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30 April 2020
Massachusetts Man Charged with Orchestrating Ponzi Scheme, Defrauding Clients of More than $10 MillionRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Lee D. Weiss, 51, of Newton, Massachusetts, was charged by Information with six counts of wire fraud and two counts of mail fraud. The charges stem from Weiss’s multi-year investment scam that targeted his own clients and caused investor losses of more than $10 million.
The Information alleges that Weiss, the principal of Family Endowment Partners, LP, an investment adviser registered with the U.S. Securities and Exchange Commission, fleeced his own clients of millions of dollars through purported investments in a now defunct Florida tobacco company and a series of private securities offerings. Weiss allegedly told his clients that their money would be used for investment purposes when, in fact, he diverted it to make Ponzi payments and to fund his lifestyle. Weiss then told his clients that they were making money when their funds had already been misappropriated. As alleged, he continued to lie to them about the value of their investments to prevent them from learning of his thefts and to convince them to continue paying him fees for “managing” their money. Weiss allegedly defrauded his investors of millions of dollars. He misspent his clients’ investment funds on himself, payments to prior investors, and to prop up his other unrelated businesses.
“Honesty, integrity, and trust all play a critical role in the relationship between a financial advisor and a client, and any advisor who deliberately betrays their clients’ trust for their own financial gain turns the system on its head,” said U.S. Attorney McSwain. “The damage done by such corrupt financial advisors can be catastrophic. We will continue to hold those who commit crimes like the ones alleged here accountable for their misdeeds.”
“Lee Weiss lived lavishly on his clients’ money, funds they’d expected him to invest responsibly,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “For years, he misrepresented his actions, leading to millions and millions in losses as he worked to keep his Ponzi scheme afloat. Simply stated, this case is about greed and the serious abuse of trust. The FBI is determined to hold accountable financial fraudsters like this, to find a measure of justice for their victims and prevent anyone else from being fleeced.”
“The Postal Inspection has a long history investigating investment frauds as the fraudsters often rely upon the mail to execute their schemes,” said Inspector Wood. “The defendant, Lee Weiss, took advantage of clients who trusted him to manage their wealth in what he promised were safe, blue chip investment strategies. Through a web of corporate entities, Mr. Weiss hid the reality of his investment strategy and took his client’s money to cover his own losses. Thanks to hard work of our Inspectors, the agents of the FBI, and prosecutors at the United States Attorney’s Office, Mr. Weiss is being held accountable for his deceitful practices.”
If convicted, the defendant faces a maximum possible sentence of 160 years’ imprisonment, a $2 million fine, 3 years’ supervised release, an $800 special assessment, mandatory restitution, and forfeiture.
The case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service, and is being prosecuted by Assistant United States Attorneys Paul Shapiro and Michael J. Rinaldi. The U.S. Attorney’s Office appreciates the substantial assistance of the U.S. Securities and Exchange Commission in this matter.
An Indictment, Information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Leading Cancer Treatment Center Admits to Antitrust Crime and Agrees to Pay $100 Million Criminal PenaltyRead the Press Release
Florida Cancer Specialists & Research Institute LLC (FCS), an oncology group headquartered in Fort Myers, Florida, was charged with conspiring to allocate medical and radiation oncology treatments for cancer patients in Southwest Florida, the Department of Justice announced. This charge is the first in the department’s ongoing investigation into market allocation in the oncology industry.
According to a one-count felony charge filed today in the U.S. District Court in Fort Myers, Florida, FCS participated in a criminal antitrust conspiracy with a competing oncology group in Collier, Lee, and Charlotte counties (Southwest Florida). FCS and its co-conspirators agreed not to compete to provide chemotherapy and radiation treatments to cancer patients in Southwest Florida. Beginning as early as 1999 and continuing until at least 2016, FCS entered into an illegal agreement that allocated chemotherapy treatments to FCS and radiation treatments to a competing oncology group. This conspiracy allowed FCS to operate with minimal competition in Southwest Florida and limited valuable integrated care options and choices for cancer patients.
The Antitrust Division also announced a deferred prosecution agreement (DPA) resolving the charge against FCS, under which the company admitted to conspiring to allocate chemotherapy and radiation treatments for cancer patients. FCS has agreed to pay a $100 million criminal penalty —the statutory maximum— and to cooperate fully with the Antitrust Division’s ongoing investigation. FCS has also agreed to maintain an effective compliance program designed to prevent and detect criminal antitrust violations.
“Today’s resolution, with one of the largest independent oncology groups in the United States, is a significant step toward ensuring that cancer patients in Southwest Florida are afforded the benefits of competition for life-saving treatments,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “For almost two decades, FCS and its co-conspirators agreed to cheat by limiting treatment options available to cancer patients in order to line their pockets. The Antitrust Division is continuing its investigation to ensure that all responsible participants are held accountable to the maximum extent possible.”
“The FBI has no tolerance for medical providers who stand to profit by criminally exploiting cancer patients,” said Michael McPherson, Special Agent in Charge of the FBI’s Tampa Field Office. “We will not turn a blind eye while executives pad their pockets to the detriment of vulnerable Americans. We will use every tool at our disposal to ensure that the public has access to a competitive marketplace for healthcare.”
Additionally, the agreement includes a non-compete waiver aimed at increasing competition in the treatment of cancer patients in Southwest Florida. Under the agreement’s terms, FCS has agreed not to enforce any non-compete provisions with its current or former oncologists or other employees who, during the term of the DPA, open or join an oncology practice in Southwest Florida.
This charge is the result of an ongoing federal antitrust investigation into market allocation and other anticompetitive conduct in the oncology industry, which is being conducted by the Antitrust Division and the FBI’s Tampa Field Office – Fort Myers RA.
The Florida Office of the Attorney General separately announced today that, in connection with its own independent investigation, FCS agreed to settle civil claims that it violated Florida antitrust laws.
Anyone with information on market allocation, price fixing, bid rigging, or other anticompetitive conduct in the health care or any other industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html. If you believe that you were a victim of this crime, please visit http://www.justice.gov/atr/victims-rights.
Israel’s Largest Bank, Bank Hapoalim, Admits to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore AccountsRead the Press Release
Jeffrey A. Rosen, the Deputy Attorney General of the United States, Richard E. Zuckerman, the Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Don Fort, the Chief of the Internal Revenue Service, Criminal Investigation (IRS-CI), announced today the guilty plea of Bank Hapoalim (Switzerland) Ltd. and filing of criminal charges against Bank Hapoalim B.M. for conspiring with U.S. taxpayers and others to hide more than $7.6 billion in more than 5,500 secret Swiss and Israeli bank accounts and the income generated in these accounts from the Internal Revenue Service (the IRS). BHS’s Chief Executive Officer appeared on behalf of the bank to enter the guilty plea before U.S. District Judge Mary Kay Vyskocil.
As part of today’s resolutions, along with resolutions entered into with state and federal partners, Bank Hapoalim B.M. (BHBM), Israel’s largest bank, and Bank Hapoalim (Switzerland) Ltd. (BHS), its Swiss subsidiary, agreed to pay approximately $874.27 million to the U.S. Treasury, the Federal Reserve, and the New York State Department of Financial Services. Today’s resolution is the second-largest recovery by the Department of Justice in connection with its investigations since 2008 into facilitation of offshore U.S. tax evasion by foreign banks.
“Today’s resolutions and payment of $874 million make clear that tax evasion cannot be taken lightly,” said Deputy Attorney General Jeffrey A. Rosen. “A fair tax system requires even-handed compliance, and honest conduct by all participants in the system.”
“The Department of Justice continues to aggressively prosecute banks and other financial institutions that help U.S. taxpayers conceal their income and assets in offshore bank accounts,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “Today, Bank Hapoalim is being held accountable for its conduct – it has admitted to its crimes and will surrender all fees it earned, repay the United States for lost tax revenue, and pay a substantial fine.”
“Israel’s largest bank, Bank Hapoalim, and its Swiss subsidiary have admitted not only failing to prevent but actively assisting U.S. customers to set up secret accounts, to shelter assets and income, and to evade taxes,” said U.S. Attorney Geoffrey S. Berman of the Southern District of New York. “The combined payment approaching $1 billion reflects the magnitude of the tax evasion by the Bank’s U.S. customers, the size of the fees the Bank collected to provide this illegal service, and the gravity of the illegal conduct.”
“There is no excuse for a foreign financial institution to unlawfully assist wealthy Americans in flouting their responsibilities to pay their taxes,” said IRS Criminal Investigation Chief Don Fort. “With today’s guilty plea, Bank Hapoalim is taking responsibility for their role in deliberately breaking the law and undermining the integrity of this nation’s tax system. Offshore tax evasion is a top priority for IRS Criminal Investigation and we are wholeheartedly committed to bringing offenders to justice. Today’s resolution serves as proof that financial institutions engaging in tax fraud face dire criminal and financial consequences for their behavior.”
“The vast majority of New Yorkers follow the rules and pay their taxes, thereby contributing their fair share towards critical state and federal government operations and public services,” said Superintendent Linda A. Lacewell of New York State Department of Financial Services. “There are some, however, who went to great lengths to avoid paying their share, and Bank Hapoalim offered a whole array of services to U.S. citizens, including New Yorkers, that knowingly facilitated their tax evasion. DFS will not tolerate such behavior from banks that operate in the State of New York. DFS thanks our federal partners at the U.S. Department of Justice, U.S. Department of the Treasury, and the Federal Reserve Board for their assistance and coordination during this investigation.”
Today’s resolutions include agreements with BHBM and BHS (collectively, the “Bank”) under which the Bank agreed to accept responsibility for its conduct by stipulating to the accuracy of extensive Statements of Facts. BHBM further agreed to refrain from all future criminal conduct, implement remedial measures, and cooperate fully with further investigations into hidden bank accounts. Assuming BHBM’s continued compliance with its agreement, the Government has agreed to defer prosecution of BHBM for a period of three years, after which time the Government will seek to dismiss the charge against BHBM.
According to documents filed today in Manhattan federal court:
BHBM is Israel’s largest bank and operates primarily as a retail bank with approximately 250 branches throughout Israel and more than 2.5 million accounts. In addition to retail banking services, BHBM offered private banking services for onshore and offshore customers through its retail branches and its Global Private Banking Center. BHBM also wholly owned Poalim Trust Services Ltd., which provided trust formation and management services. Outside Israel, BHBM owned BHS, a Swiss subsidiary that provided private banking. BHS is headquartered in Zurich and at times during the prosecution period had branches in Geneva, Luxembourg, and Singapore. BHBM also had branches in New York, Miami, the Cayman Islands, the United Kingdom, and Jersey.
From at least in or about 2002, and continuing until at least in or about 2014, the Bank conspired with employees, U.S. customers, and others to: (1) defraud the United States with respect to taxes; (2) file false federal tax returns; and (3) commit tax evasion. Employees of BHBM and BHS assisted U.S. customers in concealing their ownership and control of assets and funds held at the Bank, which enabled those U.S. customers to evade their U.S. tax obligations, by engaging in the following conduct:
- Assisting U.S. customers with opening and maintaining accounts in the names of pseudonyms, code names, trust accounts, and offshore nominee entities;
- Opening customer accounts for known U.S. customers using non-U.S. forms of identification;
- Enabling U.S. taxpayers to evade U.S reporting requirements on securities’ earnings in violation of the Bank’s agreements with the IRS;
- Providing “hold mail” services for a fee, avoiding any correspondence regarding the undeclared account being sent to the U.S.;
- Offering back-to-back loans for U.S. taxpayers to enable them to access funds in the United States that were held in offshore accounts at the Bank in Switzerland and Israel; and
- Processing wire transfers or issuing checks in amounts of less than $10,000 that were drawn on the accounts of U.S. taxpayers or entities in order to avoid triggering scrutiny.
At least four senior executives of the Bank, including two former members of BHS’s board of directors, were directly involved in aiding and abetting tax evasion of U.S. taxpayers.
Under today’s resolutions, the Bank is required to cooperate fully with ongoing investigations and affirmatively disclose any information it may later uncover regarding U.S.-related accounts. The Bank is also required to disclose information consistent with the Department of Justice’s Swiss Bank Program relating to accounts closed between Jan. 1, 2009, and Dec. 31, 2019. The agreements provide no protection from criminal or civil prosecution for any individuals.
BHBM will pay a total of $214.38 million, which has three parts. First, BHBM has agreed to pay $77,877,099 in restitution to the IRS, which represents the unpaid taxes resulting from BHBM’s participation in the conspiracy. Second, BHBM has agreed to forfeit $35,696,929 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2002 and 2014. Finally, BHBM has agreed to pay a penalty of $100,811,585.
BHS will pay a total of $402.53 million, which also has three parts. First, BHS has agreed to pay $138,908,073 in restitution to the IRS, which represents the unpaid taxes resulting from BHS’s participation in the conspiracy. Second, BHS has agreed to forfeit $124,628,449 in gross fees to the United States. Finally, BHS has agreed to pay a fine of $138,998,399. These payments were approved by Judge Vyskocil today in connection with BHS’s plea and sentencing.
Both the penalty and fine amounts take into consideration that the Bank, after initially providing deficient cooperation through an inadequate internal investigation and the provision of incomplete and inaccurate information and data to the Government, thereafter conducted a thorough internal investigation, provided client-identifying information, and cooperated in ongoing investigations and prosecutions. The Bank further implemented remedial measures to protect against the use of its services for tax evasion in the future.
The Board of Governors of the Federal Reserve System is also announcing today that it has reached a resolution with BHBM, by which BHBM has agreed to a consent order, certain remedial steps to ensure its compliance with U.S. law in its ongoing operations, and a civil monetary penalty of $37.35 million. Additionally, the New York State Department of Financial Services is announcing a similar resolution by which BHBM has agreed to a cease and desist order and a monetary penalty of $220 million.
This agreement marks the third time an Israeli bank has admitted to similar criminal conduct. The Bank Leumi Group (in December 2014) and Mizrahi-Tefahot Bank Ltd. (in March 2019) entered into DPAs with the Department of Justice admitting that they conspired with U.S. taxpayers to prepare and present false tax returns to the IRS by hiding income and assets in offshore bank accounts in Israel and elsewhere around the world.
Deputy Attorney General Rosen, Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Berman, and Chief Fort commended special agents of IRS-Criminal Investigation, who investigated this case, and Assistant Chief Todd A. Ellinwood and Senior Litigation Counsel Nanette Davis of the Tax Division, and Assistant U.S. Attorneys Sagar K. Ravi and Timothy V. Capozzi of the United States Attorney’s Office for the Southern District of New York, who prosecuted this case. Principal Deputy Assistant Attorney General Zuckerman also thanked Assistant Chief Kathleen Barry and former Trial Attorney Timothy Russo of the Tax Division for their substantial assistance.
Israel’s Largest Bank, Bank Hapoalim, Admits to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore AccountsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Jeffrey A. Rosen, the Deputy Attorney General of the United States, Richard E. Zuckerman, the Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, and Don Fort, the Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the guilty plea of Bank Hapoalim (Switzerland) Ltd. and entry of criminal charges against Bank Hapoalim B.M. for conspiring with U.S. taxpayers and others to hide more than $7.6 billion in more than 5,500 secret Swiss and Israeli bank accounts and the income generated in these accounts from the Internal Revenue Service (the “IRS”).
As part of today’s resolutions, along with resolutions entered into with state and federal partners, Bank Hapoalim B.M. (“BHBM”), Israel’s largest bank, and its Swiss subsidiary Bank Hapoalim (Switzerland) Ltd. (“BHS”) (collectively, the “Bank”), agreed to pay approximately $874.27 million to the U.S. Treasury, the Federal Reserve, and the New York State Department of Financial Services. Today’s resolution is the second-largest recovery by the Department of Justice in connection with its investigations since 2008 into facilitation of offshore U.S. tax evasion by foreign banks. Officers of BHBM and BHS appeared on behalf of the Bank to enter the guilty plea before U.S. District Judge Mary Kay Vyskocil.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Israel’s largest bank, Bank Hapoalim, and its Swiss subsidiary have admitted not only failing to prevent but actively assisting U.S. customers to set up secret accounts, to shelter assets and income, and to evade taxes. The combined payment approaching $1 billion reflects the magnitude of the tax evasion by the Bank’s U.S. customers, the size of the fees the Bank collected to provide this illegal service, and the gravity of the illegal conduct.”
