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6 May 2020
U.S. Attorney McAllister Announces $1.2 Million Award to the City of Wichita for Public Safety during Covid-19Read the Press Release
WICHITA, KAN. – U.S. Attorney Stephen McAllister today announced a $1.2 million grant to the City of Wichita to help respond to the public safety challenges posed by the outbreak of COVID-19.
The grant awarded to the Executive Office of the State Of Kansas is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump.
“This grant of $1,250,185 can be used to support a broad range of activities to prevent, prepare for and respond to coronavirus,” said McAllister. “That includes overtime, supplies such as gloves, masks and sanitizer and addressing the medical needs of inmates in prisons, jails and detention centers.”
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 receive direct awards separately according to their jurisdictions’ allocations.
The Office of Justice Programs 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 .
For more information about this grant, contact the Office of Justice Program's Office of Communications at (202) 307-0703.
Statement of United States Attorney William D. Hyslop on Missing and Murdered American Indians and Alaska Natives DayRead the Press Release
Spokane –William D. Hyslop, United States Attorney for the Eastern District of Washington, joins President Trump, Attorney General Barr, and the Department of Justice in observing Missing and Murdered American Indians and Alaska Natives Awareness Day.
United States Attorney Hyslop said, “Together we remember all the missing and murdered indigenous people (MMIP), and particularly women and children from our Native communities in Washington and across the United States. This is a violent crime problem we have right here in Eastern Washington. The President’s proclamation reaffirms the resolute commitment of federal, state, local and Tribal law enforcement to reduce the high rates of violence against people in Indian Country and our dedication to justice for these victims and their families. Addressing the MMIP issue is a major priority of the Department of Justice and will remain that way as our Tribal partners and we all continue to address this together.”
Proclamation by President Donald Trump: https://www.whitehouse.gov/presidential-actions/missing-murdered-american-indians-alaska-natives-awareness-day-2019/
Statement from Attorney General William P. Barr: https://www.justice.gov/opa/pr/attorney-general-william-p-barrs-statement-missing-and-murdered-american-indians-and-alaska
Spearfish Man Sentenced to 10 Years for Attempting to Entice a Minor Using the InternetRead the Press Release
United States Attorney Ron Parsons announced that a Spearfish, South Dakota, man convicted of Attempted Enticement of a Minor Using the Internet was sentenced on April 23, 2020, by Jeffrey L. Viken, U.S. District Court Judge.
Michael Carlson, age 58, was sentenced to 10 years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Carlson also will be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Carlson was arrested and federally indicted following multiple chats and text messages with a person Carlson believed to be a 14/15 year-old girl, but who was in fact an undercover agent. Carlson proceeded to negotiate the time and place he would meet the minor to engage in unlawful sex acts. When Carlson went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.
The investigation was conducted by the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Spearfish Police Department, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Carlson was immediately remanded to the custody of the U.S. Marshals Service.
South Florida U.S. Attorney Urges Residents to Report Sexual Harassment in Housing During the COVID-19 PandemicRead the Press Release
Miami, Fl. -- As part of a national effort directed by U.S. Attorney General William P. Barr, U.S. Attorney for the Southern District of Florida Ariana Fajardo Orshan 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 has heard reports of housing providers trying to exploit the crisis to sexually harass tenants. Sexual harassment in housing is illegal, and the Department of Justice stands ready to investigate such allegations and pursue enforcement actions where appropriate.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or others who have control over housing.
Launched in 2017, the Initiative has led to the filing of lawsuits across the county alleging a pattern or practice of sexual harassment in housing and the recovery of millions of dollars in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years. 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.
The Department of Justice, through the Civil Rights Division and the U.S. Attorney’s Offices, 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.
U.S. Attorney Fajardo Orshan encourages anyone in South Florida who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected].
Individuals may also file a complaint alleging harassment or discrimination in housing with the Department of Housing and Urban Development through HUD’s website or by calling (800) 669-9777.
For more information about the United States Attorney’s Office for the Southern District of Florida, visit its website at www.justice.gov/usao-sdfl.
South Dakota Man Sentenced for Possession of MethRead the Press Release
United States Attorney Ron Parsons announced that a Lake Andes, South Dakota, man convicted of Possession of a Controlled Substance was sentenced on May 4, 2020, by U.S. District Judge Karen E. Schreier.
Winston Houseman, age 25, was sentenced to three months in custody, followed by one year of supervised release, and a $5,000 fine. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Houseman was indicted for Possession of a Controlled Substance by a federal grand jury on September 5, 2018. He pled guilty on January 6, 2020.
On or about July 29, 2017, in Indian country, in the District of South Dakota, Houseman, did knowingly and intentionally possess a mixture and substance containing methamphetamine, a Schedule II controlled substance.
This case was investigated by the Bureau of Indian Affairs. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Houseman was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced on Meth Distribution ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on April 27, 2020, by U.S. District Judge Karen E. Schreier.
Michael Shawn Thomas, age 50, was sentenced to 15 years in federal prison, followed by 10 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Thomas was indicted for Possession with Intent to Distribute a Controlled Substance by a federal grand jury on July 9, 2019. He pled guilty on February 12, 2020.
On or about June 22, 2019, in the District of South Dakota, Thomas, did knowingly and intentionally possess with the intent to distribute, 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
This case was investigated by Drug Enforcement Administration and the Sioux Falls Police Department. Assistant U.S. Attorney John E. Haak prosecuted the case.
Thomas was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Transportation of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Transportation of Child Pornography was sentenced on May 4, 2020, by U.S. District Judge Karen E. Schreier.
Derek Robert Schroeder, age 29, was sentenced to 210 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. His cell phone was forfeited and he will be required to register as a sex offender upon release.
Schroeder was indicted by a federal grand jury on July 9, 2019. He pled guilty on January 6, 2020.
The conviction stemmed from Schroeder uploading thousands of digital files containing child pornography into his Dropbox account. The files were uploaded between August 2017 and January 2018. Schroeder admitted knowing the files contained sexually explicit depictions of children and that he used his cell phone and the internet to transport the files in interstate commerce.
This case was investigated by the Homeland Security, the Division of Criminal Investigation, and the Sioux Falls Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Schroeder was immediately turned over to the custody of the U.S. Marshals Service.
Rogers Physician Pleads Guilty to Distribution of A Controlled Substance Without an Effective PrescriptionRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Dr. Robin Ann Cox plead guilty today to one count of Distribution of a Controlled Substance without an Effective Prescription.
According to the plea agreement, Dr.Cox was employed by the Arkansas Medical Clinic (AMC) in Rogers, Arkansas. Cox and the owner of AMC contacted the DEA by telephone to report that prescriptions from Cox' s previous employment had been fraudulently written and filled. Cox specifically identified a prescription for patient D.S. written on May 19, 2019 and filled on May 20, 2019, and a prescription for F. R. dated May 17, 2019 and filled on May 17, 2019. During the investigation into these prescriptions, the DEA discovered that Cox had written D.S. his/her prescription in the parking lot of a fast food restaurant in Fort Smith, Arkansas, in the Western District of Arkansas, Fort Smith Division.
Agencies participating in the investigation are the Drug Enforcement Administration (DEA), DEA Diversion Little Rock, Federal Bureau of Investigation (FBI), the United States Department of Health and Human Services Office of Inspector General (HHS), the Springdale Police Department and the Rogers Police Department. Special Assistant United States Attorney Anne Gardner is prosecuting the case for the United States.
Rogers Man Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced today that Alejandro Rodriguez, age 27, of Rogers, Arkansas was sentenced to 120 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, In May of 2019 the FBI Safe Streets Task Force initiated an investigation into Rodriguez, for drug trafficking and firearms offenses in the Western District of Arkansas. Throughout the course of the investigation, investigators conducted three controlled purchases of methamphetamine from Rodriguez, as well as the controlled purchase of a firearm. Rodriguez has prior felony convictions and is therefore prohibited from possessing firearms.
The methamphetamine purchased was subsequently sent to the DEA laboratory in Miami and tested positive for 26.83 grams of methamphetamine.
Rodriguez was indicted by a federal grand jury in November of 2019, and entered a guilty plea in February of 2020.
This case was investigated by the FBI Safe Streets Task Force . Assistant United States Attorney David Harris prosecuted the case for the Western District of Arkansas.
Rochester Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey Wehs, 24, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession of child pornography involving a prepubescent minor. The charge carries a maximum penalty of 20 years in prison, a lifetime period of supervised release, and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that members of the FBI’s Child Exploitation Task Force executed a search warrant on September 18, 2019, at the defendant’s residence in Rochester following a cybertip from an online social media company. The tip indicated that an account holder had uploaded an image of child pornography using the company’s messaging application. Investigators ultimately traced the child pornography to Wehs’ Rochester apartment. The defendant’s computer was seized and a preliminary review recovered multiple images and videos of child pornography.
The plea is the result of an investigation by the Federal Bureau of Investigation's Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for August 10, 2020, before Judge Wolford.
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Rapid City Man Sentenced to Prison for Meth Trafficking ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on May 1, 2020, by Chief Judge Jeffrey L. Viken.
Joseph Romero, age 33, was sentenced to 12½ years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Romero joined a methamphetamine distribution conspiracy with other individuals in January 2017. During the course of the conspiracy, Romero received methamphetamine directly from different individuals and distributed the methamphetamine in Rapid City. Over the course of the conspiracy, at least 500 grams of methamphetamine was distributed in the Rapid City area.
This case was investigated by the Unified Narcotics Enforcement Team (UNET) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, the Rapid City Police Department, South Dakota Division of Criminal Investigation, and the South Dakota National Guard. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Romero was immediately turned over to the custody of the U.S. Marshals Service.
Omaha Man Sentenced to More Than Five Years for Dealing Drugs with a GunRead the Press Release
United States Attorney Joe Kelly announced that Robert Wilson, 35, of Omaha Nebraska, was sentenced today by United States District Judge Brian C. Buescher for possession of marijuana with intent to distribute and use of a firearm in furtherance of drug trafficking. He received a total sentence of 62 months’ imprisonment. His term of incarceration will be followed by five years of supervised release. There is no parole in the federal system.
