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Friday 7 February 2020
Former President of National Children's Blanket Charity Indicted for Allegedly Stealing More Than $400,000 from the OrganizationRead the Press Release
PEORIA, Ill. – The former national president of the not-for-profit organization Project Linus, Carol Babbitt, has been indicted on charges that she allegedly took more than $400,000 from the charity, when it was based in McLean County, Ill. The grand jury indicted Babbitt, 60, currently of Asheville, N.C. on Jan. 22, 2020, and the indictment remained sealed until Babbitt was arrested on Feb. 6, in Asheville.
Babbitt made her initial appearance in federal court in North Carolina this morning, Feb. 7, and was released from custody. The U.S. Clerk of the Court has set Feb. 13, 2020, for Babbitt to appear for arraignment in federal court in Peoria.
According to the indictment, in 1998, Babbitt began her involvement as a chapter coordinator with Project Linus, a not-for-profit organization that provides handmade blankets for children who are seriously ill, traumatized, and otherwise in need. Babbitt served as national president of the organization from 2000 to 2016. During that time, Babbitt lived in McLean County and the organization was also headquartered there.
The indictment alleges that beginning in 2010 and continuing to 2016, Babbitt defrauded the Project Linus organization, its volunteers and contributors, and the state of Illinois of approximately $400,000. As president, Babbitt controlled the organization’s operations, including its bank accounts. Babbitt allegedly used Project Linus credit cards to pay for personal expenses, including clothing, electronics, pet grooming, furniture, tickets for sporting events, and personal travel. Babbitt allegedly used funds from the organization’s operating account to make credit card payments, and falsely classified the personal expenditure in the business ledger to hide her personal use of the funds.
At various times, Babbitt allegedly represented that Project Linus was in extremely poor financial condition, and that because of the poor financial condition, others could not be reimbursed for their expenses. Because of the poor financial situation, Babbitt falsely represented to the board that she would take a pay cut or not take a salary at all. When questioned by the board of directors, Babbitt falsely stated that she was repaying Project Linus for her credit card purchases through payroll deductions. Babbitt did not disclose that she made the payments after taking more money than her salary from the organization, resulting in the organization repaying itself.
The indictment also alleges that Babbitt filed false and fraudulent personal tax returns with the state of Illinois in which she failed to report the funds she allegedly stole from Project Linus.
The charges are the result of investigation by the Internal Revenue Service, Criminal Investigation Division; the U.S. Postal Inspection Service; the Illinois Department of Revenue; and the Bloomington Police Department. Supervisory Assistant U.S. Attorney Darilynn J. Knauss is representing the government in the case prosecution.
If convicted, the statutory penalty for mail fraud, wire fraud, and money laundering is a maximum 20 years in prison and fines of up to $500,000. The defendant may also be ordered to pay restitution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former CEO of PIMCO Sentenced in College Admissions CaseRead the Press Release
BOSTON – The former chief executive officer of PIMCO, one of the world’s largest asset companies, was sentenced to nine months in prison today for paying bribes totaling $850,000 to secure his children’s admission to the University of Southern California (USC) and Georgetown University (Georgetown).
Douglas Hodge, 61, of Laguna Beach, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to nine months in prison, two years of supervised release and 500 hours of community service. Judge Gorton also ordered Hodge to pay a fine of $750,000. The government recommended a sentence of 24 months in prison.
In October 2019, Hodge pleaded guilty to one count of conspiracy to commit mail and wire fraud and honest services mail and wire fraud and one count of conspiracy to commit money laundering.
Hodge conspired with William “Rick” Singer and others to pay bribes totaling $850,000 to secure the admission of two of his children to USC and two of his children to Georgetown over a period of nearly 11 years. He also sought unsuccessfully to use bribes to secure the admission of a fifth child to Loyola Marymount University (LMU).
Beginning in fall 2008, Hodge agreed to pay Georgetown tennis coach Gordon Ernst to purport to recruit his daughter as a tennis player, thereby facilitating her admission to the university. In turn, Hodge paid Ernst $150,000. From 2010 to 2011, Hodge repeated the fraud for his son, who also did not play competitive tennis. After his son was admitted to Georgetown, Hodge paid Ernst $175,000.
Beginning in 2012, Hodge agreed to pay a total of $525,000 to facilitate another daughter’s admission to USC as a purported soccer recruit and another son’s admission to USC as a purported football recruit.
In 2018, Hodge returned to Singer to facilitate a third son’s admission to LMU. In December 2018, however, an LMU coach told Singer that Hodge’s son would be denied admission to the university based on his academic qualifications.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Asbestos Contractor Charged with Theft of Federal Program FundsRead the Press Release
NEW ORLEANS, LOUISIANA – MARC A. VICTORIANO (VICTORIANO), age 46, of Covington, Louisiana, was charged in federal court in a one-count Indictment for theft from a program receiving federal funds.
According to the Indictment, from January 2015 and continuing through 2017, VICTORIANO and his company, Professional Safety Consultants, LLC, ("PSC") provided asbestos inspections for the Terrebonne Parish School Board ("TPSB") as mandated by the Asbestos Hazard Emergency Response Act ("AHERA"). Under AHERA, each school or facility must maintain an Asbestos Operation & Maintenance Plan addressing all areas confirmed or suspected to contain asbestos. VICTORIANO submitted 56 invoices to TPSB with fraudulent asbestos laboratory reports including false air monitoring and false asbestos testing reports. VICTORIANO also submitted nine invoices to TPSB for AHERA reports with forged signatures and accreditation information. As a result, TPSB paid VICTORIANO approximately $212,618.26 to which he was not entitled, in violation of Title 18, United States Code, Section 666(a)(1)(A).
“The Asbestos Hazard Emergency Response Act (AHERA) is designed to protect our schools from hazardous air pollutants”, said Special Agent in Charge Christopher Brooks of EPA’s Criminal Investigation Division in Louisiana. “Today’s indictment demonstrates that individuals who intentionally violate federal laws will be held responsible for their crimes.”
VICTORIANO faces a maximum term of imprisonment of not more than ten years, a fine of $250,000.00, and a mandatory special assessment of $100.00. Additionally, VICTORIANO is subject to a period of supervised release after imprisonment of up to three years. U.S. Attorney Peter G. Strasser reiterated that the indictment is merely a charge and that the guilty of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Environmental Protection Agency, Criminal Investigation Division; the Louisiana State Police; Louisiana Department of Environmental Quality, Criminal Investigation Section and the Louisiana Environmental Crimes Task Force, in investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
Forestville Man Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Harvey, 56, of Forestville, NY, who was convicted of possession of child pornography, was sentenced to serve 96 months in prison and 25 years supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Jonathan P. Cantil, who handled the case, stated that on May 16, 2016, the defendant possessed 37 videos and 51 images of child pornography. Some of the images included prepubescent minors, and depictions of violence.
In addition, between January 16 and May 14, 2016, the defendant exchanged text messages with another man in which they discussed child pornography. During those text exchanges, Harvey distributed and received images of child pornography.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Fentanyl Dealer Sentenced to Federal PrisonRead the Press Release
PROVIDENCE – A federal court judge today sentenced a Providence man found by the FBI’s Safe Streets Violent Gang Task Force to be in possession of more than 100 grams of fentanyl to five years in federal prison.
John Switzer, 28, was among a group of individuals targeted in a long-term drug trafficking investigation by the FBI Safe Streets Violent Gang Task Force. On May 1, 2019, while being surveilled by members of the task force, Switzer was seen leaving his residence and traveling as a passenger in a vehicle to a nearby supermarket parking lot. About five minutes after his arrival, a second vehicle arrived. Switzer met briefly with the driver. Both vehicles then left the area and were followed by task force officers and agents.
The vehicle driven by the person who met with Switzer was stopped. The driver admitted to purchasing 30mg Percocet pills from Switzer, which lab tests showed to contain a mixture including fentanyl.
The vehicle Switzer was riding in was followed as he returned to his residence. A short time later, he and the same person who was driving the car earlier left the building together and began to drive away. The vehicle was stopped by law enforcement. From inside the vehicle, law enforcement seized two packages containing a total of approximately 116 grams of fentanyl and a package containing 10 blue pills similar to the pills seized earlier in the evening. The pills later tested positive for a mixture containing fentanyl.
Later that evening members of the Safe Streets Task Force executed a court-authorized search warrant at Switzer’s residence and seized about 1,500 suspected fentanyl pills, 18 ounces of marijuana, and $1,800 in cash.
Switzer pled guilty on September 21, 2019, to possession with intent to distribute 40 grams or more of fentanyl.
At sentencing today, U.S. District Court Chief Judge John J. McConnell, Jr., sentenced Switzer to 60 months incarceration to be followed by four years’ supervised release, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
The case was prosecuted by Assistant United States Attorney Gerard B. Sullivan.
The FBI’s Safe Streets Violent Gang Task Force consists of agents and law enforcement officers from the FBI, RI State Police, Providence, Cranston, Woonsocket, Pawtucket, and Central Falls Police Departments, R.I. Department of Corrections, and the Rhode Island National Guard.
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Federal Jury Convicts West Tennessee Man for Possession of over 1 Pound of Pure MethamphetamineWith Intent to DistributeRead the Press Release
Memphis, TN – On February 6, 2020, after a three-day trial, a federal jury convicted Zachary Fuchs, 37, of possession with intent to distribute 50 grams or more of methamphetamine. U.S. Attorney D. Michael Dunavant announced the guilty verdict today.
According to information presented in court, on June 6, 2018, Fuchs was traveling eastbound on Highway 70 in Gallaway, Tennessee, a small town located in Fayette County. He passed a Gallaway police officer, who noticed that his vehicle had no license plate. The officer initiated a traffic stop and observed the driver of the vehicle moving around and rocking the vehicle back and forth. As the officer approached the vehicle, the driver became very agitated and confrontational. He was identified as Zachary Fuchs.
The officer and his supervisor who arrived on the scene searched the vehicle. They located a small bag with methamphetamine residue under the driver's seat and recovered 1.1 pounds (475 grams) of methamphetamine underneath the radio.
The defendant was arrested and the drugs were sent to the DEA laboratory to be tested. Lab analysis confirmed the drugs were 475 grams of 99% pure methamphetamine. At trial, it was determined that the amount of methamphetamine was valued between $5,500 and $6,500 and contained thousands of dosage units.
Sentencing is scheduled for May 15, 2020 before U.S. District Court Judge Mark S. Norris. Fuchs faces a mandatory minimum sentence of 10 years and up to life imprisonment.
U.S. Attorney D. Michael Dunavant said, "Methamphetamine that is trafficked in and through West Tennessee is increasing in dangerous purity, and continues to destroy individuals, families, and communities. Drug dealers who profit from the pain, addiction,
violence and death caused by these dangerous substances must be held accountable, and this guilty verdict does just that."
This case was investigated by the Gallaway Police Department and the Drug Enforcement Administration.
Special Assistant United States Attorneys Joseph Griffith and Sean Hord are prosecuting this case on behalf of the Government.
