Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
5 May 2020
Two Charged in Rhode Island with Stimulus FraudRead the Press Release
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, are 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 statement to influence the SBA and conspiracy to commit bank fraud. Additionally, Staveley is charged with aggravated identity theft. Butziger is charged with bank fraud.
“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.”
“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.”
“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 matter.
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.
Tax Convict Sentenced to Additional Prison Time for Fleeing Country Before Prison TermRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Wilma Hau, age 45, formerly of Littleton, Colorado, was sentenced yesterday by U.S. District Court Judge R. Brooke Jackson to serve 18 months in federal prison for fleeing the U.S. to evade the jail sentence imposed on February 24, 2014 in a previous tax fraud case. This sentence will be served consecutively to the tax fraud sentence. The Internal Revenue Service -- Criminal Investigation joined in the announcement.
According to information from the prior tax fraud case, Hau and her spouse, Remigio Rafael Hau Chi, were sentenced by U.S. District Court Judge Marcia S. Krieger for conspiracy to make false and fraudulent claims to the government. The investigation determined Hau conspired in a scheme where stolen identities were used to file 138 false federal income tax returns which generated the issuance of $430,753 in fraudulent tax refunds. A significant portion of these refunds were used for Hau’s personal benefit, including the purchase of a Littleton residence and paying off the mortgage attached to that property.
After sentencing, Judge Krieger allowed Hau to remain free on bond and surrender to the Federal Correctional Institution in Waseca, Minnesota on March 27, 2014, as instructed by the Federal Bureau of Prisons. Prior to March 27, 2014, Hau left from her residence, failed to notify the United States Attorney of a change in residence and failed to surrender to serve her sentence, becoming a fugitive. Hau was arrested at the pedestrian entrance at the Paso del Norte Port of Entry in El Paso Texas on July 31, 2019.
“Ms. Hau was duly convicted and sentenced to a federal prison term for her tax crimes. Rather than accepting the consequences of her actions and reporting to prison, she again tried to evade the law by fleeing to Mexico,” said U.S. Attorney Jason Dunn. “Hopefully the additional time in prison will be enough for her to fully contemplate and accept the error of her ways.”
“Individuals, such as Hau, who think they can leave without facing repercussions for the damage inflicted on innocent taxpayers are mistaken,” said Special Agent in Charge Andy Tsui. “IRS-Criminal Investigation Special Agents will continue to pursue those who defrauded the federal tax system to ensure they receive the justice they deserve.”
This case was investigated by Internal Revenue Service – Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Patricia Davies.
Statement of U.S. Attorney John C. Anderson on Missing and Murdered American Indians and Alaska Natives Awareness DayRead the Press Release
“The U.S. Attorney’s Office joins President Trump and the Department of Justice in observing Missing and Murdered American Indians and Alaska Natives Awareness Day. Together we remember all of the women and girls tragically lost from our Native communities in New Mexico and across the United States. The President’s proclamation reaffirms the unwavering commitment of federal law enforcement to address the unacceptably high rates of violence against women in Indian Country and our ongoing dedication to justice for these victims and their families.”
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
St. Louis City Man Pleads Guilty to Impersonating a Foreign DiplomatRead the Press Release
St. Louis, Missouri – Antuan S. Ward, a/k/a Ari’al Ban Yashar’al, 33, of St. Louis, Missouri, plead guilty to one felony count of impersonating a foreign diplomat. Ward appeared today before U.S. District Judge Audrey G. Fleissig who accepted his plea and sentenced him to time served, approximately 13 months in federal custody, and two years supervised release.
According to court documents, on April 25, 2018, Ward was driving a 1998 Ford pickup truck when he was lawfully stopped by an Ellisville Police Department officer for displaying fictitious temporary tags on the vehicle. During the traffic stop, the officer asked to see Ward's driver's license and proof of insurance. Ward gave the officer a laminated “Lawful Diplomat Sovereign and Self Determination Hebrew Israelite American National Republic Universal Dual National Identification" card that displayed a photograph of Ward and the name "Ari'al Ban Yashar'a1." Ward told the officer that he was not a ward of the state and refused to provide his full legal name. In doing so, Ward pretended to be a diplomatic official of a foreign government duly accredited as such to the United States, and did so with the intent to deceive or defraud the officer in an attempt to avoid receiving a traffic citation from the Ellisville Police Department. At the time of the vehicle stop, Ward was a fugitive from the State of Massachusetts, where he had been released on bond pending felony charges of possession of an unlicensed firearm. Ward has been detained in custody since the time of his April 25, 2018 arrest.
This case was the result of outstanding police work by Officers of the Ellisville Police Department, with the assistance of the Federal Bureau of Investigation and the Department of State. Assistant U.S. Attorney Kyle T. Bateman handled the case for the U.S. Attorney’s Office.
Smuggling Chinese citizen lands Houstonian behind federal barsRead the Press Release
CORPUS CHRISTI, Texas – A 45-year-old Houston man has been ordered to prison in Corpus Christi federal court following his conviction for transporting an undocumented Chinese national, announced U.S. Attorney Ryan K. Patrick.
The jury deliberated for approximately two hours before convicting Torrie Franklin Feb. 4 following a one-day trial.
Today, U.S. District Judge David S. Morales ordered Franklin to serve a 42-month sentence to be immediately followed by three years of supervised release.
On Nov. 12, 2019, Franklin drove a blue four-door sedan into the primary inspection lane at the Border Patrol (BP) Checkpoint located near Falfurrias. Upon his arrival, authorities conducted a routine inspection, at which time a K-9 alerted to the trunk of the vehicle. There, they found an undocumented Chinese national.
At the time of his arrest, Franklin told authorities he had encountered the man at a gas station. Franklin claimed the Chinese national asked for a ride to Houston, despite not knowing any English. He also said the man asked to ride in the trunk as opposed to inside the vehicle.
At trial, the jury heard from the Chinese national who said Franklin was the person who placed him inside the trunk. They also heard excerpts of Franklin’s phone calls in which he admitted his role in the offense.
The defense attempted to convince the jury that Franklin was merely a good Samaritan just providing a ride. They did not believe his claims and ultimately found him guilty as charged.
Franklin has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP conducted the investigation. Assistant U.S. Attorney Neel Kapur and Barbara De Pena are prosecuting the case.
Sioux Falls Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by Prohibited Person was sentenced on April 27, 2020, by U.S. District Judge Karen E. Schreier.
Sheldon Chuck Cortez, age 27, was sentenced to 18 months in federal prison, followed by 3 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Cortez was indicted for Possession of a Firearm by Prohibited Person by a federal grand jury on December 3, 2019. He pled guilty on February 6, 2020.
On or about September 17, 2019, in the District of South Dakota, Cortez, knowing he had previously been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess a firearm and ammunition, 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/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Cortez was immediately turned over to the custody of the U.S. Marshals Service.
Sex Offender Sentenced for Violating Terms of Supervised ReleaseRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Scott Falk, 36, has been sentenced to 18 months in federal prison for violating the court-ordered terms of his supervised release. Chief U.S. District Judge Timothy M. Burgess ordered that Falk serve an additional 18 months of supervised released following the completion of the new sentence.
According to court documents, the case began in the summer of 2013, when Falk attended the Sturgis Motorcycle Rally in South Dakota. While there, he responded to a fictional ad for sexual services on Backpage.com, indicating that he was interested in paying to engage in sexual acts with a young girl. Falk opted to pay $200 for one hour of sex with a 13 year-old, which he later negotiated down to $140. The ad had been posted by the FBI and the South Dakota Division of Criminal Investigation, and when Falk arrived to what he believed was his meeting with the girl (with $139 and a condom in his wallet), he was arrested.
On April 23, 2014, Falk pleaded guilty in the U.S. District Court for the District of South Dakota to attempted trafficking, and was sentenced to serve 84 months in prison, followed by three years of supervised release.
Falk transferred his case to Alaska, where he began his term of supervised release in July 2019. He started sex offender treatment in September, and drug treatment in October. During this time, Falk failed to engage with drug treatment, distributed controlled substances to other members of his sex offender treatment group, and continued to abuse drugs while in custody.
Specifically, Falk had failed the required drug tests by testing positive for methamphetamine, marijuana, and suboxone; and failed to appear for his sex offender treatment group. Falk’s probation officer also uncovered communications demonstrating that Falk had been distributing suboxone to another supervisee in his sex offender treatment group.
The U.S. Probation Office (USPO) conducted the investigation of the ensuing violations of Falk’s supervised release conditions. Falk’s supervised release violations were prosecuted by Assistant U.S. Attorney James Klugman of the U.S. Attorney’s Office for the District of Alaska.
Rapid City Woman Sentenced on Heroin Trafficking ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced by Jeffrey L. Viken, U.S. District Judge.
Sara Bailey, a/k/a Sara Johnson, age 41, was sentenced on May 1, 2020, to 20 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.
The conviction stemmed from Bailey conspiring with others to distribute nearly 2000 grams of heroin between May and August 2018 at Rapid City. Bailey’s distribution of heroin included injecting and providing heroin to a 15-year-old during the same time period.
This case was investigated by the Drug Enforcement Administration and the Unified Narcotics Enforcement Team (UNET), which is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, and the South Dakota National Guard. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Bailey was immediately remanded to the custody of the U.S. Marshals Service.
President Trump issues proclamation for Missing and Murdered American Indians and Alaska Natives Awareness DayRead the Press Release
BILLINGS—U.S. Attorney Kurt Alme and the Department of Justice today commemorated Missing and Murdered American Indians and Alaska Natives Awareness Day as proclaimed by President Donald J. Trump.
President Trump today signed a proclamation declaring May 5 as Missing and Murdered American Indians and Alaska Natives Awareness Day. The proclamation affirms the government's commitment to ending violence against these Americans and to honoring those whose lives have been lost.
Attorney General William P. Barr said in a statement, "American Indian and Alaska Native people have suffered injustices for hundreds of years, including today’s rampant domestic and sexual violence carried out primarily against women and girls. Today, President Trump has proclaimed a day to remember all those missing and lost to this unacceptable violence. Through the Presidential Task Force – co-chaired by Katie Sullivan, who heads our Office of Justice Programs – and in partnership with Tribal Nations, we are all committed to ending this cycle of violence. To that end, we have brought unprecedented resources to support public safety and victim services, including $270 million in grant funding in fiscal year 2019. The department is also hiring 11 coordinators to consult with tribes and develop common protocols to address this scourge of violence. From this day forward, today’s proclamation marks a time for all of us to honor Native Americans who have been lost and rededicate ourselves to what President Trump has called ‘our mission to bring healing, justice, hope, and restoration’ to American Indian and Alaska Native communities.”
"We know that violence in tribal communities is too common. Native women and children suffer disproportionally high rates of domestic violence and sexual assault and too often go missing or are murdered. Montana has had several tragic cases," said U.S. Attorney Alme, who is vice chairman of the Department of Justice's Native American Issues Subcommittee. "Today, we remember all those who have been murdered or have disappeared. By all of us working together, I believe we can find solutions and stop this crisis."
XXX
Plymouth Man Arrested and Charged with Making Online Threats and Assaulting a Windsor County Sheriff’s Department OfficerRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Kevin Spear, of Plymouth, Vermont has been charged by criminal complaint in the United States District Court for the District of Vermont with one count of making threats over the Internet and one count of assaulting a person assisting federal agents in the performance of official duties. Spear is presumed innocent of these charges until and unless convicted following trial or guilty plea.