On March 23, 2019, Omaha Police Department Gang Unit officers initiated a traffic stop on Wilson. In his vehicle, officers found 1.3g of cocaine and 416g of marijuana packaged in 14 bags containing roughly 1oz each, an electronic scale, numerous plastic Ziploc bags, and $697 in United States Currency. Officers located a Taurus Millennium PT 111 G2 handgun under the driver’s seat.
This case was investigated by Omaha Police Gang Unit as part of the Project Safe Neighborhood, a commitment to prevent gun and gang crime in America.
Ohio Man Sentenced for Conspiracy to Commit Wire FraudRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced ESTEBAN RAMIREZ, III (“RAMIREZ”), age 27, a resident of Lorain, Ohio, was sentenced today for Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 371.
According to court records, in the beginning of February 2017, RAMIREZ and his codefendants devised and implemented a scheme to defraud by fraudulently representing themselves as immigration attorneys. Specifically, they created the fictitious law firm of “Micheal (sic) Browns Immigration Attorneys” with an address of 4207 Parliament Drive, Alexandria, LA 71303. RAMIREZ took funds from various individuals who were victims of the scheme. RAMIREZ and his codefendants obtained approximately $8,280.00 during the course of their scheme. RAMIREZ used Western Union to wire fraudulently obtained funds to his codefendant in the Dominican Republic and RAMIREZ kept a portion of the funds for himself.
U.S. District Judge Sarah S. Vance sentenced RAMIREZ to time served of approximately 14 months, followed by three years supervised release, and $8,280.00 in restitution.
U.S. Attorney Peter G. Strasser praised the work of Homeland Security Investigations. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
North Stratford Man Pleads Guilty to Selling Prescription Drugs in School ZoneRead the Press Release
CONCORD - Timothy L. Adjutant, 28, of North Stratford, pleaded guilty in federal court to two counts of distribution of buprenorphine near a school, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on November 14, 2018, in Colebrook, Adjutant sold buprenorphine, also known as Suboxone, to an individual who was cooperating with law enforcement officers. At the time of the sale, Adjutant indicated he had more Suboxone for sale. On December 4, 2018, Adjutant sold Suboxone to a cooperating individual in the parking lot of a drug store in Colebrook. Both transactions occurred within 1,000 feet of the Colebrook Elementary School.
Suboxone is a controlled substance that is often prescribed as a treatment for opioid withdrawal symptoms. As an opioid itself, however, it is still subject to abuse if injected or snorted and can produce a euphoria similar to other opioids like heroin and fentanyl.
Federal law provides that a person who distributes a controlled substance within 1000 feet of a school is subject to a mandatory minimum sentence of one year’s imprisonment.
Adjutant is scheduled to be sentenced on September 2, 2020.
“The illegal sales of opioids have impacted families in large and small communities throughout the Granite State,” said U.S. Attorney Murray. “No area of the state has been immune from the sad consequences of this criminal activity. Those who traffic in Suboxone contribute to the opioid crisis that is gripping New Hampshire. We will aggressively pursue federal prosecutions of those who jeopardize public health and safety by selling opioids.”
This matter was investigated by the DEA, with assistance from the Colebrook Police Department, the Pittsburg Police Department, the New Hampshire State Police, U.S. Customs and Border Protection, the Coos County Sheriff’s Office, the New Hampshire Liquor Commission’s Division of Enforcement and Licensing, the Office of Inspector General of the U.S. Department of Health and Human Services, and the New Hampshire Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorneys John S. Davis and Charles L. Rombeau.
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New COVID-19 Complaint Form for Reporting FraudRead the Press Release
DATELINE – U.S. Attorney Gretchen C.F. Shappert of the District of the Virgin Islands today urged the public to report suspected fraud schemes related to COVID-19 (the Coronavirus). If you think you are a victim of a scam or attempted fraud involving COVID-19, you can report it without leaving your home by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (1-866-720-5721) or by utilizing the newly released NCDF Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. In coordination with the Department of Justice, Attorney General William Barr has directed U.S. Attorneys to prioritize the investigation and prosecution of Coronavirus fraud schemes identified in their communities.
U.S. Attorney Shappert emphasized the continuing importance of individual reporting of possible fraud schemes. "The NCDF has already received over 11,500 calls and emails, reporting possible COVID-19 fraud schemes. The new NCDF Complaint Form allows for more efficient reporting and a more prompt response by federal law enforcement," Shappert said. "We believe that this is another important tool in our toolbox."
The NCDF receives and enters complaints into a centralized system that can be accessed by all U.S. Attorney Offices, as well as Justice Department litigating and law enforcement components to identify, investigate, and prosecute fraud schemes. The NCDF coordinates complaints with 16 additional federal law enforcement agencies, as well as state Attorneys General and local authorities. The public is urged to provide information so that the NCDF and federal law enforcement can conduct the necessary investigations.
Scammers and fraudsters will likely continue to use new methods to exploit COVID-19 fraud schemes worldwide. Stay alert and stay informed about common fraud schemes related to the COVID-19 Pandemic. To find more about Department of Justice resources and information, please visit www.justice.gov/coronavirus.
Moorland, Iowa Felon Sentenced to Federal Prison for Illegal Possession of a ShotgunRead the Press Release
A man who illegally possessed firearms on multiple occasions was sentenced May 6, 2020, to more than 6 years in federal prison.
Tanner Lowe, age 28, from Moorland, Iowa, received the prison term after a December 10, 2019, guilty plea to possession of firearm by a felon. In September 2018, Lowe was previously convicted of intimidation with a dangerous weapon and dominion/control of firearm/offensive weapon, in the Iowa District Court for Webster County. This prior conviction prohibits Lowe from legally possessing a gun.
Evidence at the guilty plea and sentencing hearings, showed that on December 12, 2018, during a search warrant of Lowe’s residence, law enforcement officers located and seized a 12-gauge sawed-off shotgun which was later determined to be stolen. During a separate incident on July 31, 2017, Lowe threatened another individual with a shotgun during a dispute. Lowe was a user of controlled substances at the time and therefore prohibited from possessing guns. Law enforcement determined the shotgun had an obliterated serial number.
Lowe was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Lowe was sentenced to 77 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Lowe 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 Mikala Steenholdt and investigated by the Fort Dodge Police Department, Webster County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-3016. Follow us on Twitter @USAO_NDIA.
Monroeville Man Sentenced to Prison for Trafficking Heroin in Pittsburgh’s East SuburbsRead the Press Release
PITTSBURGH, PA - A resident of Southwestern Pennsylvania has been sentenced in federal court to 30 months' imprisonment and three years of supervised release on his conviction of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Larry Dandridge, age 25, formerly of Monroeville, PA.
According to information presented to the Court, the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019. As a result of this investigation, Dandridge, along with 32 others were indicted in June of 2019 by a federal grand jury in three separate, but related, Indictments.
As to Dandridge, the Court was informed that intercepted communications confirmed that Dandridge was conspiring with others to possess with intent to distribute heroin in the Western District of Pennsylvania. The Court was further informed that Dandridge accepted responsibility for the distribution of 95 grams of heroin and seven pounds of marijuana between of April of 2019 and May of 2019.
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 Dandridge.
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.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Monmouth County Man Charged with Receipt of Child PornagraphyRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man has been charged with knowingly receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced today.
Herman Christopher Jensen, 67, of Union Beach, New Jersey, is charged by complaint with one count of knowingly receiving child pornography. He was arrested on May 6, 2020, and appeared by teleconference before U.S. Magistrate Judge Joseph A. Dickson. Jensen was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
The FBI began investigating Jensen for assuming the identity of a 17-year-old boy in order to entice and solicit a minor to send nude and sexually explicit images over the internet. Jensen did this by creating a fake Facebook account, purporting to be a teenaged boy named “Kevin Bennett.” From January 2018 through August 2018, Jensen used the “Kevin Bennett” Facebook account to communicate with the minor victim, causing the victim to believe the victim was in a involved in a romantic relationship with “Kevin Bennett.”
Jensen requested nude and semi-nude photographs from the victim through Facebook’s messenger service. The victim obliged to his requests. As time went on, Jensen received increasingly explicit videos.
In August of 2018, Jensen revealed to the victim that he was not, in fact, the teenager he purported to be, but instead, an adult named Chris Jensen. The victim continued to communicate with Jensen via the “Chris Jensen” Facebook account. In December 2018, the victim traveled to New Jersey to live with Jensen, where Jensen began having sex with the minor victim.
On Dec. 19, 2018, local authorities became involved in the matter causing the removal of the minor victim from Jensen’s residence.
The charge of knowingly receiving child pornography carries a minimum sentence of five years and a maximum of 20 years in prison, and a statutory maximum fine equal to $250,000 or twice the gross pecuniary gain or loss, whichever is greater.
U.S. Attorney Carpenito credited special agents and task force officers of the FBI and its Red Bank Resident Agency Jersey Shore Gang and Criminal Organization Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to the charges. He also thanked the Union Beach, New Jersey, Police Department, under the direction of Chief of Police Michael J. Woodrow, for assistance in the investigation.
The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Frauds Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mingo County Pharmacy to Pay Civil Monetary Penalties to Resolve Alleged Violations of the Controlled Substances ActRead the Press Release
CHARLESTON, W.Va. – Adkins Pharmacy, Inc. (“API”), a pharmacy located in Mingo County, has agreed to pay civil monetary penalties to resolve allegations that the pharmacy violated the Controlled Substances Act by filling illegitimate prescriptions, United States Attorney Mike Stuart announced today. API has also entered into a three-year compliance agreement with the Drug Enforcement Administration (DEA) that imposes heightened reporting and oversight requirements and sanctions for non-compliance.
Pursuant to the terms of the settlement agreement, API agreed to pay $88,085.73 to resolve allegations that it had filled prescriptions for controlled substances that were not valid at its location in Gilbert between January 1, 2014, and December 31, 2015. During this time, API filled compound opioid prescriptions issued by physicians affiliated with Hitech Opioid Pharmachovigilance Expertise Clinic, PLLC (HOPE Clinic), even though API “knew or should have known that said prescriptions were not issued for a legitimate medical purpose by an individual practitioner acting in the usual course of his/her professional practice,” according to the settlement agreement.