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Federal Jury Convicts KCK Man on Drug and Firearms ChargesRead the Press Release
KANSAS CITY, KAN. – A federal jury today convicted a man from Kansas City, Kan., on drug and firearm charges, U.S. Attorney Stephen McAllister said.
Larry D. Johnson, 33, Kansas City, Kan., was convicted on one count of possession with intent to distribute crack cocaine, one count of possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm by a felon.
The crimes were alleged to have occurred May 15, 2017, in Wyandotte County, Kan.
Sentencing is set for May 7. The defendant could face a penalty of up to 20 years in federal prison and a fine up to $1 million on the drug charge, not less than five years and a fine up to $250,000 on the charge of using a firearm in furtherance of drug trafficking, and up to 10 years and a fine up to $250,000 on the other firearm charge. McAllister commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, Assistant U.S. Attorney Tris Hunt , Special Assistant U.S. Attorney Michelle McFarlane and Assistant U.S. Attorney Leon Patton for their work on the case.
Federal Charges Filed in Newton Armed RobberyRead the Press Release
WICHITA, KAN. – Federal charges were filed today against three Wichita men in connection with an armed robbery at a convenience store in Newton, U.S. Attorney Stephen McAllister said.
Jeremiah Urias, 18, Wichita, Kan.; Rico Montes, 27, Wichita, Kan.; and Jorge Correa, 25, Wichita, Kan. were charged with committing a robbery Feb. 4 at EZ Trip, 100 S. Main in Newton, Kan. A criminal complaint filed in the case alleges two robbers entered the store before 6 a.m. One of the robbers in a red hoodie pointed a handgun at a clerk and demanded money, which the clerk gave him. Then a second robber carrying a military style rifle demanded more money. While waiting for the money, the second robber walked around the store firing shots into the ceiling and into an ATM.
Investigators used surveillance footage to identify a license tag number of the getaway vehicle. After a high speed pursuit, the Kansas Highway Patrol arrested the three defendants. Urias was driving. Montes was wearing a red hoodie and sitting in the front passenger seat. Correa was sitting in the back seat with a rifle.
If convicted, the defendants could face up to 20 years in federal prison and a fine up to $250,000. The FBI, the Kansas Highway Patrol and the Newton Police Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Engineering Firm Owner Sentenced for Bribing Washington Township OfficialsRead the Press Release
An owner of an engineering firm, Fazlullah Khan , 58, of Troy, was sentenced yesterday to 132 months as a result of having been convicted by a jury on four counts of bribery, United States Attorney Matthew Schneider announced.
Schneider was joined in the announcement by Steven D’Antuono, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Khan was convicted in July, 2019 after a five day trial that was conducted before United States District Judge Robert H. Cleland in Port Huron, Michigan. The jury deliberated approximately an hour and a half before returning their guilty verdicts.
According to evidence presented at trial, in 2014, Khan bribed one public official of Washington Township with $10,000 in cash in return for a million dollar per year engineering contract, and another public official there with a secret financial interest in a property development deal worth hundreds of thousands of dollars for his assistance with the contract and efforts to get water and sewer lines to Khan’s property. Unbeknownst to Khan, both township officials that he was trying to bribe were working with the FBI.
“Our office is continuing our battle against bribery and corruption every day and this sentence will hopefully serve as a deterrent to others who seek to engage in a pay-to-play scheme,” United States Attorney Matthew Schneider stated.
The sentence in this case should serve as a deterrent to anyone who tries to entice a public official to behave against the public’s interest through offering bribes,” said Special Agent in Charge D’Antuono. “Corruption in any form degrades the integrity of our democracy and will not be tolerated. Our justice system relies upon citizens to report this type of criminal activity and I would encourage anyone who has information about public corruption to contact the FBI."
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys R. Michael Bullotta and Steven Cares.
The conviction of Khan brings to 22 the number of individuals convicted in this corruption investigation.
District Man Pleads Guilty to Second Degree Murder While Armed for 2018 Homicide Near Union StationRead the Press Release
WASHINGTON – MacArthur Venable, 34 of Washington, D.C. pled guilty to one count second degree murder while armed for killing one man by shooting at him multiple times in Northeast Washington. The incident occurred on October 31, 2018 when the defendant got into an argument with the decedent at the Unit block of Massachusetts Avenue, NE near the intersection of North Capitol Street, NW, U.S. Attorney Timothy Shea announced.
Venable pled guilty on February 6, 2020, in the Superior Court of the District of Columbia. The plea calls for a sentence of between fifteen to eighteen years in prison for killing the decedent. He will be sentenced on July 21, 2020, by the Honorable Anita Josey-Herring.
The incident occurred on October 31, 2018 at approximately 9:52 p.m. The defendant was walking down Massachusetts Avenue with another individual when he came upon the decedent, Mr. James Ferrell. The defendant then began to speak to Mr. Ferrell and an argument ensued. The argument between Mr. Ferrell and the defendant escalated and the defendant then walked up to the individual who he was walking with, reached into his waistband, and pulled out a firearm. The defendant then pointed the firearm at Mr. Ferrell and discharged the firearm four times. Mr. Ferrell was struck in his chest twice and subsequently ran across the street and collapsed in front of the Postal Museum. A witness called 911 and police and paramedics arrived at the scene. The decedent was transported to the Medstar Unit of the Washington Hospital Center. All life saving measures were unsuccessful and Mr. Ferrell was pronounced dead a short time later.
In announcing the plea, U.S. Attorney Shea commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department and also the U.S. Capitol Police. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Lashone Samuels; Victim Witness Specialist Marcia Rinker and Investigative analyst Zachary McMenamin.
Finally, U.S. Attorney Shea commended the work of Assistant U.S. Attorney Shehzad Akhtar who investigated and prosecuted the matter.
Detroit Area Retail Vendor Sentenced to 24 Months for Food Stamp FraudRead the Press Release
A Detroit-area retail vendor will spend 24 months in prison for defrauding the federal Supplemental Nutrition Assistance Program, also known as the food stamp program, U.S. Attorney Matthew Schneider announced today.
Joining Schneider in the announcement was Anthony V. Mohatt, Special Agent-in-Charge of the U.S. Department of Agriculture Office of the Inspector General (USDA-OIG) Chicago Regional Office.
Ali Youssef Aoun, 52, was sentenced on February 7, 2020, by U.S District Court Judge Robert H. Cleland after pleading guilty to three counts of defrauding the SNAP program.
Aoun, who has owned or operated convenience stores in Detroit for at least 18 years, took advantage of vulnerable SNAP recipients by exchanging benefits for cash, while only paying fifty cents on the dollar. He would disguise the benefits as income into his stores or use them to purchase items for himself. Trading SNAP benefits for cash is a violation of federal law. Over four years, Aoun fraudulently obtained approximately $341,360.41 from the federal SNAP program. In addition to the term of imprisonment, the Court the entered a forfeiture money judgment in the amount of $341,360.41.
In delivering the sentence, the Court stated Mr. Aoun’s crimes were “utterly unacceptable” and that the verdict should “stand as a beacon to others in a similar situation.”
United States Attorney Schneider said of the verdict, “Defendant Aoun committed his fraud on the backs of people who truly need the SNAP program to put food on the dinner table and make ends meet. His crime was motivated solely by greed and today’s sentence should send a message to all SNAP vendors that our office takes fraud seriously and will prosecute offenders to the full extent of the law.”
USDA Special Agent-in-Charge Anthony V. Mohatt said, "The Supplemental Nutrition Assistance Program helps put healthy food on the table of 1.3 million Michigan residents each month. The criminal activities of the store owner targeted during this investigation deprived needy citizens of the Detroit area access to nutritious meals. The USDA Office of Inspector General will continue to target those who prey on federal food assistance programs, and their recipients."
The case was investigated by agents of the U.S. Department of Agriculture, Office of Inspector General, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit. Assistant United States Attorneys Tim Wyse and Shankar Ramamurthy prosecuted the case.
Collin County Man Sentenced to 35 Years for Child Pornography ViolationsRead the Press Release
SHERMAN, Texas – A 41-year-old Allen, Texas man has been sentenced for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew J. DeSarno today.
Richard Denver Belden pleaded guilty on June 20, 2019 to receipt and possession of child pornography and was sentenced to 420 months in federal prison by U.S. District Judge Amos Mazzant on Feb. 6, 2020.
According to information presented in court, in May 2018, a detective with the Plano Police Department was conducting an undercover investigation into Internet programs know for trading child pornography and located a user, later identified as Belden, who was making a large quantity of child pornography available for download. Over the course of two days, the detective downloaded over 4,000 images and videos of child pornography from Belden.
Members of the Collin County Sheriff's Office obtained a search warrant for Belden's apartment, in Allen, Texas and on May 15, 2018, the Sheriff's Office and Plano Police Department executed the search warrant. Upon entering the residence, they discovered Belden actively downloading and distributing child pornography on a laptop computer. In addition to the laptop, Belden owned a tower containing 15 hard drives, totaling 57 TB of storage. The Plano Police Department and FBI child exploitation task force spent months forensically analyzing Belden's digital media. Officers located thousands of images and videos of child pornography, including depictions of children as young as toddlers and depictions of sadistic or masochistic abuse. Belden was indicted by a federal grand jury in June 2018.
During the sentencing hearing, a Plano Police Department Detective testified about the undercover investigation, the forensic review of Belden's devices, and the content of those devices. Belden's sentencing guidelines included a term of imprisonment of 210 to 262 months. The government requested that the Judge vary upward and impose a sentence of 420 months. Based on Belden's history and characteristics and the nature and circumstances of his offense, Judge Mazzant granted the government's motion and sentenced Belden to a total term of 420 months (35 years) imprisonment, to be followed by 20 years of supervised release.
“These type of cases show the real depravity of parts of our society,” said U.S. Attorney Joseph D. Brown. “We are fortunate that law enforcement is out there looking for these people.”
“Today’s result is the product of the outstanding collaboration between the FBI and its local partners,” said FBI Special Agent in Charge Matthew J. DeSarno. “The FBI, through the North Texas Child Exploitation and Human Trafficking Task Force, will continue to work tirelessly to keep our kids safe. This lengthy sentence will hopefully serve as a warning for all those who would seek to prey on the most vulnerable among us.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the North Texas Child Exploitation and Human Trafficking Task Force, which is made up of FBI agents and officers from the Dallas, Plano and Grand Prairie Police Departments and Collin County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Marisa Miller.
Cambridge Man Arrested on Gun and Cocaine Trafficking ChargesRead the Press Release
BOSTON – A Cambridge man was arrested today and charged in federal court in Boston with firearms trafficking related to six separate sales. In addition, the defendant is also charged with the sale of crack cocaine.
Ezequiel Netzahualt, 25, was charged with one count of dealing firearms without a license and one count of selling cocaine base, commonly known as crack cocaine. Following an initial appearance in federal court in Boston, Netzahualt was detained pending a detention hearing set for Feb. 13, 2020.
According to the indictment, Netzahualt sold 11 firearms in Cambridge during six separate transactions between October 2019 and January 2020. It is also alleged that Netzahualt sold crack cocaine on Nov. 20, 2019.
