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13 February 2020
Glendale Couple Indicted for Illegal Firearms Possession and Drug Trafficking OffenseRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on February 11, 2020, a federal grand jury returned a three-count indictment against a couple allegedly involved in drug trafficking and firearms offenses in the Eastern District of Wisconsin. The indictment charged Marquis Townsend (age: 39), and Silena Washington (age 29) each of Glendale, WI. The indictment charged the defendants as follows:
DEFENDENTS
COUNT
CHARGE
PENALTIES
Marquis Townsend
One
Possession with Intent to Distribute Marijuana, 21 USC § 841(a)(1) & (b)(1)(c)
Up to 20 years in prison.
Two
Possession of a Firearm in Furtherance of a Drug Trafficking Crime, 18 USC § 924(c)
Mandatory minimum 5 consecutive years in prison, up to life in prison.
Three
Felon in Possession of a Firearm, 18 USC §§ 922(g)(1) and 924(a)(2)
Up to 10 years in prison.
Silena Washington
One
Possession with Intent to Distribute Marijuana, 21 USC § 841(a)(1) & (b)(1)(c)
Up to 20 years in prison.
Two
Possession of a Firearm in Furtherance of a Drug Trafficking Crime, 18 USC § 924(c)
Mandatory minimum 5 consecutive years in prison, up to life in prison.
If convicted, Townsend and Washington face the imposition of fines and terms of supervised release in addition to the imprisonment listed above.
According to the indictment, on January 28, 2020, Townsend and Washington possessed marijuana with the intent to distribute the substance. Townsend and Washington also possessed a Kimber Ultra Carry II .45 caliber pistol; a Glock 22. 40 caliber pistol; a Glock 27 .40 caliber pistol; and a Smith and Wesson .380 caliber pistol in furtherance of drug trafficking. Townsend did so despite knowing he could not legally possess firearms.
This case is being prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
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://go.usa.gov/xpBrs
This case was investigated by the Glendale Police Department. Assistant United States Bridget J. Domaszek will prosecute the case.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Gang Leader Sentenced to 20 Years for Racketeering and Related Offenses, Including an Attempted Murder in A Subway StationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MICHAEL WHITE, a leader of a violent street gang known as the “Young Gunnaz,” was sentenced to 20 years in prison for his participation in the Young Gunnaz, including an attempted murder of three individuals at a subway station on October 28, 2012. WHITE was convicted of racketeering conspiracy, attempted murder in aid of racketeering, and a firearms offense following a two-week trial in October 2018 before U.S. District Judge Robert W. Sweet. U.S. District Judge Analisa Torres imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Michael White, a gang leader, was responsible for a shooting spree in and around NYCHA’s Mill Brook Houses. He shot rival gang members in front of a public school, in a community center, and in a subway station. Today’s sentence recognizes the serious impact of gun violence in our communities. We will continue to aggressively prosecute all who engage in these senseless acts of violence.”
According to the evidence presented in court during the trial:
From at least in or about 2010 through in or about October 2017, WHITE was a member of the Young Gunnaz set of the YGz based in the Mill Brook Houses. WHITE was also a member of MBG, also known as “Money Bitches Guns,” a local gang based in the Mill Brook Houses. As part of his membership in both gangs, WHITE shot seven people. Specifically, on January 25, 2010, WHITE shot and injured a 16-year-old rival on a street corner in the Mill Brook Houses. On January 31, 2010, WHITE shot and injured an 18-year-old rival at a baby shower. Later on January 31, 2010, WHITE shot a rival gang member near a building in the Mill Brook Houses, causing the individual to suffer life threatening injuries. On February 12, 2010, WHITE shot and injured an 18-year-old rival outside a public school. On October 28, 2012, WHITE shot and injured three individuals in the Cypress Avenue Subway Station.
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Mr. Berman praised the outstanding investigative work of the New York City Police Department.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Alexandra Rothman, Jordan Estes, and Gina Castellano are in charge of the prosecution.
Fort Wayne Man Sentenced to 78 Months in PrisonRead the Press Release
FORT WAYNE – Lafayette L. Carr, age 29, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady for possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Carr was sentenced to 78 months in prison followed by 2 years of supervised release.
According to documents in this case, in the early morning hours of April 18, 2019, law enforcement officers served a search warrant on a particular motel room at a motel on Goshen Road in Fort Wayne, Indiana upon information that Carr had sold narcotics in the motel room during the night while armed with a firearm. Inside the motel room, officers located small, pre-packaged amounts of cocaine and heroin, digital scales and baggies. A few feet from the narcotics, officers located a loaded .40 caliber handgun hidden inside the motel room coffee pot.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Indiana State Police and the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Sarah E. Nokes.
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Former Valex Federal Credit Union Employee Sentenced for Bank FraudRead the Press Release
ALEXANDRIA, La. – A former Valex Federal Credit Union loan officer and assistant manager was sentenced today to 21 months in federal prison followed by two years of supervised release for bank fraud, announced United States Attorney David C. Joseph.
U.S. District Judge Dee D. Drell also ordered Cynthia J. Feazell, 49, of Montgomery, Louisiana, to pay $221,426.44 in restitution to Valex Federal Credit Union’s insurer, CUNA Mutual – CUMIS Insurance (CUMIS). According to court documents, Feazell worked as a loan officer and assistant manager at Valex Federal Credit Union (Valex) in Rapides Parish from 1997 to 2016. The defendant decided to purchase a mobile home in 2015 and obtained loan funds from Valex. She did not qualify for the loan, so she transferred three vehicle loans taken out in her name to her mother’s name in order to lower her debt-to-equity ratio so that it would appear she qualified for the loan. Additionally, Feazell authorized loans for her ex-husband, even though she knew he did not meet the Valex credit requirements. Feazell admitted at her guilty plea on September 10, 2019, that she falsified documents to accomplish the scheme and was aware her actions were fraudulent.
The FBI conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Former Tennessee State University Employee Pleads Guilty in Federal Student Loan Fraud SchemeRead the Press Release
NASHVILLE, Tenn. – February 13, 2020 – Renauld Clayton, 32, of Chicago Illinois, formerly of Nashville, pleaded guilty yesterday in U.S. District Court to student loan fraud, aggravated identity theft and wire fraud, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Clayton was indicted in May 2019 after an investigation determined that he had fraudulently received and misappropriated $84,500 in student loan payments.
During the plea hearing, Clayton admitted that during 2014-2015, while employed in the admissions office of Tennessee State University (TSU), he obtained the personal identifying information of TSU students and others and applied for student loans in their names. When the funds were received, Clayton diverted the money to his personal bank account, depositing more than $60,000 during this time for his personal use.
Clayton faces a mandatory minimum of two years in prison and up to 20 years when he is sentenced on June 19, 2020.
This investigation was conducted by the U.S. Department of Education and the U.S. Secret Service, following an internal audit by TSU. Assistant U.S. Attorneys Sara Beth Myers and Kathryn W. Booth are prosecuting the case.
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Former Labor Union President Convicted Conspiracy, Embezzling Union Health Plan Funds and Lying to Federal OfficialsRead the Press Release
LOS ANGELES – The former president of a Colton-based labor union has been found guilty by a jury of 14 felony charges for stealing nearly $800,000 from the union’s health plan fund, which he used to pay for personal expenses including legal bills and a car loan for his son’s Ford Mustang Shelby GT500.
John S. Romero, 73, of Loma Linda, was found guilty late yesterday afternoon of one count of conspiracy, 12 counts of theft in connection with health care, and one count of making a false statement to a government agency. United States District Judge Virginia A. Phillips scheduled an April 27 sentencing hearing, at which time Romero will face a statutory maximum sentence of 130 years in federal prison.
According to evidence presented at his five-day trial, Romero appointed himself president of United Industrial Services Workers of America (UISWA) and the trustee of the UISWA health care plan. Money paid into the plan was supposed to be used exclusively for health care benefits to its participants. Instead, Romero stole the union’s health plan funds for the benefit of himself and his immediate family.
In furtherance of his scheme, Romero appointed a sham trustee who had no prior experience with unions. He also actively misled the third-party administrators of the health plan into making improper payments from the health plan.
From 2008 to 2014, Romero embezzled health plan funds to pay a $110,000 personal civil judgment against himself and his son, John J. Romero, 55, also of Loma Linda. He also embezzled $40,000 to pay criminal defense lawyers who represented Romero in a separate case. Romero funneled more than $310,000 to himself by disguising them as rent payments on two properties he owned and held under a shell company. In addition, he stole more than $300,000 in union health care plan money to make “salary” payments to his family. He also used plan funds to pay off $25,000 loan on his son’s Ford Mustang.
Romero also was convicted of filing a false financial report with the U.S. Department of Labor in which he concealed the existence of more than $100,000 in union receipts and disbursements that Romero held in a secret bank account and from which he made regular payments to his mistress.
Following the guilty verdicts, Judge Phillips ordered Romero into custody, citing the danger he posed in light of evidence that Romero had attempted to intimidate witnesses who testified against him at trial.
Romero advanced his scheme by appointing his son the secretary and treasurer of the union, and his ex-wife, Evelyn Romero, 71, the UISWA president and trustee after 2010. At this time, Romero was serving a two-year federal prison sentence related to making false statements to federal officials made while he was president of a different labor union. Romero’s son, ex-wife, and daughter, Danae Romero, 42, of Loma Linda, have pleaded guilty to criminal charges in the current matter. They are scheduled to be sentenced in the coming months.
This case was investigated by the U.S. Department of Labor, Office of Inspector General; the U.S. Department of Labor, Employee Benefits Security Administration; and the U.S. Department of Labor, Office of Labor Management Standards.
This matter is being prosecuted by Assistant United States Attorneys Susan S. Har and Aaron B. Frumkin of the General Crimes Section.
Former Georgia Youth Softball Umpire Sentenced in Child Sexual Exploitation Case, Judge Orders No Contact with ChildrenRead the Press Release
MACON, Ga. – A former youth softball umpire arrested during “Operation End Game,” a multi-agency effort targeting and arresting adult perpetrators seeking sex with children, was sentenced to prison and will not be allowed to have contact with children without supervision, said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. James Hughes Morriss, 50, of Dacula, Georgia entered a guilty plea on November 19, 2019 to one count of use of facilities in interstate and foreign commerce to transmit information about a minor, and was sentenced to 46 months in prison on Wednesday, February 12, 2020 by U.S. District Court Judge C. Ashley Royal. In addition, once his prison sentence is served, Morriss will be under terms of Court supervision that prohibit him from having contact or working with minors without supervision, and his use of the internet and cellular devices will be monitored by the Court. Morriss will also be required to register as a sex offender. There is no parole in the federal system.
“Law enforcement in Georgia is aggressively working to find and arrest adults preying on children, and our office will vigorously prosecute perpetrators to the maximum extent of the law,” said U.S. Attorney Charlie Peeler. “As a softball umpire, this individual intentionally positioned himself to be around youth. I commend the GBI, FBI and the Athens-Clarke County Police Department for stopping this individual, and for yet another excellent operation protecting Georgia’s children.”
“A dangerous child predator will no longer be free to victimize our children,” said ACCPD Chief Cleveland Spruill. “I’m grateful to U.S. Attorney Peeler and his staff for their efforts holding ‘Operation End Game’ defendants accountable for their crimes. This operation showcases the cooperative work of federal, state and local law enforcement agencies and sends a clear message to sexual predators--our children are our most valuable asset and their protection is a priority.”