The Controlled Substances Act prohibits the distribution or dispensing of a controlled substance without a valid prescription. A valid prescription for a controlled substance must be issued for a legitimate medical purpose by an individual practitioner acting in the usual course of his or her practice. The investigation indicated that the pharmacist-in-charge at the pharmacy should have known that patients had presented illegitimate prescriptions that should not have been filled.
“The diversion of prescription opioids fueled an epidemic and devastated a countless number of West Virginia families,” said United States Attorney Mike Stuart. “When pharmacies ignore red flags indicative of illegitimate opioid prescriptions for the sake of profits, we will use every available criminal and civil enforcement tool to hold them accountable.”
“Pharmacists serve on the front lines of America’s opioid epidemic and they share responsibility with physicians to protect those whom they serve from the dangers associated with prescription medications,” said Special Agent in Charge Todd Scott, of DEA’s Louisville Division. “DEA will use every available tool to hold accountable those in the pharmacy industry who choose to put profit over customer safety,” Scott added.
The DEA, the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG) and the Food and Drug Administration – Office of Criminal Investigation conducted the investigation. The case was handled by Assistant United States Attorney Alan McGonigal.
The settlement is a result of the United States Attorney’s Healthcare Fraud Abuse, Recovery and Response Team (ARREST), an innovative approach linking civil and criminal enforcement efforts together in a comprehensive attack on the opioid epidemic and healthcare fraud.
Follow us on Twitter: SDWVNews and USAttyStuart
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Maine Man Pleads Guilty to Fentanyl and Heroin TraffickingRead the Press Release
CONCORD - Edson Wilson, 42, of Augusta, Maine pleaded guilty in federal court to possession of heroin and fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on June 15, 2019, a New Hampshire State Police trooper pulled over a vehicle on I-95 north for a traffic violation. Wilson was a passenger in the vehicle. While speaking with the occupants of the vehicle, the trooper noticed indicators of drug use. After the occupants also gave conflicting stories about their destination and travel, they consented to a search of the vehicle. The trooper located a vacuum- sealed package that contained approximately 198 grams of heroin and fentanyl under Wilson’s seat. Wilson was placed under arrest and later admitted that he had purchased the drugs earlier that day and further stated that he intended to sell at least 100 grams of the drugs.
Wilson is scheduled to be sentenced on September 2, 2020.
“Interstate drug trafficking has caused major damage to communities throughout New England,” said U.S. Attorney Murray. “We are committed to working with our law enforcement partners to identify and prosecute those who are responsible for distributing fentanyl, heroin, and other deadly drugs. I am grateful to the New Hampshire State Police for their work on this case, which prevented the distribution of a significant quantity of deadly drugs.”
This matter was investigated by the New Hampshire State Police with assistance from the Greenland Police Department. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Lower Brule Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner was sentenced on May 4, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Shane Goodlow, age 47, was sentenced to time served through May 8, 2020, 3 years of supervised release, 6 months home confinement, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Goodlow was indicted by a federal grand jury on October 16, 2019. He pled guilty on February 12, 2020.
The conviction stemmed from an incident on May 5, 2019, when Goodlow and his intimate partner got into an argument. When the victim tried to leave, Goodlow struck the victim causing a bump to her head and a laceration to her mouth. Goodlow fled the scene prior to the arrival of law enforcement and was arrested a short time later. The victim was seen at the hospital and required stitches to close her wound.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Goodlow was immediately turned over to the custody of the U.S. Marshals Service.
Lexington Man Pleads Guilty to Drug Trafficking and Firearm OffenseRead the Press Release
LEXINGTON, Ky. - A Lexington man, Andrew Maurice King, 29, pleaded guilty in federal court on Wednesday before U.S. District Court Judge Danny Reeves to trafficking 10 grams or more of valerylfentanyl and being a convicted felon in possession of a firearm.
According to his plea agreement, King admitted that on May 30, 2019, Lexington Police Department officers found significant quantities of marijuana, oxycodone, fentanyl, and valerylfentanyl; approximately $2,900 in cash; scales and packaging; and a Romarm SKS rifle, in his residence. King admitted that he possessed the valerylfentanyl with the intent to distribute and that he was a convicted felon, prohibiting him from possessing the firearm.
King was indicted in December 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jeffrey Todd Scott, Special Agent in Charge for the Drug Enforcement Administration, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the guilty plea.
The investigation was conducted by the DEA and Lexington Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney David Kiebler.
King is scheduled to be sentenced on August 20, 2020. King faces a minimum sentence of five years and up to 40 years for the drug conviction, and he faces up to 10 years for the firearm conviction. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case was prosecuted as part of the Organized Crime and Drug Enforcement Task Force’s (OCDETF) Operation Synthetic Opioid Surge (SOS), a Department of Justice initiative designed to target trafficking of dangerous synthetic opioids.
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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Irondequoit Man Pleads Guilty to Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Logan Nedo, 34, of Irondequoit, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to producing child pornography. At sentencing, the defendant faces a mandatory minimum term of imprisonment of 15 years, a maximum of 30 years, as well as a lifetime term of supervised release, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that on May 19, 2019, Nedo turned himself in to the Brighton Police Department after allegedly sexually abused two minor children. After discovering that the abuse primarily took place in the Town of Irondequoit, the Brighton Police Department turned Nedo over to the Irondequoit Police Department. Irondequoit Police continued the investigation, which ultimately led to the arrest of the defendant on state charges involving the physical sexual abuse of the children.
During their investigation, Irondequoit investigators discovered that Nedo had produced and saved videos and images of the abuse. As a result, several electronic items were seized from the defendant’s home and person. The items were turned over to the FBI Child Exploitation Task Force for processing, during which the videos and photographs depicting the sexual abuse of the minor victims was discovered. In addition, approximately 2,500 images of unrelated child pornography was recovered. The items were subsequently transported to the Regional Computer Forensics Laboratory for further forensic analysis.
The plea is the result of an investigation by the Irondequoit Police Department, under the direction of chief Richard Tantalo; the Brighton Police Department, under the direction of Chief David Catholdi; and the Federal Bureau of Investigations Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert. Additional assistance was provided by the Regional Computer Forensics Laboratory and the Bivona Child Advocacy Center. Nedo is also facing a parallel New York State prosecution by the Monroe County District Attorney’s Office.
Sentencing is scheduled for August 10, 2020, before Judge Wolford.# # # #
Iowa Man Sentenced as Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Spirit Lake, Iowa, man convicted of Felon in Possession of Firearm was sentenced on April 27, 2020, by U.S. District Judge Karen E. Schreier.
Andrew James Houtsma, age 31, was sentenced to 3 months in custody, followed by 3 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Houtsma was indicted for Felon in Possession of a Firearm by a federal grand jury on May 8, 2019. He pled guilty on February 10, 2020.
On or about May 31, 2018, in the District of South Dakota, Houtsma, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess a firearm, which had been shipped and transported in interstate commerce.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brookings Police Department. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Houtsma was immediately turned over to the custody of the U.S. Marshals Service.
Henryetta Man Sentenced to 46 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Edward Douglas Jacome, age 31, of Henryetta, Oklahoma was sentenced to 46 months’ imprisonment, and 3 years of supervised release for Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the Project Safe Neighborhoods (“PSN”) effort in the Eastern District of Oklahoma to reduce violent crime. PSN is an initiative led and coordinated by the United States Attorney’s Office.
The Indictment alleged that on December 2, 2019, in the Eastern District of Oklahoma, the defendant, who had been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, knowingly possessed a firearm and ammunition which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “This investigation, prosecution, and sentence is a result of working relationships between federal, state, and local agencies. These relationships are enhanced as a result of a Project Safe Neighborhood grant awarded by the Department of Justice to Oklahoma’s District Attorney District 25. The grant funds a District 25 Assistant District Attorney to concurrently serve as a Special Assistant United States Attorney. The collaboration between our offices compliments the well-established partnerships between federal and local law enforcement agencies like this combined effort by the ATF and the Okmulgee County Sheriff’s Office.”
“I echo the statement of United States Attorney Kuester,” stated ATF Special Agent in Charge Jeffrey C. Boshek II. “The Project Safe Neighborhoods initiative enhances agency partnerships. Options in pursuing legal action with the most appropriate sanctions, like the federal prosecution of Mr. Jacome, has a direct impact on community safety.”
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 Clay Compton represented the United States at the sentencing hearing.
Grand Rapids Woman Pleads Guilty to Interfering with Flight Crew on Allegiant Airlines FlightRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Amy Jo-Manshum John, 25, of Grand Rapids, Michigan pleaded guilty before a U.S. Magistrate Judge pursuant to a plea agreement to one count of interfering with flight crew members and attendants. John faces a statutory maximum term of imprisonment of twenty years’ confinement, $250,000 fine, and 3 years’ supervised release at the time of sentencing.
John admitted at the plea hearing that she flew on Allegiant Airlines Flight # 1795 on December 14, 2019 nonstop from Fort Lauderdale, Florida to Grand Rapids, Michigan. Onboard the flight, John swung her arm twice at a flight attendant to strike her. The assault interfered with and diminished the flight attendant’s ability to perform her duties. John also admitted as relevant conduct that she intimidated three other flight attendants on the same flight by being disruptive, unruly, and disobedient while the flight was in progress.
"I commend the airline crew and airport police for defusing this situation," U.S. Attorney Birge said. "Unruly and combative passengers pose a danger to everyone onboard a commercial aircraft. Anyone who behaves like Ms. John should consider themselves warned: my office will not hesitate to enforce the law to keep travelers safe and the legal consequences are serious."
"Safety on board an airplane is important to all who fly," said Steven M. D'Antuono, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Division. "An abusive passenger acting out against the flight crew is not merely an inconvenience, but a serious threat to the safety of everyone on the flight. This sort of abusive and threatening behavior constitutes a federal crime that will be investigated fully as part of our mission to protect the flying public."
The FBI and the Gerald R. Ford International Airport Police Department investigated the case. Assistant U.S. Attorney Clay M. West prosecuted it.
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Georgia Man Charged with Trafficking Guns to Jersey City that were Used in ShootingsRead the Press Release
NEWARK, N.J. – A Georgia man has been charged with trafficking multiple firearms from Georgia to Jersey City, New Jersey, which were subsequently used in acts of violence, U.S. Attorney Craig Carpenito announced today.