Each charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a $250,000 fine. The charge of distribution of a controlled substance provides for a sentence of up to 20 years in prison, up to a lifetime of supervised release and a $1 million fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boson Field Office; and Cambridge Police Commissioner Branville G. Bard, Jr. made the announcement. Assistant U.S. Attorney Evan Gotlob of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Burlington Man Sentenced to Prison for Receiving and Distributing Child PornographyRead the Press Release
DAVENPORT, Iowa – On February 4, 2020, United States District Court Judge Stephanie M. Rose sentenced Jeffrey Scott Walter, age 57, of Burlington, to 104 months in prison for receiving and distributing child pornography, announced United States Attorney Marc Krickbaum. Walter was ordered to serve five years of supervised release following his imprisonment, pay $100 to the Crime Victims’ Fund, and comply with the sex offender registry requirements upon release.
On September 24, 2019, Walter pleaded guilty. The investigation began between September 2016 and February 2018, when a Homeland Security Investigations agent identified an IP address advertising child pornography files. On March 5, 2018, a search warrant was executed at Walters’ residence, which was tied to the IP address. A forensic examination of the electronic devices seized revealed multiple images and videos containing child pornography. Walter admitted that he did receive, distribute, and possess child pornography.
This matter was investigated by the United States Immigration and Customs Enforcement (ICE), and National Center for Missing and Exploited Children (NCMEC). This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.Buffalo Man Fails to Stop for Inspection, Speeds Through Lewiston Border CrossingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Raison Holt, 25, of Buffalo, NY, with high speed flight from border checkpoint, and failure to present vehicle for inspection. The charges carry a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the indictment, on January 20, 2020, the defendant intentionally fled the checkpoint at the Lewiston Queenston Bridge, in Lewiston, NY, in excess of the legal speed limit. In doing so, Holt failed to report the arrival and present said vehicle, and any person and merchandise on board, for inspection to a Customs and Border Protection officer. CBP Officers subsequently pursued Holt and apprehended him.
The defendant will be arraigned at a later date.
The indictment is the result of an investigation by Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Bossier City Man Involved in Hit-and-Run Pleads Guilty to Federal Firearm ChargeRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Laterreon Daron Morrison, 23, of Bossier City, Louisiana, pleaded guilty on February 4, 2020, before U.S. District Judge Elizabeth E. Foote, to possession of a firearm by a convicted felon.
According to court documents, Morrison was involved in a hit-and-run accident at the intersection of Hearne Avenue and Hilry Huckaby Avenue in Shreveport on May 1, 2018. Officers responded to the area, fell in behind Morrison’s vehicle and activated the patrol car’s emergency lights and sirens. Morrison stopped in the middle of the lane, exited the vehicle, and attempted to flee on foot when officers tried to conduct a pat down. Morrison was apprehended by law enforcement shortly thereafter and was taken into custody. Officers recovered a Zastava 7.62X39mm caliber pistol from Morrison’s vehicle.
Morrison was a convicted felon at the time of this incident, having previously been convicted of aggravated battery in Bossier Parish in 2014. Felons are prohibited under federal law from possessing firearms or ammunition.
Laterreon Morrison will be sentenced by Judge Foote on June 12, 2020, and faces up to 10 years in prison, three years of supervised release and a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov.
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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.
Armed Career Criminal Sentenced to 180 Months in Prison for Illegal Possession of A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of MICHAEL MATTHEWS, 58, to 180 months in prison for illegally possessing a firearm. MATTHEWS, who was charged on January 4, 2019, was sentenced yesterday before Judge Eric C. Tostrud in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, on January 3, 2019, officers from the Hennepin County Sheriff’s Office Violent Offender Task Force (“VOTF”) observed MATTHEWS place an object into the trunk of a Cadillac sedan that was parked in front of his residence before getting into the vehicle and driving away. Officers conducted a traffic stop and recovered 7.6 grams of cocaine from his person and a loaded Glock, model 26, 9 mm handgun from the trunk. Because he has prior felony convictions in Hennepin County, MATTHEWS is prohibited under federal law from possessing firearms at any time.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hennepin County Sheriff’s Office Violent Offender Task Force. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat 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.
Assistant U.S. Attorneys Samantha H. Bates and Amber M. Brennan prosecuted the case.
Defendant Information:
MICHAEL MATTHEWS, 58
Minneapolis, Minn.
Convicted:
- Felon in possession of a firearm - armed career criminal, 1 count
Sentenced:
- 180 months in prison
- Five years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Alton Woman Pleads Guilty to Cashing Dead Mother's Social Security ChecksRead the Press Release
East St. Louis, Ill.— Mia Lynn Cousett, 33, of Alton, Illinois, pled guilty this morning to 12
felony counts, each charging her with theft of government funds. The stolen funds were social
security checks payable to Cousett’s mother, who died in April 2017.In court, Cousett admitted that for 12 months after her mother passed away, she continued to cash
her mother’s social security checks and used the funds for her own expenses. Cousett forged her
dead mother’s signature on the backs of each check, deposited the checks into her mother’s bank
account, and then accessed the money using her mother’s debit card. In total, Cousett stole
$15,601. Cousett also admitted that she used her dead mother’s driver’s license number to conceal
and perpetuate her crimes.Sentencing is set for May 20, 2020, at 1:30 p.m. at the federal courthouse in East St. Louis. Each
of the charges carries a maximum sentence of ten years in prison and a fine of up to $250,000, in
addition to restitution. As part of her plea agreement, Cousett agreed to voluntarily resign from
her position as a letter carrier for the post office in Alton before her sentencing hearing.The investigation was conducted by agents from the Social Security Administration, Office of the
Inspector General, Chicago Field Division, the United States Postal Inspection Service, Chicago
Division, St. Louis Field Office, and the Alton Police Department. The case is being
prosecuted by Assistant United States Attorneys Scott A. Verseman and Luke J. Weissler.
Alien Indicted on Illegal Reentry ChargeRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging MARCOS ALEJANDRO CASTILLO-MUNOZ, age 44, of El Salvador, with Illegal Reentry.
Therefore, if convicted, CASTILLO-MUNOZ previously deported and found in Wake County, would face a maximum imprisonment term of two years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the cases.
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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.
7 Defendants Sentenced to over 96 Years Combined for Drug TraffickingRead the Press Release
Fort Smith, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas announced that seven (7) individuals were sentenced by the United States District Court for Conspiracy to Distribute Methamphetamine. The Honorable Judge P.K. Holmes, III presided over the sentencing hearings in the United States District Court in Fort Smith.
According to court records the drug trafficking organization headed up by Cory Phillips operated primarily in Crawford and Sebastian Counties as well as Eastern Oklahoma. During 2018, the organization distributed approximately 900 pounds of methamphetamine.
Defendants in this conspiracy received the following sentences:
Megan Casey, age 28, of Fort Smith, Arkansas was sentenced February 4, 2020, to 37 months in federal prison followed by three years of supervised release. Casey was indicted in May of 2019 and entered a guilty plea in August of 2019.
Russell Alvin Hofer, age 36, of Van Buren, Arkansas was sentenced January 13, 2020, to 135 months in federal prison followed by three years of supervised release. In April of 2019, Hofer waived his right to prosecution by federal indictment and consented to prosecution by information.
Ryan Thomas Miller, age 38, of Pocola, Oklahoma was sentenced February 4, 2020, to 240 months in federal prison followed by five years of supervised release. Miller was indicted in May of 2019 and plead guilty in July of 2019.
Christopher Franklin Murphy, age 23, of Van Buren, Arkansas was sentenced February 6, 2020, to 151 months in federal prison followed by four years of supervised release. Murphy was indicted in May of 2019 and plead guilty in August of 2019.
Jarrod Michael Osborn, age 29, of Fort Smith, Arkansas was sentenced February 3, 2020, to 140 months in federal prison followed by five years of supervised release. Osborn was indicted in December of 2018 and entered a guilty plea in April of 2019.
Cory Jeremiah Phillips, age 36, of Uniontown, Arkansas was sentenced January 15, 2020, to 300 months in federal prison followed by five years of supervised release. Phillips was indicted was indicted in May of 2019 and plead guilty in August of 2019.
Quan David Phung, age 40, of Van Buren, Arkansas was sentenced February 6, 2020, to 151 months in federal prison followed by three years of supervised release. Phung was indicted in May of 2019 and entered a guilty plea in August of 2019.
This case was investigated by the Drug Enforcement Administration, Bureau of Alcohol Tobacco, Firearms and Explosives, Fort Smith Police Department, Van Buren Police Department, Greenwood Police Department, Crawford County Sheriff’s Office, Sebastian County Sheriff’s Office and the 12/21st Drug Task Force. Assistant United States Attorney Candace Taylor prosecuted the case for the Western District of Arkansas.
27 Individuals Charged or Arrested as Part of Joint Law Enforcement EffortRead the Press Release
On February 7, 2020, United States Attorney Christina E. Nolan announced the results of a multi-agency, multi-jurisdictional law enforcement effort that focused on drug trafficking in Rutland, Vermont and the surrounding area. During the months-long operation conducted by federal, state, local, and county officers, and federal and state prosecutors, law enforcement arrested or charged 27 individuals, searched 4 residences, and seized 14 firearms (including two AR-style rifles), approximately 148 grams of fentanyl and heroin, approximately 260 grams of cocaine base, approximately 50 grams of cocaine, and $35,560 of suspected drug proceeds.
Those charged in federal court include:
- Wilnelia Martinez-Machuca, 42, of Springfield, Massachusetts, for possession with intent to distribute cocaine base.
- Joel Cruz, 27, of Union City, New Jersey, for possession with intent to distribute 28 grams or more of cocaine base.
- Shaqueille Jones, 25, of Jersey City, New Jersey, for possession with intent to distribute 28 grams or more of cocaine base.
- David Hodges, 42, of Rutland, Vermont, for possession of a firearm after having been previously convicted of a misdemeanor crime of domestic violence, and distribution of cocaine.
- Maynard Davis, 43, of Rutland, Vermont, for distribution of cocaine base.
- Rodney Carroll, 40, of Philadelphia, Pennsylvania, for distribution of cocaine base.
- Tyberius Mitchell, 30, of Rutland, Vermont, for distribution of cocaine base.
- Cheryl Barber, 34, of Rutland,Vermont, for distribution of heroin.
- Todd Popovitch, 38, of Rutland, Vermont, for distribution of fentanyl, possession of a firearm as an unlawful user of controlled substances, and making false statements in connection with the attempted acquisition of a firearm from a licensed dealer.
- Raymond Phillips, 55, of Fair Haven, Vermont, for distribution of cocaine base.
- Travis Norris, 31, of Shoreham, Vermont, for making false statements in connection with the attempted acquisition of a firearm from a licensed dealer.
- Edward Everett, 54, of Rutland, Vermont, for distribution of cocaine base and maintaining a drug-involved premises.
- John Harrell, 48, of Rutland, Vermont, for distribution of cocaine base.
- Quadeim Mack, 19, of Brooklyn, New York, for possession of a firearm in furtherance of drug trafficking, and possession with intent to distribute 40 grams or more of fentanyl, 28 grams or more of cocaine base, and cocaine.
