incarceration and electronic monitoring following his appearance in U.S. District Court in Providence.
The case is being prosecuted by Assistant U.S. Attorney John J. McAdams.
United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta thank agents from the Milwaukee Division of the FBI, the Winnebago County Sherriff’s Office, U.S. Marshals Service in Providence, the Warwick, Cranston, Providence, Central Falls, Pawtucket and Woonsocket, Rhode Island Police Departments, and Rhode Island State Police for their assistance.
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Previously Convicted Felon from Newark who Shot Another Individual admits to Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man who is a previously convicted felon admitted today to possessing a firearm and ammunition in connection with an incident in which he shot another individual, U.S. Attorney Craig Carpenito announced.
Andre Shoulars, 27, of Newark, pleaded guilty by teleconference before U.S. District Judge Esther Salas to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
On Nov. 4, 2018, at approximately 2:30 p.m., the victim was in the area of 340 Hawthorne Avenue in Newark, speaking with another individual. Shoulars approached the victim, pulled out a semiautomatic handgun, and began firing several shots at the victim. Although the victim was able to run away as Shoulars fired the handgun, the victim was hit in the foot with one .40 caliber bullet fired by Shoulars. The victim was treated at a hospital for the bullet wound.
Newark police officers responded to the scene of the shooting and recovered five .40 caliber shell casings from the street. Officers also recovered videotapes from several surveillance cameras which were stationed in the area of the shooting. These videotapes showed Shoulars walking around in the area just before the shooting, and also showed Shoulars shooting at the victim and then running away.
The charge to which Shoulars pleaded guilty carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Sept. 21, 2020.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
U.S. Attorney Carpenito credited the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos Jr., and the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Premier Medical Associates Agree to Pay $750,000 to Resolve Claims of False BillingRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces today that Premier Medical Associates (PMA), a medical practice located in The Villages, Florida, has agreed to pay $750,000 to resolve allegations that it violated the False Claims Act. As part of the settlement, the United States contends that it has certain civil claims against PMA related to PMA’s billing of federal healthcare programs for services that were not medically necessary and reasonable.
Specifically, the government alleges that PMA knowingly billed for higher and more expensive levels of medical services than were actually performed and also billed for certain claims using “modifier 25,” indicating that a separate evaluation and management service was performed, even when there was no such separate service.
“This settlement reflects our continuing efforts to protect patients and taxpayers by ensuring that the care provided to beneficiaries of government-funded healthcare programs is dictated by patient needs, not a provider’s financial gain,” said U.S. Attorney Chapa Lopez. “We will continue to hold health care providers accountable when they misrepresent the services billed to our federal healthcare programs and their patients.”
The resolution 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 Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the U.S. Department of Health and Human Services – Office of Inspector General. It was handled by Assistant United States Attorney Sean Keefe.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Pennington Gap Man Sentenced for Role in Drug ConspiracyRead the Press Release
ABINGDON, VIRGINIA. – Travis Ryan Skaggs, a Pennington Gap, Va. man who participated in a conspiracy with 20 others to distribute methamphetamine in Wise and Lee counties in Southwest Virginia, was sentenced on Wednesday in U.S. District Court in Abingdon to 180 months in federal prison on federal drug charges, United States Attorney Thomas T. Cullen announced.
Travis Ryan Skaggs, 31, previously pleaded guilty to one count of conspiring to distribute and possess with the intent to distribute 500 grams or more of methamphetamine, and one count of possession with the intent to distribute and distributing methamphetamine.
According to court documents, Skaggs was one of 21 defendants charged in a May 29, 2019 indictment alleging a conspiracy to distribute methamphetamine throughout Wise and Lee counties in Southwest Virginia. Skaggs’s role in the conspiracy was purchasing significant quantities of methamphetamine from higher-ranking members of the conspiracy and then distributing it downstream. Skaggs also was found to be in possession of a distribution quantity of methamphetamine while serving jail time at Southwest Virginia Regional Jail.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Southwest Virginia Drug Task Force, which is comprised of the Scott County Sheriff’s Office, Lee County Sheriff’s Office, Wise County Sheriff’s Office, Dickenson County Sheriff’s Office, Norton Police Department, Big Stone Gap Police Department, and the Virginia State Police. Assistant United States Attorneys Lena Busscher, Jonathan Jones, and Anthony P. Giorno prosecuted the case for the United States.
Newton County Man Pleads Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Stella, Missouri, man pleaded guilty in federal court today to his role in a conspiracy to distribute methamphetamine.