“Operation End Game did exactly what it was tasked to do: Put an end to criminal attempts of predators to irreversibly harm young children,” said Debbie Garner, GBI Special Agent in Charge and Commander of the Georgia Internet Crimes Against Children (ICAC) Task Force. “The GBI and the Georgia ICAC Task Force will work tirelessly with our partners to protect our children against those who seek to harm them.”
“This case is an example of the importance of our law enforcement partnerships in our efforts to rid our communities of those who would choose to do harm to the most vulnerable in our society,” said Special Agent in Charge of FBI Atlanta, Chris Hacker. “Those who prey on our children must be held accountable to send a message that this behavior will not be tolerated.”
“Operation End Game” was a three-day proactive effort centered in Athens, Georgia beginning July 25, 2019 to arrest adults communicating with children on-line and then traveling to meet them for the purpose of having sex. On July 26, 2019, an undercover officer communicating with perpetrators online under a profile named “Lizzie” with a photo of a young girl, received notification in the mobile application Skout from an individual later identified as Defendant Morriss. Within the first few exchanges, Defendant Morriss, who was 49 at the time, asked “Lizzie” her age and was told she was only 14-years-old and attended a school in Georgia. Defendant Morriss, familiar with many schools in Georgia due to his work around the state as a youth softball umpire, recognized the named school. Defendant Morris initiated a sexually explicit discussion and suggested an in-person meeting with the child; he also requested and received photos of the purported 14-year-old. Morriss then traveled to meet the 14-year-old child in Athens for sexual purposes, and was arrested at the designated meeting place shortly after midnight on July 27, 2019.
The case was investigated by the U.S. Attorney’s Office for the Middle District of Georgia, the Georgia Internet Crimes Against Children (ICAC) Task Force, the Georgia Bureau of Investigation’s Child Exploitation and Computer Crimes Unit (CEACC), the Athens-Clarke County Police Department (ACCPD), the FBI and the Athens-Clarke County District Attorney’s Office. Assistant U.S. Attorney Lyndie Freeman is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Former EMT Human Resource Manager Indicted for Healthcare FraudRead the Press Release
St. Louis, MO –Kate Palos, 32, of Affton, Missouri, was indicted today by a federal grand jury for her involvement in a healthcare fraud scheme.
According to court documents, Palos was the human resource manager for Express Medical Transporters (EMT), which transported Medicaid patients to medical appointments. In order to receive reimbursements for the transports, EMT had to use drivers who had complied with certain defined requirements. Drivers had to receive CPT and other safety training and not have a history of criminal or other violations that could jeopardize the safety of patients. When EMT did not have compliant drivers, non-compliant drivers would transport the patients. Palos changed, or directed other employees to change, the names on the trip logs and use the names/signatures of compliant drivers. In some instances, Palos used the names of drivers, who were no longer working for EMT at the time the transports were made. These fraudulent documents were submitted to support requests for payment.
Palos faces a penalty up to 10 years’ imprisonment and a fine of $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The U.S. Department of Health and Human Services – Office of the Inspector General, and the Missouri Medicaid Fraud Control Unit investigated this case. Assistant U.S. Attorney Dorothy McMurtry is handling the case for the U.S. Attorney’s Office.
Former Detroit Police Officer Pleads Guilty to Taking $15,000 in Cash Bribes from A Drug TraffickerRead the Press Release
Former Detroit Police Officer Michael Mosley, age 48, pleaded guilty today before the Honorable George Caram Steeh to bribery for taking $15,000 in cash bribes from a drug trafficker, announced U.S. Attorney Matthew Schneider.
Joining Schneider in the announcement was Steven M. D’Antuono, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Officer Mosley is a nineteen-year veteran of the Detroit Police Department. As stated during Mosley’s guilty plea, in April 2019, Mosley was a member of the Police Department’s Major Violators Unit. On April 3, 2019, Detroit police officers, including Officer Mosley, searched a drug trafficker’s house pursuant to a search warrant. The search uncovered two kilograms of heroin, one kilogram of cocaine, and six firearms. The drug trafficker confessed to owning the three kilograms of drugs to Officer Mosley, and the trafficker signed a confession. After the April 3 search, Officer Mosley remained in contact with the drug trafficker in an effort to secure the trafficker’s cooperation concerning other criminal activity.
Subsequently, the drug trafficker offered Officer Mosley a cash bribe of $15,000 in exchange for not pursuing criminal charges based on the three kilogram drug seizure. Officer Mosley agreed to the deal. On May 2, 2019, Officer Mosley collected $10,000 in cash that the drug dealer left for Mosley in the backyard of an abandoned house in Detroit. On May 23, 2019, Officer Mosley accepted another $5,000 in cash left for him by the drug trafficker at the abandoned house. In exchange, Officer Mosley gave the drug trafficker the original copy of his confession.
In addition to pleading guilty to one count of bribery, Mosley will be forfeiting the $15,000 he took in bribes.
U.S. Attorney Matthew Schneider commended the outstanding work of the FBI in conducting this criminal investigation of a corrupt police officer.
“It’s rare that a police officer commits a crime, but in this case Officer Mosley betrayed his oath as a police officer, and he betrayed the citizens of Detroit and the vast majority of his fellow officers who seek to protect and serve with integrity,” stated United States Attorney Matthew Schneider. “This prosecution demonstrates that we will not tolerate public officials who abuse their authority and seek to use their power to line their own pockets.”
“The citizens of Detroit deserve better from their public servants. Wrongdoing by police officers undermines the public's trust and confidence in law enforcement officers who are sworn to defend and uphold the law,” said Special Agent in Charge D’Antuono. “The men and women of the Detroit Police Department are dedicated to serving this community and misconduct by one of its officers is not a reflection of the entire force. However, the FBI will do everything in its power to bring corrupt police officers to justice and to restore faith in the integrity of law enforcement throughout the city.”
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, David A. Gardey, and Shankar Ramamurthy.
Former Dentist Sentenced to 71 Months for Health Care FraudRead the Press Release
WASHINGTON – Bilal Ahmed, 47, of Potomac, Maryland, was sentenced to 71 months’ incarceration on February 10, 2020, having pled guilty to a federal charge of health care fraud stemming from a scheme in which he and others caused the District of Columbia’s Medicaid program to be defrauded out of more than $5 million. The Honorable Judge Colleen Kollar-Kotelly granted the parties’ joint request for a sentence that runs concurrently with a 16-year sentence that Ahmed currently is serving for sexually assaulting patients. The Court also ordered Ahmed to pay $5,421,227 in restitution and $3,978,879.93 in forfeiture.
The announcement was made Monday, February 10, 2020 by U.S. Attorney Timothy J. Shea, Timothy M. Dunham, Special Agent in Charge, FBI Washington Field Office, Criminal Division, Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General, for the region that includes Washington, D.C., and Daniel W. Lucas, Inspector General for the District of Columbia.
Ahmed was indicted in January 2019, along with his former office manager, on one count of conspiracy to commit health care fraud, one count of health care fraud, and five counts of wire fraud. Ahmed pled guilty in the U.S. District Court for the District of Columbia to Count II of the Indictment and the remaining charges were dismissed at sentencing.
According to the statement of offense submitted to the Court at the time of the plea hearing, Ahmed was a practicing dentist who owned and operated Universal Smiles, a dental practice, in Northwest, Washington, D.C. When Ahmed’s dental license was suspended by the D.C. Dentistry Board, and subsequently was surrendered by him, Ahmed opened and operated Dental Equipment and Services (“DES”). DES was a Maryland company that employed dentists on contract to work at Universal Smiles’ former business location in the District of Columbia. According to court paperwork, through Universal Smiles and DES, Ahmed and his office manager engaged in a scheme to enrich themselves by defrauding D.C. Medicaid, a health care benefits program jointly funded by the federal government and the District of Columbia to provide health care services to residents who meet the income qualifying requirements. As part of the scheme, Ahmed applied to be a Medicaid provider. According to Ahmed’s admissions, once approved to bill Medicaid, he and the office manager sought to increase the dental practice’s profits by recruiting Medicaid recipients as patients and then then billing D.C. Medicaid for thousands of provisional crowns that were not provided to the patients. From August 9, 2012, through February 26, 2014, D.C. Medicaid paid Universal Smiles approximately $12.4 million; and it paid DES approximately $1.2 million from November 17, 2014, though February 1, 2016. According to court paperwork, more than one-third of the money paid out by D.C. Medicaid was for services that Ahmed’s dental offices did not provide.
The indictment remains pending with respect to Ahmed’s former office manager, who has pled not guilty and whose case is set for trial on June 1, 2020. An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the sentence, U.S. Attorney Shea, Special Agent in Charge Dunham, and Special Agent in Charge Dixon commended the work of those who investigated the case from the FBI’s Washington Field Office, the U.S. Department of Health and Human Services Office of Inspector General, and the District of Columbia’s Office of the Inspector General. They also expressed appreciation for the work of Paralegal Specialists Aisha Keys, Brittany Phillips, Lauren Hernandez and Amanda Rohde, Forensic Financial Analyst Bryan Snitselaar, and the D.C. OIG Medicaid Fraud Control Unit. Finally, they commended the work of Assistant U.S. Attorney Emily A. Miller, and former Assistant U.S. Attorneys Denise A. Simmonds, Michelle Bradford and Lionel Andre, who prosecuted the case.
Former Caregiver Pleads Guilty to Obstructing Investigation Related to Violation of Disabled Resident’s Civil RightsRead the Press Release
Anthony R. K. Flores, a former employee of a Missouri residential treatment facility, pleaded guilty in federal court in the Western District of Missouri to criminal charges arising from a civil rights investigation into the death of C.D., a Missouri ward of the state with developmental disabilities. Flores pleaded guilty to one count of obstructing justice by knowingly falsifying a document with the intent to impede, obstruct, and influence an investigation related to the death of C.D.
According to the plea agreement, Flores worked as a caregiver at Second Chance Homes, an organization that provided housing and care for developmentally disabled persons through a Missouri Department of Mental Health initiative. Victim C.D. had been a resident at Second Chance Homes since 2008.
In early 2016, C.D.’s health deteriorated over a period of several months, culminating in his death later that year. Prior to the law enforcement becoming aware of C.D.’s death, he was reported missing by his primary caretaker, Sherry Paulo. In 2019, Sherry Paulo and Anthony Flores – the defendant’s parents – pleaded guilty to civil rights violations in connection with C.D.’s death.
Flores admitted in his plea agreement that after C.D. was reported missing to the Fulton Police Department, Flores wrote a false statement in which he stated that he saw C.D. alive and well on April 16, 2017. Flores did so while knowing that he had not seen C.D. in at least six months.
“The defendants’ actions in seeking to impede law enforcement from locating a developmentally disabled individual are unacceptable,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division will continue to hold people accountable who seek to obstruct the investigation of criminal civil rights offenses.”
“The defendant attempted to cover up a crime and lied to authorities who were searching for the missing victim,” said U.S. Attorney Tim Garrison of the Western District of Missouri. “Obstructing justice and impeding an investigation won’t be tolerated. Our nation’s civil rights laws are designed to protect the most vulnerable members of our society, which each one of us is morally and legally obligated to uphold.”
“The FBI will continue to work aggressively with our federal, state and local partners to protect the civil rights of every citizen. We will remain steadfast in our commitment to seek justice on behalf of all victims and aggressively investigate and bring those responsible to justice,” said Timothy Langan, Special Agent in Charge of the FBI in Kansas City, Missouri.
“Flores’ efforts to obstruct the investigation into the death of this vulnerable individual is a serious crime that demands punishment,” said Curt L. Muller, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “Coordinating with our law enforcement partners, we are committed to investigating such misconduct.”