- Steven Ciccone, 35, of Rutland, Vermont, for distribution of cocaine base.
- Naquan Brown, 30, of Brooklyn, New York, for possession of a firearm after having previously convicted of a felony, and possession with intent to distribute cocaine base.
- Richard Keefe, 56, of Rutland, Vermont, for possession with intent to distribute heroin and cocaine base.
- Noah Penn, 27, of New York City, New York, for possession with intent to distribute heroin and cocaine base.
- Mark Badie, 33, of Rutland, Vermont, for distribution of cocaine base.
- Thomas DePalo, 60, of Rutland, Vermont, for distribution of cocaine base
Those arrested on state warrants and violations include:
- Antonio Sousa, 25, of Rutland, Vermont, for false information to a law enforcement officer and fugitive from justice.
- Mark Archer, 60, from Rutland, Vermont, for possession of cocaine.
- Darleen Palmer, 52, from Rutland, Vermont, for possession of heroin.
- Greg Shaw, 36, from Rutland, Vermont, for escape from custody.
- Roger Kittredge, 51, from Rutland, Vermont, for distribution of cocaine.
- Stacy Jones, 38, from Rutland, Vermont, for criminal driving while license suspended.
- Nickoletta Hathaway, 19, of Rutland, VT, for failure to appear.
The charges against the defendants are only allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This operation stemmed from careful planning and collaboration by Vermont law enforcement at all levels. The enforcement surge involved the participation of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Department of Homeland Security - Homeland Security Investigations; the Drug Enforcement Administration; the Federal Bureau of Investigation; the United States Marshals Service; Vermont Drug Task Force; the Vermont State Police; the Rutland County Sherriff’s Office; the Rutland City Police Department; U.S. Customs and Border Protection - Air and Marine Operations. Crucial support was provided by the Office of the Rutland County State’s Attorney. United States Attorney Christina E. Nolan thanked each agency for its teamwork and invaluable contribution to the operation.
United States Attorney Christina E. Nolan added: “Today -- as we did last November in St. Johnsbury and last April in Brattleboro -- we announce the results of a team effort by law enforcement to combat drug trafficking and gun crime in one of the hardest hit areas of the state. The Rutland area is suffering greatly under the weight of the drug crisis and related violence, and we deployed a sustained surge of enforcement resources to bring consequences to those selling deadly drugs and violating federal gun laws in that region of the state. The messages are simple. Out-of-state dealers should not come to Vermont; if they do, they will face serious consequences, no matter where in the state they do business. Addicted Vermonters involved in the drug trade will also be held accountable. But we urge those Vermonters to turn in their dealers and seek treatment. We want them to have their lives back.”
“These arrests are indicative of ATF’s commitment to rid our communities of dangerous drugs and illegal firearms," said Special Agent in Charge Kelly D. Brady of the ATF Boston Field Division. "Citizens in Vermont can rest assured that the ATF and our law enforcement partners are determined to ensure these communities remain safe and a great place to live. The success of this investigation is an outstanding example of our law enforcement community's resolve and determination."
“These arrests and seizures in Southern Vermont denote DEA’s priority to aggressively pursue anyone who distributes these poisons,” said DEA Special Agent in Charge Brian D. Boyle. “Illegal drug distribution ravages the very foundations of our families and communities here in the Green Mountain State. This operation demonstrates the strength of collaborative local, state and federal law enforcement efforts in Vermont and our strong partnership with the U.S. Attorney’s Office.”
Rutland County State’s Attorney Rosemary Kennedy stated, “Operations like these are important in the struggle to protect this community from illicit drug trafficking and gun violence. I want to thank the U.S. Attorney for leading this effort and all of the agencies that worked together to help protect Rutland County.”
“These arrests and seizures are the direct result of the close coordination between our federal, state, and local law enforcement partners,” said Anna Holden, Supervisory Senior Resident Agent (SSRA) of the FBI Albany Field Office’s Burlington RA. “Through continued operations, we have been able to rid our communities of dozens of dangerous individuals looking to wreak havoc through drugs and violence. There’s more work to be done, and the FBI, along with our partners, will continue to relentlessly pursue anyone looking to threaten the safety and stability of our neighborhoods.”
“As made evident by the successes of past and present joint law enforcement operations, the focus and commitment of our public safety community is remarkable,” said U.S. Marshal Bradley LaRose. “The relentless pursuit of those who act to threaten the well-being of our citizenry will undoubtedly continue. The Marshals Service is committed to contributing the resources necessary to support the zealous collaborative efforts of those who pursue justice as we move forward.”
This operation was conducted through the Organized Crime Drug Enforcement Task Force (OCDETF). The principle mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those responsible for the nation’s illegal drug supply.
The Assistant U.S. Attorneys handling the operation and subsequent prosecutions are AUSAs Nate Burris; Eugenia Cowles; William Darrow; Wendy Fuller; Nikolas Kerest; Jonathan Ophardt; Joseph Perella; and Paul Van de Graaf. Defendants Martinez-Machuca, Mitchell, Popovitch, and Penn are represented by Assistant Federal Public Defender Elizabeth Quinn, Esq. Defendant Cruz is represented by Thomas Sherrer, Esq. Defendant Jones is represented by Mary Kehoe, Esq. Defendants Carroll, Mack, and Ciccone are represented by Assistant Federal Public Defender Steven Barth, Esq. Defendant Barber is represented by Ernest M. Allen, III, Esq. Defendants Phillips and Everett are represented by David Watts, Esq. Defendant Norris is represented by Federal Public Defender Michael Desautels, Esq. Defendant Harrell is represented by Katina Francis Ready, Esq. Defendant Brown is represented by Assistant Federal Public Defender David McColgin, Esq. Defendant Keefe is represented by Robert S. Behrens, Esq. Defendants Hodges and Badie are represented by the Office of the Federal Public Defender. Defendant Davis has not yet appeared in court.
These investigations are 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 enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting firearm use and possession crimes; prioritizes prosecuting persons who make false statements when attempting to obtain firearms; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives concerning persons who attempt to obtain firearms illegally; coordinates responses to persons prevented from obtaining firearms for mental health reasons; and ensures the use of modern intelligence tools and technology to focus on the criminals posing the greatest threat to our communities.
Thursday 6 February 2020
Worcester Man Sentenced for Illegal Possession of Loaded Semi-Automatic PistolRead the Press Release
BOSTON – A Worcester man was sentenced today in federal court in Worcester for being a felon in possession of a firearm.
Leroy Byron, 34, was sentenced by U.S. District Court Judge Timothy S. Hillman to 60 months in prison and three years of supervised release, after pleading guilty in November 2019 to being a felon in possession of a firearm.
On Nov. 5, 2018, Byron was arrested for carrying an Intratec TEC9 semi-automatic pistol loaded with 32 rounds of ammunition. Byron is prohibited from possessing a firearm due to prior convictions punishable by more than one year in person.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office prosecuted the case.
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. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Waterville Man Sentenced for Possessing Child PornographyRead the Press Release
Bangor, Maine: A Waterville man was sentenced today in federal court in Bangor for possessing child pornography, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr. sentenced William Stewart, 64, to 80 months in prison and 10 years of supervised release. Stewart was also ordered to pay $63,000 in restitution. He pleaded guilty on April 19, 2019.
According to court records, in May and June 2018, Stewart possessed thousands of images and hundreds of videos of child pornography that he had received over the internet. Many of the images and videos depicted prepubescent children under 12 years old. Law enforcement officers discovered the child pornography when they executed a search warrant at Stewart’s home on June 28, 2018.
In imposing sentence, Judge Woodcock described the statements made by the victims of Stewart’s offense as “heartbreaking,” and told Stewart that what he had done was “just abhorrent.”
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine State Police Computer Crimes Unit and the Waterville Police Department investigated the case. The prosecution was part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney’s Office in Memphis Collects $7,467,543.96 for U.S. Taxpayers and Victims in 2019Read the Press Release
Memphis, TN – United States Attorney D. Michael Dunavant announced today that the U.S. Attorney’s Office for the Western District of Tennessee collected $7,467,543.96 in criminal and civil actions during Calendar year 2019. Of that amount, $5,442,925.21 was collected through civil actions and $2,024,618.75 stemmed from fines and restitution ordered as part of criminal convictions.
Two cases that generated significant collection efforts include United States of America and the State of Tennessee ex rel. Dr. L. Darryl Quarles v. Satellite Healthcare, Inc., UT Medical Group, Inc., and WellBound of Memphis, LLC, and United States ex rel. Pińon v. CQuentia Series LLC d/b/a CQuentia Labs, Total Diagnostix, LLC, and Decatur Hospital Authority, d/b/a Wise Regional Health Systems, both generating $3,198,o64.69 and $431,182.96 respectively.
U.S. Attorney D. Michael Dunavant said, "Protection of the United States Treasury and taxpayer resources is a core value and critical mission for this office and the Department of Justice. Equally as important is the priority of collecting restitution for victims of crime in order to punish offenders and provide justice for the harm and loss suffered by victims. I commend the outstanding work of our Criminal Division, Civil Division, and Financial Litigation Unit in aggressively pursuing and effectively collecting this amount on behalf of victims of crime and the United States."
The U.S. Attorneys’ Offices, along with the U.S. Department of Justice’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Calendar year 2019 collections include recovery of government money lost to criminal fraud and other misconduct and recovery of money lost by victims as a result of individual and corporate misconduct. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Health and Human Services, Internal Revenue Service, and the Department of Education and the Department of Veterans Affairs.
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U.S. Attorney’s Office Reaches ADA Settlement with Charter Bus Company to Protect the Rights of Americans with DisabilitiesRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey has reached a settlement with a charter bus company, Academy Express, LLC (“Academy”), headquartered in Hoboken, New Jersey, to ensure equal access for passengers with disabilities under the Americans with Disabilities Act (“ADA”), U.S. Attorney Craig Carpenito announced. This year marks the 30th Anniversary of the ADA, which U.S. Attorneys’ Offices play a critical role in enforcing.
The agreement resolves allegations of disability discrimination against a 74-year-old veteran who became paraplegic after his helicopter was gunned down in Vietnam. The veteran, who was a Staff Sergeant in the Army’s 189th Assault Helicopter Company and served in Vietnam in 1968 and 1969, sought to join dozens of his fellow combat unit veterans on an Academy charter bus for a multi-day “Honor Flight” tour of Arlington National Cemetery and other Washington, D.C. area sites. Although the group’s organizer had requested, over a month in advance, that at least one of Academy’s charter buses for the tour have a working wheelchair lift to accommodate the veteran, Academy violated the ADA by failing to provide a bus with a working wheelchair lift or a replacement bus with a working lift. Instead, the veteran who, in addition to having a severe lack of mobility outside of his wheelchair, suffers from combat-related Post-Traumatic Stress Disorder, was separated from his comrades and compelled to endure lengthy, embarrassing, and unsuccessful attempts to board him on an inaccessible bus.