According to the criminal complaint, last week agents of the Federal Bureau of Investigation, working with the Windsor County Sheriff's Department and the Vermont State Police collaborated to execute a search warrant at the Plymouth, Vermont residence of Kevin Spear. When uniformed law enforcement attempted to take Spear into custody, Spear head-butted a sergeant with the Sheriff’s Department, causing injuries. In addition, the complaint alleged that Spear had made a series of threatening communications over the Internet over the last several months, including one or more directed at the CEO of YouTube.
Court filings also show that during the search of Spear's residence last Tuesday, Agents found a semi-automatic assault-style rifle sitting uncovered on a bed next to a window overlooking the public area in front of Spear's residence, along with several high-capacity rifle magazines containing ammunition for the weapon. Agents found approximately 270 additional rounds of ammunition for the weapon by the bed. The online statements attributed to Spear included: "im [sic] going to . . . kill as many people as i [sic] can haha want to join?" A cell phone found in Spear's room had a user-assigned name of "I kill police for fun."
Spear had his initial court appearance in a telephonic hearing before United States Magistrate Judge John M. Conroy. The United States requested that Spear be detained based on dangerousness. Following argument on the motion, the Court ordered that Spear be remanded to the custody of the United States Marshal's Service.
United States Attorney Christina Nolan praised the teamwork of federal, state, and local law enforcement officers involved in the investigation and arrest. She stated: “As we approach National Police Week and continue to work together to promote justice and public safety during the pandemic, we should also keep at the front of our minds the heroism of law enforcement. Law enforcement officers put themselves in harm’s way every day to protect us before the pandemic hit; now, our first responders are taking on additional risks related to virus exposure in order to keep us safe. We will never tolerate assaults on our brave men and women in uniform, nor will we tolerate threats or other forms of violence in Vermont.”
The Federal Bureau of Investigation investigated the matter in collaboration with the Windsor County Sheriff's Department, the Vermont State Police and the Ludlow Police Department.
Spear is represented by Maryanne Kampmann, Esq. Assistant United States Attorney Michael Drescher is the prosecutor.
North Dakota Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Velva, North Dakota, man convicted of Possession of a Firearm by Prohibited Person was sentenced on April 27, 2020, by U.S. District Judge Karen E. Schreier.
Jeffrey A. Cool, age 59, was sentenced to time served and 3 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Cool was indicted for Possession of a Firearm by Prohibited Person by a federal grand jury on January 8, 2020. He pled guilty on February 3, 2020.
On or about September 2, 2018, in the District of South Dakota, Cool, then being an unlawful user of and addicted to a controlled substance, did knowingly possess firearms, 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/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
National Crime Victim's Rights weekRead the Press Release
April 16, 2020Next week, April 19-25, 2020, is National Crime Victims’ Rights Week. This year’s theme—Seek
Justice | Ensure Victims’ Rights | Inspire Hope—recognizes the individuals and groups whose advocacy has propelled the victims’ rights movement forward for the past half century, inspiring in victims and their loved ones a feeling of hope for progress, justice, and healing.
Although all National Crime Victims’ Rights Week activities have been postponed or cancelled this year due to the pandemic, we still honor crime victims in our daily work, ensure victims’ rights, and maintain our steadfast commitment to seeking justice for victims. We also want to remind the community of an important resource and service available during this global crisis.
“The Coronavirus continues to batter every segment of our society,” said U.S. Attorney Steven
Weinhoeft. “It is taking a toll on our economy and every part of our daily lives. But more important is its cost in terms of human suffering. Any individual who seeks to exploit this suffering through fraud, price gouging, or other means can expect to face the full wrath of the federal justice system. The
U.S. Attorney’s Coronavirus Fraud Task Force is working with local, state, and federal law enforcement officials, and we will aggressively prosecute anyone who further victimizes the good people of this district who are simply trying to survive this pandemic.”Anyone who has been a victim of a Covid-19 fraud or scam should call the National Center for
Disaster Fraud (NCDF) hotline (1-866-720-5721) or send complaints to the NCD e-mail address: [email protected]. Victims can also contact our office directly at 618-628-3700.Man Who Threatened Governor & KY State Troopers Charged FederallyRead the Press Release
PADUCAH, Ky. – United States Attorney Russell Coleman today announced the charging of Jeremiah Wooley, 25, of Kevil, Kentucky, for possession of an unregistered firearm (destructive device).
“Albeit unusual times and despite elevated risk to their own safety, Kentucky law enforcement continues to show up to protect our Commonwealth,” said U.S. Attorney Russell Coleman. “I could not be prouder of the mission-driven collaboration between the FBI, ATF, KSP and United States Attorney’s Office in the Purchase Region and across Kentucky.”
“During the COVID-19 pandemic, the FBI in Kentucky is especially grateful for the strong law enforcement partnerships throughout the Commonwealth,” said FBI Special Agent In-Charge Robert Brown Jr. “This investigation is a great example of law enforcement working side by side to keep Americans safe.”
“ATF will continue to work with our local, state, and federal partners to investigate anyone who poses a threat against the citizens and communities of the Commonwealth,” stated ATF Acting Special Agent in Charge Lissa G. Jordan. “This is another great example of law enforcement agencies working together for the same goal, which is to keep Kentuckians safe.”
According to the Criminal Complaint filed today, on April 29, 2020, Kentucky State Police charged Defendant Wooley for threats made against Kentucky’s Governor and Kentucky State Police Troopers via a social media platform under a false name. During the arrest Wooley had two handguns on his person. A search warrant of Wooley’s residence revealed approximately 12 firearms, including a 50 caliber rifle, assault style firearms, shotguns, and handguns.
A State Police Hazardous Device investigator also discovered approximately 50 MKII pineapple style hand grenades in a bucket in the bedroom of the defendant. All of the grenades, with the exception of one, had been rendered inert by a hole drilled in the hull of the grenade or had been manufactured as novelty items. However, one of the grenades had the hull-hole welded shut, and boxes in the same room contained all of the necessary components to complete and assemble the grenade, including black powder, time fuses, electric matches ammunition primers, and grenade spoons, safety pins, and spring cock strikers.
If convicted at trial, the maximum sentence for unlawfully possessing an unregistered firearm (destructive device) is 10 years imprisonment, a $10,000 fine, or both, and not more than a 3 year term of supervised release. There is no parole in the federal system.
This case is being prosecuted by Assistant United States Attorney Seth Hancock who also serves as the branch chief of the U.S. Attorney’s Office-Paducah. The Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Kentucky State Police conducted the investigation.
####
A Criminal Complaint is an accusation only and
the person is presumed innocent until and unless proven guilty.
####
Leaders of Indiana County, PA Drug Organization Charged with Trafficking Crack CocaineRead the Press Release
PITTSBURGH – Seven leaders of a drug trafficking organization distributing crack cocaine and methamphetamine throughout Indiana County were arrested and charged federally with drug trafficking, United States Attorney Scott W. Brady announced today.
A criminal complaint charges the following defendants with conspiring to distribute and to possess with intent to distribute 28 grams or more of crack cocaine:
• Jelahn Williams, 25, of Philadelphia, PA;
• Malik Byers, 28, of Philadelphia, PA;
• Ahmed Doumbia, 26, of Indiana, PA;
• Dayton Melton, 22, of Philadelphia, PA;
• Romello Johnson-Holland, 24, of Indiana, PA; and
• Isaiah Daniels-Wheeler, 24, of Elkins Park, PA.
A separate, but related, criminal complaint names Tamir Washington-Jenkins, 23, of Indiana, PA, as the sole defendant. Washington-Jenkins is charged with possession with intent to distribute/distribution of 50 grams or more of methamphetamine.
"Today, we’ve successfully dismantled a large-scale drug trafficking network operating between Philadelphia and Indiana County," said U.S. Attorney Brady. "This required a major, coordinated effort to arrest those responsible for trafficking these toxic substances throughout our communities. Indiana District Attorney Bob Manzi and I remain committed to combatting the drug threat – and the violence associated with it – and prosecuting those who prey on our vulnerable citizens."
"The ongoing partnerships between local, state and federal law enforcement are incredibly important when investigating, prosecuting and punishing drug dealers," said Indiana County District Attorney Bob Manzi. "My office is proud to partner with the men and women of law enforcement to make today’s arrests possible. The bottom line is that Indiana County is safer now than it was just twelve hours ago because these drug dealers are locked up. This should send a clear message to drug dealers thinking about setting up shop in Indiana County: get out!"
According to the Criminal Complaint, the investigation in this case has revealed that from January 7, 2020 to April 18, 2020, the defendants have been engaged in a conspiracy to transport crack cocaine from the greater Philadelphia area for distribution in Indiana County, Pennsylvania and the surrounding region. The investigation has shown that, during the time period alleged in this Complaint, Williams, Byers, and/or Doumbia have made multiple trips from Indiana, Pennsylvania to Philadelphia, Pennsylvania where they have obtained large quantities of crack cocaine from/with Melton and/or Daniels-Wheeler and/or others, brought the crack cocaine back to "trap locations" in Indiana, including, frequently, an apartment rented by Johnson-Holland, and distributed the crack cocaine in Indiana to drug purchasers and street-level dealers.
As part of this investigation, investigators have conducted court-authorized Title III interceptions of wire and electronic communications occurring over several telephones known to be used by members of this conspiracy. During the periods of interception, investigators have intercepted communications between the defendants related to the manufacture and/or distribution of crack cocaine and other controlled substances. The Criminal Complaint contains samples of calls between the defendants.
The Criminal Complaint filed against Tamir Washington-Jenkins alleges that on October 10, 2019, members of the Southwest Pennsylvania Safe Streets Task Force completed a controlled buy of methamphetamine from Washington-Jenkins. Washington-Jenkins provided the suspected methamphetamine to a confidential source/undercover officer in exchange for $1,600 in controlled funds. Lab testing confirmed that the substance provided by Washington-Jenkins contained methamphetamine and weighed 54.99 grams.
"Drugs and the violence, which often underpins illicit drug trafficking, has a devastating effect on our communities." said FBI Pittsburgh Acting Special Agent in Charge Eugene Kowel. "The FBI will not tolerate people bringing these types of dangerous drugs in from other areas to sell in our neighborhoods. The FBI, our Southwest Pennsylvania Safe Streets Task Force, along with our federal, state and local partners, will continue to work together to make sure those responsible are held accountable."
"Even during today’s pandemic, Homeland Security Investigations continues to work to remove violent drug offenders from the streets of Pennsylvania." said Assistant Special Agent in Charge, HSI Pittsburgh, James D. Abbate. "HSI remains committed to working with our local, state and federal partners to keep our communities safe."
For each of the defendants, the law provides for a penalty of not less than five years’ to not more than to 40 years’ imprisonment, a fine of 5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant(s).
Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
This case has been investigated by the Federal Bureau of Investigation, Department of Homeland Security – Homeland Security Investigations, Indiana County District Attorney’s Drug Task Force, Southwest Pennsylvania Safe Streets Task Force, Indiana Borough Police Department, Pennsylvania State Police, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pennsylvania Office of the Attorney General. The U.S. Attorney’s Office for the Eastern District of Pennsylvania assisted in this investigation.
A criminal complaint is only a charge and is not evidence of guilt. A defendant may not be prosecuted unless, within 30 days, a grand jury has found probable cause to believe that he is guilty of an offense.