Nathen D. Libertus, 30, pleaded guilty before U.S. District Judge M. Douglas Harpool to participating in a conspiracy to distribute methamphetamine in Newton County and Barry County, Missouri, from April 30, 2017, to Jan. 20, 2019.
A McDonald County, Missouri, sheriff’s deputy was passed by a vehicle on West 76 Highway on Nov 10, 2017. The black Cadillac CTS appeared to have something dragging off the back of the vehicle, causing sparks on the roadway. As the deputy attempted to get behind the vehicle, it sped off and nearly spun out. The deputy initiated his emergency lights and the vehicle, which was being driven by a woman (not identified in court documents) with arrest warrants, was stopped. The deputy searched the vehicle and found a plastic bag that contained approximately 332.74 grams of methamphetamine and a total of $6,952 in cash. Inside the bag with the methamphetamine and cash was a wallet with Libertus’s driver’s license.
On March 29, 2018, a sergeant with the Newton County Sheriff’s Department responded to an address in reference to a suspicious vehicle. Once he got there, he saw a grey/silver colored Chevrolet Camaro with Oklahoma plates in the driveway. He pulled in behind the vehicle and approached, knocking on the window and the roof to get Libertus, the driver, to exit. Libertus refused to do so and instead started the vehicle and attempted to flee by driving through the yard. The vehicle got stuck on some shrubbery, a fence, and a cinderblock, and Libertus was unable to go any farther. Libertus bailed out of the vehicle and ran west through the woods with officers in pursuit. After a quarter-mile foot chase, Libertus came to a stop but had to be tased before he could be taken into custody. Officers searched Libertus and found approximately $4,430 in his pants pockets. Officers found another $1,591 in the vehicle, along with a scale that tested positive for methamphetamine, a glass bong, two cell phones, and other drug paraphernalia.
On April 9, 2018, investigators saw Libertus and the woman from the Nov. 10, 2017, arrest arrive together in a Chrysler 300 at a Newton County residence where they were about to execute a search warrant. The Chrysler pulled into the driveway, maneuvered around several parked vehicles, and continued about 100 yards into a wooded area immediately south of the residence. Libertus and two others attempted to conceal the Chrysler 300, which has been reported stolen, with tarps. When officers arrived, Libertus ran into the wooded area. As a Newton County detective arrived, he saw Libertus spring from the east side of the street and start running down the street. The detective drove toward him. Libertus then tried to cut back onto the property, however, there was a steep hillside and he was unable to make it up the hill. He turned around and ran across the street and into the driveway. He tried to shut the cattle gate so the detective couldn’t follow him in his vehicle, but was unable to, then attempted to run again. He tripped on some shrubbery, got up, tried to run, and then tripped on some more shrubbery and fell down again. The detective was then able to take him into custody. Libertus had $1,240 in his wallet and a key to the Chrysler 300 in his pocket.
The detective found a hollowed out railroad tie near the vehicle. Inside was a camouflage box that contained a Ziploc bag of approximately 396 grams of methamphetamine, a used methamphetamine pipe, several distribution bags with methamphetamine residue in them, a bag of suspected marijuana, several bags of suspected synthetic marijuana, and a digital scale with suspected methamphetamine residue. Another detective found a hollowed-out log nearby that contained a black box with approximately two grams of methamphetamine.
On Sept. 4, 2018, a man in Newton County called emergency services after finding Libertus passed out behind the wheel in the middle of the roadway. A Newton County deputy attempted to wake Libertus several times; he finally started awake and said “I don’t have any money.” Libertus denied consent to search the vehicle, but one of the deputies saw a green and yellow bong between the driver’s seat and the passenger’s front seat. A detective went to seize the bong and noticed a black metal combination safe. The detective picked up the safe and it fell open, revealing numerous jewelry bags commonly used to package drugs as well as bags containing methamphetamine residue, gel caps, a set of digital scales with methamphetamine residue on them, and a bag containing a distributive amount of methamphetamine. Libertus had approximately $1,245 in his pocket.
Under federal statutes, Libertus is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the FBI, the Ozarks Drug Enforcement Team, and the Newton County, Mo., Sheriff’s Department.
New York Man Indicted on Transmitting a Threat in Interstate Commerce to N.C. Judicial BranchRead the Press Release
RALEIGH, N.C. – A federal grand jury returned an indictment charging a man from Warren County, New York, with transmitting threatening communications in interstate commerce.
According to the Indictment, Frederick Eli Knapp, age 51, transmitted from New York to North Carolina communications via Facebook and e-mail to the North Carolina Judicial Branch and employees with the Administrative Office of the Courts. As alleged in the Indictment, Knapp stated that he would kill judges, court employees, and people in courthouses.