The ADA requires over-the-road demand-responsive bus operators to ensure that passengers with disabilities who request accessible service receive accessible service. A bus operator may require 48 hours advanced notice, but if a request is made within 48 hours of a trip, the operator must provide a lift if it can do so by making a reasonable effort. A bus operator must, among other things, also establish a system of regular and frequent maintenance checks of wheelchair lifts sufficient to determine if they are operative, and to train their employees to proficiency regarding the proper operation and maintenance of accessibility features and equipment.
“The men and women of our Armed Forces have made extraordinary and selfless sacrifices to protect the rights and freedoms of all Americans,” said U.S. Attorney Craig Carpenito. “This Office remains resolute in its commitment to honor those sacrifices and ensure that the rights of servicemembers and veterans be respected. Through our enforcement of the ADA, we will continue to protect veterans and other individuals with disabilities from unequal and unfair treatment.”
Under the settlement agreement, Academy has agreed to implement policies and procedures to ensure that persons with disabilities receive accessible transportation on the day and at the time and place requested, to publish on its website a statement of that policy, and to provide mandatory employee training on the ADA in accordance with regulatory requirements. Academy will also pay $10,000 as a civil penalty to the United States, and $10,000 in damages to the aggrieved veteran.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint. For more information on the ADA, visit www.ada.gov, or call the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).
The government is represented by Special Assistant U.S. Attorney Victor Williamson of the U.S. Attorney’s Office Civil Rights Unit in Newark.
Tyler County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Dale Robert Barnhart, of Alma, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Barnhart, age 57, pled guilty to one count of “Unlawful Possession of a Firearm and Ammunition.” Barnhart, who is prohibited from having a firearm because of prior convictions, is accused of having two shotguns, a rifle, and multiple rounds of ammunition in August 2019 in Tyler County.
Barnhart faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Two Men Plead Guilty to Heroin, Fentanyl, and Cocaine ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Two Hampton men pleaded guilty today to their respective roles in a multi-kilogram drug trafficking conspiracy that operated in the peninsula area of the Hampton Roads.
According to court documents, Marcid Byrd, 35, was a cocaine source of supply to Damarcus Mackie, 44. Once Byrd was unable to obtain more cocaine from his source, he would make arrangements with Mackie to obtain cocaine from him. Byrd sold both a few ounces of cocaine at a time and multi-kilogram quantities. In addition to cocaine and cocaine base, Mackie also trafficked in a mixture of heroin and fentanyl. Mackie used one co-conspirator’s home in York County to manufacture heroin/fentanyl pills for distribution. These pills were pressed to look like commonly marketed opioid pills, such as Oxycodone.
Mackie pleaded guilty to operating a continuing criminal enterprise and faces a mandatory minimum penalty of 20 years and a maximum sentence of life in prison when sentenced on June 19. Byrd pleaded guilty to conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, two counts of distribution of cocaine, three counts of using a communication facility in furtherance of drug trafficking, and promotion money laundering. He faces a mandatory minimum sentence of 10 years and a maximum of life plus 92 years in prison when sentenced on May 7. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Cookout. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; Steve R. Drew, Chief of Newport News Police; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea. Assistant U.S. Attorneys Peter G. Osyf and Kevin P. Hudson, Special Assistant U.S. Attorney Amy E. Cross, and Trial Attorney Anthony Aminoff of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-047.
Two Correctional Officers with the U.S. Bureau of Prisons Arrested for Allegedly Violating Inmate’s Civil RightsRead the Press Release
BOSTON – A senior correctional office and a lieutenant at FMC Devens were arrested today and charged with injuring an inmate and then obstructing the investigation.
Seth M. Bourget, 39, of Woodstock, Conn., a Senior Correctional Officer at U.S. Bureau Prisons Federal Medical Center in Devens (FMC Devens), was indicted on two counts of deprivation of civil rights under color of law. Joseph M. Lavorato, 51, of Wilmington, Mass., a Lieutenant at FMC Devens was indicted on obstruction of an official proceeding and destruction and falsification of records in a federal investigation. Bourget and Lavorato were arrested this morning and will appear in federal court in Boston at 2:00 p.m.
“These corrections officers abused their authority and the public’s trust by allegedly injuring a vulnerable inmate and then attempting to cover it up,” said United States Attorney Andrew E. Lelling. “This conduct is an affront to the law enforcement officers who serve honorably every day and fulfill their duties with fairness and integrity. Today’s charges reflect the Justice Department’s commitment to prosecuting official misconduct.”
“The alleged use of excessive force by Correctional Officer Bourget toward an inmate and the alleged follow-up actions and poor judgment of Lieutenant Lavorato in attempting to cover up the incident are extremely troubling. This kind of conduct directly contradicts the oath that federal Correctional Officers take – to serve and protect, and to uphold the law,” said Guido Modano, Special Agent in Charge of the Department of Justice Office of the Inspector General New York Field Office.
“Great power and responsibility are sewn into a Bureau of Prisons uniform. But that uniform and the oath taken by those who wear it is not a license to use excessive force on a vulnerable prisoner, or to allegedly cover up a subordinate’s reprehensible behavior by attempting to destroy evidence of that abuse,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Civil rights are everyone’s rights, and we will continue to investigate anyone who violates their professional responsibility to keep others safe and secure.”
According to the indictment, on or about June 18, 2019, Bourget, dropped his knee on an inmate’s head while the inmate was handcuffed and restrained on the floor in the mental health housing unit, resulting in bodily injury to the inmate. It is further alleged that Bourget struck the handcuffed inmate with a protective shield with excessive force, in a locked cell, injuring the inmate
Lieutenant Lavorato allegedly obstructed the investigation into U.S. Bureau of Prison’s review of the use of the force by purposely failing to timely and accurately report the nature and extent of inmate’s injuries and intentionally concealing the existence a video recording of the incident in an official report. It is alleged that Lavorato destroyed a video recording of the incident, and then falsely stated in a report that the security camera was not operational at the time due to a dead battery.
The charge of willful deprivation of civil rights under color of law provides for a sentence of up to 10 years in prison, two years of supervised release and a fine of up to $250,000. The charge of obstruction of an official proceeding and the destruction and falsification of a record in a federal investigation provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, DOJ-OIG SAC Modano, and FBI Boston SAC Bonavolonta made the announcement today. Assistant U.S. Attorney Neil J. Gallagher, Jr. of Lelling’s Public Corruption Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three LMPD Officers Charged in Overtime Case SentencedRead the Press Release
LOUISVILLE, Ky. – Three Louisville Metropolitan Police Department (LMPD) officers charged with wire fraud for their part in a scheme to defraud the Commonwealth of Kentucky, the federal government, and their own department have been sentenced today, announced United States Attorney Russell Coleman.
All three were sentenced to 3 years’ probation with 8 months on curfew, required to pay the costs associated with that location monitoring curfew, ordered to pay restitution in their individual amounts, and ordered to pay a Special Assessment of $100.
“Louisville is well-served by the men and women of LMPD, whose culture is one of self-sacrifice, heroism, and deep conviction in regularly risking comfort and personal safety to protect our city,” stated U.S. Attorney Russell Coleman. “The theft by these three defendants was not borderline conduct, not merely knocking off early on a Friday afternoon; instead, falsification of arrest citations, lying, and failing to report for duty, once even documented sleeping on a couch instead of at work protecting our families. The United States Attorney’s Office and our partners the Jefferson Commonwealth’s Attorney’s Office will give no quarter to those who tarnish the badge worn so honorable by so many within LMPD.”
“Those police officers who have abused the public trust for personal gain must answer to consequences just like the suspects they arrest,” stated Commonwealth’s Attorney Tom Wine. “Every day, our police do tireless, thankless work for their community. And trust between the public and those officers is absolutely vital. While this case is now resolved, our community should rest assured that the office of the Commonwealth’s Attorney and the office of the U.S. Attorney will always strive to protect that trust by enforcing the law--regardless of who has violated it.”
Defendants Brian Stanfield, Todd Roadhouse, and Mark Final took part in a scheme that ran from at least 2014 to in or about August 2017 to defraud LMPD, the Commonwealth of Kentucky, and the federal government for monetary gains by submitting overtime requests for time they did not actually work on behalf of LMPD and failing to work during their assigned shifts. The three also submitted overtime requests claiming to have worked hours for the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) on Organized Crime Drug Enforcement Task Force (OCDETF) matters. All three defendants waived Indictment by the grand jury and pleaded guilty to a felony Information before the Court in October 2019.
According to Sentencing Memoranda before the Court, to bolster and support their fraud, the defendants falsified numerous documents including overtime reports, payroll submissions, and uniform citation arrest reports of defendants charged within LMPD’s Script Unit where all three defendants worked during the relevant time. The defendants further coordinated with one another to ensure that the time that each submitted for overtime payments did not conflict with specific times that one or more of them was also purporting to work secondary employment and to ensure their overtime requests were submitted in the LMPD payroll system in such ways as to not raise concerns.
The defendants went even further to provide documentary support for hours of overtime they did not actually work by creating false entries in the uniform citation arrest reports they issued. Specifically, the defendants would falsely report the time of the citation arrest and/or deceptively add one or more of the other defendants’ names on the officer’s signature line of the citation to make it appear that the additional defendant was present and involved in the citation arrest, when, in fact, this was not true. As an example, if a citation arrest actually occurred at 6 pm, the defendant writing the report would falsify the time on the uniform citation arrest report to state that the arrest had occurred at a later time, perhaps 9 pm, in order to make it appear that he worked later into the evening than he actually had and to justify the submission of overtime hours not worked. The defendant drafting the citation report would also add a co-defendant’s name to the report on the officer’s signature line even though the defendant whose name was added was not present for the arrest nor involved in the investigation in order to allow the co-defendant to claim overtime pay for a shift covering the falsified time on the report despite his not actually working during that shift.
It was further part of the scheme that the defendants submitted overtime requests claiming to have worked hours for the DEA and the ATF on OCDETF matters when they, in fact, did not work those hours. Stanfield submitted falsified overtime hours to both DEA and ATF, while Roadhouse and Final falsified hours to claim time worked and paid out of ATF OCDETF funds. Ultimately, the defendants were paid through LMPD for these claimed, but not worked, hours, and the DEA and the ATF reimbursed LMPD pursuant to their respective OCDETF Agreements.
The defendants engaged in this fraud and misrepresentation in order to steal funds from the Louisville Metro Police Department and the federal government by way of an inflated paycheck as well as to increase their salary over time in order to inflate the benefits they would receive from the Kentucky Retirement Systems upon retirement.
The case is being prosecuted by Assistant United States Attorney Stephanie Zimdahl and Special Assistant U.S. Attorney Kaleb Noblett of the Jefferson County Commonwealth’s Attorney’s Office and was investigated by the Kentucky Public Corruption Civil Rights Task Force which consists of the Federal Bureau of Investigation (FBI), LMPD, the Kentucky Office of the Attorney General, and the Kentucky State Police.
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Three Charged in Wire Fraud Scheme that Used IRS Impersonators to Defraud U.S. VictimsRead the Press Release
PITTSBURGH, PA – Three southwestern Pennsylvania residents have been indicted by a federal grand jury in Pittsburgh on a charge of conspiracy to commit wire fraud, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on January 16, named Ronnell Taylor, Jr., 37, of Jeannette Pennsylvania; Barry Nealer, 40, of Pittsburgh, Pennsylvania, and Michael Galanis, 31, of Export, Pennsylvania, as defendants.