Jonathan Brown, 26, of Covington, Georgia, was arrested today in Covington by special agents of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and is charged by complaint with one count of conspiracy to commit the unlicensed sale of firearms. He had his initial appearance, and was detained pending a detention hearing scheduled for May 8, 2020, in the Northern District of Georgia.
According to documents filed in this case and statements made in court:
Brown led a scheme to purchase firearms in or around Georgia and traffic those firearms to individuals in Jersey City. Brown, who is barred from purchasing firearms himself due to multiple prior felony convictions, used straw purchasers in Georgia to obtain the firearms so that Brown could sell those firearms to others. On multiple occasions, Brown brought firearms from Georgia to New Jersey to for sale.
Within months of Brown’s trips to Jersey City, law enforcement arrested numerous individuals in Jersey City in possession of firearms purchased by Brown’s straw purchasers. At least one of the weapons trafficked by Brown was later used in the shooting of another person in Jersey City. At least one of the individuals in possession of one of Brown’s guns had a prior felony conviction, and was therefore barred from possessing a firearm. To date, law enforcement has recovered seven firearms allegedly trafficked by Brown in Jersey City.
The conspiracy count with which the defendant is charged carries a maximum sentence of five years in prison and a maximum fine of $250,000.
U.S. Attorney Craig Carpenito credited special agents of the ATF, Newark Field Division, under the direction of Special Agent in Charge Charlie J. Patterson, as well as the Jersey City Police Department, the Hudson County Prosecutor’s Office, the ATF Atlanta Field Division, and the Newton County, Georgia, Sheriff’s office, with the investigation leading to the charges and arrest.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
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 ensured 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
The government is represented by Assistant U.S. Attorney Andrew Macurdy and Special Assistant U.S. Attorney Keith Travers of the U.S. Attorney’s Office Criminal Division in Newark.
Fort Worth Child Sexual Predator Sentenced to 80 YearsRead the Press Release
A Fort Worth child sexual predator was sentenced Monday to 80 years in federal prison announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Tyrone Alexander Taylor, 42, pled guilty in October to two counts of sexual exploitation of a child and possession of a visual depiction of a minor engaged in sexually explicit conduct.
“This sentence, essentially a life sentence, exemplifies the seriousness of this horrible conduct – one committed against the most vulnerable among us,” stated U.S. Attorney Erin Nealy Cox. “We will continue to dedicate whatever resources necessary to bring to justice to predators who prey on and victimize children.”
"The FBI works with our law enforcement partners every day to ensure that children are protected from predators who seek to exploit them," said FBI Dallas Special Agent in Charge Matthew J. DeSarno. "Today's outcome is the result of collaboration and commitment to holding a sexual predator accountable for their actions. We ask that the public continue to remain vigilant and report any suspected child exploitation to the FBI or local law enforcement."
According to court documents, FBI agents launched their investigation after a computer repair business reported discovering child pornography on a hard drive owned by Taylor. After meeting with a business representative to review the images that depicted child pornography, agents took custody of the hard drive and conducted a forensic review of the device.
Taylor admitted the hard drive belonged to him and that it contained a number of child pornography videos and images – some as young as 9.
Taylor and codefendant, Shannon Nichols, sentenced in February to 50 years in federal prison, sexually victimized children by using them to create child pornography, which Taylor meticulously stored on his computer.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney A. Saleem prosecuted the case.
This case was brought as part of Project Safe Childhood, a Justice Department initiative designed to combat the growing epidemic of child sexual exploitation and abuse nationwide. The initiative organizes and deploys 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.
Former Tribal Treasurer & Former Councilmember Sentenced to 42 and 30 Months, Respectively, for Embezzlement SchemeRead the Press Release
United States Attorney Ron Parsons announced today that two former Crow Creek Sioux Tribe councilmembers and one former employee were sentenced for their roles in an embezzlement scheme involving tribal funds.
Roland Robert Hawk, Sr., 51, was the former elected treasurer of the Crow Creek Sioux Tribe. Hawk was sentenced to 42 months in federal prison, and ordered to pay $325,762.50 in restitution and $100 to the Federal Crime Victims Fund. Following his release from custody, Hawk will serve 3 years of supervised release. Hawk was remanded to the custody of the U.S. Marshals Service.
Francine Maria Middletent, 55, was a former elected councilmember of the same Tribe. Middletent was sentenced to 30 months in federal prison, and ordered to pay $273,817.55 in restitution and $100 to the Federal Crime Victims Fund. Following her release from custody, Middletent will serve 3 years of supervised release. Middletent was released on bond and ordered to report to the federal prison designed by the Bureau of Prisons at a later date.
Jacqueline Ernestine Pease, 34, was sentenced to 3 years of probation, and ordered to pay $74,100 in restitution and $100 to the Federal Crime Victims Fund. Pease worked in the Tribe’s Finance Office, where Hawk was the overall supervisor and where Middletent worked as Chief Financial Officer.
Chief U.S. District Judge Roberto A. Lange presided over each of the sentencing hearings. Chief Judge Lange called the embezzlement scheme “terrible” and “despicable,” stating that the crimes involved a high level of “intentionality.”
“Crow Creek citizens need to know that their government works and that theft and embezzlement will not be tolerated. This case should go a long way toward restoring that confidence,” said U.S. Attorney Parsons.
According to court documents, in about March 2014 through February 2019, Roland Robert Hawk, Sr., Francine Maria Middletent, Roxanne Lynette Sazue, Jacquelyn Ernestine Pease, Tina Grey Owl, and Brandon Sazue embezzled, stole, willfully misapplied, willfully permitted to misapplied, and converted to their own use approximately $1,000,000 of monies, funds, credit, goods, assets, and other property belonging to the Crow Creek Sioux Tribe. Between Hawk and Middletent, the tribe sustained a loss of nearly $700,000.
During times relevant to each defendant’s case, Brandon Sazue served as Chair of the Crow Creek Sioux Tribe, Hawk served as the elected Treasurer of the tribe, Roxanne Sazue was also chair, and Middletent and Grey Owl were elected councilpersons. When not serving in their respective leadership positions, all defendants, except for Brandon Sazue, worked for Hawk in the Tribe’s Finance Office. In their respective leadership roles and employment positions, the defendants had the access and opportunity to the funds that were embezzled from the tribe.
The maximum penalties for each defendant upon conviction are as follows: 5 years imprisonment, a $250,000 fine, or both; 3 years, of supervised release; $ 100 to the Federal Crime Victims Fund; and restitution may be ordered. Other than Hawk, all of the defendants were released on bond pending sentencing.
The investigation is being conducted by the U.S. Attorney’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605)330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Florida Resident Charged with Accessing a Protected Computer without Authorization and Recklessly Causing DamageRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that CARLOS DAVID IRIAS, age 46, a resident of Cutler Bay, Florida, was charged today in a one-count bill of information with intentionally accessing a protected computer without authorization and recklessly causing damage resulting in loss to Company A, a company in New, Orleans, Louisiana that used to employ IRIAS, of more than $5,000 during one year, in violation of 18 U.S.C. '' 1030(a)(5)(B) and 1030(c)(4)(A). Company A was in the business of that developing and distributing specialized urological medical devices including scopes and laser fibers.
According to the bill of information, on about November 2, 2018, over one year after IRIAS separated from Company A, he intentionally accessed and attempted to access a protected computer without authorization. Specifically, he access a secured cloud-based computer system Company A used to develop and store marketing-related materials, including email contact lists, marketing templates, and brochures. After IRIAS obtained access without authorization to the cloud-based system, he exported the contents to a server under his control and deleted the information from the cloud-based system. As a result of such conduct, IRIAS recklessly caused damage to Company A, in the amount of at least $5,000.
If convicted, IRIAS faces a maximum term of five (5) years in prison, a fine of up to $250,000.00, up to three (3) years of supervised release after imprisonment, and a mandatory $100 special assessment.
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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.
Florida Man Admits Role in $4.6 Million Health Care Fraud and Kickback Schemes Related to Genetic TestingRead the Press Release
NEWARK, N.J. – A Florida man today admitted his role in using his company to defraud the Medicare Program in connection with fraudulent orders for genetic tests, U.S. Attorney Craig Carpenito announced.
Kacey C. Plaisance, 38, of Altamonte Springs, Florida, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with two counts of conspiracy to defraud the United States in connection with schemes to commit health care fraud and violate the Anti-Kickback Statute. Plaisance and five co-defendants were previously charged by indictment in September 2019 in connection with the conspiracies.
According to documents filed in this case and statements made in court:
Plaisance and his conspirators operated Ark Laboratory Network LLC (“Ark”), a company that purported to operate a network of laboratories that facilitated genetic testing. Ark partnered with Privy Health Inc., a company that another conspirator operated, and another company to acquire DNA samples and Medicare information from hundreds of patients through various methods, including offering $75 gift cards to patients, all without the involvement of a treating health care professional. A co-defendant, Matthew S. Ellis, a physician based in Gainesville, served as the ordering physician who authorized genetic testing for hundreds of patients across the country that he never saw, examined, or treated. These included patients from New Jersey and other states where Ellis was not licensed to practice medicine. Ellis, Plaisance, and their conspirators submitted and caused to be submitted fraudulent orders for genetic tests to numerous clinical laboratories. These orders falsely certified that Ellis was the patients’ treating physician and, in some cases, falsely indicated that a patient had a personal or family history of cancer. In 2018 alone, Medicare paid clinical laboratories at least $4.6 million for genetic tests that Ellis ordered in this manner.
Plaisance and his conspirators entered into kickback agreements with certain clinical laboratories under which the laboratories paid Ark bribes in exchange for delivering DNA samples and orders for genetic tests. Ark concealed these kickback arrangements through issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received from Medicare or an amount paid for each DNA sample. In 2018, the clinical laboratories paid Ark at least $1.8 million in bribes.
Each of the counts to which Plaisance pleaded guilty carry a maximum penalty of five years in prison and a fine of $250,000, or twice the gross grain or loss from the offense. Plaisance’s sentencing is scheduled for Sept. 17, 2020.
U.S. Attorney Carpenito credited the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and special agents of the U.S. Attorney’s Office for the District of New Jersey, with the investigation leading to today’s guilty plea.