Under Flores’s plea agreement, he faces a maximum of 24 months incarceration. A sentencing hearing will be scheduled after the completion of a pre-sentence investigation by the United States Probation Office.
This case was investigated by the Jefferson City Resident Agency of the FBI Kansas City Division and the St. Louis Field Office of the Department of Health and Human Services Office of the Inspector General Kansas City Region. The case is being prosecuted by Assistant United States Attorneys Cindi Woolery and Gregg Coonrod of the U.S. Attorney’s Office, Special Litigation Counsel Julia Gegenheimer and Trial Attorney Janea Lamar of the Department of Justice Civil Rights Division Criminal Section. The Fulton, Missouri Police Department and Callaway County Prosecutor Christopher Wilson contributed significantly to the successful investigation and prosecution of this matter.
Five Indicted for Firearms Offenses in Sacramento, Fairfield, Stockton, and FresnoRead the Press Release
SACRAMENTO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime by focusing on firearms prosecutions, U.S. Attorney McGregor W. Scott announced that a federal grand jury has returned indictments in the following cases involving illegal firearms offenses.
Andre Parker, 54, of Sacramento, was charged today with being a felon in possession of a firearm. According to court documents, on Dec. 29, 2019, law enforcement officers stopped a vehicle in which Parker was riding and found a Springfield XD .45-caliber handgun underneath Parker’s seat. Parker has several prior felony convictions—including prior felon-in-possession-of-a-firearm convictions—which prohibit him from possessing a firearm. This case is the product of an investigation by the Sacramento County District Attorney’s Office, the Sacramento Police Department, and the Federal Bureau of Investigation. Assistant U.S. Attorney Aaron D. Pennekamp is prosecuting the case.
Derick Louangamath, 30, of Sacramento, was charged today with being a felon in possession of a firearm. According to court documents, on Nov. 23, 2019, law enforcement officers stopped a vehicle that Louangamath was driving and found a Glock 26, along with loaded 10-, 15-, and 33-round magazines. Louangamath has several prior felony convictions—including prior felon-in-possession-of-a-firearm convictions—which prohibit him from possessing a firearm. This case is the product of an investigation by the Sacramento County District Attorney’s Office, the Sacramento Police Department, and the FBI. Assistant U.S. Attorney Aaron D. Pennekamp is prosecuting the case.
Hack Townsend Culling Jr., 27, of Fairfield, was charged on Feb. 6 with being a felon in possession of a firearm. According to court documents, in April 2019, law enforcement officers stopped Culling for various traffic violations. The officers searched Culling and his motorcycle based on Culling’s status on post-release community supervision and found a .25-caliber pistol in one of the saddle bags on Culling’s motorcycle. Culling cannot lawfully possess firearms or ammunition because he has previously been convicted of six felony offenses, five of the convictions are domestic violence offenses. This case is the product of an investigation by the Fairfield Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
Gabriel Mata, 25, of Fresno, was charged on Feb. 6 with being a felon in possession of a firearm. According to court documents, on Jan. 19, law enforcement officers discovered that Mata possessed a loaded Smith & Wesson M&P, .40-caliber, semi-automatic pistol. Mata has three prior felony convictions—including one prior felon-in-possession-of-a-firearm conviction—which prohibit him from possessing a firearm. This case is the product of an investigation by the FBI and the Fresno Police Department. Assistant U.S. Attorney Anthony Yim is prosecuting the case.
Lawrence Macken, 42, of Stockton, was charged on Jan. 24 with being a felon in possession of a firearm. According to court documents, on Dec. 12, 2019, law enforcement officers stopped Macken’s vehicle and found a Bersa Firestorm .380 semi-automatic handgun in the dash compartment near the driver’s seat. Macken has numerous prior felony convictions—including two felon-in-possession-of-a-firearm convictions, two assault convictions, and multiple vehicle-theft convictions—which prohibit him from possessing a firearm. This case is the product of an investigation by the San Joaquin County District Attorney’s Office, the Stockton Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Aaron D. Pennekamp is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
The cases are 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 www.justice.gov/projectguardian.
Federal fraud complaint filed against men accused of scamming hotels, limousine serviceRead the Press Release
AUGUSTA, GA: A criminal complaint filed in U.S. District Court in Augusta charges two men with using fraudulent and stolen credit cards to steal from hotels and a limousine company.
Aaron Barnes-Burpo, 28, of Crestview, Fla., and Walker Washington, 51, who is listed as homeless, are charged with one count of Conspiracy to Commit Wire Fraud and Aggravated Identity Theft, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
“Thanks to alert citizens in Augusta who acted on their suspicions, this crime spree across the country came to an abrupt halt in the Southern District of Georgia,” said U.S. Attorney Christine.
The complaint alleges that Barnes-Burpo and Washington organized a group of men and women who portrayed themselves as affiliated with the Roc Nation production company and the hip-hop group Wu-Tang Clan, and used those fictitious representations along with fraudulent and stolen credit cards to rent luxury limousines, including a Rolls-Royce, and defraud hotels of thousands of dollars in goods and services in cities including Atlanta, Macon and Nashville.
The scam unraveled when staff at the Fairfield Inn and Suites in Augusta became suspicious and alerted authorities.
“The FBI would like to thank the staff of the Fairfield Inn in Augusta for their awareness that helped end the run of these alleged fraudsters,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The arrests should serve as a warning that no matter how elaborate fraud schemes are, the FBI is determined to protect American citizens who fall victim to them.”
A criminal complaint contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI and the Richmond County Sheriff’s Office, and is being prosecuted for the United States by Assistant U.S. Attorney Patricia Rhodes.
Federal Jury Convicts Defendant on Attempted Enticement of a MinorRead the Press Release
United States Attorney Brandon J. Fremin announced the conviction of Jonathan Francis Kimbrell, a 45-year-old resident of Livingston, Louisiana. Kimbrell was indicted by a federal grand jury on June 20, 2019, and charged with the attempted enticement of a minor.
After a four-day trial before U.S. District Judge John W. deGravelles, the jury unanimously convicted Kimbrell after deliberating for approximately two hours. As the evidence at trial demonstrated, from May 2, 2019, until June 6, 2019, the defendant communicated online with two undercover FBI agents. The defendant believed that he was communicating with an 11-year old girl, her stepfather, and her mother, when in fact, the FBI agents had undertaken those online personas. The defendant believed that the “stepfather” had been repeatedly molesting his “stepdaughter” and was now offering the “child” for sexual encounters by another adult. The defendant did his best to convince the stepfather, mother, and child that he should be allowed to join in molesting the child. Hundreds of emails were exchanged over more than 30 days in which Kimbrell sent numerous graphic emails describing how he would have sex with the child. Kimbrell also did his best to convince the three that sex would be better with him than with the stepfather. During the conversations with the fictitious child, Kimbrell developed and encouraged the nicknames of “Turtle” for himself and “Princess” for the child. Eventually, Kimbrell met the undercover agents who he believed to be the stepfather and mother at a restaurant in Denham Springs to discuss the ground rules for his first sexual encounter with the 11-year old girl. At this meeting, the defendant believed the child to be waiting in a motel room across the parking lot. Kimbrell was arrested as he left the restaurant walking toward the motel where he believed the child was waiting. When he was arrested, Kimbrell was found to be in possession of two boxes of condoms, personal lubricant, and baby oil. Kimbrell was also in possession of a rhinestone key chain that spelled out “Princess,” which he had purchased as a gift for the child.
As a result of this conviction, Kimbrell faces a maximum sentence of not less than ten years and up to life in federal prison, a fine of $250,000, and supervised release of not less than five years and up to life. In addition to the supervised release, Kimbrell will be subject to federal and state sex offender registration requirements, which will apply throughout his life.
U.S. Attorney Fremin stated, “Justice was achieved today. The evidence presented at trial clearly established that the defendant took several steps to engage in sexual conduct with a minor and that he worked continuously to achieve his goal. This conviction illustrates that protecting our children from people like Jonathan Kimbrell will continue to be a top priority of this office. I commend the excellent work of the prosecutors and agents involved in this important matter, and we look forward to continuing to work with our law enforcement partners to aggressively pursue offenders who target the most vulnerable members of our community.”
Bryan A. Vorndran, FBI New Orleans Special Agent in Charge, stated, “Protecting children against predators is paramount. The FBI’s Baton Rouge Crimes Against Children and Human Trafficking Task Force intercepted Jonathan Kimbrell while he was enroute to meet an 11-year old child for the purposes of engaging in sex. The men and women of the FBI New Orleans Field Office will continue to aggressively pursue those who attempt to harm and exploit children.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Frederick A. Menner, Jr. and Demetrius D. Sumner.
Dustin Richards Sentenced to 97 Months in Prison for Child Pornography OffensesRead the Press Release
Knoxville, Tenn. - On February 13, 2020, Dustin Ray Richards, 26, of Knoxville, Tennessee, was sentenced by United States District Judge Thomas A. Varlan to serve 97 months in federal prison for receiving and possessing child pornography. Following his imprisonment, Richards will be supervised by the U.S. Probation Office for 10 years and will be required to register with the state sex offender registry in any state in which he lives, works, or attends school.
In March 2018, Knoxville Police Department’s Internet Crimes Against Children Unit investigated to identify individuals who were using peer-to-peer software to share child pornography within Tennessee. The investigation uncovered an Internet Protocol (“IP”) address in Knoxville that was making child pornography files available for downloading. The IP address was traced to Richards and a federal search warrant was executed on his residence. The execution of a federal search warrant led to the discovery of over 10,000 images and videos containing child pornography stored on Richards’s computer.
The case was investigated by the Knoxville Police Department’s Internet Crimes Against Children Unit. Assistant U.S. Attorney Matthew T. Morris represented the United States in Court.
This case was brought forward as part of Project Safe Childhood (PSC), 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 U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet and to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
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Dubois Man Sentenced n for Defrauding Social SecurityRead the Press Release
JOHNSTOWN, Pa. – A resident of DuBois, Pa. has been sentenced in federal court in Johnstown to 3 years’ probation with 180 days of home detention on his conviction of conversion of government funds, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Daniel P. McIntosh, 41.
According to information presented to the court, from Aug. 1, 2014, to July 31, 2016, McIntosh did receive and convert falsely to his own use a total of $41,529.70, which represents approximately 115 separate Social Security Administration benefit payments made to him and also to him as representative payee for his wife and minor children, to which he or they were not entitled.
Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.
Mr. Brady commended the Social Security Administration, Office of Inspector General for the investigation that led to the successful prosecution of McIntosh.
District Woman Found Guilty of Financial Exploitation of an Elderly Vulnerable AdultRead the Press Release
WASHINGTON - Moureen Masika, 31, was found guilty on Monday, February 10, 2020, of one count of Financial Exploitation of an Elderly Person or Vulnerable Adult and three counts of Second-Degree Theft after a jury trial. The incidents were part of a fraud scheme perpetrated by Masika, a home health aide, on her patient, an 88-year-old man with dementia, announced U.S. Attorney Timothy J. Shea. This trial is the first involving the charge of Financial Exploitation of an Elderly Person or Vulnerable Adult in D.C. since the crime was passed into law in 2016. Sentencing is scheduled for March 9, 2020.
According to the government’s evidence, over the course of five months in 2018, Masika made 49 trips to CVS during which she obtained over $3,000 in cash using the victim’s debit card. To maximize the cash obtained, Masika would make multiple transactions back-to-back and request cash back at each transaction. Her fraud came to an abrupt end when the victim’s family confronted her.