According to the indictment presented to the court, between March 2016, and August 2017, the defendants knowingly and willfully conspired to commit wire fraud, including, among other alleged conduct, by activating and programming cell phone numbers later used by individuals impersonating employees of the United States Internal Revenue Service to defraud victims in the United States.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rachael L. Mamula is prosecuting this case on behalf of the government
The United States Treasury Inspector General for Tax Administration, United States Department of Homeland Security, and the United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. Defendants are presumed innocent unless and until proven guilty.
Texas Man Charged with Federal Hate Crimes and Firearm Offenses Related to August 3, 2019, Mass-Shooting in El PasoRead the Press Release
Today, a federal grand jury in El Paso, Texas, indicted Patrick Wood Crusius, 21, of Allen, Texas, on hate crimes and firearm charges in connection with the murder of 22 people and attempted murder of 23 others at a Walmart in El Paso, Texas, on August 3, 2019. The announcement was made by Assistant Attorney General Eric S. Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney for the Western District of Texas John F. Bash, and Special Agent in Charge of the FBI’s El Paso Field Office Luis M. Quesada.
The indictment alleges that on August 3, 2019, Crusius opened fire with an assault rifle and shot multiple individuals in and around the Walmart Supercenter in El Paso, leading to the death of 22 individuals and injuring many more. The indictment further alleges that, on the same date as the shooting, Crusius uploaded to the internet a document he had drafted entitled “The Inconvenient Truth.” The document opened by stating, “This attack is a response to the Hispanic invasion of Texas. They are the instigators, not me. I am simply defending my country from cultural and ethnic replacement brought on by the invasion.” The indictment charges that Crusius willfully caused bodily injury to the victims because of the actual and perceived national origin of any person.
In total, the ninety-count indictment charges Crusius with 22 counts of hate crimes resulting in death, 23 hate crimes involving an attempt to kill, and 45 counts of discharging a firearm in relation to the hate crimes.
Upon conviction, the charges in the indictment call for the death penalty or life imprisonment. The Attorney General will decide whether to seek the death penalty at a later time. Should the Attorney General determine that the circumstances of the offense are such that a sentence of death is justified, the law requires that notice be filed with the court at a reasonable time before trial. Crusius is currently in state custody pending state criminal charges.
The FBI, with the support of the El Paso Police Department, Texas Department of Public Safety, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), El Paso County Sheriff’s Office, El Paso County Office of the Medical Examiner, Allen Police Department and Dallas Police Department, conducted this investigation. The case is being prosecuted by Assistant U.S. Attorneys Ian Hanna and Greg McDonald of the Western District of Texas, and U.S. Department of Justice Trial Attorneys Tim Visser and Michael Warbel.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Texas Man Charged with Federal Hate Crimes and Firearm Offenses Related to August 3, 2019, Mass-Shooting in El PasoRead the Press Release
Today, a federal grand jury in El Paso, Texas, indicted Patrick Wood Crusius, 21, of Allen, Texas, on hate crimes and firearm charges in connection with the murder of 22 people and attempted murder of 23 others at a Walmart in El Paso, Texas, on Aug. 3, 2019. The announcement was made by Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney for the Western District of Texas John F. Bash, and Special Agent in Charge of the FBI’s El Paso Field Office Luis M. Quesada.
The indictment alleges that on Aug. 3, 2019, Crusius opened fire with an assault rifle and shot multiple individuals in and around the Walmart Supercenter in El Paso, leading to the death of 22 individuals and injuring many more. The indictment further alleges that, on the same date as the shooting, Crusius uploaded to the internet a document he had drafted entitled “The Inconvenient Truth.” The document opened by stating, “This attack is a response to the Hispanic invasion of Texas. They are the instigators, not me. I am simply defending my country from cultural and ethnic replacement brought on by the invasion.” The indictment charges that Crusius willfully caused bodily injury to the victims because of the actual and perceived national origin of any person.
In total, the 90-count indictment charges Crusius with 22 counts of hate crimes resulting in death, 23 hate crimes involving an attempt to kill, and 45 counts of discharging a firearm in relation to the hate crimes.
Upon conviction, the charges in the indictment carry a maximum penalty of life imprisonment or the death penalty. The Attorney General will decide whether to seek the death penalty at a later time. Should the Attorney General determine that the circumstances of the offense are such that a sentence of death is justified, the law requires that notice be filed with the court at a reasonable time before trial. Crusius is currently in state custody pending state criminal charges.
The FBI with the support of the El Paso Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Texas Department of Public Safety, El Paso County Sheriff’s Office, El Paso County Office of the Medical Examiner, Allen Police Department and Dallas Police Department, conducted this investigation. The case is being prosecuted by Assistant U.S. Attorneys Ian Hanna and Greg McDonald of the Western District of Texas, and U.S. Department of Justice Trial Attorneys Tim Visser and Michael Warbel.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt The defendant is considered innocent until proven guilty in a court of law.
More information about the Department’s hate crimes efforts, including facts and statistics, case examples, and a searchable collection of the Department’s resources for law enforcement, community groups, researchers and others, are available at www.justice.gov/hatecrimes.
Tampa Felon, Previously Convicted of Attempted Murder, Pleads Guilty to Drug and Firearms ChargesRead the Press Release
Tampa, Florida – DeShawn Torrell Salley (49, Tampa) today pleaded guilty to distributing at least 50 grams of methamphetamine, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a convicted felon. He faces a mandatory minimum term of 15 years, and up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between 1999 and 2004, Salley was convicted of six felony offenses, including attempted murder in the first degree. On June 5, 2019, he sold 54 grams of methamphetamine to a confidential informant in Tampa. On July 31, 2019, federal agents arrested Salley. During the execution of a search warrant at Salley’s apartment, federal agents recovered a loaded Glock .45 caliber pistol, a bulletproof vest, heroin, and marijuana.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Successor to L.A.’s Redevelopment Agency Reaches $3.1 Million Settlement in Case Alleging Misuse of Federal Housing FundsRead the Press Release
LOS ANGELES – CRA/LA has agreed to pay $3.1 million to resolve allegations that its predecessor violated the False Claims Act by knowingly failing to comply with federal accessibility laws when it financed and assisted in the development of affordable housing in the City of Los Angeles supported by federal funds, the Department of Justice announced today.
CRA/LA is the successor of the Community Redevelopment Agency of the City of Los Angeles, a local redevelopment agency that financed and assisted in the development of multifamily affordable housing using local tax monies and federal community development grants. In June 2011, the State of California dissolved all redevelopment agencies. CRA/LA is winding down the affairs of its predecessor.
“Despite millions of dollars of federal taxpayer money sent to Los Angeles to create affordable housing over many years, the CRA opted to lie about its failure to ensure that these projects were accessible to everyone,” said United States Attorney Nick Hanna. “This settlement resolves only a small portion of this case, and we are prepared to litigate additional allegations that the City of Los Angeles covered up its failure to comply with federal laws enacted to protect the civil rights of all citizens.”
“Today’s settlement demonstrates our continuing vigilance ensuring developers receiving federal grant money for affordable housing satisfy their legal obligations to make that housing accessible to people with disabilities,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Grant recipients who discriminate against people with disabilities using taxpayer money face serious consequences.”
“The basic tenant of fair housing translates into the premise of equal access for all, this is to include those citizens that face physical and functional challenges,” said Inspector General Rae Oliver Davis of the U.S. Department of Housing and Urban Development. “This settlement reaffirms this office’s steadfast resolve to ensure those who receive federal housing funds abide by this fundamental principle.”
Recipients of federal housing development funds must comply with federal accessibility laws, including Section 504 of the Rehabilitation Act, the Americans with Disabilities Act, and the Fair Housing Act. These laws prohibit discrimination against people with disabilities in activities receiving federal financial assistance.
For example, they require 5 percent of all units in certain federally assisted multifamily housing be accessible for people with mobility impairments and an additional two percent be accessible for people with visual and auditory impairments.
Recipients of federal funds must likewise implement accessible programs related to housing, including maintaining a publicly available list of accessible units with a description of their accessibility features, adopting policies and procedures to ensure that people who need the accessibility features of particular units occupy them, and designating at least one individual to coordinate accessibility efforts.
The settlement resolves claims against CRA/LA in a lawsuit alleging that the CRA/LA’s predecessor, along with the City of Los Angeles, received money from the U.S. Department of Housing & Urban Development based on false claims they were complying with federal accessibility laws.
As to the CRA/LA’s predecessor, the United States’ lawsuit alleged at least nine multifamily housing properties fell significantly short of federal accessibility laws since 2005. Examples of alleged defects included:
- slopes and ramps too steep for people in wheelchairs;
- tall thresholds restricting wheelchair access;
- kitchen cabinets, shelves, and surfaces outside the accessible reach range of people in wheelchairs;
- sinks, grab bars, and mailboxes mounted outside the accessible reach range of people in wheelchairs;
- uninsulated pipes below sinks and lavatories;
- a lack of accessible parking spaces; and
- insufficient visual alarms and tactile signs for people with hearing and visual impairments.
The United States’ claims against the City of Los Angeles have not been resolved and are still pending in the litigation.
The agreement announced today partially resolves a lawsuit originally filed in United States District Court in Los Angeles by Mei Ling, a resident of Los Angeles resident who uses a wheelchair, and the Fair Housing Council of San Fernando Valley, a nonprofit civil rights advocacy group.
The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the United States when they believe that a party has submitted false claims for government funds, and to receive a share of any recovery. The False Claims Act permits the government to intervene in such lawsuit, as it has done in this case.
These matters were investigated and litigated by Assistant United States Attorneys Lisa A. Palombo and Ross M. Cuff of the Civil Division’s Civil Fraud Section and the Justice Department’s Civil Division Commercial Litigation Branch. HUD’s Office of Inspector General and Office of General Counsel also participated in the investigation.
The claims asserted against the City of Los Angeles and CRA/LA are allegations only; there has been no determination of liability. The case is captioned United States ex rel. Ling, et al. v. City of Los Angeles, et al., CV 11-974-PSG.
Statement by U.S. Attorney Mike Hurst Regarding State Investigation and Local Arrests Relating to Fraud at Mississippi Department of Human ServicesRead the Press Release
“The U.S. Attorney’s Office has received numerous inquiries regarding the State Auditor’s investigation into the Mississippi Department of Human Services and local indictments returned by a Hinds County grand jury in that case.
While we commend the reported actions, neither the FBI nor the United States Attorney’s Office was contacted by the State Auditor or the Hinds County District Attorney about this investigation, although millions of federal dollars are alleged to have been stolen.
After hearing about the investigation, I reached out to the State Auditor and met with him last week to inquire into this matter. I subsequently spoke with the District Attorney about this matter as well. While information about this investigation was made available to us on Tuesday, we in the United States Attorney’s Office and the FBI only learned on Wednesday afternoon from media reports about the indictment and arrests, at the same time as the general public did.