HOPE Clinic Manager Sentenced to Federal Prison for Gun CrimeRead the Press Release
BECKLEY, W.Va. – A HOPE Clinic manager was sentenced to 20 months in federal prison for a gun crime, announced United States Attorney Mike Stuart. Joshua Radcliffe, 36, of Shady Springs, previously pled guilty to conspiring with Mark T. Radcliffe to using and carrying firearms in relation to maintaining drug-involved premises.
“Even though Joshua Radcliffe was not a prescribing physician, today he was held accountable for his role in fueling the opioid epidemic in West Virginia,” said United States Attorney Mike Stuart. “The opiate crisis ravaged our good state and affected every single citizen in one way or another. We are holding everyone accountable for the roles they played.”
From 2010 through 2015, Radcliffe was employed with Patients, Physicians and Pharmacists Fighting Diversion (PPPFD), Inc., the company that managed the daily operations of the HOPE Clinic. Radcliffe admitted that HOPE Clinic was predominately a cash-based business and that the physicians at HOPE Clinic issued prescriptions for oxycodone to its customers not for legitimate medical purposes and outside the bounds of professional medical practice. Radcliffe worked at the Beckley and Beaver locations of the HOPE Clinic as the Clinic Manager. As the Clinic Manager, Radcliffe admitted to running the daily operations of the clinics and that PPPFD management made medical decisions that should have been made by the physicians and not by PPPFD employees. Because the customers coming to both the Beckley and Beaver HOPE Clinic locations were seeking Schedule II controlled substances to feed their addiction or to distribute illegally, Radcliffe admitted that he carried a firearm to work. He and others in management at PPPFD encouraged other PPPFD employees, especially the narcotic auditors and clinic managers, to carry firearms to work for protection because of the customers and the amount of cash coming into the clinics each day.
The investigation was conducted by the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG), the Internal Revenue Service – Criminal Investigations, the Food and Drug Administration – Office of Criminal Investigations, the Federal Bureau of Investigation, the West Virginia State Police, the Kentucky State Police, the Beckley Police Department, the Virginia State Police, the Charleston Police Department, and the Drug Enforcement Administration.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Monica D. Coleman and Steven Loew are handling the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Former Healthcare President Pleads Guilty to Embezzling over $763,000 and Tax EvasionRead the Press Release
NASHVILLE, Tenn. – May 5, 2020 – Robert R. Burton, 50, of Madisonville, Louisiana, pleaded guilty yesterday in U.S. District Court to embezzling $763,887 from Omnis Health Inc. (“Omnis”) and tax evasion, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Burton was charged in an Information in February with wire fraud and tax evasion related to his embezzlement scheme.
According to court documents, between July 2013 and May 2017, Burton was the president of Nashville-based Omnis, which sold diabetic testing kits. Burton entered into a plea agreement, in which he admitted that from December 2013 through January 2017, he embezzled approximately $763,887 from Omnis by submitting false and fraudulent reimbursement requests to the controller of Omnis, claiming that he had purchased supplies and incurred travel expenses which he had not. To justify his reimbursement requests, Burton fabricated receipts to include with his fraudulent reimbursement requests.
To accomplish a large portion of his scheme, Burton submitted reimbursement requests for diabetic testing products, falsely claiming he had purchased those products. Burton claimed that he was using personal funds to purchase “grey market” diabetic testing supplies on the open market; that he was purchasing the supplies so Omnis could conduct research; that he was purchasing lower-priced “bootleg” diabetic testing supplies to take them off the market; and that he was sending the products to Omnis’s parent company for testing. Burton never actually purchased the supplies, but instead he visited multiple online vendors, such as Amazon or Diabetessupplies4less.com, placed the products in his online shopping cart, printed the computer screens displaying his shopping cart as the “receipt,” and then attached those “receipts” to his reimbursement requests. Burton also fabricated credit card transaction receipts falsely showing he had purchased the products, and attached those fabricated receipts with his reimbursement requests. Burton was reimbursed at least $484,328 for supplies that he never purchased.
Burton also admitted that he frequently submitted false travel expense reimbursements and travel advances, claiming that he traveled for business to meet with suppliers, customers, and individuals from the corporate office, and to attend conferences. In fact, Burton did not take the majority of the flights for which he was reimbursed approximately $203,747.83. Similar to how he falsified his expense reports for diabetic testing supplies, Burton would visit an airline’s website, print an itinerary that displayed a cost for the flight, and submit that as the receipt without ever purchasing the flights. In addition to the airline reimbursements, Burton falsely claimed that he had attended conferences and fabricated credit card transaction receipts of at least $102,056.
In an effort to further conceal the fraud, rather than depositing the reimbursement checks into his bank accounts, Burton cashed them at a bank or a check cashing business and either spent the cash or deposited it onto prepaid debit cards. Burton often used the funds for gambling.
Burton also failed to report the embezzled funds on his personal tax returns for tax years 2014 through 2016 and failed to timely file his 2017 personal tax return. In addition, he provided false income information to his tax return preparer by omitting the embezzled income. The total loss to the IRS for tax years 2014 through 2017 is $295,129.
Burton faces up to 20 years in prison on the charge of wire fraud and up to five years in prison on the charge of tax evasion, and a fine of up to $250,000 on each count when he is sentenced on August 28, 2020. This case was investigated by the IRS-Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Kathryn Booth.
# # # # #
Former Aequitas Senior Executive and Chief Financial Officer Indicted for Making False Statements to CreditorRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Nelson Scott Gillis, 66, of Lake Oswego, Oregon, a former senior executive and chief financial officer of Aequitas Management, LLC, and several other Aequitas-owned entities, has been indicted for conspiring to submit false statements to a federally insured creditor in order to obtain $4.2 million for Aequitas as it struggled to survive in January 2016.
According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. To purchase the trade receivables, and for other purposes it fraudulently concealed, Aequitas solicited some investors through the issuance of promissory notes via the Aequitas Commercial Finance (ACF) Private Note program.
Aequitas also borrowed funds from other financial institutions to purchase trade receivables. One of these institutions was Wells Fargo Bank, N.A. On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. On or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitas’s behalf. To receive advances on this line of credit, Aequitas had to certify several things, including that it was not experiencing an “event of default” or “potential event of default” on more than $2.5 million in debt held by third parties.
In early January 2016, Gillis and other Aequitas executives were advised that Aequitas was already in default on Private Note obligations exceeding $2.5 million. Despite that advice, on or about January 15, 2016, Gillis signed and, with others, submitted to Wells Fargo an “advance notice,” requesting that Wells Fargo advance $4.2 million to Aequitas under the terms of their loan agreement. As part of this “advance notice”, Gillis certified that “no potential event of default or event of default has occurred or is occurring.”
Gillis faces a maximum sentence of 90 years in prison, fines of $3 million or twice the gross monetary gains or losses resulting from his crimes, and 5 years’ supervised release. He will be arraigned on May 15, 2020, before a U.S. Magistrate Judge.
This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Attorneys for the District of Oregon.
El Dorado County Man Sentenced to 10 Years in Prison for Distributing a Drug that Caused the Death of a MinorRead the Press Release
SACRAMENTO, Calif. — Elijah Richter, 28, of Camino, was sentenced Monday by U.S. District Judge Kimberly J. Mueller to 10 years in prison for distribution of a controlled substance known as n25i-nBOME that caused death, U.S. Attorney McGregor W. Scott announced.
According to court documents, during September 2012, Richter imported hallucinogenic drugs, including a controlled substance known as n25i-nBOME, from Europe to his residence in El Dorado County by placing orders on his computer through Silk Road, a now-defunct darknet website.
Through Silk Road, Richter was able to use bitcoin currency and an anonymous interface to execute drug deals. Shortly before Sept. 8, 2012, Richter imported a number of doses of n25i‑nBOME from Europe. Richter then distributed some of that n25i-nBOME to Jesse Roberts. Roberts, in turn, distributed some of that n25i-nBOME to a juvenile male who took four doses of the n25inBOME and died as a result of an overdose on the drug. DEA and the El Dorado County Sheriff’s Office served a search warrant at Richter’s home and recovered 2.61 grams of MDMA, three digital scales, 3.81 grams of suspected hash oil, 42.25 grams of marijuana, 89 pink colored tabs of suspected 25i-nBome on paper, and seven additional tabs of suspected 25i-nBome in aluminum foil, as well as a handwritten list of drugs and their proper dosage units. Richter admitted to supplying the hits of n25i-nBome that killed the juvenile.
When Richter pleaded guilty on Jan. 13, 2020, he admitted that he imported doses of n25i‑nBOME for the purpose of distributing that substance to others for human consumption and some of those doses ultimately were distributed and led to the juvenile’s overdose death in September 2012.
The El Dorado County District Attorney’s Office prosecuted Roberts. He was convicted of involuntary manslaughter on March 3, 2017, and sentenced to six years in prison.
This case was the product of an investigation by the El Dorado County Sheriff’s Office, the El Dorado County District Attorney’s Office, and the Drug Enforcement Administration as part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. Assistant U.S. Attorneys Jason Hitt and Paul A. Hemesath prosecuted the case.
Eagle Butte Man Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Possession with Intent to Distribute Methamphetamine was sentenced on May 4, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Calvin Donald Edwards, Jr., age 41, was sentenced to 30 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Edwards was indicted by a federal grand jury on January 14, 2020. He pled guilty on February 10, 2020.
The conviction stemmed from an incident that occurred on July 1, 2019, wherein Edwards knowingly and intentionally possessed with intent to distribute approximately 39 grams of methamphetamine in Eagle Butte.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Edwards was immediately remanded to the custody of the U.S. Marshals Service.
Defendants Sentenced for Roles in Access Device Fraud and Identity TheftRead the Press Release
COVINGTON, Ky. - Shirley Ann Cameron, 53, of Chicago, Illinois, and Danielle Vaccara Davis, 42, of Geronimo, Oklahoma, were sentenced today, on their guilty pleas to charges of Aggravated Identity Theft and Conspiracy to Commit Access Device Fraud. United States District Court Judge David L. Bunning sentenced Cameron to 36 months in federal prison, while Davis received a total of 30 months.
In their plea agreements, the defendants admitted law enforcement arrested them in Kenton County, Kentucky, after they attempted to use counterfeit credit cards at a liquor store. The pair had numerous counterfeit credit cards in their possession. The investigation revealed that the defendants were part of a conspiracy that was responsible for more than 800 fraudulent return/refund transactions at Cracker Barrel Restaurants, throughout the country. Cameron and Davis conducted approximately 43 purchases at Cracker Barrels in Eastern Kentucky—including Lexington, Florence, Dry Ridge, Mount Sterling, Morehead, and Georgetown—and elsewhere. The loss associated with the fraud scheme topped $160,000.
In committing the scheme, the defendants used counterfeit credit cards to make purchases with stolen account numbers. The defendants would retain the receipt, which displayed only the last four digits of the stolen account number, and would then return the purchased items to a different Cracker Barrel, using the receipt. They would present personal debit cards containing those same four digits, for a return of funds.
Under federal law, the defendants must serve 85 percent of their prison sentences; and upon their release, they will be under the supervision of the United States Probation Office for a specified term. Cameron and Davis were ordered to pay restitution to Cracker Barrel Restaurants.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Yvonne DiCristoforo, Special Agent in Charge of the U.S. Secret Service made the announcement.
The investigation was conducted by the United States Secret Service. The United States was represented by Assistant United States Attorneys Laura K. Voorhees and Wade T. Napier.