Deputy Attorney General Jeffrey A. Rosen said: “Today’s resolutions and payment of $874 million make clear that tax evasion cannot be taken lightly. A fair tax system requires even-handed compliance, and honest conduct by all participants in the system.”
Principal Deputy Assistant Attorney General Richard E. Zuckerman said: “The Department of Justice continues to aggressively prosecute banks and other financial institutions that help U.S. taxpayers conceal their income and assets in offshore bank accounts. Today, Bank Hapoalim is being held accountable for its conduct – it has admitted to its crimes and will surrender all fees it earned, repay the United States for lost tax revenue, and pay a substantial fine.”
IRS-CI Chief Don Fort said: “There is no excuse for a foreign financial institution to unlawfully assist wealthy Americans in flouting their responsibilities to pay their taxes. With today’s guilty plea, Bank Hapoalim is taking responsibility for their role in deliberately breaking the law and undermining the integrity of this nation’s tax system. Offshore tax evasion is a top priority for IRS Criminal Investigation and we are wholeheartedly committed to bringing offenders to justice. Today’s resolution serves as proof that financial institutions engaging in tax fraud face dire criminal and financial consequences for their behavior.”
Today’s resolutions include agreements with BHBM and BHS under which the Bank agreed to accept responsibility for its conduct by stipulating to the accuracy of extensive Statements of Facts. BHBM further agreed to refrain from all future criminal conduct, implement remedial measures, and cooperate fully with further investigations into hidden bank accounts. Assuming BHBM’s continued compliance with its agreement, the Government has agreed to defer prosecution of BHBM for a period of three years, after which time the Government will seek to dismiss the charge against BHBM.
According to documents filed today in Manhattan federal court:
BHBM is Israel’s largest bank and operates primarily as a retail bank with approximately 250 branches throughout Israel and more than 2.5 million accounts. In addition to retail banking services, BHBM offered private banking services for onshore and offshore customers through its retail branches and its Global Private Banking Center. BHBM also wholly owned Poalim Trust Services Ltd., which provided trust formation and management services. Outside Israel, BHBM owned BHS, a Swiss subsidiary that provided private banking. BHS is headquartered in Zurich and at times during the prosecution period had branches in Geneva, Luxembourg, and Singapore. BHBM also had branches in New York, Miami, the Cayman Islands, the United Kingdom, and Jersey.
From at least in or about 2002, and continuing until at least in or about 2014, the Bank conspired with employees, U.S. customers, and others to: (1) defraud the United States with respect to taxes; (2) file false federal tax returns; and (3) commit tax evasion. Employees of BHBM and BHS assisted U.S. customers in concealing their ownership and control of assets and funds held at the Bank, which enabled those U.S. customers to evade their U.S. tax obligations, by engaging in the following conduct:
· Assisting U.S. customers with opening and maintaining accounts in the names of pseudonyms, code names, trust accounts, and offshore nominee entities;
· Opening customer accounts for known U.S. customers using non-U.S. forms of identification;
· Enabling U.S. taxpayers to evade U.S reporting requirements on securities’ earnings in violation of the Bank’s agreements with the IRS;
· Providing “hold mail” services for a fee, avoiding any correspondence regarding the undeclared account being sent to the U.S.;
· Offering back-to-back loans for U.S. taxpayers to enable them to access funds in the United States that were held in offshore accounts at the Bank in Switzerland and Israel; and
· Processing wire transfers or issuing checks in amounts of less than $10,000 that were drawn on the accounts of U.S. taxpayers or entities in order to avoid triggering scrutiny.
At least four senior executives of the Bank, including two former members of BHS’s board of directors, were directly involved in aiding and abetting tax evasion of U.S. taxpayers.
Under today’s resolutions, the Bank is required to cooperate fully with ongoing investigations and affirmatively disclose any information it may later uncover regarding U.S.-related accounts. The Bank is also required to disclose information consistent with the Department of Justice’s Swiss Bank Program relating to accounts closed between Jan. 1, 2009, and Dec. 31, 2019. The agreements provide no protection from criminal or civil prosecution for any individuals.
BHBM will pay a total of $214.38 million, which has three parts. First, BHBM has agreed to pay $77,877,099 in restitution to the IRS, which represents the unpaid taxes resulting from BHBM’s participation in the conspiracy. Second, BHBM has agreed to forfeit $35,696,929 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2002 and 2014. Finally, BHBM has agreed to pay a penalty of $100,811,585.
BHS will pay a total of $402.53 million, which also has three parts. First, BHS has agreed to pay $138,908,073 in restitution to the IRS, which represents the unpaid taxes resulting from BHS’s participation in the conspiracy. Second, BHS has agreed to forfeit $124,628,449 in gross fees to the United States. Finally, BHS has agreed to pay a fine of $138,998,399. These payments were approved by Judge Vyskocil today in connection with BHS’s plea and sentencing.
Both the penalty and fine amounts take into consideration that the Bank, after initially providing deficient cooperation through an inadequate internal investigation and the provision of incomplete and inaccurate information and data to the Government, thereafter conducted a thorough internal investigation, provided client-identifying information, and cooperated in ongoing investigations and prosecutions. The Bank further implemented remedial measures to protect against the use of its services for tax evasion in the future.
The Board of Governors of the Federal Reserve System is also announcing today that it has reached a resolution with BHBM, by which BHBM has agreed to a cease and desist order, certain remedial steps to ensure its compliance with U.S. law in its ongoing operations, and a civil monetary penalty of $37.35 million. Additionally, the New York State Department of Financial Services is announcing a similar resolution by which BHBM has agreed to a consent order and a monetary penalty of $220 million.
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Mr. Berman praised the outstanding investigative work of the special agents of IRS-Criminal Investigation, and thanked the Justice Department’s Tax Division for their partnership on this case.
This prosecution is being handled by the Tax Division and the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office for the Southern District of New York. Assistant Chief Todd A. Ellinwood and Senior Litigation Counsel Nanette Davis of the Tax Division, and Assistant U.S. Attorneys Sagar K. Ravi and Timothy V. Capozzi of the United States Attorney’s Office for the Southern District of New York, are in charge of the prosecution. Principal Deputy Assistant Attorney General Zuckerman also thanked Assistant Chief Kathleen Barry and former Trial Attorney Timothy Russo of the Tax Division for their substantial assistance.
Former Naturopath charged criminally for trafficking in misbranded drugs claiming they could prevent COVID-19Read the Press Release
Tacoma - A former Port Angeles, Washington, naturopathic physician was charged today with a federal felony related to his attempts to promote a misbranded drug as a prevention for COVID-19, announced U.S. Attorney Brian T. Moran. RICHARD MARSCHALL, 67, is scheduled to make his initial appearance via teleconference in U.S. District Court in Tacoma on May 12, 2020, on a charge of Introduction of Misbranded Drugs into Interstate Commerce.
“At a time when scientists are scrambling to identify COVID-19 treatments and vaccines, it is unconscionable and cruel to take people’s money for false hope and promises of a cure,” said U.S. Attorney Brian T. Moran. “This defendant knew better than to be peddling misbranded drugs. Fortunately, the community quickly notified law enforcement when they saw he had launched this scheme with a COVID-19 twist.”
According to the criminal complaint, on March 26, 2020, Food and Drug Administration criminal investigators began reviewing complaints from the public regarding postings on Facebook and a website linked to MARSCHALL that claimed the “Dynamic Duo” of substances could kill viruses, including the coronavirus. MARSCHALL billed himself as a “Health Coach” and retired naturopath. Various posts promote two substances that can “stop” coronavirus.
On March 30, 2020, an FDA investigator spoke to MARSCHALL on the telephone in an undercover capacity. MARSCHALL represented to the investigator that one of the substances “doesn’t boost the immune system, it just kills the virus.” MARSCHALL represented that the second substance would boost the production of white blood cells that attack infections. The undercover agent ultimately ordered the “Dynamic Duo” for $140 plus shipping.
The substances were received by FDA investigators in early April, along with documents. A review showed they were manufactured in facilities in Illinois and Texas. The original labeling for the substances does not claim to kill viruses, but still MARSCHALL included documents that stated the substances can “crush …. viral infections including those in the Corona family, like in China Corona-19.”
“Making claims that unproven drugs can prevent or treat COVID-19 causes more harm than good. Fraudulent products making false claims can be dangerous,” said Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office. “We will investigate and bring to justice those who try to profit from the pandemic by offering unproven and illegally marketed coronavirus drugs.”
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
In 2011 and again in 2017, MARSCHALL was convicted and sentenced in federal court for distributing misbranded drugs. Due to these prior convictions, MARSCHALL faces increased penalties for introducing misbranded drugs into interstate commerce -- up to three years in prison and a $10,000 fine. In 2018, the Washington State Department of Health permanently revoked his credential to practice as a naturopath.
The case is being investigated by the FDA Office of Criminal Investigation (FDA-OCI). The case is being prosecuted by Assistant United States Attorney Brian Werner who serves as the COVID-19 Fraud Coordinator for the U.S. Attorney’s Office.
marschall_complaint_4-29-20.pdfFormer Chief of Honduran National Police Charged with Drug Trafficking and Weapons OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Wendy Woolcock, Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that JUAN CARLOS BONILLA VALLADARES, a/k/a “El Tigre,” was charged in Manhattan federal court with conspiring to import cocaine into the United States, and related weapons offenses involving the use and possession of machineguns and destructive devices.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Juan Carlos Bonilla Valladares, the former chief of the Honduran National Police, allegedly abused his positions in Honduran law enforcement to flout the law and play a key role in a violent international drug trafficking conspiracy. As alleged, on behalf of convicted former Honduran congressman Tony Hernandez and his brother the president, Bonilla Valladares oversaw the transshipment of multi-ton loads of cocaine bound for the U.S., used machineguns and other weaponry to accomplish that, and participated in extreme violence, including the murder of a rival trafficker, to further the conspiracy. Now Bonilla Valladares has been marked as an outlaw and charged with crimes that could send him to a U.S. prison for life.”
DEA Special Agent in Charge Wendy Woolcock said: “Juan Carlos Bonilla-Valladares allegedly used his high ranking position to influence those working for him and violently protect the politically connected drug traffickers who would smuggle cocaine destined for the United States. As alleged, this was a blatant and horrific violation of the oath taken by Bonilla-Valladares to protect the citizens of Honduras. The filing of these charges is another positive action taken by the United States to bring corrupt officials to justice.”
According to the allegations contained in the Complaint charging BONILLA VALLADARES, evidence presented at the October 2019 trial of Juan Antonio Hernandez Alvarado in the Southern District of New York, and statements in open court during the prosecution of Hernandez Alvarado[1]:
Between approximately 2003 and 2020, multiple drug trafficking organizations in Honduras and elsewhere worked together, and with support from certain prominent public and private individuals, including Honduran politicians and law enforcement officials, to receive multi-ton loads of cocaine sent to Honduras from, among other places, Colombia and Venezuela via air and maritime routes, and to transport the drugs westward in Honduras toward the border with Guatemala and eventually to the United States. For protection from law enforcement interference, and in order to facilitate the safe passage through Honduras of multi-ton loads of cocaine, drug traffickers paid bribes to public officials, including certain presidents, members of the National Congress of Honduras, and personnel from the Honduran National Police, including BONILLA VALLADARES. For example, following an October 2019 trial in the Southern District of New York, former Honduran congressman Juan Antonio Hernandez Alvarado was convicted of drug trafficking, weapons, and false statements charges related to his role in the conspiracy described in the charges against BONILLA VALLADARES. Hernandez Alvarado is scheduled to be sentenced by U.S. District Judge P. Kevin Castel on June 29, 2020.
BONILLA VALLADARES was a member of the Honduran National Police between approximately 1985 and approximately 2016. During his tenure, he held high-ranking positions, including Regional Police Chief with authority over locations in western Honduras that were strategically important to drug traffickers, and Chief of the Honduran National Police for all of Honduras between approximately 2012 and approximately 2013. BONILLA VALLADARES corruptly exploited these official positions to facilitate cocaine trafficking, and used violence, including murder, to protect the particular cell of politically connected drug traffickers he aligned with, including Hernandez Alvarado and at least one of Hernandez Alvarado’s brothers, who is a former Honduran congressman and the current president of Honduras referred to in the Complaint charging BONILLA VALLADARES as “CC-4.” For example, in exchange for bribes paid in drug proceeds, BONILLA VALLADARES directed members of the Honduran National Police, who were armed with machineguns, to let cocaine shipments pass through police checkpoints without being inspected or seized. BONILLA VALLADARES, in coordination with Hernandez Alvarado and others, also provided members of their conspiracy with sensitive law enforcement information to facilitate cocaine shipments, including information regarding aerial and maritime interdiction operations.
In or about 2010, Hernandez Alvarado told a cooperating witness (“CW-1”) that Hernandez Alvarado and CC-4 helped BONILLA VALLADARES advance his position within the Honduran National Police, and that BONILLA VALLADARES protected their drug trafficking activities in return. Hernandez Alvarado also told CW-1 that BONILLA VALLADARES was very violent, and that Hernandez Alvarado and CC-4 trusted BONILLA VALLADARES with special assignments, including murder.
For example, in or about July 2011, BONILLA VALLADARES participated in the murder of a rival drug trafficker at the request of Hernandez Alvarado and others because the rival trafficker had attempted to prevent Hernandez Alvarado and other members of the conspiracy from transporting cocaine through a region of western Honduras near the border with Guatemala. Claiming to investigate the murder at the time, BONILLA VALLADARES reportedly told a member of the media, in substance, that the murder was a well planned surprise attack that had been carried out efficiently and that the perpetrators had cleaned the murder scene thoroughly. BONILLA VALLADARES reportedly added that the perpetrators of the murder had used 40-millimeter grenade launchers, M-16 assault rifles, and Galil assault rifles. The latter two types of weapons were issued by the Honduran government to some members of the Honduran National Police.
* * *
The Complaint charges BONILLA VALLADARES, 60, with: (1) conspiring to import cocaine into the United States, (2) using and carrying machine guns and destructive devices during and in relation to, and possessing machine guns and destructive devices in furtherance of, the cocaine importation conspiracy; and (3) conspiring to use and carry machine guns and destructive devices during and in relation to, and to possess machine guns and destructive devices in furtherance of, the cocaine importation conspiracy. If convicted, BONILLA VALLADARES faces a mandatory minimum sentence of 10 years in prison and a maximum term of life in prison on Count One, a mandatory minimum sentence of 30 years in prison and a maximum term of life in prison on Count Two, and a maximum term of life in prison on Count Three.
The maximum and minimum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the DEA’s Special Operations Division Bilateral Investigations Unit and Strike Force.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Amanda L. Houle, Matthew J. Laroche, Jason A. Richman, and Elinor L. Tarlow are in charge of the prosecution.
The charges in the Complaint are merely accusations, and BONILLA VALLADARES is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Bureau of Prisons Officer Pleads Guilty to Sexually Assaulting Two Women on Multiple Occasions and Lying to InvestigatorsRead the Press Release
BIRMINGHAM, Ala. – Adrian L. Stargell, 39, a former Bureau of Prisons (BOP) Correctional Officer who worked as an Education Specialist at the FCI-Aliceville facility in Aliceville, Alabama, pleaded guilty today before U.S. District Judge L. Scott Coogler, announced DOJ Civil Rights Division Assistant Attorney General Eric Dreiband, U.S. Attorney Jay E. Town and Special Agent in Charge of the OIG Miami Field Office James F. Boyersmith. Stargell pleaded guilty to two counts of violating the rights of two women whom he sexually assaulted on multiple occasions and one count of making false statements to federal agents from the United States Department of Justice Office of the Inspector General (OIG).
“The Department of Justice will not tolerate prison officials who abuse their positions of power to sexually assault individuals in their custody,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to vigorously prosecute these cases and secure justice for victims of these despicable crimes.”