Investigating and prosecuting cases of this magnitude and complexity is routinely what the FBI and U.S. Attorney’s Offices do here in Mississippi and around the country. In the U.S. Attorney’s Office for the Southern District of Mississippi we have a long, successful record of working with our local and state law enforcement, prosecuting public corruption and complex white collar fraud, and bringing all who violate the law to justice.
The U.S. Attorney’s Office and the FBI continue to have good working relationships with the new State Auditor, the new Hinds County District Attorney, and their offices. We stand ready to put the substantial experience and expertise of our offices and the entire U.S. Department of Justice to work to help our colleagues bring fraudsters to justice and stamp out public corruption.”
Schuylkill County Woman Sentenced to 28 Months’ Imprisonment and Ordered to Forfeit Her Residence and Property for Role in Methamphetamine ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Laverne Schaeffer, age 48, of Schuylkill Haven, Pennsylvania, was sentenced on February 5, 2020 to 28 months’ imprisonment by U.S. District Court Judge Robert D. Mariani for participating in a methamphetamine trafficking conspiracy.
According to United States Attorney David J. Freed, Schaeffer previously pleaded guilty to participating in the drug trafficking conspiracy between July 2016 and May 2017 that operated in Schuylkill and Berks Counties.
Judge Mariani also ordered Schaeffer to forfeit to the United States more than 105 acres of property in Schuylkill County that was used by her, her husband Ernest Schaeffer, and other members of the drug conspiracy to store methamphetamine and firearms.
Ernest Schaeffer was previously sentenced to 15 years in prison, while Anibal Rodriguez, the leader of the drug conspiracy, was sentenced to 20 years in prison.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Schuylkill County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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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Saint Louis County Man Indicted for Robbing the Saint Louis Community Credit UnionRead the Press Release
Saint Louis –Monte Clayton Lynch, 49, of Saint Louis County, Missouri, was indicted today on one felony count of bank robbery stemming from a string of bank robberies that occurred last summer.
According to court documents, on July 26, 2019, Lynch entered the St. Louis Community Credit Union on Chippewa Street in Saint Louis, passed a teller a note demanding cash, and threatened that he had a gun. The teller handed Lynch approximately $5,100 in cash, which he took from the credit union after ensuring it had no dye packs.
This bank robbery was the first of at least six bank robberies that Lynch performed over 17-days. In total, he robbed banks in Saint Louis, Missouri; Nashville, Tennessee; Birmingham, Alabama; Tyrone, Georgia; and Prattville, Alabama. Lynch later confessed to his crime and noted that the motivation for robbing the banks was to pay for his cocaine addiction.
If convicted, the charge of bank robbery carries a maximum penalty of 20 years in prison and a $250,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation is investigating this case. Assistant United States Attorney Jason Dunkel is handling the case.
Charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Saint Louis City Man Pleads Guilty to 12 Armed RobberiesRead the Press Release
Saint Louis, MO –Justin McGee, 38, of Saint Louis, Missouri, pleaded guilty to his role in 12 robberies. He appeared today before U.S. District Judge Audrey G. Fleissig who accepted his plea and set his sentencing for May 13, 2020.
According to the plea agreement, on September 12, 2018, McGee, armed with a firearm, entered the Cricket Wireless store located at 10006 W. Florissant and approached an employee stating that he needed a phone repaired. While the employee was looking at the phone, McGee pulled a firearm from his pocket, pointed it at the employee and demanded that he open the cash register. The employee was ordered to the floor as McGee stole money from the register and then fled the store.
On October 10, 2018, McGee entered the Game Stop on Maplewood Commons Drive armed with a firearm, pointed it at the employee and demanded that she open the cash register. After grabbing money from the register, McGee ordered the employee to the ground and left.
On October 12, 2018, McGee entered the T-Mobile store on N. Highway 67, engaged an employee in conversation, then pointed a firearm at her and told her he would kill her. He then confronted the store manager and had both employees lie on the floor. McGee had one of the employees crawl to the office to show him where the cash was located. McGee took money and left the store.
On October 17, 2018, McGee entered the Game Stop located on South Kingshighway, engaged an employee in conversation, pushed him to the floor as he pointed a firearm at him and demanded the cash register be opened. A second employee opened the register. McGee grabbed the store’s money and left the store.
On October 19, 2018, McGee entered the Boost Mobile store on Manchester, rushed towards an employee and pointed a firearm at her. He pushed her to the floor and poked her back with the firearm. She opened the cash register; McGee grabbed the store’s money and ran out the door.
On November 23, 2018, McGee entered the Smoothie King on Forest Park as the employees were preparing to close for the day. McGee placed his hand in his pocket as if he had a firearm and told them he wanted no problems. After he ordered the employees to kneel on the floor, McGee grabbed the store’s money and left.
On December 15, 2018, McGee entered Kings Beauty Supply on Aubert and engaged an employee in a conversation about a hair clipper. McGee produced a firearm and announced a robbery. Pointing the firearm at two employees, McGee ordered one to lie on the ground. He grabbed the store’s money and hair clippers and left the store.
On February 4, 2019, McGee entered the Boost Mobile Store in North Oaks Plaza and engaged an employee in a conversation before pulling out his firearm and walking behind the counter. The employee pulled his own firearm and fired a shot striking McGee in the head. McGee was able to flee.
On March 7, 2019, McGee entered the BP gas station on Olive Road and began to climb over the counter to open the cash register. As he climbed over the counter, he pointed an air pistol at the employee. A fight ensued. The employee was able to grab the air pistol and McGee ran from the store.
On March 26, 2019, McGee entered the Family Dollar on North Grand, approached a cashier and told her to open her cash drawer. When she told him she could not, he pointed a caliber firearm at her. At that time, the manager opened the cash register. McGee took money and fled the store.
On March 29, 2019, McGee entered the Qdoba Restaurant on Lindell and approached the cashier as if to place a food order. McGee brandished a firearm and demanded money. McGee took money and left the store.
On April 7, 2019, McGee entered the Dollar Tree on Aubert, approached the cashier and told him not to “trip” as he pointed a firearm at him. The cashier gave McGee money and McGee left the store.
Each robbery count carries a penalty of not more than 20 years and a fine of $250,000. Each brandishing of a firearm count carries a penalty of not less than seven years nor more than life, consecutive to any sentence imposed for all counts, and a fine of not more than $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Saint Louis Metropolitan Police Department and the Federal Bureau of Investigation investigated this case. Assistant United States Attorney Tom Mehan is handling the case.
Sacramento Man Pleads Guilty to Medicare Kickback SchemeRead the Press Release
SACRAMENTO, Calif. — Jai Vijay, 54, of Sacramento, pleaded guilty today to conspiring with the owners of home health care agencies and a hospice agency to pay and receive illegal kickbacks in exchange for Medicare beneficiary referrals.
According to court documents, Jai Vijay’s wife, Anita Vijay, worked as the social services director at a skilled nursing and assisted living facility in Sacramento. In her role, Anita Vijay assisted Medicare beneficiaries in selecting home health care and hospice agencies following their discharge from the facility. Anita Vijay used her position to steer Medicare beneficiaries to home health agencies in Folsom and El Dorado Hills and a hospice agency in Folsom. In exchange for the beneficiary referrals, the agencies’ owners paid Jai Vijay and Anita Vijay illegal cash kickbacks.
In his plea agreement, Jai Vijay admitted that the agencies’ owners paid him and his wife kickbacks in exchange for the referral of approximately 60 beneficiaries. Medicare paid the agencies approximately $400,000 for services they purportedly provided to the beneficiaries. Because the agencies obtained the beneficiary referrals by paying kickbacks, they should not have received any reimbursement from Medicare.
This case is a product of an investigation by the Federal Bureau of Investigation and the Department of Health and Human Services’ Office of Inspector General. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge Troy Nunley is scheduled to sentence Jai Vijay on April 30. He faces a maximum statutory penalty of five years in prison and a fine of $250,000 or twice the gross loss or gain. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Rhode Island Chiropractor Pleads Guilty to Tax EvasionRead the Press Release
PROVIDENCE – A Providence chiropractor today pled guilty in federal court to tax evasion, admitting that he diverted more than $1 million dollars in business revenue for his own personal use, and that he failed to report the income to the IRS, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell.
Dr. Leonard Marino, 50, of Johnston, President and sole shareholder of Chiropractic Associates in Providence, admitted that from 2016 through 2019, he devised schemes to divert $1,061,000 in income generated by his business to his own personal use, and that he failed to report the income to the IRS.
A significant amount of Chiropractic Associates income is derived from insurance company payments for bodily injury claims submitted by law firms on behalf of some of Dr. Marino’s patients. Payments, in the form of checks, were made by the law firms payable to Chiropractic Associates.
Dr. Marino admitted to devising schemes to cash many of the law firms’ checks and divert the proceeds for his own personal use. After a bank raised concerns with him about his check cashing practices, he requested that the law firms make checks payable to him personally, which they did. Marino then cashed those checks using a check casher.
Marino admitted to the court that in 2017 he failed to report $531,408.38 in gross income, which would have resulted in tax due the IRS of approximately $236,945. He admitted that from 2016 through 2108, he failed to report income totaling $1,061,000.
Marino is scheduled to be sentenced by U.S. District Court Judge William E. Smith on May 7, 2020.
Tax evasion is punishable by statutory penalties of up to five years imprisonment; a fine of $250,000 or not more than twice the gross gain or twice the gross loss resulting from the offense; and a term of supervised release of three years.
The case is being prosecuted by Assistant United States Attorney Dulce Donovan.
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Previously Deported Alien Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Marvin Reymundo-Lopez, age 28, a citizen of Guatemala, was charged on February 5, 2020, by a federal grand jury with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney David J. Freed, Reymundo-Lopez was previously deported from the United States to Guatemala in March 2010. He is alleged to have illegally reentered the United States sometime after March 2010, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Joanne M. Sanderson is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Reymundo-Lopez faces a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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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Port Barre Man Sentenced to over 20 Years for Federal Carjacking and Firearms Charge Related to Kidnapping IncidentRead the Press Release
ALEXANDRIA, La. – Jon Michael Mauldwin, 28, was sentenced today to 241 months in prison and five years of supervised release for a federal carjacking and related firearms charge stemming from the kidnapping of a Port Barre man, announced David C. Joseph, United States Attorney for the Western District of Louisiana.
U.S. District Judge Dee D. Drell sentenced Mauldwin to 121 months for the federal carjacking charge, which will run concurrent to pending state charges, and an additional, consecutive 10 years for using, carrying, or possessing a firearm during and in relation to a crime of violence. Mauldwin pled guilty to these charges in U.S. District Court in Alexandria on September 9, 2019.