The government is represented by Senior Trial Counsel Bernard J. Cooney of the Health Care Fraud Unit of the U.S. Attorney’s Office in Newark.
The charge and allegations against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Federal Inmates Indicted by Federal Grand Jury for Inciting a Mutiny or Riot and Assault on Federal OfficersRead the Press Release
RALEIGH, N.C. – A federal grand jury returned an indictment today charging two inmates at the Federal Correctional Institution in Butner, North Carolina (“FCI Butner I”) with assaulting, resisting, or impeding federal officers, as well as inciting or participating in a mutiny or riot within a federal penal institution.
According to the indictment, on April 22, 2020 Rene Moreno-Castillo and Javier Tijerina allegedly assaulted, resisted, or impeded federal officers during the performance of their official duties at FCI Butner I. Specifically, Moreno-Castillo is alleged to have pulled a fire extinguisher from the wall during an open disagreement with staff about housing assignments, and sprayed them with its chemical contents. Additionally, the indictment alleges that on the same day, prior to the discharge of the fire extinguisher, Tijerina, expressing the same perceived disagreement, incited and attempted to cause or assisted in a mutiny or riot within FCI Butner I by openly yelling, gesturing, and threatening “action” by the inmates if housing assignments did not change.
According to the indictment, after spraying staff, inmate Moreno-Castillo barricaded the unit door with lockers which he ripped from the wall and slid against the door, tied the door shut with a bed sheet, and continued to spray the fire extinguisher, filling the unit with the powder contents. FCI Butner I staff, including a tactical Complex-wide Quick Response Force, were emergently called to the scene to regain control of the unit.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina commented: “Effectively managing a federal prison is a complex and difficult job but is one that is critical to the enforcement of our criminal laws and to ensuring the safety of people in every community across the country. The men and women who serve us from behind the walls of facilities like those at Butner deserve our support and swift enforcement when prisoners take any action that impedes their work or, as here, threatens the security of those officers and risks the proper order and management of the prison. This indictment deals with the offenders who tried to incite a riot within the Butner facility but is also designed to send a message to anyone else who might consider this type of action; there will be consequences if you jeopardize the security of our prisons or endanger the brave officers and employees who serve us from within the facility.”
Moreno-Castillo is charged with violation of 18 U.S.C. § 111 and 18 U.S.C. § 1792. If convicted, he faces a maximum potential penalty of eight or ten years in prison, respectively. Inmate Tijerina is charged with a violation of 18 U.S.C. § 1792, he faces a maximum potential penalty of ten years in prison.
U.S. Attorney Higdon made the announcement. Special Assistant U.S. Attorney Mallory Brooks Storus is prosecuting the case.
A copy of this press release is located on our website.
An indictment is merely an accusation. The defendants are 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.
Essex County Man Sentenced to 10 Years in Prison for Being Felon in Possession of a FirearmRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 120 months in prison for being a felon in possession of a firearm, U.S. Attorney Craig Carpenito announced today.
Shakey Hoover, 39, of Newark, was convicted March 27, 2019, of one count of being a felon in possession of a weapon following a two-day trial before U.S. District Judge Stanley R. Chesler in Newark federal court. Judge Chesler imposed the sentence today by video conference.
According to documents filed in this case and the evidence at trial:
On the evening of April 23, 2017, four individuals — Lashaunda Glenn, her boyfriend, her sister, and her sister's boyfriend — arrived by car at Glenn’s mother’s house in Newark to pick up a television belonging to Glenn’s sister. Glenn’s mother lived in the third-floor apartment of the house with Hoover, her longtime boyfriend and a convicted felon.
Glenn and Hoover began arguing. As the confrontation became more heated, Hoover pulled from his waistband a small silver revolver, pointed it at the group, and threatened to kill them. Glenn and her companions ran to a nearby police station to report what had happened. Newark police arrived at the house a few minutes later and found a silver revolver loaded with one bullet. An examination of the gun found Hoover’s fingerprint on it.
In addition to the prison term, Judge Chesler sentenced Hoover to three years of supervised release.
U.S. Attorney Carpenito credited the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose; the N.J. State Police, under the direction of Col. Patrick J. Callahan; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Jason S. Gould and Stephen Ferketic of the Criminal Division in Newark
Eagle Butte Woman Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on May 4, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Kristen Pretty Weasel, age 38, was sentenced to 120 months in federal prison, followed by 5 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Pretty Weasel was indicted by a federal grand jury on December 10, 2019. She pled guilty on February 11, 2020.
The conviction stemmed from a conspiracy beginning in 2016 and continuing through 2018, in which Pretty Weasel knowingly and intentionally conspired with others to distribute and possess with intent to distribute 500 grams or more of methamphetamine. Pretty Weasel primarily distributed methamphetamine on the Cheyenne River Sioux Indian Reservation in South Dakota, and she traveled to acquire methamphetamine in Rapid City, South Dakota.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services; the City of Faith, South Dakota, Police Department; and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Pretty Weasel was immediately remanded to the custody of the U.S. Marshals Service.
District Attorneys, Solicitors strengthen fight against COVID-19 related fraudRead the Press Release
ATLANTA – The Prosecuting Attorneys’ Council of Georgia (PAC), the overarching judicial branch government agency charged with assisting State of Georgia prosecuting attorneys in their efforts against criminal activity, has joined forces with the Governor’s Office, U.S. Attorneys and Georgia’s Attorney General as the newest member of the Coronavirus (COVID-19) Fraud Task Force.
“Because our state has begun the process of re-opening does not mean scammers are going to stop,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia. “We will deploy all available enforcement tools against anyone who tries to take advantage of people during this pandemic. District Attorney’s from across the state are joining the Task Force and providing us even stronger prosecution partnerships.”
The Executive Director of PAC, Pete Skadalakis, will serve on the task force alongside Georgia’s three U.S. Attorneys, the Attorney General of Georgia and the Executive Counsel for the Governor’s Office.
“When we announced the COVID-19 Fraud Task Force in early April, we made it clear that any attempts to take advantage of Georgians as we continue to navigate this public health crisis would not be tolerated,” said Governor Brian P. Kemp. “Today, that commitment remains the same. I am grateful Pete Skandalakis and the Prosecuting Attorneys’ Council are joining the task force. I know they will be a great help as we continue to prioritize the safety and well-being of all Georgians.”
“Our office is proud to partner with all three of our U.S. Attorneys, the Governor’s Office and now the Prosecuting Attorneys’ Council of Georgia. Given the extremely high volume of activity in these unprecedented times, this network will allow us to leverage our unique assets and ensure that price gougers and fraudsters are held accountable,” said Attorney General Chris Carr.
“The Prosecuting Attorneys’ Council of Georgia is proud to join in this effort,” said Pete Skandalakis, PAC Executive Director. “Sadly, it is all too common for bad actors to prey on our most vulnerable citizens, especially during times of crisis. We must all work together to protect unsuspecting Georgians against criminal acts of fraud.”
Formed in April 2020, Georgia’s COVID-19 Task Force is aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. The task force enhances communication between partner agencies to more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. 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, the U.S. Attorney’s Office for the Southern District of Georgia and the Prosecuting Attorneys’ Council of Georgia. The Executive Director of PAC, Pete Skadalakis, will serve on the task force alongside Georgia’s three U.S. Attorneys, the Attorney General of Georgia and the Executive Counsel for the Governor’s Office.
Georgia’s COVID-19 Task Force warns the public to be on the lookout for potential increased criminal activity related to federal stimulus checks, fake COVID-19 cures, personal protective equipment (PPE) price gouging and fair housing violations. The public can report potential scams to the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected]. The public can also file complaints with the Attorney General’s Office by calling 800-869-1123 (toll-free) or at www.consumer.ga.gov.
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.
Connecticut Announces Joint Federal-State COVID-19 Fraud Task ForceRead the Press Release
New Haven – United States Attorney John H. Durham, Connecticut Attorney General William Tong, Chief State’s Attorney Richard Colangelo and FBI Special Agent in Charge David Sundberg today announced formation of a joint federal-state task force combatting COVID-19 related fraud in Connecticut. The task force will investigate and prosecute a wide range of misconduct related to the COVID-19 pandemic, including price gouging, healthcare and government program fraud, consumer and small business scams, lending scams, charities fraud, and cyber fraud. Violators may be subject to civil fines and penalties and/or state or federal criminal prosecution.
“The Justice Department is prioritizing the investigation and prosecution of COVID-19 fraud schemes and individuals who are exploiting this public health crisis for personal gain,” said U.S. Attorney Durham. “Our office has a dedicated COVID-19 Fraud Coordinator who is working closely with our state counterparts in the offices of the Attorney General and Chief State’s Attorney to review complaints and direct the prosecution of COVID-19-related crimes. Working together, we will disrupt these schemes and are prepared to prosecute those who seek to prey upon people’s fears or sympathy and illegally profit from this pandemic.”
“To those who seek to use this crisis as an opportunity to cheat, scam and defraud—stop. The Office of the Attorney General is working hand in hand with our state and federal enforcement partners to aggressively investigate and prosecute COVID-19 related misconduct. Our office has received over a thousand complaints regarding price gouging, scams and other schemes and our attorneys and investigators are following up on each and every one. If you are aware of COVID-19 related fraud and abuse, we want to know about it,” said Attorney General Tong.
“We at the FBI are fully committed to this multi-agency Task Force and pledge our resources to combatting those attempting to take advantage of Connecticut residents during this vulnerable time,” said FBI Special Agent in Charge Sundberg
The COVID-19 Fraud Task Force highlighted key areas of concern:
Stimulus Check Scams: The Task Force is warning residents to be cautious of scams involving COVID-19 federal stimulus checks. The federal government will never charge fees or ask you to pay money to receive your check. The federal government will never call to ask for your Social Security number, bank account, or credit card number.
Charities Fraud: Scammers see our desire to help one another during a crisis as an opportunity. Before making any donation, please check the facts and make sure you are getting accurate information from a reputable source. See guidance from the Office of the Attorney General here. Check to make sure any organization you are supporting is officially registered, by going to verified sources like the Connecticut Department of Consumer Protection, Better Business Bureau, Guidestar, or other sites listed in our guidance. Do not fall prey to high pressure tactics. If you receive a call or solicitation seeking a donation, take your time to get the facts. There is no need to commit to support on the spot.