In announcing the verdict, U.S. Attorney Shea commended the work of the Metropolitan Police Department, including the Financial and Cyber Crimes Unit, which investigated the case. He also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Special Assistant U.S. Attorney Jennifer Mika, who is detailed from the Office of the Attorney General for the District of Columbia to handle financial crime cases involving elderly victims; Assistant U.S. Attorneys Beth Kelley and Stephanie Miller; and paralegals Chad Byron and Antoinette Sakamsa.
This prosecution is part of the Office’s wider efforts to combat crimes against seniors. In 2018, the U.S. Attorney’s Office for the District of Columbia and the Office of the Attorney General for the District of Columbia simultaneously launched initiatives to address the abuse and exploitation of older adults. The Elder Abuse and Financial Exploitation Initiative at the U.S. Attorney’s Office expanded its response to criminal and civil violations targeting older adults. The initiative has enabled the U.S. Attorney’s Office to develop and coordinate further its prosecution of these cases and enhance its overall support of older or vulnerable victims. The team consists of experienced prosecutors and victim advocates from across the Office, to include the Superior Court, Criminal, and Civil Divisions, as well as the Victim Witness Assistance Unit. This prosecution marks the first time that the U.S. Attorney’s Office and the Office of the Attorney General have together prosecuted a case of this kind, and this collaboration is continuing.
Chinese Telecommunications Conglomerate Huawei and Subsidiaries Charged in Racketeering Conspiracy and Conspiracy to Steal Trade SecretsRead the Press Release
A superseding indictment was returned yesterday in federal court in Brooklyn, New York, charging Huawei Technologies Co. Ltd. (Huawei), the world’s largest telecommunications equipment manufacturer, and two U.S. subsidiaries with conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO).
Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; John C. Demers, Assistant Attorney General of the Justice Department’s National Security Division; Richard P. Donoghue, U.S. Attorney for the Eastern District of New York and Christopher A. Wray, Director, FBI, announced the charges.
The 16-count superseding indictment also adds a charge of conspiracy to steal trade secrets stemming from the China-based company’s alleged long-running practice of using fraud and deception to misappropriate sophisticated technology from U.S. counterparts.
The indicted defendants include Huawei and four official and unofficial subsidiaries — Huawei Device Co. Ltd. (Huawei Device), Huawei Device USA Inc. (Huawei USA), Futurewei Technologies Inc. (Futurewei) and Skycom Tech Co. Ltd. (Skycom) — as well as Huawei’s Chief Financial Officer (CFO) Wanzhou Meng (Meng). The new superseding indictment also contains the charges from the prior superseding indictment, which was unsealed in January 2019.
As revealed by the government’s independent investigation and review of court filings, the new charges in this case relate to the alleged decades-long efforts by Huawei, and several of its subsidiaries, both in the U.S. and in the People’s Republic of China, to misappropriate intellectual property, including from six U.S. technology companies, in an effort to grow and operate Huawei’s business. The misappropriated intellectual property included trade secret information and copyrighted works, such as source code and user manuals for internet routers, antenna technology and robot testing technology. Huawei, Huawei USA and Futurewei agreed to reinvest the proceeds of this alleged racketeering activity in Huawei’s worldwide business, including in the United States.
The means and methods of the alleged misappropriation included entering into confidentiality agreements with the owners of the intellectual property and then violating the terms of the agreements by misappropriating the intellectual property for the defendants’ own commercial use, recruiting employees of other companies and directing them to misappropriate their former employers’ intellectual property, and using proxies such as professors working at research institutions to obtain and provide the technology to the defendants. As part of the scheme, Huawei allegedly launched a policy instituting a bonus program to reward employees who obtained confidential information from competitors. The policy made clear that employees who provided valuable information were to be financially rewarded.
Huawei’s efforts to steal trade secrets and other sophisticated U.S. technology were successful. Through the methods of deception described above, the defendants obtained nonpublic intellectual property relating to internet router source code, cellular antenna technology and robotics. As a consequence of its campaign to steal this technology and intellectual property, Huawei was able to drastically cut its research and development costs and associated delays, giving the company a significant and unfair competitive advantage.
When confronted with evidence of wrongdoing, the defendants allegedly made repeated misstatements to U.S. officials, including FBI agents and representatives from the U.S. House Permanent Select Committee on Intelligence, regarding their efforts to misappropriate trade secrets. Similarly, the defendants engaged in obstructive conduct to minimize litigation risk and the potential for criminal investigations, including the very investigation that led to this prosecution.
The superseding indictment also includes new allegations about Huawei and its subsidiaries’ involvement in business and technology projects in countries subject to U.S., E.U. and/or U.N. sanctions, such as Iran and North Korea – as well as the company’s efforts to conceal the full scope of that involvement. The defendants’ activities, which included arranging for shipment of Huawei goods and services to end users in sanctioned countries, were typically conducted through local affiliates in the sanctioned countries. Reflecting the inherent sensitivity of conducting business in jurisdictions subject to sanctions, internal Huawei documents allegedly referred to such jurisdictions with code names. For example, the code “A2” referred to Iran, and “A9” referred to North Korea.
Huawei employees also allegedly lied about Huawei’s relationship to Skycom, falsely asserting it was not a subsidiary of Huawei. The company further claimed that Huawei had only limited operations in Iran and that Huawei did not violate U.S. or other laws or regulations related to Iran. In fact, the indictment alleges Skycom was Huawei’s unofficial subsidiary that, among other services, assisted the Government of Iran in performing domestic surveillance, including during the demonstrations in Tehran in 2009.
The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The government’s investigation is ongoing. Individuals with knowledge of misconduct by Huawei, its subsidiaries, employees or agents should contact the FBI’s New York Field Office at 1-800-CALL-FBI.
The FBI’s New York Field Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (HSI) New York Field Office, U.S. Department of Commerce Office of Export Enforcement’s (OEE) New York Field Office and the Defense Criminal Investigative Service’s (DCIS) Southwest and Northeast Field Offices are jointly conducting the investigation. Agents from the FBI, HSI and OEE offices in Dallas provided significant support and assistance. The government’s case is being handled by the U.S. Attorney’s Office for the Eastern District of New York, the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and the National Security Division’s Counterintelligence and Export Control Section (CES).
Assistant U.S. Attorneys Alexander A. Solomon, Julia Nestor, David K. Kessler and Sarah Evans, MLARS Trial Attorneys Laura Billings and Christian Nauvel and CES Trial Attorneys Thea D. R. Kendler and David Lim are in charge of the prosecution, with assistance provided by Assistant U.S. Attorney Brendan G. King of the Civil Division of the U.S. Attorney’s Office for the Eastern District of New York and Trial Attorneys Margaret O’Malley and John Riesenberg of the Criminal Division’s Office of International Affairs. Additional Criminal Division and National Security Division Trial Attorneys and Assistant U.S. Attorneys within U.S. Attorney’s Offices for the Northern District of Texas, the Northern District of Illinois, the Eastern District of Texas, the Western District of Washington and the Northern District of California have provided valuable assistance with various aspects of this investigation.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Chinese Telecommunications Conglomerate Huawei and Subsidiaries Charged in Racketeering Conspiracy and Conspiracy to Steal Trade SecretsRead the Press Release
WASHINGTON – A superseding indictment was returned yesterday in federal court in Brooklyn, New York, charging Huawei Technologies Co., Ltd. (Huawei), the world’s largest telecommunications equipment manufacturer, and two U.S. subsidiaries with conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO).
The 16-count superseding indictment also adds a charge of conspiracy to steal trade secrets stemming from the China-based company’s alleged long-running practice of using fraud and deception to misappropriate sophisticated technology from U.S. counterparts.
The indicted defendants include Huawei and four official and unofficial subsidiaries — Huawei Device Co., Ltd. (Huawei Device), Huawei Device USA Inc. (Huawei USA), Futurewei Technologies, Inc. (Futurewei) and Skycom Tech Co. Ltd. (Skycom) — as well as Huawei’s Chief Financial Officer (CFO) Wanzhou Meng (Meng).[1] The new superseding indictment also contains the charges from the prior superseding indictment, which was unsealed in January 2019.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; John C. Demers, Assistant Attorney General of the Justice Department’s National Security Division; and Christopher A. Wray, Director, Federal Bureau of Investigation (FBI), announced the charges.
Mr. Donoghue thanked the FBI, Homeland Security Investigations (HSI), U.S. Department of Commerce Office of Export Enforcement (OEE) and the Defense Criminal Investigative Service (DCIS) agents who are investigating this case for their tireless work and dedication.
As revealed by the government’s independent investigation and review of court filings, the new charges in this case relate to the alleged decades-long efforts by Huawei, and several of its subsidiaries, both in the U.S. and in the People’s Republic of China, to misappropriate intellectual property, including from six U.S. technology companies, in an effort to grow and operate Huawei’s business. The misappropriated intellectual property included trade secret information and copyrighted works, such as source code and user manuals for internet routers, antenna technology and robot testing technology. Huawei, Huawei USA and Futurewei agreed to reinvest the proceeds of this alleged racketeering activity in Huawei’s worldwide business, including in the United States.
The means and methods of the alleged misappropriation included entering into confidentiality agreements with the owners of the intellectual property and then violating the terms of the agreements by misappropriating the intellectual property for the defendants’ own commercial use, recruiting employees of other companies and directing them to misappropriate their former employers’ intellectual property, and using proxies such as professors working at research institutions to obtain and provide the technology to the defendants. As part of the scheme, Huawei allegedly launched a policy instituting a bonus program to reward employees who obtained confidential information from competitors. The policy made clear that employees who provided valuable information were to be financially rewarded.
Huawei’s efforts to steal trade secrets and other sophisticated U.S. technology were successful. Through the methods of deception described above, the defendants obtained nonpublic intellectual property relating to internet router source code, cellular antenna technology and robotics. As a consequence of its campaign to steal this technology and intellectual property, Huawei was able to drastically cut its research and development costs and associated delays, giving the company a significant and unfair competitive advantage.
When confronted with evidence of wrongdoing, the defendants allegedly made repeated misstatements to U.S. officials, including FBI agents and representatives from the U.S. House Permanent Select Committee on Intelligence, regarding their efforts to misappropriate trade secrets. Similarly, the defendants engaged in obstructive conduct to minimize litigation risk and the potential for criminal investigations, including the very investigation that led to this prosecution.
The superseding indictment also includes new allegations about Huawei and its subsidiaries’ involvement in business and technology projects in countries subject to U.S., E.U. and/or U.N. sanctions, such as Iran and North Korea – as well as the company’s efforts to conceal the full scope of that involvement. The defendants’ activities, which included arranging for shipment of Huawei goods and services to end users in sanctioned countries, were typically conducted through local affiliates in the sanctioned countries. Reflecting the inherent sensitivity of conducting business in jurisdictions subject to sanctions, internal Huawei documents allegedly referred to such jurisdictions with code names. For example, the code “A2” referred to Iran, and “A9” referred to North Korea.
Huawei employees also allegedly lied about Huawei’s relationship to Skycom, falsely asserting it was not a subsidiary of Huawei. The company further claimed that Huawei had only limited operations in Iran and that Huawei did not violate U.S. or other laws or regulations related to Iran. In fact, the indictment alleges Skycom was Huawei’s unofficial subsidiary that, among other services, assisted the Government of Iran in performing domestic surveillance, including during the demonstrations in Tehran in 2009.
The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The government’s investigation is ongoing. Individuals with knowledge of misconduct by Huawei, its subsidiaries, employees or agents should contact the FBI’s New York Field Office at 1-800-CALL-FBI.