“Sexual assault is as despicable as it is illegal,” said U.S. Attorney Jay E. Town. “We will not tolerate this abhorrent behavior. Our resolve must instead be to bring the full weight of our system of justice to every predator among us.”
“Stargell’s job was to help advance inmates’ rehabilitation through education,” said James F. Boyersmith, Special Agent in Charge of the OIG Miami Field Office. “Instead, he abused his power, sexually assaulted two inmates, and lied to try to cover up his actions. This kind of conduct will not be tolerated. Special Agents at the Department of Justice Office of the Inspector General will continue to ensure that anyone who commits these kinds of despicable acts are brought to justice.”
According to court documents, during 2017 and 2018, while on-duty as an Education Specialist, Stargell sexually assaulted two different women who were incarcerated at FCI-Aliceville. Stargell admitted that he knew what he was doing was wrong and against the law, yet he did it anyway. When OIG agents interviewed Stargell about the allegations of sexual misconduct, Stargell lied by falsely denying having any sexual contact with the victims.
Stargell will be sentenced on Aug. 27, 2020.
This case was investigated by the Miami Division of the DOJ OIG. Assistant United States Attorney Robert Posey of the Northern District of Alabama and Special Litigation Counsel Fara Gold and Trial Attorney Anna Gotfryd of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice are prosecuting the case.
Former Bureau of Prisons Corrections Officer Pleads Guilty to Sexually Assaulting Two Women on Multiple Occasions and Lying to InvestigatorsRead the Press Release
WASHINGTON – Adrian L. Stargell, 39, a former Bureau of Prisons (BOP) corrections officer who worked as an education specialist at the FCI-Aliceville facility in Aliceville, Alabama, pleaded guilty today in federal court in Tuscaloosa, Alabama. Stargell pleaded guilty to two counts of violating the rights of two women whom he sexually assaulted on multiple occasions and one count of making false statements to federal agents from the U.S. Department of Justice Office of the Inspector General (OIG).
“The Department of Justice will not tolerate prison officials who abuse their positions of power to sexually assault individuals in their custody,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to vigorously prosecute these cases and secure justice for victims of these egregious crimes.”
“Sexual assault is as despicable as it is illegal,” said U.S. Attorney Jay E. Town from the Northern District of Alabama. “We will not tolerate this abhorrent behavior. Our resolve must instead be to bring the full weight of our system of justice to every predator among us.”
“Stargell’s job was to help advance inmates’ rehabilitation through education,” said James F. Boyersmith, Special Agent in Charge of the OIG Miami Field Office. “Instead, he abused his power, sexually assaulted two inmates, and lied to try to cover up his actions. This kind of conduct will not be tolerated. Special Agents at the Department of Justice Office of the Inspector General will continue to ensure that anyone who commits these kinds of despicable acts are brought to justice.”
According to court documents, during 2017 and 2018, while on-duty as an education specialist, Stargell sexually assaulted two different women who were incarcerated at FCI-Aliceville. Stargell admitted that he knew what he was doing was wrong and against the law, yet he did it anyway. When OIG agents interviewed Stargell about the allegations of sexual misconduct, Stargell lied by falsely denying having any sexual contact with the victims.
Stargell will be sentenced on Aug. 27, 2020.
This case was investigated by the Miami Field Office of the Department of Justice OIG. Assistant U.S. Attorney Robert Posey of the Northern District of Alabama and Special Litigation Counsel Fara Gold and Trial Attorney Anna Gotfryd of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice are prosecuting the case.
Florida Man Pleads Guilty to Racially-Motivated Interference with Election in Charlottesville, Virginia and Cyberstalking in FloridaRead the Press Release
WASHINGTON – Daniel McMahon, 31, pleaded guilty today in federal court in the Western District of Virginia to one count of threatening an African-American Charlottesville City Council candidate identified by the initials D.G. because of his race and because he was running for office, and to one count of cyberstalking a separate victim through Facebook messenger.
“Racially motivated threats of violence have no place in our society and will not be tolerated by the Department of Justice,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The defendant in this case violated the civil rights of his victims through intimidation and we are grateful for all the work and collaboration our partners have done on this case.”
“Although the First Amendment protects, without qualification, an individual’s right to hold and express abhorrent political views, it does not license threats of violence,” said U.S. Attorney Thomas T. Cullen for the Western District of Virginia. “The Department of Justice is committed to investigating and prosecuting those who weaponize social media to harm others.”
"Peaceable protest is a core American value protected by law,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “This defendant violated the law by threatening violence against an African-American individual who planned to announce his candidacy for City Council and an autistic child merely because the child’s mother opposes his extreme racially motivated views. This collaborative prosecution demonstrates that the Department of Justice as a whole will not tolerate these types of threats and intimidation.”
“This investigation underscores the FBI Joint Terrorism Task Forces and the US Attorney’s Offices continued commitment to aggressively investigate and prosecute individuals engaging in racially-motivated threats and violent extremist activities. It also exemplifies the seamless information sharing between FBI Divisions in eliminating potential threats to our communities,” said Special Agent in Charge of the FBI Tampa Division Michael F. McPherson.
“Protecting the civil rights of all Americans is a high priority for the FBI and is a mission to which we are fully committed. In this case, the defendant used racially-motivated threats of violence to disrupt an election,” said David W. Archey, Special Agent in Charge of the FBI’s Richmond Division. “In addition, he used a social media account to stalk and terrorize another victim and a minor child. We will continue to prioritize and aggressively investigate violations of these kinds. We are grateful for the partnership and efforts of FBI Tampa Division, the United States Attorney Offices in Virginia and Florida, and the Department of Justice, and for their assistance on this case.”
At the plea hearing, the defendant admitted that he uses the online pseudonyms “Jack Corbin,” “Pale Horse,” “Restore Silent Sam,” and “Dakota Stone,” to promote white supremacy and white nationalist ideology, and to express support for racially-motivated violence. The defendant admitted that in January 2019, upon learning that D.G., an African-American resident of Charlottesville, Virginia, planned to announce his candidacy for City Council, the defendant used his Jack Corbin account on the social media platform Gab to threaten violence against D.G. because of D.G.’s race and because D.G. was running for office. The defendant admitted that his posts used racial slurs and invoked long-standing racial stereotypes, and that he intended for D.G. to understand his posts as threats to his safety.
In addition to this, the defendant also admitted to cyberstalking Victim 2 using his “Restore Silent Sam” Facebook account. In connection with this charge, the defendant admitted that he used Facebook to send Victim 2 numerous intimidating and threatening messages that placed Victim 2 in reasonable fear of harm to Victim 2’s minor child. The defendant acknowledged that Victim 2 has been active in countering white nationalist rallies in her community. The defendant admitted that, because of Victim 2’s activism, he began an online campaign to intimidate her and to extort information from her about her fellow activists. This included sending Victim 2 numerous messages over the course of twelve days in which he threatened to sexually assault Victim 2’s minor daughter, who has autism. The defendant admitted that, at around the same time that he sent these messages, he also used the internet to conduct searches relating to sexual contact with girls who have autism. The defendant admitted that his messages reasonably caused Victim 2 serious emotional distress and fear for Victim 2’s child’s safety.
McMahon will be sentenced on July 23, 2020. He faces a maximum sentence of one year in prison for threatening D.G. and five years in prison for cyberstalking Victim 2.
This case is being investigated by the FBI and is being prosecuted by United States Attorney Thomas T. Cullen of the Western District of Virginia; Assistant U.S. Attorney Christopher Kavanaugh of the Western District of Virginia; Assistant U.S. Attorney Daniel George of the Middle District of Florida; and Trial Attorney Risa Berkower of the U.S. Department of Justice’s Civil Rights Division.
Florida Man Pleads Guilty to Racially-Motivated Interference with Election in Charlottesville, Virginia and Cyberstalking in FloridaRead the Press Release
CHARLOTTESVILLE – Daniel McMahon, 31, pleaded guilty today in federal court in the Western District of Virginia to one count of threatening an African-American Charlottesville City Council candidate identified by the initials D.G. because of his race and because he was running for office, and to one count of cyberstalking a separate victim through Facebook messenger.
“Racially motivated threats of violence have no place in our society and will not be tolerated by the Department of Justice,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The defendant in this case violated the civil rights of his victims through intimidation and we are grateful for all the work and collaboration our partners have done on this case.”
“Although the First Amendment protects, without qualification, an individual’s right to hold and express abhorrent political views, it does not license threats of violence,” said U.S. Attorney Thomas T. Cullen for the Western District of Virginia. “The Department of Justice is committed to investigating and prosecuting those who weaponize social media to harm others.”
“Peaceable protest is a core American value protected by law,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “This defendant violated the law by threatening violence against an African-American individual who planned to announce his candidacy for City Council and an autistic child merely because the child’s mother opposes his extreme racially motivated views. This collaborative prosecution demonstrates that the Department of Justice as a whole will not tolerate these types of threats and intimidation.”
“This investigation underscores the FBI Joint Terrorism Task Forces and the U.S. Attorney’s Offices continued commitment to aggressively investigate and prosecute individuals engaging in racially-motivated threats and violent extremist activities. It also exemplifies the seamless information sharing between FBI Divisions in eliminating potential threats to our communities,” said Special Agent in Charge of the FBI Tampa Division Michael F. McPherson.
“Protecting the civil rights of all Americans is a high priority for the FBI and is a mission to which we are fully committed. In this case, the defendant used racially-motivated threats of violence to disrupt an election,” said David W. Archey, Special Agent in Charge of the FBI’s Richmond Division. “In addition, he used a social media account to stalk and terrorize another victim and a minor child. We will continue to prioritize and aggressively investigate violations of these kinds. We are grateful for the partnership and efforts of FBI Tampa Division, the U.S. Attorney Offices in Virginia and Florida, and the Department of Justice, and for their assistance on this case.”
At the plea hearing, the defendant admitted that he uses the online pseudonyms “Jack Corbin,” “Pale Horse,” “Restore Silent Sam,” and “Dakota Stone,” to promote white supremacy and white nationalist ideology, and to express support for racially-motivated violence. The defendant admitted that in January 2019, upon learning that D.G., an African-American resident of Charlottesville, Virginia, planned to announce his candidacy for City Council, the defendant used his Jack Corbin account on the social media platform Gab to threaten violence against D.G. because of D.G.’s race and because D.G. was running for office. The defendant admitted that his posts used racial slurs and invoked long-standing racial stereotypes, and that he intended for D.G. to understand his posts as threats to his safety.
In addition to this, the defendant also admitted to cyberstalking Victim 2 using his “Restore Silent Sam” Facebook account. In connection with this charge, the defendant admitted that he used Facebook to send Victim 2 numerous intimidating and threatening messages that placed Victim 2 in reasonable fear of harm to Victim 2’s minor child. The defendant acknowledged that Victim 2 has been active in countering white nationalist rallies in her community. The defendant admitted that, because of Victim 2’s activism, he began an online campaign to intimidate her and to extort information from her about her fellow activists. This included sending Victim 2 numerous messages over the course of twelve days in which he threatened to sexually assault Victim 2’s minor daughter, who has autism. The defendant admitted that, at around the same time that he sent these messages, he also used the internet to conduct searches relating to sexual contact with girls who have autism. The defendant admitted that his messages reasonably caused Victim 2 serious emotional distress and fear for Victim 2’s child’s safety.
McMahon will be sentenced on July 23, 2020. He faces a maximum sentence of one year in prison for threatening D.G. and five years in prison for cyberstalking Victim 2.
This case is being investigated by the FBI and is being prosecuted by U.S. Attorney Thomas T. Cullen of the Western District of Virginia; Assistant U.S. Attorney Christopher Kavanaugh of the Western District of Virginia; Assistant U.S. Attorney Daniel George of the Middle District of Florida; and Trial Attorney Risa Berkower of the U.S. Department of Justice’s Civil Rights Division.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Female charged with armed carjackingRead the Press Release
HONOLULU, Hawaii – Vanity Sua, 27, of Waipahu, was charged on April 27, 2020 by federal complaint with armed carjacking in violation of 18 U.S.C. §§ 2119 and 2.
U.S. Attorney Kenji M. Price for the District of Hawaii announced that the complaint alleges that on April 22, 2020, Sua was involved in an armed carjacking along with two other male suspects. Sua initiated the encounter with the victims and got into their parked vehicle. Thereafter, two male suspects approached the victims’ vehicle. When the victim in the driver’s seat attempted to start the ignition, one of the male suspects pulled out a handgun and pointed it at the victim. Sua reached over and removed the car keys from the ignition and got out of the vehicle. Both of the male suspects then ordered the victims out of the vehicle at gunpoint. One of the male suspects entered the victims’ vehicle. Sua then drove away in her vehicle followed by the male suspect driving the victims’ vehicle, and the other male suspect driving a truck.
The charges in the complaint are merely allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Honolulu Police Department. The case is being prosecuted by Assistant U.S. Attorney Margaret Nammar.
This prosecution is part of Project Safe Neighborhoods (PSN), a program that brings 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 ATF 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. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the ATF and the HPD. For more information about Project Guardian, please click here.
Federal firearm licensee arrested for prohibited salesRead the Press Release
HOUSTON – A 32-year-old Pearland resident is set to appear on federal charges that he illegally sold firearms to convicted felons, announced U.S. Attorney Ryan K. Patrick.
Khalid Abdullah Abdullaziz is expected to make a virtual initial appearance before U.S. Magistrate Nancy K. Johnson at 2 p.m. today. Authorities filed the criminal complaint April 24, which was unsealed as he was taken into custody April 29.
The charges allege Abdullaziz is the owner of Zeroed In Armory in Pearland and became the target of an investigation involving the trafficking of firearms to Mexico. The investigation revealed he allegedly sold multiple firearms to a felon on numerous occasions, including a .50 caliber rifle.
Also taken into custody on related charges were Isaac Rodriguez, 25, Israel Chapa Jr., 24, and Steve Baranowski, 23, all of Houston; and Ashley Giddens, 26, Humble. They are also expected to make appearances in federal court later today.
If convicted, Abdullaziz faces up to 10 years in federal prison and a $10,000 maximum possible fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Jennifer Stabe and Lisa M. Collins are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Federal charges filed in burglary at hospitalRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, April E. Hayworth, 31, Indianapolis, and Christina A. Smith, 37, Indianapolis, were charged today on federal drug, conspiracy, and burglary charges.
“During this COVID19 pandemic, it is vitally important to protect our medical system and the supplies that are needed to treat patients and protect our medical workers.” said Minkler. “These individuals were trying to make some quick money at the cost of endangering innocent lives. This conduct will not be tolerated during a pandemic or ever.”
On April 14, 2020, two females broke into a restricted medication storage area at the Central Indiana Cancer Center and stole thirty carpujets of morphine, a schedule II controlled substance. With a covering over their heads, each individual opened multiple cabinets, removing the missing controlled substances. Agents also discovered that Personal Protective Equipment (“PPE”) and other medical supplies had been stolen from the hospital, including 7 boxes of Isolation masks; 50 tubs of Sani-wipes; 10 containers of soap; 20 bottles of hand sanitizer; 8 bottles of air deodorizer; and 6 tubs of bleach wipes.
During the investigation, one of the females was identified as April Hayworth, a member of the cleaning crew at the hospital. Further investigation identified the other female as Christina Smith. Investigators discovered that Smith planned on selling the morphine.
Investigators later observed Smith entering a vehicle with an associate. Indianapolis Metropolitan Police Department Officers initiated a traffic stop. Ms. Smith was identified and arrested on an outstanding arrest warrant. During the arrest, officers discovered twenty-nine carpujets of morphine in the vehicle.
This case was the result of an investigation by the Drug Enforcement Administration and the Indianapolis Metropolitan Police Department.