— END —
DOJ Increases Efforts to Combat Sexual Harrassment in Housing During the COVID-19 PandemicRead the Press Release
U.S. Attorney Timothy J. Downing 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 in some states. Sexual harassment in housing is illegal, and the Department of Justice stands ready to investigate such allegations and pursue enforcement actions where appropriate.
"Our office is committed to working with all levels of law enforcement to bring to justice any individual so evil-minded as to sexually harass those in desperate need of housing during this pandemic," said U.S. Attorney Timothy J. Downing. The U.S. Attorney’s Office for the Western District of Oklahoma will work closely with state and local partners to identify incidents of sexual harassment in housing.
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 other people who have control over housing.
Launched in 2017, the Initiative has filed lawsuits across the county alleging a pattern or practice of sexual harassment in housing and recovered 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.
Individuals who believe they may have been victims of discrimination may also contact the U.S. Attorney’s Office for the Western District of Oklahoma by calling (405) 553-8700.
Connecticut Substance Abuse Treatment Provider Pays $295K to Settle Improper Billing AllegationsRead the Press Release
New Haven – John H. Durham, United States Attorney for the District of Connecticut, today announced that CONNECTICUT COUNSELING CENTERS (“CCC”) has entered into a civil settlement agreement with the federal and state governments in which it will pay more than $295,000 to resolve allegations that it caused overpayments to be paid by the Connecticut Medicaid Program.
CCC is a healthcare organization that provides outpatient substance abuse and mental health services in Connecticut, with clinics located in Fairfield and New Haven counties. The government’s allegations against CCC arise out of improper billing for urine drug testing services.
The State of Connecticut Department of Social Services (“DSS”) contracted with CCC to provide behavioral health and substance use disorder services to Medicaid beneficiaries. Medicaid reimburses methadone clinics, such as CCC, utilizing a weekly rate payment for each Medicaid patient provided methadone treatment. Regulations issued by the State of Connecticut in 2013 made it clear that the weekly payment was a “bundled” rate that included intake evaluation; initial physical examination; on-site drug abuse testing and monitoring; and individual, group and family counseling services.
On September 3, 2014, Medicaid issued a Provider Bulletin to all methadone clinics reminding them that the weekly rate payment included reimbursement for on-site drug abuse testing and monitoring.
On February 1, 2015, DSS published on its website an Audit Protocol for methadone clinics. The Audit Protocol stated that if a DSS audit found Medicaid paid another laboratory provider for drug testing within a week of the date a methadone clinic was paid for methadone treatment, Medicaid would reduce the methadone clinic’s payment for the methadone treatment service by the cost of the laboratory service.
DSS conducted an audit of CCC and found that both CCC and an independent laboratory billed Medicaid for drug testing performed by the laboratory, contrary to DSS’ weekly rate payment regulation. In January 2016, DSS issued an Audit Report that warned CCC that continued non-compliance with the weekly rate payment rule would result in financial disallowances in future audits.
The government alleges that despite clear guidance from the Medicaid program and the audit finding indicating that on-site drug testing was part of the bundled rate, CCC routinely referred urine drug tests for CCC’s patients to an outside, independent laboratory. As a result, Medicaid paid for the claims twice, once to CCC pursuant to the bundled rate and a second time to the outside laboratory.
To resolve its liability, CCC will pay $295,211 to the federal and state governments for conduct occurring between January 18, 2016 and December 31, 2016.
“Providers who bill government health insurance programs, such as Medicaid, must follow the rules, and the failure to do so will have serious consequences,” stated U.S. Attorney Durham.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and by Assistant Attorneys General Michael E. Cole and Gregory K. O’Connell of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Company agrees to pay nearly $1.4 million for underpaying Army and Air Force base food service providerRead the Press Release
COLUMBUS, Ohio – A Delaware Corporation headquartered in Irving, Texas has agreed to pay the United States nearly $1.4 million to settle a False Claims Act lawsuit filed in Cincinnati district court.
According to the settlement, Darling Ingredients Inc. underpaid rebates to the Army and Air Force Exchange Service (AAFES) for more than a decade. Darling denied any wrongdoing.
Darling is a global developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients. Darling collects, and rebates its customers for, used cooking oil from its customers’ restaurants, food establishments and grocery stores, including food service establishments on United States Air Force and Army bases owned or operated by AAFES.
Darling (and its wholly owned subsidiary Griffin Industries, Inc.) had contracts with AAFES to collect used cooking oil from food establishments on military bases and provide AAFES with a rebate for the used cooking oil received from AAFES.
The complaint was filed on behalf of the United States, under the qui tam provisions of the False Claims Act, by a former employee of Darling. The complaint alleged that from at least 2008 until November 2019, Darling submitted inaccurate reports to AAFES in order to underpay per the terms they promised in their contract.
The complaint included conduct alleged at numerous government installations, facilities and military bases across the country, including Wright-Patterson Air Force Base and the VA Hospital in Cincinnati.
Darling has agreed to pay the United States $1.375 million, including $687,500 in restitution to AAFES.
“Parties that contract with the government are held to the letter of the contract,” U.S. Attorney David M. DeVillers said. “U.S. Supreme Court Justice Oliver Wendell Holmes, Jr. wrote in 1920 that ‘Men must turn square corners when they deal with the Government.’ That still rings true 100 years later. If you cut corners on your contractual obligations, you will pay.”
“The settlement announced today is the result of a joint effort by the U.S. Attorney’s Office, Southern District of Ohio, the Defense Criminal Investigative Service (DCIS), Air Force OSI and Army CID,” stated Special Agent-in-Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. “DCIS is committed to protecting the integrity of the defense procurement system by working with its law enforcement partners to identify and investigate companies that fail to meet their contractual obligations with the U.S. Department of Defense.”
“The collaboration between the Department of the Air Force, Office of Special Investigations, its investigative partners, and the U.S. Attorney's Office, Southern District of Ohio, to combat fraud and safeguard the integrity of the Department of Defense's acquisition process, was significant in this outcome,” said Special Agent-in-Charge Blair Holmstrand, Office of Investigations, Procurement Fraud Detachment 3, San Antonio. “As the executive investigative agency for AAFES, the Office of Special Investigations is dedicated to the identification and neutralization of fraud affecting AAFES and the impact such fraud has on AAFES's funding of quality-of-life improvement programs for the military service members and their families.”
Assistant United States Attorney Andrew M. Malek is representing the United States in this case.
# # #
Coal Company, Owner, Foreman All Plead Guilty to Conspiracy to Defraud the United States by Cheating MSHA’s Dust Sampling RegulationsRead the Press Release
ABINGDON, Va. – A Grundy, Va., coal company, its owner, and one of its foremen pleaded guilty today in U.S. District Court in Abingdon to conspiring to defraud the United States by cheating on underground coal mine dust sampling procedures under the Federal Mine Safety and Health Act. United States Attorney Thomas T. Cullen and Assistant Secretary of Labor for the Mine Safety and Health Administration (MSHA) David G. Zatezalo announced the guilty plea today.
“Coal mining, by its nature, is a hazardous occupation, and federal health and safety laws play a critical role in reducing the dangers miners face on a daily basis,” U.S. Attorney Cullen said today. “We will continue to work closely with MSHA to ensure that mine owners and operators play by these important rules, and, when they don’t, hold them accountable under federal law.”
“These prosecutions are a milestone in MSHA’s vigorous enforcement of the 2014 Respirable Coal Dust Rule. When mining companies ignore the dust sampling rules and try to cheat the system, they place miners at risk. Without accurate samples, we don’t know the levels of respirable coal dust in which miners are forced to work. But we do know that reducing respirable coal dust is central in our efforts to reduce pneumoconiosis and silicosis for the nation’s coal miners. MSHA applauds the Department of Justice for its hard work in showing that violating the law has consequences,” Zatezalo said.
D&H Mining, Inc. pleaded guilty to one felony count of conspiracy to defraud the United States for the dust sampling fraud. D&H Mining also pleaded guilty to a misdemeanor violation of the Mine Act for willfully allowing miners to conduct roof-bolting in return air in violation of the mine’s MSHA-approved ventilation plan.
Daniel Tucker, the owner of D&H Mining and Gerald Ball, a foreman, also pleaded guilty to one felony count of conspiracy to commit dust sampling fraud.
According to court documents, Tucker and Ball conspired to defraud MSHA by taking personal dust monitors off miners before the end of the shift and hanging them in clean air, programming the monitors to shut off before the end of a shift, and submitting false reports to MSHA.
Pursuant to the terms of his plea agreement, Tucker will pay $80,000 as a criminal fine within 60 days of his plea. The district court will sentence D&H Mining, Tucker, and Ball on August 11, 2020.
From May 2017 to August 2019, Tucker repeatedly programmed personal dust monitors that miners must wear the entire time they are underground while conducting required dust sampling to automatically shut off after 9 hours despite running shifts of 10 hours. Ball removed personal dust monitors from miners working underground in dusty conditions and hung them in areas of the mine with clean air in an attempt to prevent the devices from registering elevated levels of respirable dust in the working areas of the mine. MSHA’s dust sampling regulations are designed to reduce the level of respirable coal dust in mines to reduce the risk of miners developing pneumoconiosis (“black lung”) and silicosis, the most common coalmine dust-caused diseases. D&H Mining further allowed miners to conduct roof-bolting operations in return dirty air despite its ventilation plan.
The investigation of the case was conducted by the Norton Office of the Mine Safety and Health Administration. Special Assistant United States Attorney Jason Grover from the Department of Labor and Assistant United States Attorneys Lena Busscher and Randy Ramseyer prosecuted the case for the United States.
Businessman Sentenced for Fraud that Targeted Elderly HomeownersRead the Press Release
NEWPORT NEWS, Va. – A Virginia Beach man was sentenced today to 11 years in prison for conducting a home modification loan fraud scheme that primarily targeted elderly homeowners in the Tidewater area.
In January, Gregory J. Ziglar, 61, was convicted of 16 charges following a two-week trial. According to court documents, from 2014 to 2017, orchestrated an extensive home improvement loan fraud in the Tidewater area that victimized banks and individual victims, many of whom were elderly. Ziglar developed a scheme to place individual homeowners into federally insured loans to do improvements on their homes, but instead, diverted funds to his own use. Ziglar conducted this scheme in the guise of a legitimate business using various company names and a fake name for himself in dealing with clients, banks and contractors. He exploited a federal program designed to assist homeowners and tradesmen and advertised to homeowners that such funds could be used for any purpose. In order to obtain these loans, Ziglar submitted false estimates or purported agreements from contractors to justify these improvements. The homeowners received the loans and paid Ziglar an unlawful service fee for moving their loan application through the bank. They also paid him for the home improvements he promised to get done, but many times little or no work was done leaving the individual homeowners with a loan debt and no improvements, while leaving Ziglar with thousands in loan proceeds.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Shawn Rice, Acting Special Agent in Charge of the Office of Inspector General, Department of Housing and Urban Development, Mid-Atlantic Region, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Brian J. Samuels prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-30.
Box Elder woman sentenced for stabbing manRead the Press Release
GREAT FALLS – A Box Elder woman who admitted stabbing a man in the upper chest with a butterfly knife on the Rocky Boy’s Indian Reservation last year was sentenced today to 18 months in prison and two years of supervised release, U.S. Attorney Kurt Alme said.
Katie Lynn Big Bow, 44, pleaded guilty in January to assault of a dating partner resulting in substantial bodily injury.
Chief U.S. District Judge Brian M. Morris presided.