The investigation is being jointly conducted by the FBI’s New York Field Office, HSI’s New York Field Office, OEE’s New York Field Office and DCIS’s Southwest and Northeast Field Offices. Agents from the FBI, HSI and OEE offices in Dallas provided significant support and assistance. The government’s case is being handled by the U.S. Attorney’s Office for the Eastern District of New York, the Justice Department Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and the Justice Department National Security Division’s Counterintelligence and Export Control Section (CES).
Assistant U.S. Attorneys Alexander A. Solomon, Julia Nestor, David K. Kessler and Sarah Evans, MLARS Trial Attorneys Laura Billings and Christian Nauvel and CES Trial Attorneys Thea D. R. Kendler and David Lim are in charge of the prosecution, with assistance provided by Assistant U.S. Attorney Brendan G. King of the Civil Division of the U.S. Attorney’s Office for the Eastern District of New York and Trial Attorneys Margaret O’Malley and John Riesenberg of DOJ’s Office of International Affairs. Additional Criminal Division and National Security Division Trial Attorneys and Assistant U.S. Attorneys within U.S. Attorney’s Offices for the Northern District of Texas, the Northern District of Illinois, the Eastern District of Texas, the Western District of Washington and the Northern District of California have provided valuable assistance with various aspects of this investigation.
The Defendants:
Huawei Technologies Co. Ltd.
Huawei Device Co., Ltd.
Huawei Device USA Inc.
Futurewei Technologies, Inc.
Skycom Tech Co. Ltd.
E.D.N.Y. Docket No. 18-CR-457 (AMD)
[1] The superseding indictment charges other individuals who have not yet been apprehended and whose names will not be publicly released at this time.
Centre County Man Sentenced to 18 Months’ Imprisonment for Income Tax EvasionRead the Press Release
WILLIAMSPORT—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeremy Snyder, age 43, of State College, Pennsylvania, was sentenced on February 10, 2020, by U.S. District Court Judge Matthew W. Brann to 18 months’ imprisonment followed by two years on supervised release, for income tax evasion.
According to United States Attorney David J. Freed, as an employee of Number One Cycle Centre, in Centre County, Snyder embezzled over $800,000 from the business between 2009 and 2016. Snyder failed to pay income tax on the funds he embezzled, resulting in a tax loss of approximately $211,000 and a total of $222,000 in additional penalties and interest due the IRS.
The case was investigated by the Internal Revenue Service. Assistant U.S. Attorney Scott R. Ford prosecuted the case.
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Cedar Rapids Man Involved in Large-Scale Heroin Ring Found Guilty After Jury TrialRead the Press Release
A federal jury found a man who conspired with other people to sell heroin in Cedar Rapids guilty on February 12, 2020, after a jury trial.
Devontae Horton, age 25, from Cedar Rapids, Iowa, was found guilty after a three day jury trial. The jury found Horton guilty of conspiring to distribute 100 grams or more of heroin and distribution of heroin.
Evidence at trial showed that between approximately June 2015 and April 2019, Horton, and up to twelve others, conspired to distribute heroin in the Cedar Rapids area. The group was known as the “Ferrari” group. The members used one phone number, known as the “Ferrari phone,” to arrange and conduct heroin transactions. At times, ten to twenty people a day called the phone for the sole purpose of purchasing heroin. In October 2018, Cedar Rapids police officers attempted to stop a vehicle occupied by Horton and another member of the Ferrari group, Jarel Williams. Horton and Williams attempted to get away from police, eventually running on foot. Police caught up with both men and located over $3,000 in cash in Horton’s front pocket. The cash was drug proceeds. In November 2018, investigators utilized a confidential source to arrange a purchase of heroin. The source contacted Jarel Williams at what was believed to be the “Ferrari phone.” Williams agreed to sell the source a half gram of heroin. Horton arrived instead and provided the confidential source approximately a half gram of heroin for $80. Evidence showed that Horton and Williams had operated like this on at least five other occasions. Multiple witnesses testified that Horton had provided them heroin in the past.
The case was prosecuted by Assistant United States Attorneys Ashley Corkery and Elizabeth Dupuich and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration, the Iowa Division of Narcotics Enforcement, Cedar Rapids Police Department, Marion Police Department, and the Linn County Sheriff’s Office.
Horton is being held in the United States Marshal’s custody until he can be sentenced. A sentencing date has not yet been set. Jarel Williams previously pled guilty to conspiring to distribute 1,000 grams or more of heroin and distribution of heroin. Williams will also be sentenced at a later date. Six other members of the group were also charged for their involvement. All six previously pled guilty and are awaiting sentencing.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-45.
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Burglary and Firearm Theft Leads to Prison Sentences for Three Members of Menominee Indian Tribe of WisconsinRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that three members of the Menominee Indian Tribe of Wisconsin received sentences for their roles in the theft of a firearm from a residence on the Menominee Indian Reservation. The sentences, imposed by Senior United States District Judge William C. Griesbach, were the result of guilty pleas to the following charges:
Defendant
Charge of Conviction
Sentencing date
Months of Prison
Months of Supervised Release
Brett L. O’Kimosh (age: 42), of Keshena, WI
Possession of a Firearm by a Felon
02/13/2020
36
36
Anthony Boyd (age: 23), formerly of Green Bay, WI
Aiding or Abetting a Burglary
08/26/2019
18
36
Mary Ann Dodge (age: 33), of Shawano, WI
Aiding or Abetting a Burglary
08/26/2019
18
36
According to court filings, the defendants agreed to burglarize the Keshena residence of a relative. The three then drove to the residence. Once there, Boyd assisted O’Kimosh, who stole a rifle from inside the house. A resident inside the home chased the three away before they could steal more property, and Dodge drove the other two away. The three traveled to a home in Neopit, where they traded the rifle for drugs.
When imposing sentence, Judge Griesbach noted the serious nature of the conduct, the abuse of trust involved in taking advantage of a family member, and the need to deter others who would consider similar conduct.
The case was investigated by the Menominee Tribal Police Department and Federal Bureau of Investigation. Assistant United States Attorney Andrew J. Maier prosecuted the case.
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Bronx, New York, Man Admits Role in Conspiracy to Distribute Heroin and Fentanyl from Drug Mill in the BronxRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted participating in a conspiracy to distribute heroin and fentanyl from a drug mill in the Bronx to locations in New Jersey, U.S. Attorney Craig Carpenito announced.
Daury Contreras Ulerio, 35, a/k/a “Majimbou,” pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Dilson Vazquez Genao, 23, Eddie Urena Rodriguez, 35, Francisco Mercedes Gil, 31, and Jose Antonio Vazquez Pena, a/k/a “Tono,” 47, also of the Bronx, New York, all have pleaded guilty before Judge Salas to the same charges previously.
Two other individuals – Jhan Carlos Capellan Maldonado, 31, and Reimon Genao Rosario, 23 – were indicted on the same charge as Ulerio in August 2019. Their cases are pending.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned that Maldonado used an apartment in Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed approximately five workers at a time – including Rodriguez, Ulerio, Rosario, Gil, and Genao – to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. Through its investigation, law enforcement later learned that the plastic shopping bags contained materials to package heroin and fentanyl.
Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, but all but one – Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.
Each defendant faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing for Ulerio is scheduled for May 27, 2020.
U.S. Attorney Craig Carpenito credited the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New Jersey Division, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Health Care Fraud Unit in Newark.
The charge and allegations contained in the indictment against Maldonado and Rosario are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Bristol Man Sentenced to 4 Years in Federal Prison for Gun and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JAYSON BRUNO, 36, of Bristol, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 48 months of imprisonment, followed by four years of supervised release, for gun and drug offenses.
According to court documents and statements made in court, law enforcement identified Bruno as a significant cocaine trafficker in Bristol. On April 17, 2019, investigators arrested Bruno after a court-authorized search of his Colony Street residence revealed a 9mm semi-automatic pistol, a stolen .45 caliber semi-automatic pistol, approximately 55 grams of cocaine, approximately 30 grams of crack cocaine, and items used to process and package narcotics for distribution.
Bruno’s criminal history includes multiple state felony convictions related to the possession and sale of narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Bruno has been detained since his arrest. On November 13, 2019, he pleaded guilty to one count of possession of a firearm by a convicted felon, and one count of possession with intent to distribute cocaine base (“crack”) and cocaine.
This investigation was conducted by the Drug Enforcement Administration’s Hartford Task Force and the Connecticut State Police Statewide Narcotics Task Force. The DEA Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. This case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Brighton Man Convicted of Child Pornography OffensesRead the Press Release
BOSTON – A Brighton lawyer was convicted on Tuesday, Feb. 11, 2020, by a federal jury in Boston of receipt and possession of child pornography.
Hanford Chiu, 29, was convicted of one count each of receipt and possession of child pornography. Chiu was arrested and charged in August 2018.
During a search of Chiu’s residence in Brighton on Aug. 22, 2018, a forensic analysis of Chiu’s custom-built desktop computer revealed over 23,000 images and videos of child pornography. Chiu had accessed child pornography files as recently as the morning law enforcement agents executed the federal search warrant at his home.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 20 years in prison. Both charges also provide for a minimum of five years to life of supervised release, and a fine of up to $250,000 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 and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorneys Anne Paruti and Adam Deitch of Lelling’s Major Crimes Unit are prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Berkeley County man admits to drug possessionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Walter Lee Evans, of Hedgesville, West Virginia, has admitted to a drug distribution charge, U.S. Attorney Bill Powell announced.
Evans, age 48, pled guilty to one count of “Possess with Intent to Distribute Heroin.” Evans admitted to having heroin in April 2019 in Berkeley County.
Evans faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Martinsburg Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Belton Man Pleads Guilty to Child Pornography After His Lost Cell Phone is Found at a Truck StopRead the Press Release
KANSAS CITY, Mo. – A Belton, Missouri, man whose lost cell phone containing child pornography was found at a truck stop, pleaded guilty in federal court today.
Christopher Lee Caven, 39, pleaded guilty before U.S. Magistrate Judge John T. Maughmer to receiving child pornography over the internet.
By pleading guilty today, Caven admitted that he used his cell phone to receive child pornography via Kik, an online sharing application.
Caven’s cell phone was found at the Flying J Truck Plaza in Peculiar, Missouri, on March 5, 2017. The person who found the cell phone was unable to locate the owner and attempted to conduct a factory reset of the phone in order to set it up for his own use. In the process, however, he discovered a large amount of child pornography in the photo folder and contacted law enforcement.
Investigators found 402 video files of child pornography and 302 images of child pornography on Caven’s cell phone. Many of the images depicted children as young as toddlers posed in sexual positions or being sexually violated by others.
Under the terms of today’s plea agreement, the government and Caven agree to recommend to the court a sentence between 15 years and 18 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Beaver County Man Sentenced to 5 Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH - A resident of Freedom, Pennsylvania, has been sentenced in federal court to 60 months’ imprisonment and 5 years of supervised release on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Adam Hosie, age 25, of Freedom, Pennsylvania.
According to information presented to the court, on July 12, 2018, Hosie possessed images and videos in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, the Indiana County District Attorney’s Office, and the Western Pennsylvania Violent Crimes Against Children Task Force for the investigation leading to the successful prosecution of Hosie.
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.
Bank Insider Pleads Guilty to BriberyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the guilty plea of VICTOR PHILLIPS for conspiracy to commit bank bribery. PHILLIPS pled guilty before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court.
U.S. Attorney Geoffrey S. Berman said: “As he admitted in court today, banker Victor Phillips conspired to facilitate the laundering of what he believed were the proceeds of criminal activity. Thanks to the FBI, Phillips now awaits sentencing for his crime.”