“It is absolutely shameful with the ongoing COVID-19 pandemic, that Ms. Hayworth and Ms. Smith would burglarize the Central Indiana Cancer Centers, and steal a significant amount of morphine and personal protective equipment.” said DEA Assistant Special Agent in Charge, Michael Gannon. “The DEA Tactical Diversion Squad, Indianapolis Metropolitan Police Department, United States Attorney’s Office, Indiana University Health Care, and the cleaning company are to be commended for their assistance in holding Ms. Hayworth and Ms. Smith accountable for their misconduct.”
“As our community faces the challenges that result from COVID-19, it is our collective responsibility to support the healthcare workers serving on the frontlines of this pandemic - and that means ensuring they have all of the tools, and especially the Personal Protective Equipment, they need to serve residents,” said IMPD Chief Randal Taylor. “We are in this together. When someone seeks to profit from harming our healthcare partners, law enforcement will hold them accountable to the fullest extent possible.”
According to Assistant United States Attorney Kyle Sawa who is prosecuting this case for the government, each defendant faces up to 20 years’ imprisonment, 3 years of supervised release, and a maximum fine of $1,000,000.
A charge is not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to targeting the prosecution of opioid dealers to prevent the spread of opioid addiction in the district. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.2.
This prosecution also shows the office’s strong commitment to combating fraud and criminal activity related to COVID-19, which is reflected in the creation of a Coronavirus Fraud Task Force in the Southern District of Indiana. If you receive any forms of suspicious communication related to the COVID-19 crisis, or become aware of family and friends that have received suspicious communications, I ask that you don’t respond directly but instead report the activity to the National Center for Disaster Fraud (NCDF) Hotline at 1-866-720-5721, or to the NCDF e-mail address [email protected]. "
Evergreen Man Sentenced to Four Years in Prison for Federal Gun Charge Out of Covington CountyRead the Press Release
Montgomery, Alabama – On Wednesday, April 29, 2020, Mitchell Evan Gandy, a 32-year-old man from Evergreen, Alabama, was sentenced to 48 months in prison for being a felon in possession of a firearm, announced United States Attorney Louis V. Franklin, Sr. Following his prison sentence, Gandy will be on supervised release for three years.
Gandy was indicted by a federal grand jury in August 2018 on one count of possession of a firearm by a convicted felon. He pleaded guilty to that charge on January 29, 2020.
According to court records, on February 14, 2018, a deputy stopped Gandy for speeding while he was traveling in Covington County. When the deputy approached to speak to the driver, he detected a strong smell of marijuana coming from inside the vehicle and asked him to step out of the car. When law enforcement officers searched the vehicle, they found two handguns— a Glock 9mm and a Zastava 7.62mm. Gandy has multiple felony convictions and is prohibited from possessing a firearm.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Covington County Sheriff’s Office investigated this case. Assistant United States Attorney Joshua Wendell prosecuted this case.
Dillwyn Man Pleads Guilty to Federal Drug ChargesRead the Press Release
LYNCHBURG, Va. – Stewart Cornell Booker, of Dillwyn, Virginia, pleaded guilty today in U.S. District Court in Lynchburg to a variety of federal drug charges related to his distribution of methamphetamine, heroin, and powder cocaine, United States Attorney Thomas T. Cullen announced.
Booker, 46, pled guilty today to one count of distributing powder cocaine, one count of distributing heroin, and one count of distributing methamphetamine. At sentencing, Booker faces up to 20 years in prison and/or a fine of up to $1 million.
“Combatting opioid and methamphetamine trafficking is among the top priorities of our office,” U.S. Attorney Cullen stated today. “We have increased federal collaboration with our state and local partners in the Piedmont region over the last several months and hope to bring additional cases soon.”
According to court records, between July 25, 2018, and October 24, 2018, law enforcement made a series of undercover purchases of narcotics from Booker at various locations in Buckingham County, Virginia. The transactions involved the sale of powder cocaine, heroin, and methamphetamine. At the time, Booker was distributing these drugs while he was on federal supervision.
This case was investigated by the Drug Enforcement Administration and the Piedmont Regional Narcotics and Gang Enforcement Task that is comprised of the Virginia State Police, the Buckingham County Sheriff’s Office, the Cumberland County Sheriff’s Office, the Prince Edward County Sheriff’s Office, the Farmville Police Department and the Longwood University Police Department. Assistant United States Attorney Ronald M. Huber is prosecuting the case for the United States.
Convicted Felon Sentenced to a Decade in Prison for Firearm Possession Discovered Following a Domestic Violence CallRead the Press Release
OKLAHOMA CITY – Antonio Dewayne Adams, 40, of Oklahoma City, Oklahoma, has been sentenced to 120 months in prison for illegally possessing a firearm while being a convicted felon, announced U.S. Attorney Timothy J. Downing. That firearm was discovered by law enforcement responding to a domestic violence call.
"We will continue to bring firearms charges against perpetrators of domestic violence who violate federal law, particularly when they actively menace their families and those in our community," said U.S. Attorney Downing. "Through this case and others like it, the Department of Justice is protecting vulnerable families and preventing violence against adults, children, and others."
Adams was indicted on July 17, 2019, with one count of being a felon in possession of a firearm. Public records indicate Mr. Adams holds felony convictions for burglary in the second degree, possession of a firearm after former conviction of a felony, concealing stolen property, possession of controlled dangerous substances, and assault and battery—domestic abuse. Federal law prohibits possession of firearms by anyone who, among other things, is previously convicted of a felony, previously convicted of a misdemeanor domestic violence offense, or who is subject to a domestic violence protection order.
At a sentencing hearing yesterday, U.S. District Judge Charles B. Goodwin sentenced Mr. Adams to ten years in prison—the statutory maximum—to be followed by three years of supervised release. In announcing the sentence, U.S. District Judge Goodwin cited Mr. Adams’ history of domestic violence. The government presented evidence at sentencing that Mr. Adams brought a loaded firearm to his girlfriend’s residence. Through the course of the evening, Mr. Adams threatened his girlfriend with the firearm and kept her from leaving the residence. She eventually escaped to a neighbor’s residence, where police were called.
This sentence is the result of an investigation by the Midwest City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Prosecuted by Assistant U.S. Attorney Mary E. Walters.
This case is part of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s signature initiatives to reduce gun violence and enforce federal firearms laws. For more information about Project Guardian, please see the Attorney General’s announcement here. The case is also part of "Operation 922," the district’s local implementation of Project Safe Neighborhoods and Project Guardian. "Operation 922" prioritizes firearms prosecutions connected to domestic violence, including domestic violence abusers who possess a firearm and are subject to a victim protective order or have been previously convicted of a misdemeanor crime of domestic violence.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Brockton Man Sentenced for Being Felon in Possession of FirearmRead the Press Release
BOSTON – A Brockton man was sentenced today for being a felon in possession of a firearm.
Clive McFarlane, 36, was sentenced by U.S. District Court Judge Allison D. Burroughs during a videoconference to time served (approximately six months in prison) and two years of supervised release. McFarlane pleaded guilty to one count of being a felon in possession of a firearm on April 14, 2020.
On Aug. 27, 2019, McFarlane was found in possession of a Rohm Gesellschaft .25 caliber revolver, one round of Remington .25 caliber ammunition and seven rounds of Cascade Cartridges .25 caliber ammunition. McFarlane had previously been convicted of being a felon in possession of a firearm and other crimes punishable by more than a year in jail and therefore was prohibited from possessing firearms.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; and Brockton Police Chief Emanuel Gomes made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Criminal Division prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Bank Hapoalim Agrees to Pay More Than $30 Million for its Role in Money Laundering Conspiracy Involving FIFA Bribery SchemeRead the Press Release
BROOKLYN, NY – Bank Hapoalim B.M. (“BHBM”), an Israeli bank with international operations, and its wholly owned subsidiary, Hapoalim (Switzerland) Ltd. (“BHS”), have agreed to forfeit $20,733,322 and pay a fine of $9,329,995 to resolve an investigation into their involvement in a money laundering conspiracy that fueled an international soccer bribery scheme. Specifically, BHBM and BHS have admitted that they, through certain of their employees, conspired to launder over $20 million in bribes and kickbacks to soccer officials with Fédération Internationale de Football Association (“FIFA”) and other soccer federations.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Ryan L. Korner, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), made the announcement.
“Today’s resolution marks another successful chapter in this District’s effort to hold accountable those corporations and individuals who participated in a bribery scheme that corrupted international soccer,” stated United States Attorney Donoghue. “This Office, along with our law enforcement partners, will continue to identify wrongdoers who manipulate international soccer in order to reap illicit profits and bring them to justice.”
“For nearly five years, Bank Hapoalim employees used the U.S. financial system to launder tens of millions of dollars in bribe payments to corrupt soccer officials in multiple countries,” stated AAG Benczkowski. “Today’s announcement demonstrates the Department’s commitment to holding financial institutions to account when they knowingly facilitate corruption and other criminal conduct.”
“This announcement illustrates another aspect in the spider web of bribery, corruption and backroom deals going on behind the scenes as soccer games were played on the field. Bank Hapoalim admits executives looked the other way, and allowed illicit activity to continue even when employees discovered the scheme and reported it. The New York FBI Eurasian Organized Crime Task Force and our law enforcement partners have doggedly pursued every strand uncovered in this criminal investigation, and will keep at it until they root out all of the bad actors,” stated FBI Assistant Director-in-Charge Sweeney.
“This forfeiture sends a clear message that no matter how complex or far reaching the conspiracy, justice will prevail. Bank Hapoalim B.M. and its subsidiary, Hapoalim Ltd., participated in a conspiracy that corrupted international soccer, its confederations, and member associations,” stated IRS-CI Special Agent-in-Charge Korner. “IRS-CI is proud to work alongside our international law enforcement partners, the FBI, and the United States Attorney’s Office to bring closure to this egregious international scandal that corrupted the sport of soccer.”
According to admissions in the statement of facts stipulated to by BHBM and BHS as part of the agreement, from approximately December 10, 2010 to February 20, 2015, BHBM and BHS personnel conspired with sports marketing executives, including executives associated with Full Play Group S.A. (“Full Play”), a sports media and marketing business based in Argentina, and others, to launder at least $20,733,322 in bribes and kickbacks to soccer officials. In exchange for those bribes and kickbacks, the soccer officials awarded or steered broadcasting rights for soccer matches and tournaments to the sports marketing executives and their companies. Full Play allegedly executed the illegal payments from accounts held at BHS and BHBM’s branch in Miami, Florida, which were held in the names of Full Play subsidiaries and affiliates.
BHBM and BHS admitted they, through BHS and BHBM’s Miami branch, conspired to launder money for Luis Bedoya, who at various times served as the president of the Federación Colombiana de Futbol, a vice president of the Confederación Sudamericana de Fútbol (CONMEBOL), and a member of FIFA’s executive committee. BHBM and BHS allowed accounts controlled by Bedoya to be used to receive illicit bribe and kickback payments. In November 2015, Bedoya pleaded guilty to racketeering conspiracy and wire fraud conspiracy in the Eastern District of New York. He is awaiting sentencing.
Despite BHS compliance personnel repeatedly raising concerns about certain payments made to soccer officials from the accounts associated with Full Play, BHBM and BHS failed to take action. Instead, the banks’ relationship managers continued executing illicit bribe and kickback payments on behalf of Full Play.
As outlined in the agreement, the government’s decision to enter into a three-year, non-prosecution agreement with BHBM and BHS was premised upon the banks’ thorough and complete cooperation, BHBM’s pledge to review and improve its anti-money laundering program, and the banks’ other substantial remedial efforts, which include closing Bank Hapoalim (Latin America) S.A. and BHBM’s branch in Miami. BHS is also in the process of closing its operations.
The agreement announced today is part of an investigation led by the U.S. Attorney’s Office for the Eastern District of New York, the Bank Integrity Unit in the Money Laundering and Asset Recovery Section of the Justice Department’s Criminal Division in Washington, D.C., the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. Assistant U.S. Attorneys Sam Nitze, Lauren Howard Elbert and Brian Morris of the U.S. Attorney’s Office and Trial Attorney Michael P. Grady of the Bank Integrity Unit are responsible for the matter on behalf of the U.S. Department of Justice. The government of Switzerland provided significant assistance in this matter, as did the Criminal Division’s Office of International Affairs.
The Defendants:
BANK HAPOALIM B.M.
BANK HAPOALIM (SWITZERLAND) LTD.
Bank Hapoalim Agrees to Pay More Than $30 Million for Its Role in FIFA Money Laundering ConspiracyRead the Press Release
Bank Hapoalim B.M. (BHBM), an Israeli bank with international operations, and its wholly owned subsidiary, Hapoalim (Switzerland) Ltd. (BHS), have agreed to forfeit $20,733,322 and pay a fine of $9,329,995 to resolve an investigation into their involvement in a money laundering conspiracy that fueled an international soccer bribery scheme.
Specifically, BHBM and BHS have admitted that they, through certain of their employees, conspired to launder over $20 million in bribes and kickbacks to soccer officials with Fédération Internationale de Football Association (FIFA) and other soccer federations.
“For nearly five years, Bank Hapoalim employees used the U.S. financial system to launder tens of millions of dollars in bribe payments to corrupt soccer officials in multiple countries,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s announcement demonstrates the department’s commitment to holding financial institutions to account when they knowingly facilitate corruption and other criminal conduct.”
“Today’s resolution marks another successful chapter in this district’s effort to hold accountable those corporations and individuals who participated in a bribery scheme that corrupted international soccer,” stated U.S. Attorney Richard P. Donoghue of the Eastern District of New York. “This office, along with our law enforcement partners, will continue to identify wrongdoers who manipulate international soccer in order to reap illicit profits and bring them to justice.”
“This announcement illustrates another aspect in the spider web of bribery, corruption and backroom deals going on behind the scenes as soccer games were played on the field,” said Assistant Director in Charge William F. Sweeney of the FBI’s New York Field Office. “Bank Hapoalim admits executives looked the other way, and allowed illicit activity to continue even when employees discovered the scheme and reported it. The New York FBI Eurasian Organized Crime Task Force and our law enforcement partners have doggedly pursued every strand uncovered in this criminal investigation, and will keep at it until they root out all of the bad actors.”
“This forfeiture sends a clear message that no matter how complex or far reaching the conspiracy, justice will prevail. Bank Hapoalim B.M. and its subsidiary, Hapoalim Ltd., participated in a conspiracy that corrupted international soccer, its confederations, and member associations,” said Special Agent in Charge Ryan L. Korner of the IRS-Criminal Investigation (IRS-CI) Los Angeles Field Office. “IRS-CI is proud to work alongside our international law enforcement partners, the FBI, and the United States Attorney’s Office to bring closure to this egregious international scandal that corrupted the sport of soccer.”
According to admissions in the statement of facts stipulated to by BHBM and BHS as part of the agreement, from approximately Dec. 10, 2010, to Feb. 20, 2015, BHBM and BHS personnel conspired with sports marketing executives, including executives associated with Full Play Group S.A. (Full Play), a sports media and marketing business based in Argentina, and others, to launder at least $20,733,322 in bribes and kickbacks to soccer officials. In exchange for those bribes and kickbacks, the soccer officials awarded or steered broadcasting rights for soccer matches and tournaments to the sports marketing executives and their companies. Full Play allegedly executed the illegal payments from accounts at BHS and BHBM’s branch in Miami, Florida, which were held in the names of Full Play subsidiaries and affiliates. On March 18, 2020, Full Play was charged along with others in a superseding indictment in the Eastern District of New York with racketeering conspiracy, wire fraud, wire fraud conspiracy, and money laundering conspiracy.
BHBM and BHS also admitted they conspired to launder money for Luis Bedoya, who at various times served as the president of the Federación Colombiana de Futbol, a vice president of the Confederación Sudamericana de Fútbol (CONMEBOL), and a member of FIFA’s executive committee. BHBM’s Miami branch and BHS allowed accounts controlled by Bedoya to be used to receive illicit bribe and kickback payments. Bedoya pleaded guilty to racketeering conspiracy and wire fraud conspiracy on Nov. 12, 2015, in the Eastern District of New York.
Notwithstanding the repeated concerns raised by BHS compliance personnel about certain payments made to soccer officials from the accounts associated with Full Play, BHS failed to take action. Instead, the banks’ relationship managers continued executing illicit bribe and kickback payments on behalf of Full Play.