The prosecution said in court records that the assault occurred on May 2, 2019 when Big Bow stabbed the victim with a butterfly knife in the left hand and upper chest at his house in Box Elder. The victim drove himself to the clinic on the reservation. Big Bow and the victim were in a long-term relationship.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the FBI and Rocky Boy’s Chippewa Cree Law Enforcement.
XXX
Attorney General William P. Barr's Statement on Missing and Murdered American Indians and Alaska Natives Awareness DayRead the Press Release
Attorney General William P. Barr issued the following statement:
“American Indian and Alaska Native people have suffered injustices for hundreds of years, including today’s rampant domestic and sexual violence carried out primarily against women and girls. Today, President Trump has proclaimed a day to remember all those missing and lost to this unacceptable violence. Through the Presidential Task Force – co-chaired by Katie Sullivan, who heads our Office of Justice Programs – and in partnership with Tribal Nations, we are all committed to ending this cycle of violence. To that end, we have brought unprecedented resources to support public safety and victim services, including $270 million in grant funding in fiscal year 2019. The department is also hiring 11 coordinators to consult with tribes and develop common protocols to address this scourge of violence. From this day forward, today’s proclamation marks a time for all of us to honor Native Americans who have been lost and rededicate ourselves to what President Trump has called ‘our mission to bring healing, justice, hope, and restoration’ to American Indian and Alaska Native communities.”
Attorney General William P. Barr and U.S. Attorney Trent Shores Recognize Missing and Murdered American Indians and Alaska Natives Awareness DayRead the Press Release
President Donald J. Trump today proclaimed May 5, 2020, as Missing and Murdered American Indians and Alaska Natives Awareness Day. The proclamation reaffirmed the nation’s commitment to reverse the trend of violence affecting American Indians and Alaska Natives and to remember those missing or lost. Attorney General William P. Barr and U.S. Attorney Trent Shores shared their commitment to providing justice to these victims and their families.
“American Indian and Alaska Native people have suffered injustices for hundreds of years, including today’s rampant domestic and sexual violence carried out primarily against women and girls. Today, President Trump has proclaimed a day to remember all those missing and lost to this unacceptable violence," said Attorney General William P. Barr. "Through the Presidential Task Force – co-chaired by Katie Sullivan, who heads our Office of Justice Programs – and in partnership with Tribal Nations, we are all committed to ending this cycle of violence. To that end, we have brought unprecedented resources to support public safety and victim services, including $270 million in grant funding in fiscal year 2019. The department is also hiring 11 coordinators to consult with tribes and develop common protocols to address this scourge of violence. From this day forward, today’s proclamation marks a time for all of us to honor Native Americans who have been lost and rededicate ourselves to what President Trump has called ‘our mission to bring healing, justice, hope, and restoration’ to American Indian and Alaska Native communities.”
“Today, I hope to give attention to the voices of American Indian and Alaska Native women and girls who have been the victims of violent crime. We should listen to their experiences. We should heed the concerns of their families and friends in Indian Country. We should be inspired to take action and confront this tragic victimization. During this Missing and Murdered American Indians and Alaska Natives Awareness Day, United States Attorneys reaffirm our commitment to stop the cycle of violence against the first Americans, and we honor all those impacted by these terrible crimes,” said U.S. Attorney Trent Shores.
In November 2019, critical initiatives were launched, in collaboration with Native American and Alaska Native communities, to develop robust protocols and programs to better protect and find justice for indigenous women and girls. In November, President Donald Trump signed an executive order establishing the Task Force on Missing and Murdered American Indians and Alaska Natives. U.S. Attorney Trent Shores was appointed to the task force. The task force is working to develop protocols, procedures, and best practices to address new and unsolved missing and murdered cases. It is co-chaired by the Attorney General and the Secretary of the Interior. Also launched in November was the Justice Department's Missing and Murdered Indigenous Person's Initiative, which places MMIP coordinators in U.S. Attorneys’ offices in 11 states, including Oklahoma. The plan also calls for the deployment of the FBI’s most advanced response capabilities when needed, improved data collection and analysis, and training to support local response efforts. You can learn more about the Operation Lady Justice here and about the Justice Department’s MMIP initiative here.
Originally, the U.S. Senate designated May 5th as National Day of Awareness for Missing and Murdered Native Women and Girls in 2017. The observance shined a light on the high rates of homicides of American Indian and Alaska Native women, as well as other forms of violence, including sex trafficking, domestic violence, and sexual assault, affecting Native communities throughout the United States. The Senate resolution was drafted in memory of Hanna Harris (Northern Cheyenne), whose birthday was May 5. Harris was found murdered in Montana in 2013.
Attorney General William P. Barr and U.S. Attorney Bart M. Davis Recognize Missing and Murdered American Indians and Alaska Natives Awareness DayRead the Press Release
BOISE – Today, President Donald J. Trump proclaimed May 5, 2020, as Missing and Murdered American Indians and Alaska Natives Awareness Day. The proclamation reaffirmed the nation’s commitment to reverse the trend of violence affecting American Indians and Alaska Natives and to remember those missing or lost. Attorney General William P. Barr and U.S. Attorney Bart M. Davis shared their commitment to providing justice to these victims and their families.
“American Indian and Alaska Native people have suffered injustices for hundreds of years, including today’s rampant domestic and sexual violence carried out primarily against women and girls,” said Attorney General William P. Barr. “Today, President Trump has proclaimed a day to remember all those missing and lost to this unacceptable violence. Through the Presidential Task Force – co-chaired by Katie Sullivan, who heads our Office of Justice Programs – and in partnership with Tribal Nations, we are all committed to ending this cycle of violence. To that end, we have brought unprecedented resources to support public safety and victim services, including $270 million in grant funding in fiscal year 2019. The department is also hiring 11 coordinators to consult with tribes and develop common protocols to address this scourge of violence. From this day forward, today’s proclamation marks a time for all of us to honor Native Americans who have been lost and rededicate ourselves to what President Trump has called ‘our mission to bring healing, justice, hope, and restoration’ to American Indian and Alaska Native communities.”
“Idaho’s Legislature designated today as a ‘Day of Awareness for Missing and Murdered Indigenous People,’” said U.S. Attorney Davis. “President Trump, Attorney General Barr and I recognize the tremendous suffering by the families and friends of murdered and missing Indian people. This loss is a great tragedy. Today, with Idaho, our office resolves, as our Legislature wrote to ‘honor the lives of all missing and murdered indigenous people’ by working with our federal, tribal, state and local law enforcement partners to make a more significant difference.”
# # #
Alleged International Narcotics Trafficker Extradited from Dominican RepublicRead the Press Release
Melvin Martinez was arraigned earlier today at the federal courthouse in Brooklyn on an international cocaine distribution conspiracy charge. Martinez was arrested in the Dominican Republic in January 2020 and extradited to the United States yesterday. He was arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon and remanded pending trial.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the extradition.
“As alleged, the defendant operated the levers of a cocaine pipeline from abroad, but not beyond the reach of U.S. law enforcement committed to bringing international drug traffickers to justice for the harm they have caused in our communities,” stated United States Attorney Donoghue. Mr. Donoghue thanked the Office of International Affairs of the Justice Department’s Criminal Division for its assistance with the extradition of the defendant.
“When Martinez was arrested in the Dominican Republic in January 2020, HSI and its law enforcement partners dealt a blow to his cocaine trafficking enterprise. His extradition is a major step forward after the detrimental impact Martinez’ organization had on the people of the United States and the greater New York City region,” stated HSI Special Agent-in-Charge Fitzhugh. “Through this multi-year, complex investigation, HSI New York and our partners at the United States Attorney’s Office, Eastern District of New York, have proceeded in bringing the full force of the American Justice system to combat Martinez and his organization.”
According to court filings, between January 2015 and April 2015, Martinez and members of an international cocaine trafficking conspiracy organized shipments of cocaine in Venezuela, Mexico, Jamaica and the Dominican Republic for importation into the United States for distribution. In one instance, Martinez coordinated a 188 kilogram shipment of cocaine on a commercial airline flight from Venezuela to the Dominican Republic that was intended to be unlawfully distributed in the United States. In February 2015, law enforcement authorities in the Dominican Republic seized the cocaine at the airport in Santo Domingo.
The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Martinez faces a mandatory minimum sentence of 10 years’ imprisonment.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Philip Pilmar and Nomi D. Berenson are in charge of the prosecution.
The Defendant:
MELVIN MARTINEZ (also known as “La Fuerza” and “Yo Mismo”)
Age: 38
Santo Domingo, Dominican RepublicE.D.N.Y. Docket No. 16-CR-48 (AMD)
17 Defendants Arrested as Long Standing Drug Trafficking Ring Is Dismantled: Multiple Kilograms of Deadly Fentanyl, Other Drugs, Illegal Guns, and Nearly 1-Million Cash SeizedRead 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 17 defendants were arrested and charged in two criminal complaints for their roles in a large and long standing illegal narcotics ring operating in Western New York. Charged with conspiring to possess with intent to distribute, and distributing, 400 grams or more of fentanyl, one kilogram or more of heroin, and five kilograms or more of cocaine are:
Jancarlos Gonzalez-Rivera, A/K/A/ "Los;"
Jonathan Cruz-Vega, A/K/A/ "Tego;"
Earnest Baker, A/K/A/ "Slay;"
Amante Santiago, A/K/A/ "Cholo;"
Shaumyk Santiago; Natasha Figueroa; Enrique Medina, A/K/A/ "Ricky Rose;"
Alexis Morales, A/K/A/ "A;"
Eliezer Morales; Joshua Bauer, A/K/A/ "White Boy;"
Marilin Deleon, A/K/A/ "Beba;"
Vanesly Lopez; Lateef Budd, A/K/A/ "Lt;"
Marcus Johnson; Philip Flowers; Merilin Deleon; and
Archie Donaldson.Assistant U.S. Attorney Everardo Rodriguez, who is handling the case, stated that according to the filed complaints, in 2016, the Drug Enforcement Administration, Rochester Police Department, New York State Police, Greece Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives began investigating the illegal narcotics trafficking activities of ring leader JanCarlos Gonzalez-Rivera, who is responsible for the distribution of cocaine, heroin, and fentanyl in the Rochester area. The defendant used numerous workers to transport, store, repackage for distribution, and distribute cocaine and fentanyl to customers and then collect payment for the drug transactions.
On April 30, 2020, investigators executed search warrants at 24 residences in Rochester, West Henrietta, Penfield, Greece, Irondequoit, and Syracuse, and on 12 cars associated with the defendants. During the execution of those search warrants, they seized eight firearms; approximately 3.5 kilograms of fentanyl; and approximately two kilograms of cocaine and crack cocaine. In addition, investigators seized $928,400 in cash.
“I want to commend and thank the literally hundreds of law enforcement officers who in the midst of a pandemic risked their own well-being to protect the public by masterfully executing this massive takedown,” stated U.S. Attorney Kennedy. “Their efforts neutralized an armed and very profitable drug trafficking organization that was peddling poison and misery throughout our community. While much of our community is on pause, our brave men and women in law enforcement have remained very active working tirelessly to protect us from all forms of danger.”
“Time after time, law enforcement’s perseverance to their mission prevails,” said DEA Special Agent-in-Charge Ray Donovan. “This operation decimated a major drug trafficking network whose tentacles reached every neighborhood in the city. I would like to thank our law enforcement partners for their collaboration and commitment as this was truly a joint investigation.”
The defendants made initial appearances before U.S. Magistrate Judge Mark W. Pedersen.