According to the allegations in the Indictment, court filings, and statements made during court proceedings:
Between at least June 2019 and September 2019, PHILLIPS, who was employed at an Atlanta-area branch of a national bank (“Bank-1”), opened bank accounts in the names of shell companies and fictitious persons in exchange for a percentage of fraud proceeds that others laundered through those accounts. PHILLIPS, in exchange for bribe payments, opened one of these laundering accounts at the behest of a codefendant, who plotted to move approximately $2 million in fraud proceeds through PHILLIPS’s corruptly established account. PHILLIPS, along with his co-conspirators, were ultimately identified and arrested in the course of a money laundering investigation overseen by the Federal Bureau of Investigation’s (“FBI”) New York Money Laundering Investigation Squad.
PHILLIPS, 39, pled guilty to one count of conspiracy against the United States, which carries a maximum punishment of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing is scheduled for June 4, 2020, at 2:00 p.m., before U.S. District Judge William H. Pauley III, to whom the case is assigned.
Mr. Berman praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher, Jonathan E. Rebold, and Andrew A. Rohrbach are in charge of the prosecution.
Bakersfield and Florida Residents Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Fayth Shamariah Jones, 22, of Bakersfield; Jonte Deon Scott Jr., 23, of Port Richey, Florida; and Donald Conferlete Carney Jr., 22, of Tarpon Springs, Florida, charging all three defendants with conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, the defendants were traveling north on State Route 99 in Merced County when law enforcement officers attempted to stop the vehicle. The driver began driving at speeds reaching up to 120 miles per hour. After approximately 10 minutes, the officers cornered the vehicle in a cul-de-sac. A search of the vehicle revealed more than 24 kilograms of methamphetamine.
This case is the product of an investigation by the California Highway Patrol, the Merced Area Gang/Narcotics Enforcement Team (MAGNET), Homeland Security Investigations, and the Merced District Attorney’s Office. Assistant U.S. Attorney Michael W. Redding is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Armed drug trafficker and convicted felon heads to prisonRead the Press Release
CORPUS CHRISTI, Texas - A 31-year-old Mathis man has been ordered to federal prison for trafficking meth and illegally possessing a firearm, announced U.S. Attorney Ryan K. Patrick.
Scott McCarty pleaded guilty Nov. 21, 2019.
Today, U.S. District Judge Nelva Gonzales Ramos handed McCarty a total 200-month sentence to be immediately followed by five years of supervised release. He also received an additional 120 months for the firearms offense which will run concurrently.
On or about July 26, through approximately Aug. 26, 2019, McCarty and Parris Olivarez were involved in a conspiracy to possess with intent to distribute meth. The couple had distributed the narcotics from their house in Mathis on two separate occasions.
Law enforcement conducted a search warrant, resulting in the discovery of meth as well as two firearms, including a .45 caliber 1911 and 9mm Smith & Wesson found in and under their bed.
McCarty has prior felony convictions in Texas for failure to register as a sex offender and burglary of a habitation and is, therefore, prohibited from possessing a firearm or ammunition per federal law.
McCarty was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Olivarez, 29, Mathis, had also pleaded guilty and was previously sentenced to 120 months in federal prison to be followed by five years of supervised release.
Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Department of Public Safety and sheriff’s offices in San Patricio and Jim Wells Counties conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Armed Fentanyl Trafficker SentencedRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Lattrell Terry, 25, of Rochester, NY, who was convicted of possessing with intent to distribute fentanyl, and possession of a firearm with an altered or obliterated serial number, was sentenced to 57 months in prison by U.S. District Court Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Matthew T. McGrath, who handled the case, stated that during a routine search, members of the Monroe County Probation Department located drugs and drug packaging material in the defendant’s Rexford Street residence. As a result, probation officers reached out to Rochester Police officers who obtained a search warrant for the residence. During the search, officers recovered approximately 474 baggies of fentanyl and 92 baggies of heroin, all packaged for re-sale. Additionally, officers recovered a loaded semi-automatic pistol with a defaced serial number that had been reported stolen out of the State of Florida. Cocaine and marijuana were also located throughout the residence, as well as $3,316 in cash.
The sentencing is the result of an investigation by the Monroe County Department of Probation, under the direction of Chief Probation Officer Larry Mattle, the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Alleged Nine Trey Bloods Gang Member Indicted for Drug-Related MurderRead the Press Release
NEWPORT NEWS, Va. – A federal grand jury returned an indictment today charging an alleged Bloods gang member with January 2017 murder.
According to the indictment, Dawhan Terrell Archible, 26, formerly of Newport News, and two unnamed co-conspirators, allegedly murdered Luke Patterson Dudley in January 2017, after Archible learned Dudley had cheated him during a previous drug transaction.
Archible is charged with use of a firearm resulting in death, conspiracy to interfere with commerce by robbery, attempt to interfere with commerce by robbery, conspiracy to possess with intent to distribute cocaine, and distribution of cocaine. If convicted, he faces a maximum penalty of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Steve R. Drew, Chief of Newport News Police made the announcement. Assistant U.S. Attorneys Lisa R. McKeel and Howard J. Zlotnick are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-015.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Alien Smugglers Sentenced to Prison for Seizing an Illegal Alien in DistressRead the Press Release
TUCSON, Ariz. – On February 10, 2020, U.S. District Judge Rosemary Marquez sentenced Johnson Ortiz, 23, of Sells, to 80 months in prison and Regina Ramon, 29, of Sells, to 60 months, in prison. Both Ortiz and Ramon previously pleaded guilty on September 4, 2019, to their involvement in Harboring Illegal Aliens for Profit, with Ortiz also pleading to a statutory endangerment enhancement.
On March 18, 2019, the victim, a distressed illegal alien who was walking along the road on the Tohono O’odham Indian Reservation, in Sells, was contacted by persons driving a red SUV. They asked what he was doing on the road, and the victim said, “Help me, please. Hospital.” Using a translator app, the occupants of the red SUV agreed to take the victim to the hospital, but instead took him to Ortiz’s and Ramon’s house. Despite repeated requests for medical attention, Ortiz and Ramon kept the victim at their house and, via a translator app, asked him who in the United States would pay for his further transportation into the United States. While at the house, Ortiz robbed the victim of his wallet, cell phone, and identification at knifepoint. On March 20, 2019, the victim escaped out of a window and was found by a patrolling Tohono O’odham Police officer, who took the victim to the hospital and called Homeland Security Investigations (HSI). After meeting with the victim at the hospital, Special Agents obtained a federal search warrant for the house where the victim had been held and discovered six additional illegal aliens, one an unaccompanied minor, the victim’s belongings, and the knife used during the robbery while searching the house. Each of the illegal aliens found in the house stated that they had made arrangements to be smuggled further into the United States and were to pay upon their arrival at their final destinations.
“We commend the alert and responsive work of the Tohono O’odham Police officer and his collaboration with H.S.I. in the investigation of the case,” said United States Attorney Michael Bailey. “This case highlights the danger human smugglers present to vulnerable people.”
“This is yet another example of the dangers of illegally crossing the border. Human smugglers pray on people for the sole purpose of profit and in this case, they callously disregarded the victim’s plea for help and continued to abuse him for additional financial gain,” said Scott Brown, special agent in charge for the HSI office in Phoenix. “HSI is at the forefront of investigating these human smuggling organizations that attempt to plague the southwest border. Our message is clear, human smugglers will not find refuge in Arizona.”
The investigation in this case was conducted by Homeland Security Investigations with the assistance of the Tohono O’odham Police Department. The prosecution was handled by Serra M. Tsethlikai and Alicia Renee Robertson, Assistant U.S. Attorneys, District of Arizona, Tucson.
12 February 2020
Worcester Man Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – A Worcester man pleaded guilty yesterday to charges of tax evasion and failing to file tax returns.
Leonard Ngunjiri a/k/a Leonard Gitonga, 50, pleaded guilty to one count of tax evasion and five counts of failure to file a tax return. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for June 4, 2020. Ngunjiri was charged by indictment in September 2019.
Ngunjiri attempted to evade paying taxes for tax years 2006-2008 and 2011 by concealing his assets, directing his paychecks into bank accounts held in the names of others and using accounts in other individuals’ names for business and personal expenses. In addition, Ngunjiri did not file federal income tax returns from 2013 through 2017 despite making income in excess of the minimum filing requirements.
The charge of tax evasion provides for a sentence of up to five years in prison, three years of supervised release and a fine of $100,000. The charge of failure to file tax returns provides for a sentence of up to one year in prison, one year of supervised release and a fine of $25,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
Wetzel County man admits to distributing heroinRead the Press Release
WHEELING, WEST VIRGINIA – Caleb McCune, of New Martinsville, West Virginia, has admitted to selling heroin, U.S. Attorney Bill Powell announced.
McCune, age 24, pled guilty to one count of “Aiding and Abetting the Distribution of Heroin in Proximity to a Protected Location.” McCune admitted to working with another to sell heroin near Bruce Park in Wetzel County in April 2019.
McCune faces up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Wagoner Man Sentenced to 39 Months for ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Robert Leroy Dennington, age 36, of Wagoner, Oklahoma, was sentenced to 39 months’ imprisonment, and 3 years of supervised release for Conspiracy, in violation of Title 18, United States Code, Section 371. The charges arose from an investigation by the Wagoner Police Department and the United States Secret Service.
The Indictment alleged that beginning on or about April 12, 2019, and continuing until April 13, 2019, in the Eastern District of Oklahoma, the defendant knowingly and intentionally conspired and agreed with others both known and unknown to the grand jury, to commit offenses against the United States in violation of Title 18, United States Code, Section 472, namely, Uttering Counterfeit Obligations of the United States.
United States Attorney Brian J. Kuester said, “Counterfeiters can very quickly do a lot of harm to a community by injecting worthless currency into unsuspecting local businesses. Fortunately for the City of Wagoner and the surrounding areas an alert business owner and a prompt and thorough investigation by the Wagoner Police, with the assistance of the United States Secret Service, this scheme came to an abrupt halt.”
United States Secret Service Special Agent in Charge Glenn M. Dennis said, “The US Secret Service relies on our close partnership with state and local agencies like the Wagoner Police Department in the ongoing effort to suppress counterfeit currency. Counterfeiting affects all levels of commerce both locally and internationally but can be especially devastating to small business where a significant loss can cripple an operating budget. Effective law enforcement partnerships leading to successful prosecution sends a strong message that our community will not tolerate these type of criminal offenses.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Clay Compton represented the United States.
Utica Man Sentenced to 60 Months for Receipt and Possession of Child PornographyRead the Press Release
UTICA, NEW YORK – James Caruso, age 57, of Utica, was sentenced today to 60 months in prison for receiving and possessing child pornography. The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, Caruso admitted that he purchased and received images and videos of child pornography from a foreign website. A search of Caruso’s laptop computer revealed that he possessed 131 videos and 32 images depicting child pornography.
United States District Judge David. N. Hurd also imposed a 10-year term of supervised release, which will start after Caruso is released from prison. As a result of his conviction, Caruso will be required to register as a sex offender upon his release from prison.
Caruso’s case was investigated by HSI and the New York State Police. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
United States Reaches Settlement with Utah State University to Address Sexual Harassment and Sexual Assault of StudentsRead the Press Release
Today the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the District of Utah announced a settlement agreement with Utah State University (“USU” or the “University”) to ensure the University responds adequately to sexual harassment, including sexual assault, of students in its education programs and activities.
“Sexual harassment and violence have no place on college campuses, and too often deny students their right to an equal education. No student should feel unsafe because of a school’s failure to address sexual violence and its devastating impacts,” said Assistant Attorney General Eric Dreiband. “We look forward to working with USU to implement this agreement and to ensure that students can learn in a safe and healthy environment.”