If convicted, Knapp faces a maximum imprisonment term of 5 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation and the Marshal’s Office of the Supreme Court of North Carolina are investigating the case.
A copy of this press release is located on our website.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
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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.
New Jersey Man Charged with Federal Program TheftRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 19, 2020, Eliseo Sierra, age 43, of New Jersey, was charged in a criminal information with embezzling over $34,000 from Lincoln Charter School in York, Pennsylvania.
According to United States Attorney David J. Freed, Sierra committed the crime in May 2014, while employed at Lincoln Charter School as a school operations manager. During that time, the school received grants funded by the U.S Department of Education.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
Criminal informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is imprisonment for ten years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Montgomery Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Montgomery, Alabama – On Wednesday, May 20, 2020, Charles Bennett Salter III, a 38-year-old resident of Montgomery, Alabama, pleaded guilty to possession of child pornography, announced United States Attorney Louis V. Franklin, Sr.
According to court records, in February 2018, an agent from the Alabama Law Enforcement Agency (ALEA) discovered online activity that caused him to suspect Salter was using a file sharing program to obtain images and videos containing child pornography. On March 15, 2018, law enforcement executed a search warrant on his residence in Montgomery and seized multiple electronic devices. When agents analyzed the devices, they found more than 3,000 images and 86 videos of child porn. The images were also examined by the National Center for Missing and Exploited Children (NCMEC), which identified more than 1500 images with known victims. Law enforcement is not aware of any victims in the local area.
During his detention hearing in December, more details from the search of Salter’s residence surfaced. In addition to the illegal images and videos discovered on his electronic devices, agents found numerous female dolls of various sizes, children’s underpants, and white duct tape in his bedroom. Investigators also found over 400 additional images of children on Salter’s cell phone. These images were not pornographic, but were of clothed minors taken at various public places, such as stores and restaurants. The photos appeared to have been taken without the minors’ knowledge.
Salter’s sentencing hearing will be scheduled in the next few months and he is facing up to 20 years in prison and a fine up to $250,000.00. He will also be subject to a period of supervised release from five years to life.
“Protecting our children is one of law enforcement’s most important responsibilities,” stated U.S. Attorney Franklin. “Those who possess and share child pornography are predators who prey on children and rob them of their innocence. While we cannot fully restore what is lost, we can make sure that justice is served upon those who abuse children. Salter’s crimes are disturbing, and I am grateful that we could work together with our law enforcement partners to stop him before he could inflict more harm.”
This case was investigated by the Alabama Law Enforcement Agency (ALEA), with assistance from the Montgomery Police Department, the Prattville Police Department, the Tallassee Police Department, and the United States Marshals Service. Assistant United States Attorneys Russell Duraski and Hollie Reed are prosecuting the case.
Monroeville Man Charged with Possessing MethamphetamineRead the Press Release
PITTSBURGH – A resident of Monroeville, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of possession with intent to distribute 50 grams or more of methamphetamine, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on May 20, named Boris Goldshtein, 53, as the sole defendant.
According to the Indictment, on or about February 27, 2020, Goldshtein unlawfully possessed with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
For Goldshtein’s offense, the law provides for a maximum total sentence of 40 years imprisonment, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service, Pittsburgh Bureau of Police, Pennsylvania Attorney General’s Office, and Monroeville Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Monmouth County Man admits Role in Multi-State Patient Brokering and Bribery SchemeRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted participating in a conspiracy to defraud health insurance companies through a multi-state patient brokering scheme in which he bribed drug-addicted individuals to enroll in drug rehabilitation in exchange for referral fees from the rehabilitation centers, U.S. Attorney Craig Carpenito announced.
Peter J. Costas, 26, of Red Bank, New Jersey, pleaded guilty by teleconference before U.S. District Judge Peter G. Sheridan to an information charging him with one count of conspiracy to commit health care fraud.
According to documents filed in the case and statements made in court:
Costas helped orchestrate a scheme in New Jersey, California, and other states that involved bribing individuals addicted to heroin and other drugs to enter into drug rehabilitation centers so Costas and his conspirators could generate referral fees from those facilities.
Costas worked with several marketing companies to carry out the scheme, but one marketing company in California run by Costas’s conspirators was pivotal. The marketing company maintained contractual relationships with drug treatment facilities around the country. Costas was engaged by the marketing company to recruit potential patients, who were addicted to heroin or other drugs and who had robust private health insurance, from New Jersey and other states.