Price Gouging: The Office of the Attorney General and the U.S. Attorney’s Office are following up on hundreds of complaints regarding price gouging, including various types of health and medical resources necessary to respond to the spread of COVID-19. During civil preparedness and public health emergencies, price gouging is against Connecticut and federal law. Price gouging or profiteering means increasing the price of an item for sale by more than could be justified in the ordinary course of business market fluctuations – particularly in light of prior margins or profit per item. Price gouging may result in federal criminal prosecution or Connecticut enforcement action. For more information on Connecticut’s price gouging statutes, click here.
Hoarding and PPE Procurement Scams: The Department of Health and Human Services (HHS) issued a Notice pursuant to President Trump’s Executive Order 13910 and the Defense Production Act, which designated health and medical resources necessary to respond to the spread of COVID-19 that are scarce or the supply of which would be threatened by excessive accumulation. These designated materials are subject to the hoarding prevention measures authorized under the Executive Order and the Act. Individuals or businesses that violate the Act will be subject to prosecution.
Phishing, Spoofing and Cyber Fraud: The Task Force warned Connecticut residents of widespread COVID-19 related cyber fraud. The Office of the Attorney General is aware of numerous reports of phishing attempts via email and text message regarding COVID-19 assistance and related aid. Do not click on links in unsolicited emails. Be wary of electronic communications purporting to be from the Centers for Disease Control and Prevention or the World Health Organization. Be on alert for messages that request your personal information in exchange for benefits or relief. Make sure you are visiting legitimate, official websites for up-to-date information about COVID-19.
Healthcare and Government Program Fraud: Connecticut healthcare providers have been given additional regulatory flexibility to enhance their ability to treat patients impacted by the COVID-19 public health crisis. Included among these recent changes are greater access for telemedicine, audio-only telephonic medicine and modifications to allow certain providers to practice prior to licensure. The Attorney General’s Antitrust and Government Program Fraud Department is taking affirmative steps to ensure that the Connecticut Medicaid program is protected from fraudsters and scammers who may try and take advantage of the newly implemented policies and orders by submitting false claims for these services. To that end, the Department’s investigators are actively reviewing Medicaid paid claims data to identify any aberrant providers and/or target suspicious claim activity.
Small Business Loan Fraud Schemes: Small business owners working hard to stay afloat should be wary of scammers charging up-front or excessive fees to secure U.S. Small Business Administration (SBA) loans or offering high-interest bridge loans. Scammers sometimes target businesses through email phishing schemes using SBA or bank logos.
Mortgage and Student Loan Relief Scams: Scammers often prey upon those facing financial hardship. Borrowers having difficulty making their monthly mortgage or student loan payments should be wary of scams promising bogus relief. Often requiring illegal up-front and reoccurring fees, scammers make deceptive claims regarding their ability to secure loan forgiveness. To avoid becoming a victim of such scams, those with mortgage or student loans should instead contact their loan servicers (the entity to whom they make their payments) to seek relief.
Connecticut residents may report COVID-19 related fraud to the Task Force by contacting the Office of the Attorney General via email at [email protected] or by calling 860-808-5318. The Attorney General’s Office is coordinating closely with prosecutors and investigators at the U.S. Attorney’s Office and Chief State’s Attorney’s Office on criminal and civil fraud cases arising during this pandemic.
Individuals also may report COVID-19 related fraud to the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or by visiting www.justice.gov/disastercomplaintform. More information on the Justice Department’s coronavirus response effort is available here.
Columbia Man Arrested on Federal Criminal Complaint for Wire Fraud, Mail Fraud, and Possession of Machine Gun ViolationsRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Edward Daniel Kimpton, Jr., 25, of Columbia, was arrested on a federal criminal complaint and charged with federal wire fraud, mail fraud, and possession of machine gun violations.
Kimpton had his initial appearance before United States Magistrate Judge Paige Jones Gossett, where he waived a preliminary hearing and a detention hearing. At this time, he remains in custody.
According to the complaint, Kimpton engaged in a sophisticated fraud scheme in which he fraudulently obtained high value firearms, ammunition, and firearm accessories from confirmed and likely victims in Arizona, California, Florida, Washington, Indiana, Tennessee, and South Carolina. During the execution of federal search warrants on April 28, 2020, Kimpton was found to have approximately 90 firearms, including semi-automatic and tactical firearms, more than 23,000 rounds of ammunition, five bump stocks, firearm scopes, tactical helmets, tactical gear, gas masks and gas mask filters, and body armor.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), who brought the federal criminal complaint, and the United States Secret Service (USSS), who have been assisted by the Richland County Sheriff’s Department, Lexington County Sherriff’s Office, Columbia Police Department, Cayce Police Department, and Batesburg-Leesville Police Department.
The case is being prosecuted by Assistant United States Attorney Elliott B. Daniels of the Columbia Office and Assistant United States Attorney Carrie Fisher Sherard of the Greenville Office.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney McCoy stated that all charges in this case are merely allegations and that the defendant is presumed innocent until and unless 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.
dsc_press_release_kimpton_complaint.pdfCoeur d’Alene Tribal Member Sentenced for Distributing MethamphetamineRead the Press Release
COEUR D'ALENE – Christopher Randle, 59, of Plummer, Idaho, was sentenced in U.S. District Court to 57 months in federal prison for distributing methamphetamine, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David Nye also ordered Randle to serve three years of supervised release following his prison sentence. Randle pled guilty to the charge in December 2019.
According to court records, Randle admitted that on multiple occasions in April and May 2019, he sold methamphetamine to an individual on the Coeur d’Alene reservation.
This case was investigated by Coeur d’Alene Tribal Police and Bureau of Indian Affairs’ Division of Drug Enforcement.
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Camden County Man Admits Role in Theft of Government Funds with Stolen Electronic Benefits MachineRead the Press Release
CAMDEN, N.J. – A Camden man today admitted his role today in a scheme to steal hundreds of thousands of dollars in government funds using fraudulently procured electronic benefits transfer (EBT) cards, U.S. Attorney Craig Carpenito announced.
Luciano Estevez, 50, pleaded guilty by teleconference before U.S. District Judge Renee Marie Bumb to an information charging him with one count of conspiracy to defraud the United States and one count of defrauding the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP).
Estevez and his co-defendants: Jose Garcia, 52, of Camden; Octavio Rodriguez, 51, of Pennsauken, New Jersey; and Juan Melo, 56, of Woodlynne, New Jersey, were previously charged by separate complaints in August 2019 with participating in the conspiracy and defrauding SNAP. Melo previously admitted his role in the scheme when he pleaded guilty on April 28, 2020, to an information charging him with participating in the conspiracy and defrauding SNAP.
Formerly known as the Food Stamps program, SNAP is administered by the USDA to assist low-income individuals and families with the purchase of groceries and food items. SNAP recipients receive EBT cards, similar to commercial debit cards, to make food purchases. Retailers authorized to accept SNAP benefits have EBT terminals to process the food purchases. Food purchases are made by swiping the EBT card at the terminal, and having customers enter a Personal Identification Number (PIN). The EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
According to documents filed in this case and statements made in court:
Estevez, Rodriguez, Garcia, Melo, and others allegedly targeted low-income individuals who possessed or had access to EBT cards, and unlawfully purchased the cards from these individuals in exchange for cash and controlled substances. Two confidential sources working with law enforcement engaged in 43 controlled transactions involving EBT cards totaling more than $40,500, which they exchanged for cash and controlled substances, including prescription opioids.
The defendants used the unlawfully procured EBT cards to purchase bulk goods and food items from large national superstores. These goods and food items were then resold in small convenience and grocery stores owned or affiliated with the defendants or their associates, resulting in a profit for the defendants. Hundreds of EBT cards fraudulently procured by the defendants were used at these superstores, resulting in the misappropriation of approximately $150,000 in government funds.
Estevez also unlawfully procured an EBT terminal registered to a superstore in Philadelphia, Pennsylvania to use at his small grocery store in Camden, which was not registered as a lawful SNAP merchant in the USDA program. Through this terminal, the scheme netted approximately $110,000 in SNAP funds.
The conspiracy count to which Estevez pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. The SNAP fraud offense to which Estevez pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for Sept. 11, 2020.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture-Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Bethanne M. Dinkins; the U.S. Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the FBI Philadelphia Field Office, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia; and the Camden County Police Department, under the direction of Chief of Police Joseph D. Wysocki.
The government is represented by Assistant U.S. Attorney Christina O. Hud of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations against Garcia and Rodriguez are merely accusations, and they are presumed innocent unless and until proven guilty.
California Hand Sanitizer Company Ordered to Stop Marketing Unapproved New DrugsRead the Press Release
A federal court ordered a California company to stop distributing hand sanitizer products that are unapproved new drugs, the Justice Department announced today.
In an order entered on May 4, 2020, U.S. District Judge David O. Carter of the Central District of California enjoined Innovative BioDefense Inc., of Lake Forest, California, along with company CEO Colette Cozean and distributor Hotan Barough, from distributing “Zylast” hand sanitizer products until the company obtains U.S. Food and Drug Administration (FDA) approval or removes disease-specific claims from its product labeling. Judge Carter entered his order following eight days of trial.
“Consumers are entitled to drug labeling that complies with the law,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice works closely with the FDA to ensure that manufacturers lawfully comply with the drug approval process.”
In a 2018 complaint, the United States alleged that the defendants distributed Zylast products in violation of the Federal Food, Drug, and Cosmetic Act (FDCA). According to the complaint, the defendants marketed their products as being effective against infection by pathogens such as the norovirus, rhinovirus, rotavirus, flu virus, Methicillin-Resistant Staphylococcus Aureus bacteria and Ebola virus, despite a lack of proof of the products’ safety and effectiveness for such uses and no approval from the FDA. The court found that the defendants’ violations of the FDCA were persistent and recurrent.
The Zylast product line includes Zylast Broad Spectrum Antimicrobial Antiseptic, Zylast XP (Extended Protection) Antiseptic Lotion and Zylast XP (Extended Protection) Antiseptic Foaming Soap.