“Utah schools should be free of discrimination, including sexual harassment and sexual assault. When such misconduct occurs, schools must know how to respond appropriately,” said John W. Huber, U.S. Attorney for the District of Utah. “We are pleased that USU has joined with us as a partner in these efforts.”
The settlement, when fully implemented, will resolve the Department’s compliance review of USU under Title IX of the Education Amendments of 1972 (Title IX), which prohibits sex discrimination in education programs and activities receiving federal financial assistance. The Department initiated the review in 2017 based on allegations that the University failed to respond to numerous reports of serious student-on-student sexual assault. USU is a recipient of financial assistance from the Department.
The Department reviewed USU’s policies, procedures, and responses to sexual harassment complaints over a more than four-year period and concluded that the University did not comply with Title IX. The agreement announced today details specific steps USU has agreed to take to improve its investigation and resolution of sexual harassment complaints, help students, faculty, and staff understand their reporting options, duties, and obligations with respect to sexual harassment, and ensure that members of the campus community know where to go for resources and support.
Under the agreement, USU will:
- revise its notice of nondiscrimination and all other relevant sexual harassment policies, procedures, and practices;
- respond promptly, equitably, and adequately to known sexual harassment that has created a hostile environment;
- train students and employees on University policies and federal laws pertaining to sexual harassment, how and to whom they can report allegations of sexual harassment and retaliation, details on the resources available and how to access them, and the University’s Title IX grievance procedures and potential outcomes;
- conduct climate surveys to collect information on students’ understanding of USU’s reporting procedures, the effectiveness of the University’s outreach, education, and prevention efforts, and the incidence of sexual harassment and related retaliation; and
- ensure the individuals designated to administer and coordinate Title IX efforts receive adequate training, resources, and support necessary to coordinate these efforts effectively.
The Department will monitor compliance with the terms of the agreement, which will be in effect through the 2022-2023 academic year.
Combating sex discrimination in education is a top priority of the Department of Justice’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
United States Reaches Settlement with Utah State University to Address Sexual Harassment and Sexual Assault of StudentsRead the Press Release
SALT LAKE CITY – Today the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the District of Utah announced a settlement agreement with Utah State University (“USU” or the “University”) to ensure the University responds adequately to sexual harassment, including sexual assault, of students in its education programs and activities.
“Sexual harassment and violence have no place on college campuses, and too often deny students their right to an equal education. No student should feel unsafe because of a school’s failure to address sexual violence and its devastating impacts,” said Assistant Attorney General Eric Dreiband. “We look forward to working with USU to implement this agreement and to ensure that students can learn in a safe and healthy environment.”
“Utah schools should be free of discrimination, including sexual harassment and sexual assault. When such misconduct occurs, schools must know how to respond appropriately,” said John W. Huber, U.S. Attorney for the District of Utah. “We are pleased that USU has joined with us as a partner in these efforts.”
The settlement, when fully implemented, will resolve the Department’s compliance review of USU under Title IX of the Education Amendments of 1972 (Title IX), which prohibits sex discrimination in education programs and activities receiving federal financial assistance. The Department initiated the review in 2017 based on allegations that the University failed to respond to numerous reports of serious student-on-student sexual assault. USU is a recipient of financial assistance from the Department.
The Department reviewed USU’s policies, procedures, and responses to sexual harassment complaints over a more than four-year period and concluded that the University did not comply with Title IX. The agreement announced today details specific steps USU has agreed to take to improve its investigation and resolution of sexual harassment complaints, help students, faculty, and staff understand their reporting options, duties, and obligations with respect to sexual harassment, and ensure that members of the campus community know where to go for resources and support.
Under the agreement, USU will:
- revise its notice of nondiscrimination and all other relevant sexual harassment policies, procedures, and practices;
- respond promptly, equitably, and adequately to known sexual harassment that has created a hostile environment;
- train students and employees on University policies and federal laws pertaining to sexual harassment, how and to whom they can report allegations of sexual harassment and retaliation, details on the resources available and how to access them, and the University’s Title IX grievance procedures and potential outcomes;
- conduct climate surveys to collect information on students’ understanding of USU’s reporting procedures, the effectiveness of the University’s outreach, education, and prevention efforts, and the incidence of sexual harassment and related retaliation; and
- ensure the individuals designated to administer and coordinate Title IX efforts receive adequate training, resources, and support necessary to coordinate these efforts effectively.
The Department will monitor compliance with the terms of the agreement, which will be in effect through the 2022-2023 academic year.
Combating sex discrimination in education is a top priority of the Department of Justice’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
U.S. Attorney: Deadly Fentanyl Causing Overdoses in KansasRead the Press Release
WICHITA, KAN. - A new round of drugs laced with deadly fentanyl is causing overdoses in Kansas, U.S. Attorney Stephen McAllister said.
Wichita police have reported multiple overdoses in the past few days. They suspect the problem is caused by victims consuming what look like oxycodone pills. In fact, the pills are laced with fentanyl.
“I want to add my voice to those who are sounding a warning,” McAllister said. “Buying drugs on the street is gambling with your life.”
McAllister said his office has prosecuted multiple cases in Kansas of fentanyl disguised as other drugs, including heroin and oxycodone. Users face a higher risk of overdose because fentanyl is far more powerful and dangerous than the drugs they thought they were buying. He said often dealers themselves do not what is in the drugs they are selling.
“The problem is showing up right now in Wichita,” McAllister said. “The entire state should take notice, though. This is not a problem confined to one city.”
McAllister said fentanyl is being produced in large quantities in Mexico and distributed throughout Kansas and the rest of the nation. In an op-ed Oct. 3, 2019, in the Kansas City Star, McAllister cited a case in which the Kansas Highway Patrol stopped a vehicle in Russell County, Kan., carrying more than 60 pounds of fentanyl, potentially enough to kill millions of people. See https://www.kansascity.com/opinion/readers-opinion/guest-commentary/article235719492.html
Under federal law, distributing controlled substances resulting in the death or serious bodily injury of a user can lead to federal charges with a penalty of not less than 20 years and up to life in prison.
U.S. Attorney's Office Settles ADA Case with Progressive Casualty Insurance CompanyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the government has reached a settlement agreement under the Americans with Disabilities Act of 1990 (“ADA”) with Progressive Casualty Insurance Company (“Progressive”) to ensure equal access for individuals with disabilities at all Progressive Casualty Insurance Company locations across the country.
Title III of the ADA prohibits discrimination against individuals with disabilities by businesses that serve the public. Among other things, the ADA requires insurance agencies, financial institutions, accountants, lawyers, doctors and other businesses to provide accessible formats that are necessary for effective communication for individuals who are blind or have low vision.
This matter stems from an ADA complaint filed by an individual who is blind who alleged that Progressive failed to provide account information in an accessible format. The complainant alleges that, as a result of Progressive’s failure to provide the account information in an accessible format, his insurance with Progressive was cancelled. In resolving the complaint, Progressive has agreed to provide effective communication, including appropriate auxiliary aids and services, at all of its insurance agency locations in the U.S., and to amend its policies, practices and training to ensure the removal of barriers to access at its locations. Progressive also will compensate the complainant in the amount of $1,000.
“Individuals who have disabilities must not be denied equal access to the services offered by insurance companies simply because of their disability,” said U.S. Attorney Durham. “Since the commencement of this investigation, Progressive has worked cooperatively to develop and amend its policies and practices to comply with the ADA and the Justice Department’s implementing regulations. This settlement reflects Progressive’s commitment to equal access and effective communication with its customers who have disabilities.”
This matter was handled by Assistant U.S. Attorney Ndidi N. Moses of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Any member of the public who wishes to file a complaint alleging that a business that serves the public, or a public entity, in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
2020 marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
Two SCDC Inmates Sentenced to Decades in Federal Prison for Roles in Separate Drug Trafficking RingsRead the Press Release
Columbia, South Carolina --- Acting United States Attorney A. Lance Crick announced today that Glenn Quanta Pernell, 41, and Joseph Umphlett, Sr., 39, both inmates in the South Carolina Department of Corrections (SCDC), have been sentenced in federal court for their roles in separate major drug trafficking rings run from inside prison walls using contraband cell phones.
“Because of uncontrolled access to contraband cell phones, inmates already serving lengthy state sentences for serious drug convictions were able to continue bringing deadly, addictive drugs into our communities,” said Acting U.S. Attorney Crick. “The U.S. Attorney’s Office is proud to lock arms with the Department of Corrections and our local, state, and federal law enforcement partners to protect both the general public and the prison population from the public safety threat caused by contraband phones.”
“These inmates were able to commit crimes while behind bars because of contraband cell phones,” said Bryan Stirling, Director of the S.C. Department of Corrections. “I am grateful to the U.S. Attorney’s office and our law enforcement partners for bringing these men to justice.”
Glenn Quanta Pernell was sentenced to life in federal prison after jury convicted him of conspiracy to possess with intent to distribute and to distribute cocaine, cocaine base, and heroin, in addition to several other drug-related charges. During an 8-day trial in August 2019, the jury heard hours of recorded conversations between Pernell and his coconspirators. According to the evidence at trial, agents of the Federal Bureau of Investigation’s Columbia Violent Gang Task Force (CVGTF) began investigating several Columbia-based drug dealers in 2016. Wiretaps on their phones revealed that the dealers were being supplied cocaine and heroin from an organization in Marion County.
The leader of that organization was Pernell, an inmate serving two 25-year consecutive state sentences for drug trafficking. Pernell employed a network of people, including his mother, Hattie Pernell, and his sister, Whitney Pernell, to purchase drugs from his Mexican drug suppliers, to deliver drugs to his customers, and to collect and store drug proceeds from the sales. Pernell ran his operation from within prison walls at Lieber Correctional Institution, using contraband cell phones to direct and oversee the daily operations of the organization.
FBI Special Agent in Charge Jody Norris stated, "Today's sentencing is the culmination of a comprehensive and coordinated drug trafficking investigation by the FBI and our dedicated partners. These law enforcement professionals proved again drug trafficking enterprises operating anywhere in South Carolina will be met with a committed cadre of Agents, Officers and Deputies that will dismantle the trafficking network and bring those behind it to account."
This case was investigated by the FBI’s CVGTF, which is comprised of law enforcement officers from the FBI, South Carolina Law Enforcement Division, Columbia Police Department, Richland County Sheriff’s Department, Lexington County Sheriff’s Department, Lexington Police Department, Marion County Sheriff’s Department, Mullins Police Department, and the South Carolina National Guard, and with assistance from the South Carolina Department of Corrections and the Drug Enforcement Administration. Assistant United States Attorneys Jane B. Taylor, Benjamin N. Garner, and Christopher D. Taylor of the Columbia office prosecuted the case.
Joseph Umphlett, Sr., was sentenced to 20 years in federal prison after pleading guilty to conspiring to possess with intent to distribute and to distribute heroin and methamphetamine. His federal sentence will be served consecutive to a separate life sentence he is serving in SCDC.
Evidence presented in the case established that on October 1, 2015, Umphlett was sentenced in Berkeley County General Sessions Court to life without parole for trafficking methamphetamine, his third serious drug conviction in state court. While serving his life sentence in Lieber Correctional Institution, Umphlett began using contraband cell phones to lead a drug trafficking organization responsible for distributing large quantities of heroin and methamphetamine throughout Charleston, Berkeley, and Dorchester Counties. During the course of the investigation, law enforcement seized over five kilograms of methamphetamine and over three kilograms of heroin. Umphlett was indicted along with 11 co-defendants, including his mother, Valerie Collins. Collins was previously sentenced to 100 months in federal prison, to be followed by three years of supervised release, for her role in the conspiracy.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division, said, “DEA is fully committed to tirelessly pursuing criminals who sell drugs, whether they’re selling them on the streets or inside a prison. This criminal was already serving time in prison for drug trafficking. He continued to sell methamphetamine and heroin while incarcerated. His criminal activity landed him even more deserving time in prison. The spirited level of law enforcement cooperation and the subsequent prosecution by the U.S. Attorney’s Office made this investigation a success.”