The incident began in the early morning hours of August 20, 2017, at approximately 1:00 a.m., when Mauldwin crashed his vehicle at a residence in Port Barre. Mauldwin exited the vehicle, had a brief encounter with an individual at the residence, then re-entered his vehicle and drove down the road where he wrecked for the second time. After the second crash, he entered the home of a Port Barre man, brandishing a black handgun. Mauldwin forced the victim out of his home at gunpoint demanding that the victim use his own truck to drive him to a store. Along the way, Mauldwin told the victim he was going to die and fired the gun in front of the victim’s face causing the driver’s side window to shatter and causing hearing loss in the victim’s left ear. When they arrived at a convenience store, the victim managed to get away and get help. Mauldwin continued his crime spree in Point Coupee Parish where he was subsequently arrested.
The FBI, ATF the St. Landry Parish Sheriff’s Office, Point Coupee Sheriff’s Office and Livonia Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
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Pittsburgh Man Admits Distributing Multiple Videos Showing the Sexual Exploitation of MinorsRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of distributing material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Gary Whisner, age 36, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that on August 5, 2017, Whisner distributed multiple videos containing material depicting the sexual exploitation of minors, including two females who were approximately 10 years old. A subsequent search of Whisner’s electronic devices revealed approximately 10,700 images and 800 videos that depicted child pornography.
Judge Horan scheduled sentencing for May 27, 2020, at 9:30 a.m. The law provides for a maximum sentence of not less than five years to a maximum of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
Homeland Security Investigations, with the assistance of the Pittsburgh Bureau of Police, conducted the investigation that led to the prosecution of Whisner.
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.justice.gov/psc.
Philadelphia Man Convicted at Trial of Illegal Gun Possession ChargesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Mark Manigault, 41, of Philadelphia, PA was convicted at trial of being a felon in possession of a firearm, arising from his illegal possession of a 9mm pistol, loaded with 12 live rounds of ammunition.
On September 27, 2016, two Philadelphia Police officers observed the defendant and another individual sitting outside near a bar. Subsequently, the officers found a firearm hidden in the wheel well of a car parked near the defendants. Upon further investigation, the officers found a second firearm placed in the wheel well of another car. Using surveillance footage from the bar and from a private residence down the street, the officers determined that Manigault and the other individual possessed the firearms and had placed them in the wheel wells.
“Prosecuting, deterring and preventing violent crime in Philadelphia are top priorities of my Office,” said U.S. Attorney McSwain. “Illegal gun possession undeniably poses a serious threat to public safety because it often leads to violence. We are committed to working with the Philadelphia Police Department to combat this threat. Simply put, the more firearms we can take out of the hands of convicted felons, the safer our City will be. And when we bring illegal gun possession cases, the offenders must suffer serious punishment and not be routed into bogus diversionary programs like the ones being championed by the Philadelphia District Attorney. Otherwise, the prosecutions have no deterrent effect and the offenders are free to return to their life of crime.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
Patient Recruiter Sentenced to Prison for Role in More than $1 Million Illegal Kickback ConspiracyRead the Press Release
A patient recruiter was sentenced to 60 months in prison yesterday for receiving more than $1 million in illegal kickback payments from numerous home health agencies from around the country in exchange for providing information on Medicare beneficiaries to home health agencies, who then used that information to submit fraudulent claims to Medicare.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Steven M. D'Antuono of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Dominic Trumbo, 45, of Lexington, Kentucky, was sentenced by Chief U.S. District Judge Denise Page Hood of the Eastern District of Michigan, who also ordered Trumbo to pay $1,010,552 in restitution and forfeit $203,300. In July 2019, after a four-day trial, a federal jury found Trumbo guilty of one count of conspiracy to pay and receive health care kickbacks and three counts of solicitation or receipt of kickbacks in connection with a federal health care program.
According to the evidence presented at trial, Trumbo, owner of Trumbo Consulting Agency of Stafford, Virginia, recruited, or paid others to recruit, more than 4,000 Medicare beneficiaries for multiple home health companies across the country. The evidence showed that Trumbo instructed his employees to cold call Medicare beneficiaries and offer incentives to induce them to sign up for home health care. Trumbo then sold the Medicare beneficiary information to home health agencies in exchange for illegal kickback payments. The evidence at trial further showed that Trumbo and his co-conspirators created sham contracts and fake invoices in an attempt to conceal their scheme to defraud Medicare.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Trial Attorneys Patrick Suter and Steven Scott of the Fraud Section prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Operator of New Jersey Home Health Care Agency Sentenced to Prison for Not Paying Employment TaxesRead the Press Release
A Manahawkin, New Jersey, business owner was sentenced to 12 months and one day in prison today for willfully failing to pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Craig Carpenito for the District of New Jersey. Dale previously pleaded guilty to the charge in January 2019.
According to the information and other pleadings filed in the case, Richard Dale operated Advanced Pro Home Care Inc. (Home Care), a health care agency located in Brick, New Jersey. As operator and payroll manager of Home Care, Dale was responsible for depositing and withdrawing money from Home Care’s business bank accounts, administering its accounts payable and receivable, and preparing payroll for its employees. Dale also was required to report and pay over employment taxes to the Internal Revenue Service (IRS). From 2012 through 2014, however, Dale did not pay to the IRS substantial employment taxes owed by Home Care, including employee federal income tax withholdings, Social Security taxes, and Medicare taxes, nor did he file the requisite employment tax forms. During this period Home Care amassed more than $500,000 in employment tax liabilities, but Dale only made a single payment of approximately $30,000.
In addition to the term of imprisonment, U.S. District Judge Peter G. Sheridan ordered defendant to serve three years of supervised release and to pay approximately $504,145 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Carpenito thanked special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Brian Lee Urbano and Trial Attorney Shawn Noud of the Tax Division, who prosecuted the case.
Okaloosa Armed Career Criminal Sentenced to Twenty Years in Prison for Possession of Firearm by Convicted FelonRead the Press Release
PENSACOLA, FLORIDA – Dennis A. Toomer, 37, of Valparaiso, Florida, was sentenced to 240 months in
federal prison after having previously pleaded guilty to possession of a firearm by a convicted
felon. The sentence was announced today by Lawrence Keefe, United States Attorney for the Northern
District of Florida.“We will vigorously prosecute those whose actions recklessly endanger the public,” U.S. Attorney
Keefe said. “This convicted felon chose to arm himself with a firearm and now will pay the heavy
consequences for his actions.”In the early morning hours of May 8, 2019, Toomer was arrested by the Okaloosa County Sheriff’s
Office after battering his pregnant girlfriend and threatening her and her two juvenile brothers
with a loaded handgun. Toomer was prohibited from having a firearm because he had been previously
convicted of 15 felony offenses, including five battery convictions, four drug- related
convictions, and a conviction for possessing a firearm as a convicted felon. Because Toomer had at
least three prior convictions for a violent felony or a serious drug offense, he was subject to
enhanced penalties under the Armed Career Criminal Act.Assistant U.S. Attorney Alicia Forbes prosecuted the case after a joint investigation by the Bureau
of Alcohol, Tobacco, Firearms and Explosives and the Okaloosa County Sheriff’s Office.“Reducing violent crime and protecting the public in the communities that we serve is a priority
for ATF,” said ATF Special Agent in Charge Daryl McCrary. “We will continue to work vigorously with
our law enforcement partners to make sure those individuals who commit violent firearms crimes are
prosecuted to the fullest extent of the law.”This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce
gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of
2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence;
enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting
gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant
Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources
are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office prosecuted this case with support from Project Guardian partners, the Pensacola Police
Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. For more information about Project Guardian, please visit:
https://www.justice.gov/usao-ndfl/pr/attorney-general-announces-launch-project-guardian-nationwide-strategic-plan-reduce-gun.The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. To access
public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the U.S. Attorney’s Office, Northern District of
Florida, visit http://www.justice.gov/usao/fln/index.html.The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the
history of our agency at www.Justice.gov/Celebrating150Years.Northwest Arkansas Woman Sentenced to More Than 11 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Jennifer Brunos, age 38, of Fayetteville, Arkansas was sentenced to 136 months in federal prison followed by four years of supervised release on one count of Possession with Intent to Distribute more than 50 grams of a mixture or substance containing Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records Brunos was stopped by law enforcement officers for a traffic violation. Subsequently, Brunos was found to possess 293.7 gross grams of methamphetamine in nine (9) separate bags hidden in different areas in the vehicle.
The methamphetamine possessed by Brunos was field tested and tested positive for the presence of methamphetamine. Additionally, the methamphetamine was sent to the DEA laboratory and tested positive for 274 grams of actual methamphetamine.
Brunos was indicted by a federal grand jury in June of 2019, and entered a guilty plea in August of 2019.
This case was investigated by the Fourth Judicial Drug Task Force and the Drug Enforcement Administration. Assistant United States Attorney Amy Driver prosecuted the case for the Western District of Arkansas.
Northwest Arkansas Man and Woman Sentenced to over 18 Years Combined in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas announced today that Richard Calvin Artz, age 54, from Gravette, Arkansas was sentenced to 87 months imprisonment followed by three years supervised release and Rebekah Ann Wiser, age 36, from Rogers, Arkansas was sentenced to 130 months imprisonment followed by five years supervised release for Aiding and Abetting the Distribution of more than 50 grams of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
According to court records, on December 17, 2018, an undercover police officer purchased 186.75 grams (approximately seven (7) ounces) of methamphetamine from Rebekah Wiser for $3,500. Present near the transaction was Richard Artz, who the investigation determined provided Rebekah Wiser with the methamphetamine to sell to the undercover police officer.
Artz and Wiser were indicted by a federal grand jury in March of 2019 and entered guilty pleas in September of 2019.
This prosecution and investigation was part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
This case was investigated by Homeland Security Investigations and the Rogers, Arkansas Police Department. Assistant United States Attorney Brandon Carter prosecuted the case for the United States.
North Carolina Man Sentenced to 7 Years in Federal Prison for Selling Deadly Weight Loss Drug to ConsumersRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Barry Clint Wright (38, Monroe, NC) to the maximum statutory sentence of seven years in federal prison for introducing an unapproved drug into interstate commerce, introducing a misbranded drug into interstate commerce, and introducing an unapproved drug into interstate commerce with the intent to defraud or mislead. Wright had pleaded guilty on November 1, 2019.
According to court documents, 2,4-Dinitrophenol (DNP) is a chemical substance that, when ingested, causes rapid loss of weight, but is also associated with a high rate of adverse effects including cataracts, hyperthermia, tachycardia, cardiac arrhythmia, and death. In 1938, the U.S. Food and Drug Administration (FDA) declared DNP to be extremely dangerous and not fit for human consumption. At that time, the FDA announced publicly that it would prosecute those who manufacture and distribute DNP for use as a drug.
According to court records, between December 2015 and May 2018, Wright sold DNP to consumers throughout the United States and in a number of foreign countries as a weight loss drug. Wright purchased bulk DNP and encapsulated it into ingestible pills. He also created several websites to market the pills. Wright did not label the pills as DNP, nor did he include any directions or warnings regarding the use of the drug when he mailed it to consumers. Three of these consumers died during or shortly after their DNP use. The official cause of death for two of these victims, 21-year-old V.G. (East London, United Kingdom) and 46-year-old J.P. (Marietta, GA), was DNP toxicity. The other victim, 26-year-old C.W. (Lake Mary, FL), died from cardiac arrhythmia, which can be caused by the use of DNP.
This case was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.