The defendants distributed their Zylast products through the internet directly to consumers. According to the complaint, the Zylast website, www.zylast.com, featured a “Buy Now” button that linked consumers to a second website, zylastdirect.com, where customers could purchase the products. Along with these websites, the court also found that a new webpage that IBD launched during trial, www.zylastpro.com, also contained disease-specific claims.
“American consumers rely on the FDA to ensure that their drugs are safe and effective. Products with fraudulent claims to prevent or treat serious or life-threatening diseases puts consumers health at risk,” said Stacy Amin, FDA Chief Counsel. “When we cannot achieve voluntary compliance, we are fully committed to working with the Department of Justice to take appropriate action against those that subvert FDA requirements and jeopardize the health of Americans.”
The case was handled by Trial Attorneys Jason Lee, Jim Nelson, Douglas Ross, Claude Scott, and Sarah Williams of the Civil Division’s Consumer Protection Branch, with the assistance of the U.S. Attorney’s Office for the Central District of California and Associate Chief Counsel for Enforcement Yen Hoang and James Fraser of FDA’s Office of the Chief Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch.
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.
Brazilian National Charged with Armed RobberyRead the Press Release
BOSTON – A Brazilian man, living in Chelsea, was charged today in connection with the April 21, 2020, armed robbery of Lanzilli’s Grocery in Boston.
Diego Evangelista DaSilva, 32, was charged in a criminal complaint with one count of armed robbery. DaSilva, who is currently in the custody in Suffolk County, will make his initial appearance in federal court at a later date.
According to the charging documents, between Jan. 4, 2020 and April 20, 2020, 12 armed robberies occurred at commercial establishments in the metropolitan Boston area. These establishments included pharmacies, gas stations, convenience stores, and grocery stores. The robbery suspect in each of the robberies appeared to be the same individual based on consistent characteristics recorded on video surveillance and as described in witnesses. The suspect was described as a light-skinned Hispanic male, 5’9 - 6’ tall, medium build, and wearing a hat or hooded sweatshirt. In many of the robberies, the robber entered the establishment, passed a demand note, made verbal demands for money and displayed what appeared to be a firearm tucked into the waistline of his pants.
On April 21, 2020, at 8:20 p.m., an armed robbery occurred at Lanzilli’s Grocery in Boston. During the robbery, the robber was observed wearing a gray knit cap, a flesh colored mask and a gray hooded sweatshirt. The video surveillance also shows what appears to be a red garment/jacket under the gray sweatshirt. Surveillance photographs showed the robber exiting the area, going in between two buildings, and later emerging wearing a red jacket. The video shows what appears to be bulky clothing under the red jacket. The robber then entered a local store, and used the store’s Wi-Fi to order a cab. The cab company’s records revealed that the cab proceeded to drop the robber off near Washington Park in East Boston.
On April 26, 2020, law enforcement agencies surveilled the area of Washington Park and observed an individual, who fit the physical description of the robber, wearing similar clothing worn by the robber during the April 21, 2020, robbery. Law enforcement observed the individual drive away in a car, conducted a motor vehicle stop of the car, determined that the driver – DaSilva – did not possess a driver’s license and detained him. During a later search of the car, law enforcement recovered a black semi-automatic BB gun under the vehicle’s seat and a gray knot cap.
DaSilva’s home was later searched and personal papers in his name, a red jacket, and various items of clothing and hats were recovered
According to court documents, DaSilva was later interviewed and admitted his involvement in the string of 12 robberies.
The charge of Hobbs Act robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $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; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Suffolk County District Attorney Rachel Rollins; Boston Police Commissioner William Gross; Everett Police Chief Steven A. Mazzie; Chelsea Police Chief Brian Kyes; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Billings felon sentenced for illegal possession of firearmsRead the Press Release
BILLINGS—A Billings man who admitted illegally having guns after having been convicted of a felony was sentenced today to 30 months in prison followed by three years of supervised release, U.S. Attorney Kurt Alme said.
Franklin Joseph Takeshorse, 40, pleaded guilty in January to prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
The prosecution said in court documents in the case that in June 2019, the Billings Police Department received a call of a suspicious person attempting to enter a closed business. The business reported the person went back into his car and passed out. Officers approached the car and saw Takeshorse asleep and a rifle on the back seat. Takeshorse was on probation from a 2007 felony conviction and there was a warrant for his arrest. The rifle was recovered along with a pistol that was in a backpack next to Takeshorse. The rifle was unloaded, while the pistol was loaded.
Assistant U.S. Attorney Tom Godfrey prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Allentown Man Arrested for Manufacturing Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Luis Perez-Rodriguez, 31, of Allentown, PA, has been arrested and charged with one count of manufacturing child pornography after a search warrant was executed at his home. United States Magistrate Judge Henry S. Perkin presided over a detention hearing in Allentown via video teleconference today, and ordered that the defendant remain in custody pending trial.
The charge stems from the defendant’s alleged sexual abuse of a minor child, filming that abuse, and sending a video of the abuse to other users on the messenger app Kik. The defendant allegedly used the username “LuNTiph” to distribute the video to a Kik group that, unfortunately for the defendant, included an undercover FBI agent.
“My Office is steadfast in its commitment to keeping our children safe from harm,” said U.S. Attorney McSwain. “Those who break the law will be swiftly prosecuted – pandemic or not – and held responsible for their actions, especially when targeting the most vulnerable members of our society. And I want to thank the FBI for its excellent, proactive work on this investigation.”
“There are few situations more urgent than when a child is physically at risk,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Those who sexually exploit children do serious lasting harm, and the manufacture and trade of child pornography cruelly perpetuates this damage. The FBI is committed to finding such predators, locking them up, and ensuring those they've victimized are safe and well-supported.”
If convicted, Perez-Rodriguez faces a statutory maximum sentence of 30 years’ incarceration, a lifetime of supervised release, a $250,000 fine, and a $5,100 special assessment. He also faces a 15-year mandatory minimum sentence of imprisonment.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Brittany Jones.
An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ada Man Sentenced to 57 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Neal Lee Morris, age 43, of Ada, Oklahoma was sentenced to 57 months’ imprisonment, and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Section 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Oklahoma Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on June 21, 2019 the defendant, who had previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of such conviction, knowingly possessed a firearm which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “A priority of the Department of Justice is to combat and reduce violent crime. A key strategy to achieving this priority is enforcing federal gun laws thereby removing guns from those who unlawfully possess them. This defendant had numerous felony convictions and had his weapon in the seat beside him when he was stopped by the Oklahoma Highway Patrol for traffic violations. The federal law enforcement community proudly partners with state, local and tribal agencies as the ATF and this office did in this case to help them further our shared mission to serve and protect.”
“Individuals are prohibited from possessing firearms and ammunition after being convicted of a felony,” stated ATF Special Agent in Charge Jeffrey C. Boshek II. “Despite multiple felony convictions, Mr. Morris was armed when encountered by law enforcement. Federal prosecution of this crime demonstrates ATF is accountable to, and will protect, our local, state and federal partners and the communities we serve.”
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 Clay Compton represented the United States at the sentencing hearing.
5 May 2020
U.S. Attorney’s Office Committed to Investigating Predatory Housing Practices Related to COVID-19 PandemicRead the Press Release
Attorney General William Barr has directed U.S. Attorney’s Offices across the country to investigate reports of housing-related sexual harassment resulting from the current COVID-19 pandemic.
As the country adopts drastic measures to slow the spread of COVID-19, many Americans have lost their jobs and many more have seen their wages curtailed. These losses have forced some to seek abatements or suspensions of their rent. Although many landlords have responded with understanding, the Attorney General reports that other landlords have responded to requests for accommodations with demands for sexual favors and other acts of unwelcome sexual conduct. Such behavior is illegal under 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. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often impacts society’s most vulnerable populations.
“For landlords or property managers to try to use the power they have over tenants in these unprecedented times to extort sexual favors, or even commit assaults, is beyond reprehensible,” said U.S. Attorney Parsons. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Our office is dedicated to uncovering such violations wherever they exist and vigorously enforcing the law.”
The Attorney General’s directive reaffirms the Department of Justice’s commitment to the Sexual harassment Initiative launched in October 2017. The initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts, and collaborate with federal, state, and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
If you think you are a victim of sexual harassment by a landlord or other person who has control over housing, contact the Civil Rights Division by calling (844) 380-6178, or by emailing [email protected].
Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at 325 S. 1st Avenue, Sioux Falls, South Dakota, 57104, ATTN: Alison J. Ramsdell, Civil Rights Coordinator, or by calling (605) 330-4400.
For more information, visit www.justice.gov/crt/sexual-harassment-housing-initiative.
U.S. Attorney's Office Releases Tips for Protecting Children from Online Predators During COVID-19Read the Press Release
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge offered tips to help parents and guardians keep their children safe from on-line predators, commenting that: "With schools and entertainment facilities closed during the COVID-19 pandemic, kids are using the Internet more and more. Unfortunately, that means online child sexual predators have increased access to them."
1. Discuss Internet safety with children of all ages that are online. Many children do not realize that people may not be who they claim to be online. Similarly, many do not understand that someone who seems like a friend online could have a deviant motive.
2. Set limits around who your children are allowed to communicate with. You may consider limiting young children to communicating only with people you have personally met. For older children, you may consider limiting them to communicating only with people they have met in person.
3. Set limits around the kinds of devices and applications your children use. Online child sexual predators often use new technologies to avoid detection by law enforcement. If your child is using an application you have not heard of before, consider researching the application online or testing it out using your child’s account.
4. Use technology to protect them. Many devices and programs allow parents to set parameters around which applications children may use and for how long. Similarly, many of these programs allow parents to see what their children are doing while using those applications.
5. Pay attention to warning signs. Children who are sexually exploited are often embarrassed and hesitate to tell parents or other authority figures about their experiences. Pay attention if your child is withdrawing or changing their mood while their Internet activity increases.
6. Report suspected abuse. Reporting can help minimize or stop further victimization. If you believe your child has been sexually exploited online, contact the United States Attorney’s Office, your local F.B.I. office, or report online at www.cybertipline.org.
For additional information and resources on staying safe online and at home, visit https://www.end-violence.org/safeonlinecovid.