The complaints are the result of an investigation by the Drug Enforcement Administration, Rochester Resident Office, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Rochester Police Department, under the direction of Chief La’Ron Singletary; the New York State Police, under the direction of Major Eric Laughton; the Greece Police Department, under the direction of Chief Patrick Phelan; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the U.S. Marshal Service, under the direction of Marshal Charles Salina; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Ontario County Sheriff’s Office, under the direction of Sheriff Kevin Henderson; and the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci. Additional assistance was provided by the Drug Enforcement Administration, Buffalo and Syracuse Resident Offices.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
# # # #
4 May 2020
“SCO” Gang Member Sentenced within a Year of Arrest on Drug ChargesRead the Press Release
PITTSBURGH, PA - A former resident of Braddock, Pennsylvania, has been sentenced in federal court to five years’ (60 months’) imprisonment and four 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 Rand Wolford, age 32.
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 suburb of Pittsburgh. Wolford and other individuals were identified as members or associates of a neighborhood based street gang, self-titled "SCO", which illegally distributed controlled substances in the Greater Pittsburgh region. In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019.
Wolford, along with 32 others were indicted in June of 2019 by a federal grand jury in three separate, but related, Indictments.
As to Wolford, the Court was informed that intercepted communications confirmed that Wolford was conspiring with others to possess with intent to distribute and distribute controlled substances. Wolford admitted, in conjunction with his guilty plea, that he is a member of "SCO" and was responsible for distributing multiple ounce quantities of cocaine base, commonly known as crack, into the community. The Court was further informed that in conjunction with intercepted communications, law enforcement obtained additional information, including physical and electronic surveillance, which confirmed that Wolford met with other members of the conspiracy at a location in Braddock where they processed cocaine into cocaine base.
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 Wolford. 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.
United States Attorney’s Office Announces 17th Annual Project Safe Neighborhoods Logo Contest WinnersRead the Press Release
COLUMBIA, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today the winners of the United States Attorney’s Office’s 17th Annual Project Safe Neighborhoods (PSN) Logo Contest.
The theme of this year’s contest was “Preventing Gun Violence in Our Schools.” Judges sought logos that demonstrated a successful collaboration between schools, communities, and law enforcement to reflect (1) warning signs that students should be looking for related to gun violence; (2) resources to help students who have concerns about gun violence; and (3) general messages to prevent gun violence in South Carolina schools.
“Student voices are critical in the discussion about reducing gun violence and ensuring school safety,” said U.S. Attorney McCoy. “I want to thank all the students and schools who participated in this year’s logo contest, and I congratulate our winners.”
The overall winning logo will be used in publications distributed statewide and displayed on the United States Attorney’s Office website. The winner from each grade division and overall winner are named below:
Winner K-2nd grade Division/OVERALL WINNER
Jackson Cornell, Ocean Drive Elementary School
North Myrtle Beach, SC
Winner 3rd-5th grade Division
Edward “EJ” Prince, Ocean Drive Elementary School
North Myrtle Beach, SC
Winner 6th-8th grade Division
Abigail Shoemake, Lugoff-Elgin Middle School
Lugoff, SC
Winner 9th-12th grade Division
Abigail Chapman, Digital Art and Design-Golden Strip Career Center
Greenville, SC
The winners were chosen from entries submitted by applicants across the entire state. Each division winner will receive a $50.00 award, and the overall winner, Jackson Cornell, will receive an additional $50.00 award. All students who participated will receive a Certificate of Appreciation for their submissions.
This statewide contest fosters an opportunity for South Carolina students to express their thoughts on preventing gun violence in our schools and focuses on deterrence of juvenile gun violence and securing our school environments. The contest was open to all South Carolina grade school students.
The winning entries were chosen by a select group of young leaders at the South Carolina Department of Juvenile Justice who act as role models for the other youth throughout the entire department. The South Carolina Law Enforcement Officers’ Association Foundation will provide the cash awards to the winners.
The annual logo contest is a long-running part of the district’s PSN program. PSN focuses on reducing violent crime in our communities through prevention, enforcement, and reentry initiatives. The annual logo contest is an important prevention initiative that has proven to be an effective way to engage our students in meaningful conversation about preventing gun crimes amongst our young people and ensuring a safe learning atmosphere for our children. For more information on the contest and to view this year’s winning logos and winning logos from previous years, please visit http://www.justice.gov/usao/sc/programs/logowinners.html.
#####
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.
United States Attorney Cautions Against Predatory Practices Related to COVID-19 and HousingRead the Press Release
U.S Attorney Joe Kelly announces a concerted effort to investigate and prosecute those who engage in predatory behavior in regard to housing-related sexual harassment. Such behavior is illegal under the Fair Housing Act.
As this country adopts drastic measures to slow the spread of COVID-19, many Americans have lost their jobs and many more have seen their wages reduced. These losses have forced many to seek delays or suspensions of their rent, with reports that nearly one-third of Americans were unable to pay their April rent at the beginning of the month.
The majority of landlords have responded to these circumstances with understanding and care, trying to work with their tenants to survive the current crisis. However, there have been reports of other landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct. Such behavior is reprehensible. Unfortunately, many victims who experience this type of abuse never report it. They fear retaliation will endanger their ability to provide shelter for themselves and their families.
Joe Kelly stated, “These predatory practices related to COVID-19 are particularly disturbing as these landlords exploit this national crisis by sexually harassing people in need of housing. We will not hesitate to intervene when this occurs. This is not tolerated in normal times, and certainly will not be tolerated now.”
We encourage anyone who has experienced sexual harassment in housing to contact the DOJ Sexual Harassment in Housing Hotline at (844) 380-6178, or by email to [email protected], Complaints can be mailed directly to the U.S. Attorney’s Office, 1620 Dodge Street Suite 1400, Omaha, NE 68102, Attn Laurie Kelly, Civil Rights Coordinator.
Below are two links to DOJ & HUD produced PSAs for your consideration. These powerful PSAs feature personal victim impact stories and a call to action.
DOJ PSA: Sexual Harassment in Housing Is Illegal https://www.youtube.com/watch?v=z76bA-mf7o0&t
Working with DOJ to Stop Sexual Harassment in Housing https://www.youtube.com/watch?v=vhskfe_7DHc
Fifty-two years after the passage of the Fair Housing Act, we have come a long way. But we still have work to do. Securing fair housing as part of the American way of life can be achieved when victims know it is safe to come forward, and perpetrators know we will aggressively address their despicable behavior.
U.S. Repatriates over $311.7 Million in Assets to the Nigerian People that were Stolen by Former Nigerian Dictator and His AssociatesRead the Press Release
The Department of Justice announced today that it has transferred $311,797,876.11 to the government of the Federal Republic of Nigeria (Nigeria) in accordance with a Feb. 3, 2020, trilateral agreement among the governments of the United States, Nigeria and the Bailiwick of Jersey (Jersey) to repatriate assets the United States forfeited that were traceable to the kleptocracy of former Nigerian dictator Sani Abacha and his co-conspirators.
In 2014, U.S. District Judge John D. Bates for the District of Columbia entered judgment forfeiting approximately $500 million located in accounts around the world, as the result of a civil forfeiture complaint the Department of Justice filed against more than $625 million traceable to money laundering involving the proceeds of Abacha’s corruption. After appeals in the United States were exhausted in 2018, the government of Jersey enforced the U.S. judgment against the funds located in that jurisdiction.
The forfeited assets represent corrupt monies laundered during and after the military regime of General Abacha, who assumed the office of the president of the Federal Republic of Nigeria through a military coup on Nov. 17, 1993, and held that position until his death on June 8, 1998. The complaint alleges that General Abacha, his son Mohammed Sani Abacha, their associate Abubakar Atiku Bagudu and others embezzled, misappropriated and extorted billions from the government of Nigeria and others, then laundered their criminal proceeds through U.S. financial institutions and the purchase of bonds backed by the United States. Jersey’s cooperation in the investigation, restraint and enforcement of the U.S. judgment, along with the valuable contributions of Nigeria and other law enforcement partners around the world, have been instrumental to the recovery of these funds.
Under the trilateral agreement signed in February, the United States and Jersey agreed to transfer 100 percent of the net forfeited assets to the Federal Republic of Nigeria to support three critical infrastructure projects previously authorized by the Nigerian government. Specifically, under this agreement, the recovered funds will help finance the construction of critical infrastructure in key economic zones to include the Second Niger Bridge, the Lagos-Ibadan Expressway and the Abuja-Kano road. These investments will benefit all of the Nigerian people.
The agreement includes key measures to ensure transparency and accountability, including administration of the funds and projects by the Nigeria Sovereign Investment Authority (NSIA), financial review by an independent auditor, and monitoring by an independent civil society organization with expertise in engineering and other areas. The agreement also precludes the expenditure of funds to benefit alleged perpetrators of the corruption or to pay contingency fees for lawyers. The agreement reflects the sound principles for ensuring transparency and accountability in the return and disposition of recovered assets adopted at the Global Forum on Asset Recovery (GFAR) in December 2017 in Washington, D.C., which the United States and the United Kingdom (UK) hosted with support from the Stolen Asset Recovery Initiative of the World Bank and the United Nations Office on Drugs and Crime.
In addition to the more than $311.7 million forfeited in Jersey, the Department of Justice is seeking to enforce its forfeiture judgment against approximately $30 million located in the UK and over $144 million in France. The United States continues to seek forfeiture of over $177 million in additional laundered funds held in trusts that name Abacha associate Abubakar Atiku Bagudu, the current governor of Kebbi State, and his relatives as beneficiaries.
The United States entered into the trilateral agreement to repatriate the Jersey assets because of its longstanding commitment to recover asset for the benefit of the people of countries harmed by corruption and the important safeguards embodied in the agreement. The transfer announced today demonstrates the U.S. commitment to asset recovery and responsible repatriation, consistent with its obligations under the trilateral agreement.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section working in partnership with the FBI. Through the Kleptocracy Asset Recovery Initiative, the Department of Justice and federal law enforcement agencies seek to safeguard the U.S. financial system from criminal money laundering and to recover the proceeds of foreign official corruption. Where appropriate and possible, the department endeavors to use recovered corruption proceeds to benefit the people harmed by acts of corruption and abuse of public trust.
Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected]. The Criminal Division’s Office of International Affairs provided significant assistance. The department appreciates the extensive assistance provided by the governments of Jersey, Nigeria and the UK in this investigation.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney: Report Sexual Harassment in Housing During Covid-19 PandemicRead the Press Release
Baltimore, Maryland – Maryland U.S. Attorney Robert K. Hur 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.
“It is reprehensible that some try to take advantage of this global pandemic at the expense of the most vulnerable,” said U.S. Attorney Robert K. Hur. “The U.S. Attorney’s Office and our law enforcement partners are committed to working together to identify incidents of sexual harassment in housing and bring these criminals to justice. I urge everyone to remain vigilant and if you see something that doesn’t seem right, please report it.”
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 other people who have control over housing. Launched in 2017, the Initiative has filed lawsuits across the county alleging a pattern or practice of sexual harassment in housing and recovered 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.
Anyone who has experienced sexual harassment in housing, or knows someone who has, is encouraged to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected]; the U.S. Attorney’s Office for the District of Maryland, at 410-209-4800; or by filing 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 Robert Hur, Special Agent in Charge John Eisert of Homeland Security Investigations – Baltimore, Special Agent in Charge Kelly R. Jackson of the IRS – Criminal Investigation, and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, also want to remind the public that in addition to sexual harassment in housing, COVID-19 scams are also operating from websites that advertise fake vaccines and cures, operate fraudulent charity drives, deliver malware, or host various other types of scams. To attract traffic, these websites often utilize domain names that contain words such as “covid19” or “coronavirus.” In some cases, the fraudulent sites purport to be run by, or affiliated with, public health organizations or agencies.