Under the agreement, BHBM and BHS will jointly pay a criminal penalty of $9,329,995. The banks will additionally forfeit funds totaling $20,733,322.
As outlined in the agreement, the government’s decision to enter into a non-prosecution agreement with BHBM and BHS was premised upon the banks’ thorough and complete cooperation and the banks’ other substantial remedial efforts, which have included closing Bank Hapoalim (Latin America) S.A. and BHBM’s branch in Miami. BHS is also in the process of closing its operations.
The agreement announced today is part of an investigation led by the FBI’s New York Field Office and the IRS-CI’s Los Angeles Field Office. Trial Attorney Michael P. Grady of the Bank Integrity Unit of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Lauren Howard, Brian D. Morris, and Samuel P. Nitze of the U.S. Attorney’s Office for the Eastern District of New York prosecuted the case. Former MLARS attorneys Kendrack D. Lewis of the Justice Department’s Civil Division and Maria K. Vento of the U.S. Attorney’s Office for the Western District of North Carolina, the Criminal Division’s Office of International Affairs, and the government of Switzerland provided significant assistance in 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.
Augusta and Kennebec County Awarded Funds to Address COVID-19 PandemicRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that the Department of Justice’s Office of Justice Programs (OJP) has awarded $77,591 to the City of Augusta and $58,008 to Kennebec County to address the public safety challenges posed by the outbreak of COVID-19.
OJP awarded the grants as part of $850 million available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. This program allows eligible state, local and tribal governments to apply immediately for these critical funds. OJP is moving quickly, aiming to have funds available for drawdown as soon as possible after receiving an application. OJP has also made statewide awards in addition to awards to local jurisdictions. A list of all awards is at https://bja.ojp.gov/program/cesf/awards.
“Public safety professionals in Maine are doing phenomenal work as they protect Mainers during the COVID-19 pandemic,” said U.S. Attorney Frank. “I hope these emergency grants to Augusta and Kennebec County will help keep our local partners safe on the job as they keep all of us safe.”
The Coronavirus Aid, Relief and Economic Security, or CARES, Act gives jurisdictions considerable latitude in the use of funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment and distributing resources to hard-hit areas. Funds may also be used to help correctional facilities cover costs related to COVID-19, including, but not limited to, sanitation, contagion prevention and measures designed to address the related medical needs of inmates, detainees and correctional personnel.
Applications are due by May 29, 2020. OJP will fund successful applicants on a rolling basis as it receives applications. Grantees may apply the funds retroactively to January 20, 2020, subject to federal rules.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. A complete list of eligible jurisdictions and their allocations is available at https://bja.ojp.gov/program/fy20-cesf-allocations. For more information, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553.
OJP, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components is located at www.ojp.gov.
Asheville Man Is Sentenced to Seven Years in Prison for Downloading Child PornographyRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Sammy Horace Williams, II, to 84 months in prison and a lifetime of supervised release on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Williams, 55, of Asheville, was also ordered to register as a sex offender after he is released from prison, and to pay a $5,000 special assessment and $3,000 in restitution.
Ronnie Martinez, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in North Carolina joins U.S. Attorney Murray in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, Homeland Security Investigations (HSI) agents conducting an investigation into child pornography on the internet became aware that an individual, later identified as Williams, was accessing child pornography online. On May 18, 2017, HSI agents executed a search warrant at Williams’ residence. During the search, they seized multiple computer devices, thumb drives, and CDs belonging to Williams. A forensic analysis of the seized items revealed that Williams possessed more than 450 videos and 1,647 images of child pornography, some of which depicted prepubescent minors engaging in sadistic and masochistic or other lewd and lascivious conduct.
On October 30, 2019, Williams pleaded guilty to receiving child pornography. In filed plea documents, Williams admitted to downloading child pornography via the internet to his computer and other storage devices.
Williams is currently in federal custody. All federal sentences are served without the possibility of parole.
U.S. Attorney Murray thanked HSI for their handling of this investigation. The U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
29 April 2020
Worcester Man Sentenced for Heroin and Cocaine ConspiracyRead the Press Release
BOSTON – A Worcester man was sentenced today in federal court in Worcester for his role in a heroin and cocaine conspiracy.
Vito Nuzzolilo, 46, was sentenced during a videoconference hearing before U.S. District Court Judge Timothy S. Hillman to 134 months in prison and eight years of supervised release. In August 2019, Nuzzolilo pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and more than 100 grams of heroin.
Nuzzolilo distributed heroin and cocaine from his apartment in Worcester and from a separate “band room” that he maintained in Worcester. A federal wiretap revealed numerous communications in which Nuzzolilo coordinated the sale of heroin or cocaine to various drug customers. The investigation also revealed that Nuzzolilo coordinated with a New York-based source of supply for the delivery of significant quantities of heroin and cocaine to Worcester. As a result of the investigation, law enforcement seized drugs from various locations, including from Nuzzolilo’s band room, his BMW, and from a car transporting cocaine from Nuzzolilo’s apartment in Maine.
Four other individuals have pleaded guilty and been sentenced in this drug conspiracy. In February 2019, Ricardo Ortega-Vasquez, 42, a Dominican national residing in New York City, was sentenced to time served (approximately 23 months in prison). In November 2018, Thomas Walker of Pemaquid, Maine, was sentenced to 30 months in prison. In September 2018, Melissa Rock, also of Pemaquid, Maine, was sentenced to 12 months and 1 day in prison. And in June 2018, Kristen Little of Worcester was sentenced to 30 months in prison.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division prosecuted the case.
Utah Court Orders Halt to Sale of Silver Product Fraudulently Touted as Covid-19 CureRead the Press Release
SALT LAKE CITY – A federal court in Utah has entered an injunction halting the sale of a fraudulent coronavirus (COVID-19) treatment, the Department of Justice announced today.
In response to a civil complaint and accompanying court papers filed on April 27, 2020, in Salt Lake City, the U.S. District Court for the District of Utah issued a temporary restraining order against defendants Gordon Pedersen of Cedar Hills, Utah, and his companies, My Doctor Suggests LLC and GP Silver LLC. The civil complaint alleges that the defendants are fraudulently promoting and selling various silver products for the treatment and prevention of COVID-19. The court’s order temporarily enjoins the defendants from continuing to sell or distribute their silver products for the diagnosis, cure, mitigation, treatment, or prevention of any disease, including COVID-19.
A separate court order temporarily freezes defendants’ assets in order to preserve the court’s ability to grant effective final relief and to maintain the status quo. A hearing on the government’s request for a preliminary injunction is set for May 12, 2020.
“The Department of Justice will take swift action to protect consumers from those who would recklessly exploit this public health crisis by offering phony cure-alls for the treatment and prevention of COVID-19,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We work closely with our partners at the Food and Drug Administration and will move quickly to shut down schemes that promote and sell unlawful products during this pandemic.”
“Even in a time of great uncertainty, there are at least two unchanging realities. There are those who would unlawfully exploit our vulnerabilities, and there are those who will hold such parties accountable,” said U.S. Attorney John W. Huber for the District of Utah. “COVID-19 is a dangerous disease, and American consumers must have accurate and reliable information as they make important health decisions.”
The complaint alleges that, beginning in early 2020, the defendants conducted a scheme to defraud consumers throughout the United States, promoting and selling silver products based on fraudulent claims of protection against, and treatment for, COVID-19. According to the complaint, the defendants have made a wide variety of false and misleading claims touting silver products as a preventative for COVID-19, including that having silver in the bloodstream will “usher” any coronavirus out of the body and that “it has been proven that Alkaline Structured Silver will destroy all forms of viruses, it will protect people from the Coronavirus.”
“The FDA will continue to help ensure those who place profits above the public health during the COVID-19 pandemic are stopped,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, U.S. Food and Drug Administration. “We are fully committed to working with the Department of Justice to take appropriate action against those jeopardizing the health of Americans by offering and distributing products with unproven claims to prevent or treat COVID-19.”
The enforcement action is being prosecuted by Assistant U.S. Attorney Joel A. Ferre of the U.S. Attorney’s Office for the District of Utah and Trial Attorneys Speare I. Hodges and Sarah Williams of the Department of Justice, Civil Division’s Consumer Protection Branch. The FDA’s Office of Criminal Investigations and Office of the Chief Counsel is also assisting with the case.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a permanent injunction against the defendants.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Utah, visit its website at https://www.justice.gov/usao-ut. For information about the Department of Justice’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and WHO websites.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
United States Attorney Cautions Against Predatory Practices Related to COVID-19 and HousingRead the Press Release
DETROIT, Michigan - 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 have responded to these circumstances with understanding and care, trying to work with their tenants to weather 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 despicable and it is illegal.
Unfortunately, most 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.
United States Attorney Mathew Schneider stated, “Predatory practices related to COVID-19 are particularly disturbing as these landlords exploit our current national crisis by sexually harassing people in need of housing.”
The Department of Justice has not hesitated to intervene when clear misconduct occurs. This behavior is not tolerated in normal times, and certainly will not be tolerated now.
To report sexual harassment in housing, contact the Justice Department at (800) 896-7743 or [email protected]. Or, contact the U.S. Attorney’s Office at (313) 226-9151 or [email protected].
Below are two links to DOJ & HUD produced PSAs for your consideration. These powerful PSAs feature personal victim impact stories and a clear call to action.
DOJ PSA: Sexual Harassment in Housing Is Illegal
https://www.youtube.com/watch?v=z76bA-mf7o0&t
runtime: 1:00
Working with DOJ to Stop Sexual Harassment in Housing
https://www.youtube.com/watch?v=vhskfe_7DHc
runtime: 11:00
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 be aggressively attacking their despicable conduct.
U.S. Attorney’s Office and law enforcement agencies are combatting sexual harassment in housing during Coronavirus pandemicRead the Press Release
ATLANTA – As the nation adopts measures to slow the spread of COVID-19, many Georgians have lost their jobs and countless 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. During this time, predatory practices have been identified and are particularly disturbing as some landlords exploit our current national crisis by sexually harassing people in need of housing.
“Many landlords responded to these circumstances with understanding and care, trying to work with their tenants to weather the current crisis,” said U.S. Attorney Byung J. “BJay” Pak. “However, 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 despicable, and illegal.”
Sexual harassment in housing includes demands for sex or sexual acts in order to buy, rent, or continue renting a home. It also includes other unwelcome sexual conduct that makes it hard to keep living in or feel comfortable in your home. The Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division of the Department of Justice. 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.
Attorney General William Barr has directed the Department of Justice Civil Rights Division and every U.S. Attorney's Office to devote all necessary resources to investigate reports of housing-related sexual harassment resulting from the current crisis. To report sexual harassment in housing to the DOJ, we have a toll-free phone number (1-844-380-6178), as well as an email address ([email protected]) and webpage.
The U.S. Attorney’s Office for the Northern District of Georgia and the Department of Justice (DOJ) will work with all federal agencies, as well as state, and local officials on reports of housing-related sexual harassment. We stand ready to take aggressive action against this misconduct whenever it occurs.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney Erica MacDonald Cautions Against Predatory Practices Related to COVID-19 and HousingRead the Press Release
United States Attorney Erica H. MacDonald announced today that, during the COVID-19 crisis, the U.S. Attorney’s Office is reaffirming its commitment under the Fair Housing Act to combat sexual harassment in housing.
As the nation adopts measures to slow the spread of COVID-19, many Americans have lost their jobs, have been furloughed, or have seen a drastic reduction in their wages. As a result, many Americans have been unable to pay rent. According to a recent memo from the Attorney General, 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.
“Sexual harassment by landlords, property managers, maintenance workers, and others may constitute a violation of the federal Fair Housing Act. Such behavior is despicable and it is illegal,” said U.S. Attorney Erica MacDonald. “The U.S. Attorney’s Office stands ready to investigate complaints of sexual harassment in housing and to deploy all available enforcement tools against anyone who engages in this behavior. This behavior is not tolerated in normal times, and certainly, will not be tolerated now.”
If you think you are a victim of sexual harassment by a landlord, or other person who has control over housing, resulting from the COVID-19 crisis, contact the Justice Department’s Civil Rights Division at (800) 896-7743 or [email protected]. Or, contact the U.S. Attorney’s Office at (612) 664-5600 or [email protected].
Department of Justice public service announcement: Sexual Harassment in Housing Is Illegal https://www.youtube.com/watch?v=z76bA-mf7o0&t
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Tax Preparer Sentenced to Four Years in Prison for Conspiring to File False Income Tax ReturnsRead the Press Release
TRENTON, N.J. – A former employee of Tax Pro’s and Tax Solutions & Associates, tax preparation businesses located in Essex and Union counties, was sentenced today to 48 months in prison for conspiring to defraud the United States by filing false income tax returns, U.S. Attorney Craig Carpenito announced.
Tony V. Russell, 49, of Stone Mountain, Georgia, previously pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to Count One of an indictment charging him with conspiracy to defraud the IRS. Judge Shipp imposed the sentence today in a teleconference proceeding.
Two members of the conspiracy have previously pleaded guilty to their roles in the fraud and await sentencing. Damien Askew, 39, of Union, New Jersey, pleaded guilty June 6, 2017, to conspiracy to defraud the IRS and filing a false federal personal income tax return and is awaiting sentencing. Rudolph Sanders, 41, of Newark, New Jersey, pleaded guilty May 10, 2018, to conspiracy to defraud the IRS and is awaiting sentencing.
Two other members of the conspiracy, Joseph Kenny Batts, 49, of Elkridge, Maryland, and Angelo K. Thompson, 38, of Reistertown, Maryland, were arrested April 17, 2018, on charges of conspiracy to defraud the IRS and aiding and assisting in the preparation of false federal income tax returns. On Aug. 8, 2019, Thompson pleaded guilty before Judge Shipp to Count One of an indictment charging him with conspiracy to defraud the IRS, and awaits sentencing. On Sept. 17, 2019, Batts was convicted following a one-week trial before Judge Shipp on one count of conspiracy to defraud the United States and five counts of aiding and assisting in the preparation of false federal income tax returns, and awaits sentencing.
According to documents filed in this and related cases and statements made in court:
From at least 2009 to April 2015, Batts was co-owner, along with Askew, of Tax Pro’s, a tax return preparation and payroll business in Essex County, where Russell, Sanders, Batts, Thompson, and Askew prepared tax returns. To boost their business, the defendants conspired to falsify their clients’ federal income tax returns to generate refunds from the IRS in amounts that their clients were not entitled to receive. Russell, Sanders, Batts, Thompson, and Askew inflated tax refunds by fabricating and inflating credits for education and childcare; deductions, such as charitable contributions and unreimbursed employee expenses; and business losses.
Russell and other members of the conspiracy also permitted Batts to use their Preparer Tax Identification Numbers (PTIN) – the identification number that paid tax preparers are required to place on tax returns they have prepared – when preparing tax returns to conceal Batts’ identity as the actual tax return preparer; Batts had a prior federal tax fraud conviction.
After law enforcement executed a search warrant at Tax Pro’s in April 2015, Batts discontinued Tax Pro’s and opened Tax Solutions and Associates in Union, where Russell, Thompson, and Batts continued preparing false federal income tax returns.
By fraudulently inflating the amounts of the tax refunds, Batts, Askew, Thompson, Russell, and Sanders caused a total tax loss to the IRS in excess of $900,000.
In addition to the prison term, Judge Shipp sentenced Russell to three years of supervised release and ordered him to pay restitution of $241,185.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Laura J. Perry, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Cari Fais and Jihee Suh of the Special Prosecutions Division.
South Carolina Man Sentenced to 78 Months in Prison for Trafficking 25 Handguns into New York CityRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that TORRIE JOHNSON was sentenced today in Manhattan federal court to 78 months in prison for trafficking 25 firearms from South Carolina into New York City. In May 2019, JOHNSON was arrested, charged, and detained. In January 2020, JOHNSON pled guilty to one count of firearms trafficking before United States District Judge Naomi Reice Buchwald, who also imposed the sentence.