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U.S. Attorney and Oregon Attorney General Partner to Protect Oregonians from COVID-19 FraudRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams and Oregon Attorney General Ellen Rosenblum today announced the formation of a state-federal partnership to protect Oregonians from COVID-19 fraud. Together, the two offices will share information and resources to prevent Oregonians from falling victim to scams and other schemes attempting to exploit the COVID-19 pandemic and public health emergency.
Both offices have civil and criminal enforcement authority and will continue to refer serious allegations regarding COVID-19-related scams, Medicaid fraud, and other consumer fraud to each other for state or federal enforcement, as appropriate. They will also work with other federal, state, local, and tribal partners throughout Oregon to help educate communities about emerging scams and fraud schemes, and share resources related to consumer complaints.
“While Americans work to protect themselves and their loved ones from the ongoing threat of COVID-19, some individuals are actively trying to profit off of the public health emergency. Scammers have devised numerous methods to defraud people, preying on individuals’ fear, emotion, and desire to protect themselves, their families, and their communities,” said U.S. Attorney Williams. “I am pleased to join Attorney General Rosenblum and the Oregon Department of Justice to announce our new consumer protection partnership. Oregonians should have confidence that our offices are doing everything in our power to prevent them from becoming the victim of COVID-19 fraud and abuse.”
“Fraudsters are operating in full force right now—especially preying on Oregonians who may have uncashed stimulus checks, pending unemployment claims, or who may be particularly vulnerable to health care-related scams, like unauthorized tests to detect the coronavirus. By working together with U.S. Attorney Williams, we can use the power of our positions and the resources of our two offices to make sure no Oregonian is taken advantage of. I look forward to working together and with our other wonderful state and local partners, like the new non-profit, Oregon Consumer Justice, who are helping us spread the word about—and put a stop to—COVID-related scams and frauds,” said Attorney General Rosenblum.
In particular, U.S. Attorney Williams and Attorney General Rosenblum encourage Oregonians to be on the lookout for:
- Testing scams—someone trying to sell you an unauthorized COVID-19 cure, vaccine, or testing kit or going door-to-door performing fake tests for money;
- Charity scams—scammers soliciting donations for individuals or areas affected by COVID-19 or charities purportedly working on behalf of COVID-19 victims;
- Price gouging scams—businesses marking up the price of essential consumer goods and selling them at higher prices than what the goods would normally be sold for;
- Identity scams—imposters pretending to be a government official asking you for personal identifying information, access to your bank or unemployment insurance account, or offering to help you access government benefits faster, including economic impact payments.
U.S. Attorney Williams and Attorney General Rosenblum will host a tele-town hall on May 12, 2020, focusing on scam and fraud identification and prevention. The event will be co-hosted by Oregon Consumer Justice and will be open to the public. Event details:
- Date: Tuesday, May 12, 2020
- Time: 10:00-11:00 PDT
- To participate, please dial: (855)-756-7520, Extension 60478#
- If you cannot attend this event live, a recording will be made available online at www.oregonconsumer.gov/COVID-19.
If you or someone you know have been the victim of one of the scams described above or any other COVID-19-related fraud, please contact the Oregon Department of Justice at 1-877-877-9392, or submit a tip online at www.oregonconsumer.gov. If you or someone you know are in immediate danger, please call 911.
U.S. Attorney Increases Efforts to Combat Sexual Harassment in Housing During the COVID-19 PandemicRead the Press Release
WASHINGTON – As part of a national effort directed by U.S. Attorney General William P. Barr, U.S. Attorney for the District of Columbia Timothy J. Shea 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 has heard reports of housing providers trying to exploit the crisis to sexually harass tenants. Sexual harassment in housing is illegal, and the Department of Justice stands ready to investigate such allegations and pursue enforcement actions where appropriate.
“While facing both a threat to public health and a threat to economic security, District of Columbia residents need, more than ever, to feel safe in the place they call home. We will not tolerate those who seek to exploit tenants at a time when they may be most financially vulnerable,” said U.S. Attorney Shea. “The U.S. Attorney’s Office will work closely with our local and federal partners to identify incidents of sexual harassment in housing and to bring predators to justice.”
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or others who have control over housing.
Launched in 2017, the Initiative has led to the filing of lawsuits across the county alleging a pattern or practice of sexual harassment in housing and the recovery of millions of dollars in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years. 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.
The Department of Justice, through the Civil Rights Division and the U.S. Attorney’s Offices, 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.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected].
Individuals may also file a complaint alleging harassment or discrimination in housing with the Department of Housing and Urban Development through HUD’s website or by calling (800) 669-9777.
U.S. Attorney Bill Powell announces $58,008 award to address COVID-19 pandemic in Harrison CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – U.S. Attorney Bill Powell of the Northern District of West Virginia today announced that the Harrison County received $58,008 in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grant, awarded to the Harrison County Commission is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. Those jurisdictions can find out if they are eligible and apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.
“As we continue to battle this pandemic on all fronts, counties deserve support and assistance. I’m happy to announce this funding for Harrison County as they continue to good fight,” said Powell.
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Two Charged with Stimulus FraudRead the Press Release
PROVIDENCE – Two businessmen have been charged in the District of Rhode Island with allegedly filing bank loan applications fraudulently seeking more than a half-million dollars in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
David A. Staveley, aka Kurt D. Sanborn, 52, of Andover, Massachusetts, and David Butziger, 51, of Warwick, Rhode Island, ar charged with conspiring to seek forgivable loans guaranteed by the SBA, claiming to have dozens of employees earning wages at four different business entities when, in fact, there were no employees working for any of the businesses.
Staveley and Butziger are charged by way of a federal criminal complaint with conspiracy to make false statements to influence the SBA and conspiracy to commit bank fraud. Additionally, Staveley is charged with aggravated identity theft. Butziger is charged with bank fraud.
“Tens of millions of Americans have lost their jobs and have had their lives thrown into chaos because of the coronavirus pandemic. It is unconscionable that anyone would attempt to steal from a program intended to help hard working Americans continue to be paid so they can feed their families and pay some of their bills,” said U.S. Attorney Aaron L. Weisman for the District of Rhode Island. “Attorney General Barr has directed all U.S. Attorneys to prioritize the investigation and prosecution of crimes related to coronavirus and COVID-19, and we are doing just that.”
“Every dollar stolen from the Paycheck Protection Program comes at the expense of employees and small business owners who are working hard to make it through these difficult times,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Criminal Division is committed to working with our law enforcement partners to root out abuse of the important relief programs established under the CARES Act.”
“As alleged, David Staveley and David Butziger tried to capitalize on the coronavirus crisis by conspiring to fraudulently obtain more than half a million dollars in forgivable loans that were intended to help small businesses teetering on the edge of financial ruin,” said Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office. “Thankfully we were able to stop them before taxpayers were defrauded, but today’s arrests should serve as a warning to others that the FBI and our law enforcement partners will aggressively go after bad actors like them who are utilizing the COVID-19 pandemic as an opportunity to commit fraud.”
“The alleged actions of defendants Staveley and Butziger are criminally reprehensible,” said Special Agent in Charge Kristina O’Connell of the IRS-Criminal Investigation (IRS-CI). “Defrauding a government program designed to provide financial assistance to small business owners during the Coronavirus pandemic is tantamount to taking money directly out of the pockets of those who need it most. Today’s arrests exemplify the hard work, dedication and efficiency of IRS-CI and the entire investigative team.”
“This is a critical time for our nation’s small businesses. It is well known that fraudsters prey upon those in vulnerable positions,” said SBA Inspector General Hannibal “Mike” Ware. “As this result shows, SBA-OIG and its law enforcement partners are actively working together to root out fraud in SBA’s programs and bring those responsible to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their leadership and dedication throughout this investigation.”
According to court documents unsealed today in U.S. District Court in Providence, Rhode Island, the fraudulent loan requests were to pay employees of businesses that were not operating prior to the start of the COVID-19 pandemic and had no salaried employees, or, as in one instance, to pay employees at a business the loan applicant did not own.
Allegedly, Staveley and Butziger discussed via email the creation of fraudulent loan applications and supporting documentations to seek loans guaranteed by the SBA for COVID-19 relief through the Paycheck Protection Program (PPP). It is alleged that Staveley posed as his brother in real estate transactions.
It is alleged that Staveley claimed in loan applications requesting more than $438,500 that he had dozens of employees at three restaurants he owned, two in Warwick, Rhode Island, and one in Berlin, Massachusetts. An investigation determined that one of the Rhode Island restaurants, the former Remington House, and the Massachusetts restaurant, On The Trax, were not open for business prior to the start of the COVID-19 pandemic, at the time the loan applications were submitted, or at any time thereafter. Moreover, Staveley did not own or have any role in the second Rhode Island restaurant, Top of the Bay, for which he was seeking financial relief.
According to court documents, Staveley’s Massachusetts restaurant was closed by March 10, 2020, when the town of Berlin revoked the business’ liquor license for numerous reasons, including that “Sanborn” allegedly misrepresented that his brother owned the restaurant. Investigators obtained information that Staveley/Sanborn allegedly used his brother’s personal identifying information in other real estate transactions as well.
According to court documents, it is alleged that on April 6, 2020, Butziger filed an application seeking a $105,381 SBA loan under the PPP as owner of an unincorporated entity named Dock Wireless. Butziger claimed in documentation filed with the bank and in a telephone call with an FBI undercover agent posing as a bank compliance officer that he had seven full-time employees on Dock Wireless’ payroll, including himself. Butziger falsely represented to the agent that he brought the employees on full-time on Jan. 1, 2020, and laid them off at the end of March. Butziger claimed the employees continued to work without being paid through April 2020, and that he would use SBA PPP funds to pay them.
The Rhode Island State Department of Revenue provided information to the IRS of having no records of employee wages having been paid in 2020 by Butziger or Dock Wireless. Agents interviewed several of the supposed Dock Wireless employees who reported that they never worked for Butziger or Dock Wireless.
The 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 up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
Staveley and Butziger are the first individuals in the nation charged with allegedly defrauding the CARES Act SBA Paycheck Protection Program.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Assistant Chief Lawrence Atkinson of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lee H. Vilker for the District of Rhode Island are prosecuting the case.
The Justice Department acknowledges and thanks the FBI, IRS-CI, SBA Office of Inspector General, and the FDIC, Office of Inspector General for their efforts investigating this mater.
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.