Federal agencies such as Homeland Security Investigations (HSI), the FBI, and the IRS will NOT call you, text you, e-mail you, or contact you on social media asking for personal or bank account information—even related to the economic impact payments. Recently, there has been an increase in phishing schemes utilizing e-mails, letters, texts and links. These contacts will often come in the form of unsolicited e-mail and/or websites that pose as legitimate sites in an effort to lure unsuspecting victims to provide personal and financial information. When visiting a website or when you receive an e-mail containing a link, pay special attention to any web address you are directed to in order ensure it is from a legitimate source. Watch out for e-mails with attachments or links claiming to have special information about economic impact payments or refunds.
Federal law enforcement is united in its efforts to fight against COVID-19 fraud. HSI has identified tips to recognize COVID-19 fraud. If you think you are a victim of a fraud or attempted fraud involving COVID-19, you may call the National Center for Disaster Fraud Hotline at 1-866-720-5721 or e-mail at [email protected] or [email protected]. If it is a cyber scam, you may submit your complaint through the FBI’s website, https://www.ic3.gov. Or you can report suspicious e-mails to the IRS at [email protected].
# # #
U.S. Attorney asks public to report predatory housing practices amid COVID-19 pandemicRead the Press Release
U.S. Attorney Justin Herdman sent a letter to Northern Ohio housing advocacy groups 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.
“As a result of the COVID-19 public health crisis, many in our communities have found themselves out of work, furloughed, or otherwise in dire financial straits,” said U.S. Attorney Herdman in his letter. “This has led many to seek abatements or suspensions of their rent or to seek other accommodations during this time. While many landlords and housing providers have positively responded with understanding, others have seen an opportunity to exploit the financially vulnerable through demands for sexual favors and other acts of unwelcome sexual misconduct. Please know that the U.S. Attorney’s Office remains ready to investigate complaints of sexual harassment in housing and to deploy all available enforcement tools against anyone who engages in this behavior.”
According to a recent memo from Attorney General William Barr, there have been reports of landlords who have responded to requests to defer rent payments 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.
The Attorney General 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. The Attorney’s General’s directive reaffirms the commitment that the Department of Justice made when it launched the Sexual Harassment Initiative in October 2017.
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 other people who have control over housing.
The U.S. Attorney’s Office for the Northern District of Ohio will work closely with state and local partners to identify incidents of sexual harassment in housing.
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 who believe they may have been victims of discrimination may also contact the U.S. Attorney’s Office for the Northern District of Ohio at 216-622-3932 or in Toledo at 1-833-938-1375. You may also contact us via email at [email protected].
U.S. Attorney’s Office for the Northern District of Ohio at 216-622-3932 or via email at [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.
Read a copy of the U.S. Attorney’s letter here.
U.S. Attorney Issues Warning to Landlords: Don’t Demand Sexual Favors from Financially-Strapped Tenants during Pandemic - or EverRead the Press Release
Assistant U. S. Attorney Christopher Tenorio (619) 546-8413
NEWS RELEASE SUMMARY – May 4, 2020
SAN DIEGO – U.S. Attorney Robert Brewer is warning landlords that it is against the law to demand sexual favors from cash-strapped tenants who can’t pay rent due to Covid-19, and he has deployed all available enforcement tools against anyone who tries to use the pandemic to sexually harass people in need of housing.
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 many to seek abatements or suspensions of their rent, with reports that nearly one third of Americans were unable to pay their April rent at the beginning of the month.
Many landlords responded to these circumstances with understanding and care, trying to work with their tenants to weather the current crisis. There have been reports, however, of other landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct.
“Taking advantage of tenants in this way is not only despicable - it is illegal,” Brewer said. “Such behavior is not tolerated in normal times, and certainly will not be tolerated now. Criminal conduct, such as the exchange of sexual favors for housing benefits, will result in an indictment.”
We're using all enforcement tools against anyone who tries to exploit this current crisis by sexually harassing people in need of housing. If you are a victim of #SexualHarassment by a landlord or person who has control over housing call: 1-844-380-617We're using all enforcement tools against anyone who tries to exploit this current crisis by sexually harassing people in need of housing. If you are a victim of #SexualHarassment by a landlord or person who has control over housing call: 1-844-380-617
U.S. Attorney Brewer appointed Assistant U.S. Attorney Christopher Tenorio as COVID-19 Civil Rights Coordinator to lead investigations into possible hate crimes and civil rights violations related to the nation's ongoing public health emergency. Tenorio is also Chairperson of the San Diego Regional Hate Crimes Coalition.
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 other people who have control over housing.
Launched in 2017, the Initiative has filed lawsuits across the county alleging a pattern or practice of sexual harassment in housing and recovered 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.
Two Cheraw Men Sentenced in Virtual Proceedings to Federal Prison for Drug ChargesRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Gregory Jay Evans, Jr., 28, and Talvin Jerode Robinson, 41, both of Cheraw, were sentenced via videoconference to 10 years and approximately five years, respectively, in federal prison after pleading guilty to conspiracy to distribute methamphetamine.
Evidence presented to the court showed that for the past five years, Evans and Robinson were involved in a conspiracy to distribute methamphetamine in Chesterfield and Darlington Counties. On January 30, 2019, while responding to a fight in progress, deputies with the Chesterfield County Sheriff’s Office stopped a car driven by Evans based on information that moments earlier someone had pointed a gun out of the window of a similar car. During a search of the car, deputies seized over 11 grams of methamphetamine and a Glock .45 caliber pistol, both of which Evans later admitted belonged to him. Also, on two occasions in March 2019, Robinson sold methamphetamine to a confidential informant working for law enforcement. Both of these controlled purchases took place in Cheraw. There were also a significant number of cooperating witnesses who were prepared to testify that, during the course of the conspiracy, Evans and Robinson sold them methamphetamine.
Chief United States District Judge R. Bryan Harwell sentenced Evans to 120 months in federal prison, to be followed by a five-year term of court-ordered supervision. Chief Judge Harwell sentenced Robinson to 68 months in federal prison, to be followed by a four-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Chesterfield County Sheriff’s Office, and the Hartsville Police Department.
In light of the current pandemic, both defendants appeared via videoconference, while the attorneys and court staff were present in the courtroom. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
#####
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Threatening Telephone Calls Send Colorado Man to Federal Prison for Six YearsRead the Press Release
A man who repeatedly threatened a Cedar Rapids bank, its employees, and other individuals from northern Iowa by telephone and text messages was sentenced today to six years in federal prison.
Carl William Stuber, IV, age 31, from Aurora, Colorado, received the prison term after a November 12, 2019 guilty plea to two counts of transmitting a threatening communication in interstate commerce.
Information from a plea agreement and at sentencing showed that Stuber called a bank in Cedar Rapids more than forty times over a two-day period in October 2018. During these calls, Stuber threatened to “Columbine” the bank, kill employees, and make false reports to police and fire departments. Stuber taunted the bank, noting the bank was powerless to stop him as restraining orders would not work and law enforcement would not extradite him to Iowa. Finally, Stuber falsely reported a fire at the bank, causing the Cedar Rapids Fire Department to respond to the bank. Stuber continued to make threatening calls to the bank and threatened others by phone, text, and Facebook message over an eight-month period until his arrest in Colorado in June 2019 on federal charges.
Stuber was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. In sentencing Stuber to 72 months’ imprisonment and a fine of $7,500, Judge Williams noted that Stuber’s threatening communications caused mental and psychological harm to the bank employees. Stuber must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the Federal Bureau of Investigation Joint Terrorism Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-81.
Follow us on Twitter @USAO_NDIA.
Texas Woman Agrees to Plead Guilty to Defrauding Bank of America by Posing as Customers to Make Withdrawals at SoCal BranchesRead the Press Release
SANTA ANA, California – A Houston woman has agreed to plead guilty to federal charges stemming from a scheme in which she and a second defendant posed as customers of Bank of America to fraudulently obtain debit cards while wearing braces on their arms to explain why their signatures differed from those of the legitimate account holders.
In a plea agreement filed Saturday in United States District Court, Rhonda Denise Zorka, 54, agreed to plead guilty to one count of bank fraud and one count of aggravated identity theft.
The second defendant in this case – Leia Kay Barnett, 41, of Belville, Texas – pleaded guilty on January 31 to one count of bank fraud and one count of aggravated identity theft.
In her plea agreement, Zorka admitted that she and Barnett obtained stolen identities of Bank of America accountholders living in Florida. Zorka admitted that she and Barnett then separately went to Bank of America branches in Southern California and Illinois, where they presented fraudulent identification to obtain temporary debit cards and PINs, and withdrew funds from victims’ accounts.
“[Zorka] and Barnett wore braces over their right wrists and forearms in order to explain any differences between their signatures at the time of the withdrawal and the actual accountholder’s signature on file with [Bank of America],” according to the plea agreement.
Zorka specifically admitted to making a fraudulent withdrawal of approximately $6,500 at a Bank of America branch in Burbank.
She also admitted that the scheme caused Bank of America to suffer losses of $121,949 through more than 50 withdrawals on more than 30 accounts at over 20 branches in California and Illinois.
When Barnett pleaded guilty, she specifically admitted making a fraudulent withdrawal of approximately $5,500 from a Bank of America branch in Irvine.
United States District Judge Josephine L. Staton will schedule a hearing – likely in June – for Zorka to formally enter her guilty pleas.
Barnett is scheduled to be sentenced by Judge Staton on August 28.
Zorka and Barnett each will face a statutory maximum sentence of 30 years in federal prison for the bank fraud charge and a mandatory, consecutive two-year sentence for the aggravated identity theft offense.
Barnett has been in federal custody since her arrest in Texas in June 2019. Zorka has been in custody since she was arrested in October 2019 in Illinois.
This case was investigated by the United States Secret Service.
This matter is being prosecuted by Assistant United States Attorney Daniel S. Lim of the Santa Ana Branch Office.
Shots Fired, 110 MPH Chase Lead to Federal ChargeRead the Press Release
KANSAS CITY, KAN. – A Kansas man who was arrested after a high-speed chase from Miami County to Linn County is facing a federal charge, U.S. Attorney Stephen McAllister said today.
David W. Kellner, 31, is charged with one count of unlawful possession of a firearm by a felon. A criminal complaint filed in U.S. District Court in Kansas City, Kan., alleges that about 3:30 a.m. May 1 a Miami County Sheriff Department deputy spotted Kellner driving without headlights or taillights on K68 Highway near the Louisburg Cider Mill. When the deputy activated his lights to make a stop, Kellner fled south on U.S. 69 Highway at speeds up to 110 mph. Kellner fired at the deputy, who could hear the shots and see sparks when the bullets hit the highway.
Deputies from the Linn County Sheriff’s Department joined the pursuit and followed Kellner’s vehicle until it ran into a fence at 403rd Street and Somerset Road. Kellner fled on foot, discarding a Century Arms Model RAS47 military-style rifle before deputies arrested him. They recovered the rifle, more than $5,500 in cash, and small amounts of marijuana and methamphetamine.