U.S. Attorney Geoffrey S. Berman said: “Torrie Johnson illegally sold more than two dozen firearms in New York City without regard for where they ended up or how they would be used. Thanks to the work of the ATF and the NYPD, the guns were taken off the street, and now Torrie Johnson is headed to prison.”
According to the allegations set forth in the Complaint, the Indictment, and the Superseding Information filed against JOHNSON in Manhattan federal court, as well as statements made in public court filings and proceedings, including JOHNSON’s sentencing hearing:
On at least five occasions between January 23, 2019, and May 9, 2019, JOHNSON sold firearms to an undercover New York City Police Department (“NYPD”) detective (the “UC”). In total, JOHNSON sold 25 firearms to the UC in Manhattan and the Bronx, including a variety of 9 millimeter, .32, .38, .40, .45, and .380 caliber pistols and revolvers, as well as hundreds of rounds of assorted ammunition.
JOHNSON purchased the firearms in South Carolina, and transported them to New York City for the purpose of selling them here. On at least two occasions, the UC specifically told JOHNSON that the UC was planning to transport at least some of the firearms that JOHNSON had sold to the UC to a foreign country, and resell them there for a profit. JOHNSON told the UC that he was attempting to obtain for sale to the UC a Century Arms Mini Draco AK-47 semi‑automatic pistol.
In addition to his prison term, JOHNSON, 42, of Sumter, South Carolina, was sentenced to three years of supervised release.
Mr. Berman praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the NYPD, and the Joint Firearms Task Force.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Benjamin Woodside Schrier is in charge of the prosecution.
Six Arrested after DEA Task Force Investigation into Fentanyl Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that the following six men were arrested yesterday on federal narcotics distribution and money laundering charges related to the large-scale distribution of fentanyl in Connecticut:
DOMINGO GUZMAN, 43, of Waterbury
ARMANDO GONZALEZ, 38, of New Britain
DAVID CINTRON, 24, of Manchester
DANIEL ESTREMERA, 40, of East Hartford
GILDARDO PEREZ-BENITEZ, also known as “Jesus Ayon,” 51, of North Canaan
XIANG QING ZHANG, also known as “Jay,” 41, of Brooklyn, New YorkPursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the defendants were presented in court via videoconference. All are detained.
As alleged in court documents and statements made in court, in July 2019, the DEA’s Hartford Task Force began investigating a drug trafficking organization that was distributing fentanyl and heroin in Connecticut. The investigation revealed that Domingo Guzman, Jesus Ayon and others received kilogram-quantities of narcotics, primarily fentanyl, from a source of supply, and then distributed the drug to various narcotics traffickers, including Armando Gonzalez, David Cintron and Daniel Estremera. Gonzalez, Cintron, Estremera and others then sold the drug to street-level distributors. Members of the organization delivered cash generated from the sale of narcotics to Zhang, a money broker in Brooklyn, New York, who assisted in laundering the narcotics proceeds before they were transferred to leaders of the drug trafficking organization.
During the investigation, it is alleged that Gonzalez and Cintron used several locations to store, process and package fentanyl for street stale, including office space on Pratt Street in Hartford, an apartment in the Asylum Hill neighborhood in Hartford, and an apartment in New Britain. On December 19, 2019, Cintron was arrested on state charges shortly after he drove from the Pratt Street location and was found in possession of approximately 4,860 wax paper sleeves of fentanyl, 90 grams of unpackaged fentanyl, and other items used to process and package narcotics.
It is further alleged that Estremera used an apartment on South Street in West Hartford to process, package and store narcotics. On March 13, 2020, investigators searched the apartment and seized approximately 1.5 kilograms of fentanyl and approximately 500 wax folds of the drug.
It is also alleged that, between August and October 2019, investigators seized more than $200,000 in cash from members of the drug trafficking organization.
In association with yesterday’s arrests, investigators seized approximately $100,000 in cash, a firearm, several thousand wax folds of suspected fentanyl, and numerous items used in the processing and packaging of narcotics.
“We are living in a time of heightened awareness of public health and safety,” said U.S. Attorney Durham. “This operation targeted a group of individuals who are alleged to be responsible for the widespread distribution of a drug that ruins lives, continues to kill people every day, and puts unneeded stress on law enforcement and healthcare resources. I thank the DEA agents and task force officers who, at great risk to their own safety, are working during this time to protect our communities, disrupt the flow of this awful drug, and remove wrongdoers from the streets.”
“Fentanyl is causing great damage to our communities,” said DEA Special Agent in Charge Boyle. “The men and women of DEA along with our law enforcement partners are hard at work protecting the public by taking this poison off the streets of Connecticut, especially during this very uncertain time of COVID-19.”
The defendants were arrested on criminal complaints charging each with possession with intent to distribute, and distribution of, controlled substances; conspiracy to possess with intent to distribute, and distribution of, controlled substances; money laundering and conspiracy to commit money laundering.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
It is alleged that Guzman, Gonzalez and Estremera all have criminal histories that include federal convictions. Guzman and Estremera are currently on federal supervised release.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the DEA New York Organized Crime Drug Enforcement Task Force (“OCDETF”) Strike Force and the New York Police Department.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Robeson County Man Sentenced to More Than Nine Years for Gun OffenseRead the Press Release
RALEIGH, N.C. – A Robeson County man was sentenced today to 115 months in prison for one count of being a Felon in Possession of a Firearm.
According to court documents, Roger Bryant Locklear, 30, and a friend on July 21, 2018, traveled from Lumberton to Raleigh to purchase drugs. Locklear and his friend picked up the would-be supplier who gave them a sample of the drugs and instructed them to drive to a location on Beauty Ave. The transaction turned into an attempted robbery and shots were fired by both Locklear and the would-be supplier. Both men suffered non-fatal gunshot wounds, were treated at a local hospital, and ultimately arrested.
Locklear already had a substantial criminal record, having amassed 19 prior criminal convictions, including 6 felonies. At least 3 of Locklear’s prior felony convictions involved violent firearm offenses, including two prior convictions for assault with a deadly weapon inflicting serious injury and a prior conviction for discharging a firearm into a vehicle that was occupied by four people.
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. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. Assistant U.S. Attorney Bryan Stephany is prosecuting the case.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Raleigh Police Department conducted the investigation of this case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00191-D
Raleigh Man Receives Concurrent Life Sentences for Heroin Overdose Death and ConspiracyRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced today to two life terms in federal prison for Distribution of Heroin and Fentanyl Resulting in Death of a Person, and Conspiracy to Distribute and Possess with the Intent to Distribute One Kilogram or More of Heroin. United States District Judge James C. Dever III, ordered that Jayson McNeil, 28, serve the life sentences concurrently, along with 30 years’ imprisonment for Possession with the Intent to Distribute a Quantity of Heroin, and 10 years imprisonment for Possession of a Firearm by a Felon. In addition, McNeil was ordered to pay restitution in the amount of $20,826.64 for the victim’s funeral expenses.
McNeil was convicted, following a four-day trial, on January 28, 2020. The evidence at trial showed that McNeil operated a long-standing heroin organization in the city of Raleigh, distributing heroin and fentanyl to numerous individuals – resulting in multiple overdoses. (More here.) Despite McNeil’s own recent experience snorting fentanyl and overdosing, and despite his knowledge that his customers were overdosing on the drugs he provided to them, he continued to sell the substance to customers who would inject it intravenously.
The overdoses culminated on May 30, 2018 with the overdose death of a 27-year-old man in the Raleigh area. The man, an expectant father, had struggled with addiction to powerful opiates. The deadly dose was provided to him by McNeil.
At trial, one of McNeil’s customers testified that he, too, bought heroin and fentanyl from McNeil, and that he overdosed in a bathroom within days of May 30, 2018. That man survived his overdose only through the administration of multiple doses of Narcan. Another customer, a friend of the deceased, testified that when he confronted McNeil about his friend’s death, McNeil responded by providing him with free heroin. That customer, in the depths of his own addiction, used the drugs.
At sentencing, the Court heard from the deceased’s family members, who described a loving family in disbelief of what occurred, the wife and children left behind, and the countless family events that this young man will never have an opportunity to share in and witness.
Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina commented:
“I join the Court in the message it clearly expressed today – anyone that is a heroin dealer, particularly those who cut it with fentanyl, is playing with death. Mr. McNeil was fully aware of the deadly power of the substance he was distributing – indeed, he had his own personal wakeup call when he overdosed. He knew that his customers were overdosing. Undeterred by either, he continued to show zero regard for this community by spreading this poison on our streets. As the Court stated, ‘Death is fundamentally different, when it is fundamentally preventable.’ Mr. McNeil will have a lifetime in federal prison to reflect upon this.
I was proud to stand with the victim’s family in Court today. They have endured the nightmare shared by some 70,000 families a year whose loved ones are taken from them by drug overdoses, many involving opioids like fentanyl. Drug dealers, like Mr. McNeil, and the drug abuse they fuel are devastating families and robbing North Carolina of the potential and promise of our citizens. So long as this continues, we will continue our fight.”
A co-conspirator, Destin McLean, pled guilty to Conspiracy to Distribute one (1) kilogram of heroin before trial. McLean is awaiting sentencing.
The Wake County Sheriff’s Office, the North Carolina State Bureau of Investigation, and the United States Marshals Service conducted the investigation in this matter. Assistant U.S. Attorneys Kelly L. Sandling and Thomas L. Crosby prosecuted this case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00120-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Pittsburgh Man Pleads Guilty in Federal Wire Investigation of Drug Trafficking by South Side Neighborhood Gang Known as DS44Read the Press Release
PITTSBURGH, PA – A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Rico Taylor, 35, pleaded guilty to one count of conspiracy to distribute or possess with intent to distribute heroin and fentanyl, before United States District Judge William S. Stickman IV. Mr. Taylor is one of 36 defendants charged in the Indictment.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
The court was further advised that Mr. Taylor was involved in the distribution of heroin and fentanyl, including serving as source of supply of heroin and fentanyl for co-conspirator Christopher Highsmith. In connection with his guilty plea, Mr. Taylor accepted responsibility for distributing or possessing with intent to distribute 39 grams of a mixture containing fentanyl and heroin.
Judge Stickman scheduled sentencing for September 21, 2020, at 10:30 am. The law provides for a total sentence of not more than twenty years in prison, a fine of up to $1,000,000, 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 each defendant. Taylor remains detained pending sentencing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
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.
Missouri Man Charged with Federal Arson ChargesRead the Press Release
WASHINGTON – Nicholas J. Proffitt, 42, of Cape Girardeau, Missouri, was charged by a federal complaint with maliciously damaging a building by means of a fire. Proffitt will appear in court on April 30, 2020, for his initial appearance in front of U.S. Magistrate Judge Abbie Crites-Leoni.
According to the criminal complaint, on April 24, 2020, at approximately 4:50 a.m., a fire was discovered at The Islamic Center of Cape Girardeau, 298 Northwest End Boulevard, Cape Girardeau, Missouri. The Center’s video security system for the time of the fire observed Proffitt throwing multiple objects through a glass window, causing it to break. Proffitt threw two containers into the Center through the broken window and stepped through to enter the Center. Proffitt then picked up the containers and splashed liquid inside the Center. Proffitt ignited the fire with some type of fire starter. The blaze began immediately and appeared to be accelerated by the liquid that was poured in the building.
“To people of faith in our nation, houses of worship are sacred places,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Attacks against houses of worship are attacks against people of faith and their right to exercise their religion freely and without fear. The Justice Department will defend the right of all people in our country to exercise their religion, no matter the creed.”
“I extend my sincere thanks to all law enforcement agencies involved for their quick and effective response to this serious crime,” said U.S. Attorney Jeff Jensen for the Eastern District of Missouri.
“The fact this fire damaged a place of worship during the Muslim holy month of Ramadan is especially harmful,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “Protecting the civil rights of all Americans, regardless of color or creed, is one of the top priorities of the FBI.”
“ATF has a long tradition of fire and arson investigation,” Marino Vidoli, Special Agent in Charge of ATF’s Kansas City Field Division. “In no case is that expertise more critical than a fire such as this. When a house of worship is intentionally damaged by fire, it is not only that congregation that suffers, but the entire community. Religious centers, churches and mosques are often at the center of our neighborhoods, offering sanctuaries of peace and caring to those in need. Today’s complaint is an example of local, state and federal law enforcement coming together to support our communities.”
This is an ongoing investigation.
Proffitt is presumed to be innocent unless and until proven guilty.
These charges are the result of an investigation by the Cape Girardeau Police Department, the FBI, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Missouri State Fire Marshal Office and the Perryville Police Department. The United States Attorney’s Office for the Eastern District of Missouri and the Civil Rights Division of the Department of Justice are prosecuting this case.
Missouri Man Charged with Federal Arson ChargesRead the Press Release
St. Louis – Nicholas J. Proffitt, 42, of Cape Girardeau, Missouri, was charged by a federal complaint with maliciously damaging a building by means of a fire. Proffitt will appear in court on April 30, 2020, for his initial appearance in front of U.S. Magistrate Judge Abbie Crites-Leoni.
According to the criminal complaint, on April 24, 2020, at approximately 4:50 a.m., a fire was discovered at The Islamic Center of Cape Girardeau, 298 Northwest End Boulevard, Cape Girardeau, Missouri. The Center’s video security system for the time of the fire observed Proffitt throwing multiple objects through a glass window, causing it to break. Proffitt threw two containers into the Center through the broken window and stepped through to enter the Center. Proffitt then picked up the containers and splashed liquid inside the Center. Proffitt ignited the fire with some type of fire starter. The blaze began immediately and appeared to be accelerated by the liquid that was poured in the building.
“To people of faith in our nation, houses of worship are sacred places,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Attacks against houses of worship are attacks against people of faith and their right to exercise their religion freely and without fear. The Justice Department will defend the right of all people in our country to exercise their religion, no matter the creed.”
“I extend my sincere thanks to all law enforcement agencies involved for their quick and effective response to this serious crime,” said U.S. Attorney Jeff Jensen for the Eastern District of Missouri.
“The fact this fire damaged a place of worship during the Muslim holy month of Ramadan is especially harmful,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “Protecting the civil rights of all Americans, regardless of color or creed, is one of the top priorities of the FBI.”
“ATF has a long tradition of fire and arson investigation,” Marino Vidoli, Special Agent in Charge of ATF’s Kansas City Field Division. “In no case is that expertise more critical than a fire such as this. When a house of worship is intentionally damaged by fire, it is not only that congregation that suffers, but the entire community. Religious centers, churches and mosques are often at the center of our neighborhoods, offering sanctuaries of peace and caring to those in need. Today’s complaint is an example of local, state and federal law enforcement coming together to support our communities.”
This is an ongoing investigation.
Proffitt is presumed to be innocent unless and until proven guilty.
These charges are the result of an investigation by the Cape Girardeau Police Department, the FBI, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Missouri State Fire Marshal Office and the Perryville Police Department. The United States Attorney’s Office for the Eastern District of Missouri and the Civil Rights Division of the Department of Justice are prosecuting this case.
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to three months in federal prison.
Ricardo Penaloza-Pizano, age 28, a citizen of Mexico illegally present in the United States and residing in Waterloo, Iowa, received the prison term after a March 17, 2020, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Penaloza-Pizano admitted he had previously been deported from the United States in September 2011 and illegally reentered the United States in May 2012 without the permission of the United States government. In January 2020, Penaloza-Pizano’s illegal presence in the United States came to the attention of immigration agents following his arrest in Black Hawk County, Iowa, on state criminal charges. An arrest warrant was issued for Penaloza-Pizano in January 2019 after he failed to report to jail to serve his sentence on his March 2018 conviction in Bremer County, Iowa, for operating a motor vehicle while intoxicated and possession of cocaine.
Penaloza-Pizano was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Penaloza-Pizano was sentenced to 92 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Penaloza-Pizano is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2003.
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Meth Ring That Tried to Kill Suspected Government Informant Sees Last Member Sentenced to Federal PrisonRead the Press Release
Zachary Moorhouse, age 37, from Sioux City, Iowa, the final member of a methamphetamine drug trafficking organization that attempted to murder a suspected government witness to protect itself, was sentenced today to a prison term of more than three years in federal prison. Moorhouse had previously pled guilty to conspiracy to distribute a controlled substance on December 19, 2019.