To convince drug-addicted individuals to travel to and enroll in rehabilitation when they otherwise would not have, Costas offered to bribe them – often as much as several thousand dollars. Once they agreed to enroll in drug rehabilitation in exchange for the offered bribe, Costas and the owners of the marketing company would arrange and pay for cross-country travel to the drug treatment centers in California and other states. Costas would stay in touch with the New Jersey patients at the facilities and specifically instruct them to stay at the facilities long enough to generate referral payments.
Costas and the marketing company often directed patients to different rehabilitation facilities month after month to generate multiple referral payments without regard to whether the substance abuse treatment was medically necessary or effective. In a conversation over Facebook, one patient told Costas that if Costas made good on his promise to pay the patient a bribe, the patient would enroll in additional facilities to trigger additional referral payments and bribes: “[J]ust get us [sic] grab the dough and put us in another place. . . . Get paid some more feel me. . . . I’ll keep this up all year wit[h] you. As long as you do us right.” When the patient later expressed doubt that Costas would pay the bribe, Costas responded, “Don’t worry. . . . I do this with SO MANY PPL [people].”
Costas and the marketing company sent patients to facilities in California and other states that they knew provided ineffective drug treatment or actually fostered drug use on their premises. The facilities typically paid the marketing company a fee of $5,000 to $10,000 per patient referral, and Costas and other brokers received approximately half that amount for each patient they brokered. During the scheme, Costas brokered dozens of patients on behalf of marketing companies around the country, and the conspiracy caused millions of dollars of losses for health insurers.
Costas faces a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Sept. 29, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Health Care Fraud Unit in Newark.
Mandeville Resident and Former Department of Energy Contractor Sentenced to 3 Years Probation for Accessing Government Computer System without Authorization and Recklessly Causing over $23,000 Worth of DamageRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that GARY PETER SIMON, JR., age 56, a resident of Mandeville, Louisiana, was sentenced on May 19, 2020 to (3) three years probation by United States District Judge Greg G. Guidry after previously pleading guilty to intentionally accessing a protected computer without authorization and recklessly causing damage resulting in loss of more than $5,000 during one year, in violation of 18 U.S.C. '' 1030(a)(5)(B) and 1030(c)(4)(A). SIMON was also ordered to perform 200 hours of unpaid community service, pay a $100 special assessment fee, and restitution to the victim in the amount of $23,200.
According to court documents, The Strategic Petroleum Reserve Office (SPRO) was a component of the Department of Energy that was responsible for, among other things, overseeing and maintaining the readiness of the United States’ stockpile of emergency crude oil, which was stored along the coastline of the Gulf of Mexico. DOE SPRO operated a restricted cloud-based computer system to handle a variety of functions, including documenting daily activity. SIMON, who was employed as a contractor for DOE SPRO from September 2007 until August 2018, worked in the Emergency Management Directorate and was responsible for, among other things, IT management of SPRO network applications. He was one of two individuals who knew the username and password of the Administrative Account.
After SIMON resigned from his contracting agency, in about August 2018, he was no longer authorized to access the DOE SPRO computer systems. Nevertheless, on about October 21, 2018, SIMON intentionally accessed the DOE SPRO cloud-based system remotely without authorization. After SIMON accessed the system, he altered and deleted various files. As a result of the intrusion and subsequent manipulation of protected data, operators were unable to access their log views on the computer system, and they could not annotate work they completed electronically. The computer system remained compromised for approximately 2-3 hours after the discovery of the unauthorized access. Thereafter, SIMON used the account of a current SPRO employee without that employee’s authorization, to make changes to log views and to attempt to delete audit log files. SIMON’S actions resulted in loss to the DOE, in the form of costs associated with responding to the offense, conducting a damage assessment, and restoring data, program, system, and information to its pre-offense condition, in the amount of approximately $23,200.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg, supervisor of the Public Corruption Unit, is in charge of the prosecution.
Man Indicted for Conspiracy to Produce Images of Child Sexual AbuseRead the Press Release
NEWPORT NEWS, Va. – A federal indictment was unsealed today charging a Mathews County man with production of child pornography and coercion and enticement of a child.
According to the indictment, William Wellington Hooper, Jr., 53, and a charged co-conspirator conspired together to produce child pornography of a child identified as Jane Doe 1.
Hooper is charged with conspiracy to produce child pornography, production of child pornography and two counts of coercion and enticement of a child. If convicted, Hooper faces mandatory minimums of 15 years in prison on the conspiracy and production charges and 10 years in prison on the coercion and enticement charges. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; and L. Mark Barrick, Sheriff of Mathews County, made the announcement. Assistant U.S. Attorneys Lisa McKeel and Howard Zlotnick are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-18.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.