Kellner, who had a prior felony conviction in 2008, was prohibited by federal law from possessing a firearm. If convicted, he could face up to 10 years in federal prison and a fine up to $250,000.The Miami County Sheriff’s Department, the Linn County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting. Assistant U.S. Attorney Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Pittsburgh Man Sentenced for Role in West End Gang’s Drug TraffickingRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced in federal court to a sentence of time served on his conviction for conspiracy to distribute heroin, United States Attorney Scott W. Brady announced today. The defendant had been detained pretrial on this charge since June of 2018.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Mark Givens, age 30, of Pittsburgh, PA.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the Greenway Boy Killas or GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Mark Givens and his co-conspirators conspired to distribute quantities of heroin.
Prior to imposing sentence, Senior Judge Schwab stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration along with the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department for the investigation leading to the successful prosecution of Givens.
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.
New Hampshire U.S. Attorney Asks Public to Report Sexual Harassment in Housing During the Covid-19 PandemicRead the Press Release
Concord - U.S. Attorney Scott W. Murray is asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, loan officer or anyone with control over housing to report that conduct to the Department of Justice. The request is part of an enhanced effort by the Department of Justice to combat predatory housing practices during the COVID-19 pandemic.
The COVID-19 pandemic has decreased the ability of many people to pay rent on time and has increased housing insecurity. People who are out of work may be targeted for attempted sexual exploitation by housing providers. The Department of Justice has heard reports of housing providers trying to take advantage of the crisis by demanding sexual favors and other unwelcomed sexual conduct from tenants. Sexual harassment in housing is illegal, and the Department of Justice stands ready to investigate such allegations and pursue enforcement actions where appropriate.
“It is simply outrageous that a tenant would be subjected to sexual harassment while attempting to cope with paying the rent on time,” said U.S. Attorney Murray. “Predatory practices directed at people who are struggling to maintain their homes will not be tolerated. Landlords or others in control of housing should be working with tenants to address housing insecurity in this very difficult time. Those who are striving to assist the financially disadvantaged should be commended. Those who seek to sexually harass and exploit tenants are violating the law and will be held accountable for their conduct.”
The U.S. Attorney’s Office for the District of New Hampshire will work closely with federal, state, and local partners to identify incidents of sexual harassment in housing.
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 other people who have control over housing.
Launched in 2017, the Initiative has filed lawsuits across the county alleging a pattern or practice of sexual harassment in housing and recovered 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.
###
Monmouth County Man Charged with Possession of Machine GunRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man will have his initial appearance today for possessing a machine gun as a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Davon Harley, 30, of Neptune City, New Jersey, appeared by video conference this afternoon before U.S. Magistrate Judge Zahid M. Quraishi and was detained without bail. Harley was arrested by local authorities on Feb. 8, 2020, and charged with state offenses. He is now charged by federal criminal complaint with one count of being a convicted felon in possession of a firearm and one count of possession of a machinegun.
According to documents filed in this case and statements made in court:
In February 2020 a Neptune City Police officer confronted Harley, a previously convicted felon, who was arguing with others in the yard of an apartment complex. Harley fled through the apartment complex into neighboring properties and discarded a handgun that, upon inspection, had been altered to fire exclusively in fully automatic mode. The weapon had a magazine capable of holding 31 rounds of ammunition. Members of law enforcement, assisted by the Neptune Township and Asbury Park police departments located Harley and recovered the machine gun and the magazine that Harley had discarded.
The felon in possession of a firearm and possession of a machine gun charges each carry a maximum penalty of 10 years in prison and a fine of up to $250,000.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Neptune City Police Department, under the direction of Police Director Matthew Quagliato; officers of the Neptune Township Police Department, under the direction of Chief of Police James M. Hunt Jr.; officers of the Asbury Park Police Department, under the direction of Chief of Police David Kelso; officers of the Monmouth County Sheriff’s Office, under the direction of Sheriff Shaun Golden; and detectives of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni, with the investigation leading to the charges. This case was brought as part of Project Stop the Violence, a comprehensive strategy to combat gun crimes in Monmouth County.
The government is represented by Special Assistant U.S. Attorney Christopher Matthews of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Michigan Man Charged with Manufacturing Child Pornography after Allegedly Travelling to Pennsylvania to Sexually Assault a MinorRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Mark Allen Hillis, age 57, of Southgate, Michigan, has been arrested and charged with one count of manufacture of child pornography, attempted manufacture of child pornography, and willfully causing the manufacture of child pornography, stemming from his text communications with a 13 year-old girl on Christmas Day 2019.
As alleged in the Criminal Complaint, Hillis (also known as “Daddy” and “Denverpolice#666”), met the minor through social media and then directed her to produce and send him graphic images of child pornography via text messages. Thereafter, Hillis allegedly traveled to Pennsylvania and sexually assaulted the minor in a hotel room, after convincing her to meet up with him at a pizzeria in the middle of the night. In addition to the federal child pornography charges, Hillis faces state charges related to the alleged sexual assault in Montgomery County.
“As alleged in the Criminal Complaint, the defendant’s conduct is abhorrent: manipulating a child into sending him graphic images and then luring her from home in the middle of the night in order to commit a sexual assault to satisfy his twisted desires,” said U.S. Attorney McSwain. “Protecting children and seeking justice for those who are victims of sexual exploitation is one of my Office’s highest priorities and we will always aggressively investigate and prosecute cases such as this.”
“This arrest demonstrates the great lengths that dangerous child predators will go through to victimize our most vulnerable,” said Brian A. Michael, Special Agent in Charge for HSI Philadelphia. “Homeland Security Investigations and our law enforcement partners will always prioritize bringing dangerous child predators to justice.”
If convicted, Hillis faces a statutory maximum sentence of 30 years’ imprisonment, with a mandatory minimum term of 15 years’ imprisonment, a mandatory minimum term of 5 years’ supervised release, and a fine up to $250,000.
This case is part of Project Safe Childhood, a Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case investigation is being conducted by Homeland Security Investigations, a component of the Department of Homeland Security, and the Limerick Township Police Department, in conjunction with the Montgomery County Detectives Bureau. It is being prosecuted by Assistant United States Attorney Kathryn Deal.
An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Martinsburg man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Eric W. Hathcock, of Martinsburg, West Virginia, has admitted to distributing fentanyl and heroin, U.S. Attorney Bill Powell announced.
Hathcock, age 36, pled guilty to one count of “Distribution of Fentanyl and Heroin.” Hathcock admitted to selling heroin and fentanyl in June 2019 in Berkeley County.
Hathcock faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
U.S. Magistrate Judge Robert W. Trumble presided.
Lynchburg Man Sentenced in Virtual Proceedings to 10 Years in Federal Prison for Drug ChargesRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Curtis Goodman, 40, of Lynchburg, was sentenced via videoconference to 10 years in federal prison after pleading guilty to conspiracy to distribute cocaine.
Evidence presented to the court showed that for more than a decade, Goodman was a supplier of cocaine to other drug dealers in Florence, Darlington, and Sumter Counties. A number of those dealers who purchased drugs from Goodman were prosecuted and agreed to cooperate with the Government. During the course of the conspiracy, Goodman sold them significant quantities of cocaine totaling more than five kilograms. Additionally, on February 15, 2019, based on information that individuals were smuggling drugs on a particular flight from San Francisco to Atlanta, detectives from the Clayton County Police Department used a drug detection dog to screen luggage from a flight at the Hartsfield-Jackson Atlanta International Airport. The dog alerted on several pieces of luggage, one of which belonged to Goodman. Detectives opened the luggage and found over 43 pounds of marijuana in vacuum-sealed packages.
Chief United States District Judge R. Bryan Harwell sentenced Goodman to 120 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by agents of the Federal Bureau of Investigation, Drug Enforcement Administration, Florence County Sheriff’s Office, and the Clayton County, Georgia, Police Department.
In light of the current pandemic, the defendant appeared via videoconference, while the attorneys and court staff were present in the courtroom. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
#####
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Lexington Foot and Ankle Center Agrees to Pay $750,000 to Resolve Allegations of Violations of the False Claims ActRead the Press Release
LEXINGTON, Ky. – Lexington-based podiatry practice Lexington Foot and Ankle Center, PSC (“Lexington Foot & Ankle”) and Dr. Michael Allen have agreed to resolve civil allegations that they violated the False Claims Act, a federal law that prohibits the submission of false or fraudulent claims to the federal government, agreeing to pay the United States $750,000.
The agreement resolves a civil lawsuit filed by the United States against Lexington Foot & Ankle and Dr. Allen, on November 28, 2018. In the lawsuit, the United States alleged that Lexington Foot & Ankle, at Dr. Allen’s direction, submitted false claims to Medicare and the Federal Employee Health Benefits Program, seeking payment for nail debridement services, for which podiatrists or other practitioners either did not assess or observe medical necessity or only performed less involved procedures. The lawsuit alleged that the defendants nevertheless submitted reimbursement claims for nail debridements, which are reimbursed at a higher rate. The United States further alleged that Lexington Foot & Ankle and Dr. Allen created cloned (or nearly identical) patient records, in order to secure reimbursement for the false debridement claims.
In addition to the monetary payment, the defendants have also agreed to submit to an integrity agreement with the Office of Inspector of the Department of Health and Human Services (HHS-OIG), which will require additional review of their Medicare claims over a five-year period.
This case was investigated by HHS-OIG and the Office of the Inspector General of the Office of Personnel Management. Assistant United States Attorneys Carrie Pond and Mary Melton represented the United States.
– END –
High Desert Man Who Robbed Eight Southern California Banks During a Six-Week Spree Sentenced to over 7 Years in Federal PrisonRead the Press Release
LOS ANGELES – A San Bernardino County man who threatened to shoot tellers and others when he robbed eight banks in Southern California over a six-week span was sentenced today to 92 months in federal prison.
Gregory Walter Barnes, 40, of Piñon Hills, was sentenced by United States District Judge Michael W. Fitzgerald, who also ordered Barnes to pay $41,931 in restitution.
Barnes pleaded guilty on February 10 to one count of bank robbery.
According to his plea agreement, between May 22, 2018 and July 6, 2018, Barnes, wearing a hat and sunglasses as a disguise, robbed one U.S. Bank branch in Victorville and seven Chase Bank branches in Fontana, Reseda, Woodland Hills, Temecula, Glendale, Hesperia, and Ventura.
In all eight of those robberies, Barnes threatened to use a gun against the bank teller, other bank employees, or people in the bank branch’s lobby. For example, Barnes passed a handwritten note to one teller asking for money and saying, “If I even think that you are grabbing any [dye packs or GPS trackers] I’ll pull out [my] Gun,” according to court documents. During another robbery, Barnes told the bank teller, “I have a gun and will not hesitate to pull it out and use it on your fellow employee out here.”
The total loss to the banks was $41,931 – most of which was suffered by Chase.
Barnes’s bank robbery spree in Southern California was followed by a ninth bank robbery in Las Vegas on July 9, 2018, where he was arrested for that crime. For that robbery, Barnes was convicted and sentenced in Nevada state court to three to 10 years’ imprisonment. He was transferred to federal custody in December 2019 after being charged in this case.
This matter was investigated by the FBI in collaboration with the San Bernardino County Sheriff's Department, the Fontana Police Department, the Riverside County Sheriff’s Department, the Los Angeles Police Department, the Glendale Police Department, and the City of Ventura Police Department, and with assistance from the Las Vegas Metropolitan Police Department.
This case was prosecuted by Assistant United States Attorney Eli A. Alcaraz of the Riverside Branch Office.