Evidence presented by the United States at the detention, change of plea, and sentencing hearings in this case revealed that from about January 1, 2018, to about March 6, 2019, Isaac McDonald, Oscar Garcia, Andrew Nissen, Jessica Rose Ott, William David Schoen, and Moorhouse conspired to sell methamphetamine in the Sioux City area within 1,000 feet of a local playground. At some point, certain members of the drug conspiracy began to suspect another individual was cooperating with the police and providing information regarding their illegal activities. On the evening of August 1, 2018, Ott got into a car already occupied by Isaac McDonald, Oscar Garcia, and Andrew Nissen, and informed them of the suspected informant’s location. Nissen, who was armed with a handgun, drove the car to the suspected informant’s location. McDonald and Garcia, both also armed with handguns, got out of the car and approached the suspected informant. The suspected informant saw the gunmen coming and tried to escape by driving away. He did not get far. McDonald began firing. A bullet he fired passed through the suspected informant’s head. The suspected informant lost control of his car and crashed into a tree. Assuming the suspected informant was dead, the gunmen returned to their car and the foursome sped away.
Fortunately, the suspected informant was not killed in the attack. Despite McDonald having fired multiple rounds, nobody else was injured, including a person hiding in the back seat of the suspected informant’s car.
Moorhouse was the driver during drug sales and supply runs, invested small amounts of his own money in the conspiracy, and personally distributed methamphetamine to a handful of the conspiracy’s customers. He was not involved with the violence mounted to protect the organization. Similarly, while Schoen participated in the drug trafficking conspiracy, and later violently resisted arrest, he did not participate in the shooting of the suspected informant.
“As this case demonstrates, drug trafficking poses a significant threat to the safety of our communities,” said United States Attorney Peter Deegan. “Our office will hold accountable anyone who uses weapons or threats of violence to distribute drugs. We commend all of our federal and state law enforcement partners that participated in this investigation. Through their hard work and dedication, they ensured these violent individuals are off of our streets and have made us all safer.”
Sioux City Police Chief Rex Mueller stated, “This case highlights how effective programs like Project Safe Neighborhood/Project Guardian are at encouraging productive working relationships between local and federal authorities. Working as a team operating off the same playbook creates a seamless flow of intelligence and direction to facilitate iron clad casework. We continue to value the working relationship we enjoy with the United States Attorney’s Office and our local federal law enforcement agencies. The partnerships established for the mutual benefit of positive public safety makes Sioux City a better place to live, and led to countless successful federal prosecutions of dangerous offenders.”
On October 30, 2019, Andrew Nissen, the getaway driver, was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Nissen was sentenced to 188 months’ imprisonment and was ordered to make restitution to the suspected informant. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
On December 5, 2019, Jessica Ott, the person who provided the firearm for the shooting and the location of the victim, was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Ott was sentenced to 180 months’ imprisonment and was ordered to make restitution to the suspected informant. She must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
On December 11, 2019, McDonald, the shooter, was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. McDonald was sentenced to 300 months’ imprisonment and ordered to make restitution to the suspected informant. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
On January 3, 2020, Oscar Garcia, the armed wingman/second gunman, was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Garcia was sentenced to 180 months’ imprisonment and ordered to make restitution to the suspected informant. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
On January 7, 2020, William Schoen, a violent member of the conspiracy, was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Schoen was sentenced to 147 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
On April 29, 2020, Zachary Moorhouse, a member of the conspiracy, was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Moorhouse was sentenced to 40 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from our Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa (that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement United States Marshals Service; South Dakota Division of Criminal Investigation), the Sioux City, Iowa Police Department, the South Sioux City, Nebraska, Police Department, the United States Marshal’s Service, the Bureau of Alcohol Tobacco and Firearms, and the Woodbury County Attorney’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 19-4021 and 18-4078.
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Meth Dealer, Apprehended on I-75, Facing Maximum 20 Years in PrisonRead the Press Release
MACON, Ga. – A Valdosta, Georgia resident is facing a maximum 20 years in prison for possessing methamphetamine with the intention to sell the deadly drug, announced Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. Joseph Fairley, 47, of Valdosta, entered a guilty plea to one count possession with intent to distribute methamphetamine before U.S. District Judge Marc Treadwell on Wednesday, April 29, 2020. The maximum prison time under federal guidelines is 20 years imprisonment, three years supervised release and a $1,000,000 fine. Fairley’s sentencing has not been scheduled. There is no parole in the federal system.
Fairley was taken into custody on August 20, 2018 after fleeing a Georgia State Patrol officer during a traffic stop on I-75 in Perry, Georgia. Fairley was under surveillance at the time. During the attempted stop, Fairley accelerated and engaged in a high speed chase with the trooper. The trooper successfully utilized a P.I.T. maneuver to stop Fairley’s car. A drug dog conducted a free air sniff of the car and alerted to the presence of narcotics. Agents found a blue cooler with a loaded pistol, 56 grams of pure “ice” methamphetamine, 14 grams of cocaine and 33 grams of marijuana inside the vehicle. In addition to the drugs and firearm, the agents found a drug ledger in the trunk which contained various names and figures.
“Drug dealers caught pushing deadly poison into our communities will face maximum prosecution in the Middle District of Georgia,” said U.S. Attorney Charlie Peeler. “This case is the result of the hard work by our law enforcement partners at DEA, GBI, GSP, Bibb County Sheriff’s Office and Houston County Sheriff’s Office. I commend them for their dedicated service on the front lines of the drug war.”
This case is being investigated by the DEA, GBI, Bibb County Sheriff’s Office, Houston County Sheriff’s Office and the Georgia State Patrol. Assistant U.S. Attorney Charles Calhoun and Steven Ouzts is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Man Arrested for Assaulting U.S. Postal Service EmployeeRead the Press Release
SAN JUAN, P.R. – On April 28, 2020, United States Postal Inspection Service (USPIS) agents arrested Wilfredo Fontanez-Reyes for assaulting a federal employee working in the United States Postal Service (USPS) in Comerio, announced United States Attorney for the District of Puerto Rico, W. Stephen Muldrow.
The criminal complaint alleges that on April 28, 2020, the victim was approached by another USPS employee who indicated there was an irate customer, defendant Fontanez-Reyes, who was demanding to speak to postal management about a package. The victim went up to the lobby side door to speak to Fontanez-Reyes. Fontanez-Reyes stated he wanted to pick up a package, but became aggressive when he was told that the package was still being processed due to the high volume of packages at the facility.
The defendant punched the postal employee in the face after being told to return later to pick up the package. The altercation continued outside of the Post Office when the victim stopped Fontanez-Reyes as he fled from the scene. During this second altercation, the defendant kicked the victim in the face. Other postal employees were able to intervene and detain the defendant until Puerto Rico Police agents arrived at the scene and took custody of defendant. The victim received medical care for his injuries.
“There is no excuse for the acts of violence that the defendant inflicted upon a U.S. Postal Service employee engaged in his official duties providing essential services during this pandemic,” said United States Attorney Muldrow. “Our office will not tolerate anyone who assaults a federal employee engaged in their official duties and we will aggressively prosecute these cases.”
Assistant U.S. Attorney Richard T. Passanisi is in charge of the prosecution of this case, and the United States Postal Inspection Service conducted the investigation. If convicted, Fontanez-Reyes could face a maximum penalty of 20 years of imprisonment and a fine of $250,000 for assaulting a federal employee. Federal criminal complaints contain only charges and are not evidence of guilt. The defendant is presumed to be innocent unless and until proven guilty.
Justice Department Committed to Investigating Predatory Practices in Housing Amid COVID-19 PandemicRead the Press Release
BOSTON – 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.
As the country adopts drastic measures to slow the spread of COVID-19, many Americans have lost their jobs and many more have seen their wages curtailed. These losses have forced some to seek abatements or suspensions of their rent. According to a recent memo from the Attorney General, 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. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often impacts society’s most vulnerable populations.
“Sexual harassment in housing is illegal and despicable,” said United States Attorney Andrew E. Lelling. “No person should have to tolerate this behavior in order to keep a roof over his or her head. This conduct is unacceptable in normal times, and certainly will not be tolerated in the midst of a pandemic. My office will aggressively investigate these cases.”
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 initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts – both among survivors and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
If you think you are a victim of sexual harassment by a landlord, or other person who has control over housing, resulting from the COVID-19 crisis, contact the U.S. Attorney’s Office by calling 888-221-6023 or emailing [email protected]. For more information, visit www.justice.gov/crt/sexual-harassment-housing-initiative
Independence Man Charged with Child PornographyRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, man who was arrested yesterday, the same day he shared pornographic images over the internet that he had just taken of a 5-year-old child victim, was charged in federal court today.
Justin Swift, 35, was charged in a two-count criminal complaint with producing child pornography and with distributing child pornography over the internet. Swift, who was arrested on Tuesday, April 28, remains in federal custody pending a detention hearing on Monday.
According to an affidavit filed in support of the federal criminal complaint, Swift shared 11 images of child pornography on Tuesday, April 28, with another person using the Kik message application on his phone. Swift falsely claimed the child victim was his 5-year-old daughter, the affidavit says, and commented that he took the photos either the night before or a few minutes before distributing them.
Law enforcement officers executed a search warrant at Swift’s residence later on the same day. Swift, an unidentified woman, and four children – including the child victim – were present. Officers seized Swift’s phone, the affidavit says, which contained numerous sexually explicit images of the child victim, including the same photos Swift had previously distributed via the Kik application. Swift was placed under arrest.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the FBI, the Kansas City, Mo., Police Department, and the Independence, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Guaranteed Rate to Pay $15 Million to Resolve Allegations it Knowingly Caused False Claims to Government Loan ProgramsRead the Press Release
ALBANY, NEW YORK – Guaranteed Rate, Inc. has agreed to pay the United States $15.06 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by knowingly violating material program requirements when it originated and underwrote mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA), United States Attorney Grant C. Jaquith announced today. Guaranteed Rate is headquartered in Chicago, Illinois, with branches across the United States, including in upstate New York.
“Lenders participating in mortgage programs backed by taxpayers must follow rules designed to protect both program integrity and homeowners,” said United States Attorney Jaquith. “Today’s settlement holds Guaranteed Rate accountable for its past violations and reflects that it has strengthened its internal controls to ensure future compliance with Federal Housing Administration and Department of Veterans Affairs requirements.”
Participants in FHA insurance and VA guarantee programs, like Guaranteed Rate, have the authority to originate and underwrite mortgage loans without first having the government review the loans for compliance with the agency’s underwriting and origination requirements. If an FHA insured or VA guaranteed loan defaults, the holder of the loan may submit a claim to the United States for certain losses. Lenders are therefore required to follow FHA and VA rules designed to ensure that only mortgages that meet key credit and underwriting criteria are insured or guaranteed by the government.
The settlement announced today resolves allegations that Guaranteed Rate knowingly failed to comply with material program rules that require lenders to maintain quality control programs to prevent and correct underwriting deficiencies, self-report any materially deficient loans that they identify, and ensure that the underwriting process is free from conflicts of interest.
As part of the settlement, Guaranteed Rate admitted that it failed to adhere to the applicable self-reporting requirements, that its FHA underwriters received commissions and gifts in violation of program rules, and that there were instances in which its government underwriters were instructed not to review documents that were relevant to the underwriting decision. Guaranteed Rate further acknowledged that it certified and the government insured and guaranteed loans approved by Guaranteed Rate that were not eligible for FHA mortgage insurance or VA loan guarantees and that HUD and VA would not have insured or guaranteed the loans but for it actions.
While the covered conduct stretched back as far as January 2008, Guaranteed Rate took significant measures to stop the practices, both before and after being notified of the United States’ investigation. It received credit for doing so in connection with the settlement.
“The department works with our partners at HUD and the VA to protect vital federal lending programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will continue to protect American taxpayers and homebuyers by holding accountable FHA and VA lenders that knowingly and materially violate program requirements.”
“This case involved a pattern of serious, systemic and widespread violations under the False Claims Act,” said Rae Oliver Davis, Inspector General, U.S. Department of Housing and Urban Development. “This recovery on behalf of FHA and the American taxpayer should serve as a stark reminder of the potential consequences of not adhering to HUD program rules and to the value of whistleblowers, in pursuing lenders that violate these rules.”
Chris Algieri, Special Agent in Charge, VA Office of Inspector General (OIG), stated: “It is vital that the VA and other federal lending programs are protected and those who violate or circumvent program rules and regulations are held accountable. Today’s civil settlement reinforces VA-OIG’s commitment to enforcing the VA’s requirements for mortgage underwriting and originations to protect taxpayers and veteran homebuyers.”
This investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which allow private persons, known as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case, a former Guaranteed Rate employee, will receive $2,443,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 17-cv-637.
This matter was investigated by the U.S. Attorney’s Office for the Northern District of New York, the Department of Justice’s Civil Division, HUD-OIG, HUD, and VA-OIG. The United States was represented by Assistant U.S. Attorney Adam J. Katz and Department of Justice Trial Attorney Christopher Reimer.
Guaranteed Rate to Pay $15 Million to Resolve Allegations It Knowingly Caused False Claims to Government Mortgage Loan ProgramsRead the Press Release
Guaranteed Rate Inc. has agreed to pay the United States $15.06 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by knowingly violating material program requirements when it originated and underwrote mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA), the Department of Justice announced today. Guaranteed Rate is headquartered in Chicago, Illinois, with branches across the United States.
“The department works with our partners at HUD and the VA to protect vital federal lending programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will continue to protect American taxpayers and homebuyers by holding accountable FHA and VA lenders that knowingly and materially violate program requirements.”
“Lenders participating in mortgage programs backed by taxpayers must follow rules designed to protect both program integrity and homeowners,” said U.S. Attorney Grant C. Jaquith for the Northern District of New York. “Today’s settlement holds Guaranteed Rate accountable for its past violations and reflects that it has strengthened its internal controls to ensure future compliance with Federal Housing Administration and Department of Veterans Affairs requirements.”
Participants in FHA insurance and VA guarantee programs, like Guaranteed Rate, have the authority to originate and underwrite mortgage loans without first having the government review the loans for compliance with the agency’s underwriting and origination requirements. If an FHA insured or VA guaranteed loan defaults, the holder of the loan may submit a claim to the United States for certain losses. Lenders are therefore required to follow FHA and VA rules designed to ensure that only mortgages that meet key credit and underwriting criteria are insured or guaranteed by the government.
The settlement announced today resolves allegations that Guaranteed Rate knowingly failed to comply with material program rules that require lenders to maintain quality control programs to prevent and correct underwriting deficiencies, self-report any materially deficient loans that they identify, and ensure that the underwriting process is free from conflicts of interest.
As part of the settlement, Guaranteed Rate admitted that it failed to adhere to the applicable self-reporting requirements, that its FHA underwriters received commissions and gifts in violation of program rules, and that there were instances in which its government underwriters were instructed not to review documents that were relevant to the underwriting decision. Guaranteed Rate further acknowledged that it certified and the government insured and guaranteed loans approved by Guaranteed Rate that were not eligible for FHA mortgage insurance or VA loan guarantees and that HUD and VA would not have insured or guaranteed the loans but for its actions.
While the covered conduct stretched back as far as January 2008, Guaranteed Rate took significant measures to stop the practices, both before and after being notified of the United States’ investigation. It received credit for doing so in connection with the settlement.
“This case involved a pattern of serious, systemic and widespread violations under the False Claims Act,” said Rae Oliver Davis, Inspector General, U.S. Department of Housing and Urban Development. “This recovery on behalf of FHA and the American taxpayer should serve as a stark reminder of the potential consequences of not adhering to HUD program rules and to the value of whistleblowers, in pursuing lenders that violate these rules.”
“It is vital that the VA and other federal lending programs are protected and those who violate or circumvent program rules and regulations are held accountable,” said Chris Algieri, Special Agent in Charge, VA Office of Inspector General. “Today’s civil settlement reinforces VA OIG’s commitment to enforcing the VA’s requirements for mortgage underwriting and originations to protect taxpayers and veteran homebuyers.”
The agreement resolves allegations brought by former Guaranteed Rate employee Anthonitte Carranza under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The qui tam case is captioned United States ex rel. Anthonitte Carranza v. Guaranteed Rate, Inc., et al., No. 17-cv-637 (N.D.N.Y.). As part of this settlement, Carranza will receive $2,443,000 as her share of the government’s recovery.
The investigation and settlement were the result of a coordinated effort among the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Northern District of New York, HUD-OIG, HUD, and VA-OIG.
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.
Franchisee of Long Island 7-Eleven Store Pleads Guilty to Harboring Illegal AliensRead the Press Release
Earlier today, in federal court in Central Islip, Yong Min Choe pleaded guilty before United States District Judge Joanna Seybert to conspiracy to conceal and harbor illegal aliens by employing undocumented immigrants at his 7-Eleven franchise in Brentwood, New York. When sentenced, Choe faces up to 10 years’ imprisonment as well as a fine of up to twice the value of the gross gain. Additionally, Choe agreed to forfeit more than $1.3 million in assets that represent proceeds of the offense.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and John Grasso, Special Agent-in-Charge, Social Security Administration, Office of the Inspector General (SSA-OIG) announced the guilty plea.
In March 2004, Choe began operating the 7-Eleven store and, as part of the franchise agreement, agreed to abide by state and local labor laws. Between 2004 and November 2019, Choe hired individuals who did not have authorization to work in the United States and allowed those employees to use false social security numbers and other personal identifying information. As a result, Choe was able to pay his employees sub-standard wages and enrich himself.
“The defendant conveniently used his convenience store to harbor and exploit alien employees and steal wages,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, is committed to vigorously enforcing immigration and labor laws that protect our borders as well as the workplace.”
“Over the course of 15 years, Choe knowingly hired individuals who had no legal authorization to work in the U.S., then took advantage of their illegal status by paying them inadequate wages with long hours,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI and its law enforcement partners are committed to protecting our communities from the abuses of corrupt business owners seeking to gain an illegal advantage and make a steep profit off the backs of others.”
“Today’s guilty plea illustrates our commitment to pursuing those who intentionally misuse Social Security numbers to circumvent immigration and employment law,” stated SSA-OIG Special Agent-in-Charge Grasso. “I want to thank the other participating agencies for their efforts in investigating and prosecuting this case, and their partnership in our work to protect the integrity of the Social Security system.”
The government’s case is being handled by the Office’s Public Integrity Section. Special Assistant United States Attorney Virginia Nguyen is in charge of the prosecution together with Assistant United States Attorney Elliot M. Schachner of the Office’s Asset Forfeiture Unit.
The Defendant:
YONG MIN CHOE (also known as “Jason Choe”)
Age: 55
Northport, New YorkE.D.N.Y. Docket No. 20-CR-153 (JS)
Four Meridian Police Officers Indicted for Federal CrimesRead the Press Release
Jackson, Miss. – Four present and former officers of the City of Meridian Police Department have each been charged in separate indictments for theft and embezzlement of federal funds, announced United States Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
The four indictments, dated November 6, 2019, were unsealed today in United States District Court charging Captain James F. Arrington, 62, with two counts of theft and embezzlement amounting to over $22,000 in loss; Sergeant Dareall D. Thompson, 41, with two counts of theft and embezzlement, totaling over $14,000; Officer Tenesia A. Evans, 37, with one count of theft and embezzlement of over $13,000; and former Officer Erica L. Harmon, 51, with one count of theft and embezzlement of more than $5,000.
According to the indictments, between January 2016 and December 2019, each defendant is alleged to have been an employee of the City of Meridian Police Department who embezzled and otherwise converted to his or her own use funds from the City, which was a governmental entity which received federal funding during each specified one year period.
Arrington, Thompson, Evans and Harmon all appeared today for arraignment on their respective indictments before United States Magistrate Judge F. Keith Ball in Jackson, Mississippi. The Court released all four defendants on bond, subject to conditions including that each of them refrain from violations of state or federal law while awaiting trial.
Each of the four defendant police officers faces maximum penalties of 10 years in prison for theft from an agency receiving federal funds. Each count also can merit a fine of up to $250,000.
Trial has been set for James F. Arrington on June 22, 2020, before the Hon. Henry T. Wingate, United States District Judge.
Trial has been set for Dareall D. Thompson on June 8, 2020, before the Hon. David C. Bramlette, Senior United States District Judge.
Trial has been set for Tenesia A. Evans on July 6, 2020, before the Hon. Carlton W. Reeves, United States District Judge.
Trial has been set for Erica L. Harmon on June 22, 2020, before the Hon. Daniel P. Jordan, Chief United States District Judge.
U.S. Attorney Hurst commended the work of the Special Agents with the FBI’s Jackson Division, and the Mississippi State Auditor’s Office, who investigated the case. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Felon is Sentenced for Fraud for More Than $464,000 in Supplemental Nutrition Assistance Program (Snap) Committed While on ProbationRead the Press Release
RALEIGH, N.C. – A Warsaw man was sentenced today to 48 months in prison for SNAP fraud and conspiracy to commit money laundering charges. He was also ordered to pay restitution in the amount of $464,385.60 and to forfeit criminal proceeds and property used in the crimes.
According to court documents, Fernan Sanchez, 52, previously pled guilty to making material false statements in connection with the on-going federal crop insurance fraud investigations in Eastern North Carolina. On April 9, 2010, the Court granted the government’s motion for a departure based on substantial assistance and sentenced Sanchez to 5 years’ probation.
Sanchez’s 2010 felony conviction made him ineligible to participate in SNAP and he was permanently disbarred from the program. Notwithstanding his debarment, Sanchez recruited another person who, at Sanchez’s direction, created a business entity known as Selena’s Mexican Bakery & Store, opened a bank account in the name of Selena’s Mexican Products, and submitted an electronic SNAP vendor application that contained false and misleading information. Based on the application, the co-conspirator received authorization to be a SNAP vendor in August 2013. The co-conspirator opened up a bank account, listing Sanchez on the account.
From August 30, 2013, through September 24, 2017, Selena’s Mexican Bakery & Store received approximately $464,385.60 in SNAP benefits. During that period, Sanchez trafficked SNAP EBT benefits, allowing individuals to exchange benefits for cash or ineligible purchases.
Sanchez and/or another person, through Selena’s Mexican Products, also caused the transfer of $464,385.60 SNAP funds to Selena’s Mexican Products business account at First Bank. Sanchez transferred a portion of the money to an account controlled exclusively by him. He withdrew or otherwise spent the remaining SNAP funds in the Selena’s Mexican Products business account.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge James C. Dever II. Assistant U.S. Attorney Banumathi Rangarajan is prosecuting the case.
The United States Department of Agriculture - Office of Inspector General, Investigations and the Internal Revenue Service - Criminal Investigations conducted the investigation in this matter. Special thanks to the Warsaw Police Department for their assistance in the investigation.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00120-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal criminal complaint charges Evans man with possession of child pornographyRead the Press Release
AUGUSTA, GA: An Evans man was charged in U.S. District Court with possession of child pornography.
Oludare Oluwabusi, 43, of Evans, was taken into custody after FBI agents searched his residence based on a cyber tip from the National Center for Missing and Exploited Children, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
Oluwabusi appeared by video before U.S. District Court Magistrate Judge Brian K. Epps Wednesday in an initial appearance hearing, at which Judge Epps agreed to the prosecutor’s request that Oluwabusi remain in custody pending further court appearances.
“The criminal element thinks the national pause brought on by COVID-19 has limited law enforcement activity. Quite the opposite has occurred in the Southern District of Georgia where law enforcement never sleeps, as the good people in Columbia County witnessed last evening when they saw the vigilance of the FBI on display,” said U.S. Attorney Christine. “The U.S. Attorney’s Office and our federal, state and local law enforcement partners are using the lowered guard of bad guys as a way to get in their flank and disrupt their enterprises all over south Georgia at this very minute.”
“Every time an individual possesses pornographic images of children and views them for personal gratification, the children in those images are victimized again and again,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will always make it a priority to protect our most vulnerable citizens, our children.”
Criminal complaints contain only charges. Defendants are considered innocent unless and until proven guilty.
The FBI is investigating the case, which is being prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Enid Man Sentenced to Twenty Years in Prison for Possessing a Gun While Dealing MethRead the Press Release
OKLAHOMA CITY – Jerry James Kendall Ritchie, 32, of Enid, Oklahoma, has been sentenced to 240 months in prison for possessing methamphetamine with intent to distribute, as well as possessing a firearm in furtherance of a drug-trafficking crime, announced U.S. Attorney Timothy J. Downing.
Ritchie was indicted on November 13, 2018, with three counts—possession of methamphetamine with intent to distribute, possession of a firearm in furtherance of a drug-trafficking crime, and felon in possession of a firearm—all of which stemmed from his October 19, 2018 arrest by Enid Police Department officers. At trial, the government presented evidence that Mr. Ritchie attempted to flee from law enforcement and then refused to comply with police officers when he was finally caught.
During the subsequent search of the vehicle, Enid Police Officers located approximately 13.9 grams of methamphetamine and a hand gun hidden under the hood of the vehicle.
Following a trial last year, on April 11, 2019, the jury found Ritchie guilty on all counts.
Today, U.S. District Judge Scott L. Palk sentenced Ritchie to 180 months in prison on the drug count, which was run concurrent to 120 months on the firearm count, to be followed by 60 additional months on the conviction for possessing a firearm in furtherance of a drug trafficking crime, for a total sentence of 240 months in prison. Judge Palk also imposed three years of supervised release.
This case is the result of an investigation by the Enid Police Department and the U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Assistant U.S. Attorneys Wilson McGarry and Nicholas Patterson prosecuted the case.
This case is part of the work of the Organized Crimes and Drug Enforcement Task Force, the Department of Justice’s signature initiatives to address and reduce drug-related criminal activity.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
El Fiscal Federal de los Estados Unidos advierte sobre las prácticas de los depredadores sexuales relacionadas con COVID-19 y viviendaRead the Press Release
SAN JUAN, P.R. – El Procurador General de los Estados Unidos William P. Barr ordenó a todas las Oficinas de los Fiscales Federales de los Estados Unidos a investigar toda querella de acoso sexual relacionada con vivienda como resultado de la actual pandemia COVID-19, anunció W. Stephen Muldrow, Fiscal Federal de los Estados Unidos para el Distrito de Puerto Rico.
Mientras que Puerto Rico y el resto de los Estados Unidos adoptan medidas drásticas para frenar la propagación de COVID-19, muchos ciudadanos han perdido sus empleos y muchos otros han visto una reducción en sus ingresos. Estas pérdidas han obligado a muchos a buscar reducciones o suspensiones de sus pagos de arrendamiento.
Muchos propietarios han respondido a estas circunstancias comprensivamente y con cuidado, tratando de trabajar con sus inquilinos para ofrecer ayuda durante esta crisis. Sin embargo, se ha reportado que otros propietarios han respondido a las solicitudes de aplazar el pago del alquiler con demandas de favores sexuales y otros actos de conducta sexual no deseada. Tal comportamiento es despreciable y es ilegal.
Desafortunadamente, la mayoría de las víctimas que experimentan este tipo de abuso nunca lo denuncian. Temen que las represalias pongan en peligro su capacidad de proporcionar refugio para ellos y sus familias.
El Fiscal Federal Muldrow declaró: "Las prácticas de los depredadores relacionadas con la COVID-19 son particularmente inquietantes ya que estos propietarios se aprovechan de nuestra crisis nacional actual al hostigar sexualmente a las personas que necesitan vivienda. La Fiscalía Federal no dudará en intervenir cuando ocurra una conducta tan despreciable. Este comportamiento no se tolera en tiempos normales, y ciertamente no se tolerará ahora".
Para denunciar el acoso sexual en la vivienda, comuníquese con el Departamento de Justicia al (800) 896-7743 o [email protected]. Para más información: https://www.justice.gov/crt/sexual-harassment-housing-initiative o en español: https://www.justice.gov/crt-espanol/iniciativa-en-contra-del-acoso-sexual-en-la-vivienda.
Dominican National Sentenced for Fentanyl DistributionRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence pleaded guilty and was sentenced yesterday for distributing fentanyl.
Erick Alberto Paulino Amador, 28, pleaded guilty to two counts of distribution of and possession with intent to distribute fentanyl during a videoconference hearing before U.S. District Judge Richard G. Stearns. Judge Stearns then sentenced Paulino Amador to one year and one day in prison. Paulino Amador will face deportation proceedings upon completion of his sentence.
On two occasions in July 2019, Paulino Amador sold fentanyl to an undercover agent. Law enforcement officers arrested Paulino Amador in Lawrence on July 25, 2019, and he has been in custody since. A federal grand jury indicted Paulino Amador in August 2019.
This case is part of a coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Assistance was provided by the Massachusetts State Police and the Andover Police Department. Assistant U.S. Attorney Charles B. Weinograd prosecuted the case.
Court Orders Halt to Sale of Silver Product Fraudulently Touted as COVID-19 CureRead the Press Release
A federal court in Utah has entered an injunction halting the sale of a fraudulent coronavirus (COVID-19) treatment, the Department of Justice announced today.
In response to a civil complaint and accompanying court papers filed on April 27, 2020, in Salt Lake City, the U.S. District Court for the District of Utah issued a temporary restraining order against defendants Gordon Pedersen of Cedar Hills, Utah, and his companies, My Doctor Suggests LLC and GP Silver LLC. The civil complaint alleges that the defendants are fraudulently promoting and selling various silver products for the treatment and prevention of COVID-19. The court’s order temporarily enjoins the defendants from continuing to sell or distribute their silver products for the diagnosis, cure, mitigation, treatment, or prevention of any disease, including COVID-19. A separate court order temporarily freezes defendants’ assets in order to preserve the court’s ability to grant effective final relief and to maintain the status quo. A hearing on the government’s request for a preliminary injunction is set for May 12, 2020.
“The Department of Justice will take swift action to protect consumers from those who would recklessly exploit this public health crisis by offering phony cure-alls for the treatment and prevention of COVID-19,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We work closely with our partners at the Food and Drug Administration and will move quickly to shut down schemes that promote and sell unlawful products during this pandemic.”
“Even in a time of great uncertainty, there are at least two unchanging realities. There are those who would unlawfully exploit our vulnerabilities, and there are those who will hold such parties accountable,” said U.S. Attorney John W. Huber for the District of Utah. “COVID-19 is a dangerous disease, and American consumers must have accurate and reliable information as they make important health decisions.”
The complaint alleges that, beginning in early 2020, the defendants conducted a scheme to defraud consumers throughout the United States, promoting and selling silver products based on fraudulent claims of protection against, and treatment for, COVID-19. According to the complaint, the defendants have made a wide variety of false and misleading claims touting silver products as a preventative for COVID-19, including that having silver in the bloodstream will “usher” any coronavirus out of the body and that “it has been proven that Alkaline Structured Silver will destroy all forms of viruses, it will protect people from the Coronavirus.” Additionally, the defendants assert that once in the blood stream, silver nanoparticles can block the virus from attaching to their cells, and thus “prevent[] the disease totally and completely.”
“The FDA will continue to help ensure those who place profits above the public health during the COVID-19 pandemic are stopped,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, U.S. Food and Drug Administration. “We are fully committed to working with the Department of Justice to take appropriate action against those jeopardizing the health of Americans by offering and distributing products with unproven claims to prevent or treat COVID-19.”
The enforcement action filed today is being prosecuted by Trial Attorneys Speare I. Hodges and Sarah Williams of the Department of Justice, Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joel A. Ferre of the U.S. Attorney’s Office for the District of Utah, with support from FDA’s Office of Criminal Investigations and Office of the Chief Counsel.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a permanent injunction against the defendants.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Utah, visit its website at https://www.justice.gov/usao-ut. For information about the Department of Justice’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and WHO websites.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].