The case was investigated by agents of the Drug Enforcement Administration, South Carolina Law Enforcement Division, South Carolina Department of Corrections, Dorchester County Sheriff’s Office, Summerville Police Department, Berkeley County Sheriff’s Office, and Charleston County Sheriff’s Office. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two Defendants Sentenced in Manhattan Federal Court for International Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MARTINS APSKALNS and IGORS PIRINS were sentenced to 108 months and 66 months in prison, respectively, for their leadership roles in a broad scheme that defrauded victims of millions of dollars. APSKALNS and PIRINS previously pled guilty to conspiracy to commit bank and wire fraud before United States District Judge Jesse M. Furman, who imposed the sentences. APSKALNS was sentenced on January 31, 2020, and PIRINS was sentenced on February 10, 2020.
U.S. Attorney Geoffrey S. Berman said: “Martins Apskalns and Igors Pirins were ringleaders in an international conspiracy that victimized people who thought they were buying classic cars on legitimate internet auction and trading sites. They admitted to bilking millions of dollars from their victims, and now they are both headed to prison for their crimes.”
According to the allegations in the Indictments, other documents filed in federal court, and statements made in public court proceedings:
From at least January 2016 through December 2018, the defendants participated in a fraudulent scheme that most commonly operated as follows: First, co-conspirators impersonated automotive dealers and collectors and claimed to be selling classic cars on various well-known internet auction and trading websites. Victims responding to the ads were in fact corresponding with a fraud scheme participant. After the victims and co-conspirators came to terms on a sale price, including down payment and shipping costs, victims were next directed to purported automotive transportation companies and were told that these companies would accept payment and transport the cars. These companies were in fact shell corporations established by the conspiracy to help perpetrate the fraud, whose corporate bank accounts were established and controlled by the defendants and co-conspirators, awaiting wired funds from the fraud’s victims. After victims had wired payment, the defendants and co-conspirators went to the banks to drain the victim’s funds, often starting the same day payment had been transmitted, withdrawing from different bank branches in numerous withdrawals on the same day, and withdrawing in denominations that were varied and often kept to an amount that they believed would prevent the financial institutions from recording and reporting the fraud. The defendants and other co-conspirators then sent the fraud proceeds outside the United States to Eastern European countries, from where the defendants and many of their co-conspirators originated. Some of the defendants maintained managerial roles, recruiting co-conspirators to participate and providing directions and victim information to scheme participants once the co-conspirators were inside the United States. Victims never received the goods they believed they had purchased, and many were unable to recover their money or were left paying loans for cars that were never truly for sale.
APSKALNS and PIRINS served as managers in this scheme, who, in addition to opening bank accounts of their own that received victim funds, directed and coordinated the activities of cells of co-conspirators in the United States. APSKALNS and PIRINS continued their criminal activity and management role when they left the United States and returned to Latvia.
APSKALNS and PIRINS were arrested in Latvia in November 2018. At the time of their arrest, evidence recovered from APSKALNS revealed that he was continuing to direct co-conspirators until the time of his arrest. This information led to the arrest of four co-conspirators in the United States as they attempted to flee the United States from John F. Kennedy airport. APSKALNS and PIRINS were extradited to the United States in December 2018.
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In addition to their prison terms, APSKALNS was also sentenced to three years of supervised release, ordered to pay $4,952,172.37 in restitution, and ordered to forfeit $164,900.04. PIRINS was also sentenced to three years of supervised release, ordered to pay $3,095,000.94 in restitution, and ordered to forfeit $166,251.94.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation, Customs and Border Protection, and the New York City Police Department.
The investigation was conducted in close cooperation with the International Cooperation Department and the Criminal Investigation Department of the Central Criminal Police Department, State Police of Latvia; Prosecutor’s General Office of Latvia, International Cooperation Division; Police Department of Lithuania, Vilnius County Police Headquarters, Crimes Against Property Board; Lithuanian Criminal Police Bureau, International Liaison Board; Prosecutor General’s Office of the Republic of Lithuania; Vilnius Regional Prosecution Office; and the National Bureau of Investigation of Finland. The Department of Justice’s Criminal Division’s Office of International Affairs also provided significant assistance.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Matthew Hellman, Emily Johnson, and Daniel Nessim are in charge of the prosecution.
Three Oklahoma Residents Sentenced for Passing Counterfeit Money in South DakotaRead the Press Release
United States Attorney Ron Parsons announced that two men and a woman from Oklahoma, convicted of Passing Counterfeit U.S. Currency, have been sentenced by Judge Jeffrey L. Viken, U.S. District Court.
Michael Glenn Ogden, age 38, was sentenced on December 18, 2019, to 41 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Marcus Paul Franklin, age 46, was sentenced on January 27, 2020, to 41 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Mary Allen Autry, age 42, was sentenced on February 7, 2020, to 30 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. The amount of restitution owing has been deferred for 90 days.
The three were indicted by a federal grand jury in March 2018. The charges related to the trio using printers, paper, and chemicals to convert legitimate $10 U.S. currency bills into counterfeit $100 U.S. currency bills. Using this equipment, they manufactured and passed thousands of dollars of counterfeit U.S. $100 bills in South Dakota and other states.
This case was investigated by the Rapid City, South Dakota, Police Department and the U.S. Secret Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Ogden, Franklin, and Autry were immediately turned over to the custody of the U.S. Marshals Service after their respective sentencings.
The Honorable Douglas H. Ginsburg to Receive Justice Department's 2020 John Sherman AwardRead the Press Release
The Antitrust Division of the Department of Justice will present Judge Douglas H. Ginsburg with the John Sherman Award for his lifetime contributions to the development of antitrust law and the preservation of economic liberty. Judge Ginsburg will deliver remarks and receive the award during a ceremony on May 8, 2020, in the Great Hall of the Robert F. Kennedy Department of Justice Building.
“Judge Ginsburg’s role in the advancement of antitrust law and policy cannot be overstated,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “It is a privilege for the division to recognize his career and achievements with this award. Judge Ginsburg’s leadership in the Antitrust Division, as well as his incisive and cogent scholarship, has brought sound economic analysis to the forefront of antitrust law. His contributions have greatly improved the ability of antitrust law to protect consumer welfare and to spur economic growth.”
Created in 1994, the John Sherman Award is presented by the Justice Department's Antitrust Division to a person or persons for outstanding contributions to the field of antitrust law, the protection of American consumers, and the preservation of economic liberty.
Judge Ginsburg received his undergraduate degree from Cornell University and his J.D. from the University of Chicago. Following law school, Judge Ginsburg clerked for Judge Carl McGowan of the U.S. Court of Appeals for the D.C. Circuit and for U.S. Supreme Court Justice Thurgood Marshall. He joined the faculty at Harvard Law School from 1975 to 1983, before serving as the Deputy Assistant Attorney General for Regulatory Affairs, Antitrust Division, U.S. Department of Justice, from 1983 to 1984; Administrator, Information and Regulatory Affairs, OMB, from 1984 to 1985; and Assistant Attorney General, Antitrust Division, U.S. Department of Justice, from 1985 to 1986. Judge Ginsburg was appointed to the U.S. Court of Appeals for the District of Columbia Circuit in November 1986 and served as Chief Judge from July 2001 until February 2008. Concurrent with his service on the federal bench, Judge Ginsburg has taught at the University of Chicago Law School and the New York University School of Law. He is currently a Professor of Law at the Antonin Scalia Law School, George Mason University, and a visiting professor at the University College London, Faculty of Laws.
Judge Ginsburg’s efforts to incorporate economic analysis in antitrust enforcement is instrumental to how agencies and practitioners approach antitrust law today. Of his many notable contributions, Judge Ginsburg elevated the role of economic analysis in antitrust enforcement by expanding the Division’s economics section and by creating the position of the Deputy Assistant Attorney General for Economic Analysis during his tenure as the Assistant Attorney General of the Antitrust Division. Through his work with the Global Antitrust Institute at the Antonin Scalia Law School, Judge Ginsburg is renowned for helping international enforcers and judges apply economic insights in competition law. Judge Ginsburg’s jurisprudence and scholarship further reflect the intellectual rigor that has marked his distinguished career. He was an influential judge on the landmark United States v. Microsoft case in 2001, and the case remains foundational to understanding competition in high-tech markets. Judge Ginsburg’s scholarship is widely admired, and his academic works — ranging in topic from the application of antitrust law in a changing economy to the effects of extra-jurisdictional remedies — tackle complex questions and continue to influence students, enforcers, and practitioners alike.
The award is named for the author of the Sherman Act of 1890, the nation's first and foremost antitrust law. John Sherman, a former congressman and senator, also served as Secretary of the Treasury from 1877 to 1881 and as Secretary of State from 1897 to 1898. Previous recipients have included Diane P. Wood (2015), James F. Rill (2012), Robert Pitofsky (2010), Herbert Hovenkamp (2008), Robert H. Bork (2005), Richard A. Posner (2003), Milton Handler (1998), Thomas Kauper and William Baxter (1996), Phillip Areeda (1995), and Howard Metzenbaum (1994).
Tennessee Man Arrested for Engaging in Multi-Year Cyberstalking and Computer Hacking CampaignRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of TRISTAN ROWE, a/k/a “Angus,” for engaging in a years-long campaign of cyberstalking, harassment, and computer intrusions against multiple New York City residents and a high school. ROWE was arrested today in Tennessee and presented before a United States Magistrate Judge in U.S. District Court for the Western District of Tennessee.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Tristan Rowe terrorized a victim from hundreds of miles away by ‘swatting’ – having police respond to a purported emergency at the victim’s residence. Rowe also allegedly sent disturbing text messages to the victim, threatening to buy an assault rifle, to kill the victim, and to bomb the victim’s school. Thanks to the NYPD, Rowe is now in custody and facing serious criminal charges.”
NYPD Commissioner Dermot Shea said: “These allegations are a reminder of the threats posed by malicious cyber activity. I commend our NYPD investigators, and federal partners, for remaining vigilant in collaborating to thwart Internet-facilitated crime.”
According to the allegations in the Complaint[1] unsealed yesterday in Manhattan federal court:
From 2015 through 2019, ROWE engaged in a persistent online stalking and harassment campaign that targeted a particular victim (referred to as “Victim-2” in the Complaint), and involved illegally accessing online accounts belonging to Victim-2 and friends and family members of Victim-2, and obtaining unauthorized access to the computer systems of Victim-2’s former high school.
Among other things, ROWE sent threatening text messages to Victim-2, including a text message containing a photograph of a large kitchen knife and text messages that stated, in sum and substance, “You don’t deserve to live.” ROWE also sent Victim-2 a map with a detailed route mapped out from Tennessee to Victim-2’s home address in the Bronx, New York.
ROWE also subjected Victim-2 and friends and family members of Victim-2 to multiple “swatting” incidents at their homes. “Swatting” refers to a harassment tactic of deceiving an emergency service into sending a police or emergency service response team to another person’s address. As a result, on multiple occasions, armed police officers responded to false reports of emergency situations at Victim-2’s home. ROWE sent text messages to Victim-2 referencing this harassment, including messages reading, in sum and substance, “u wanna get swatted,” “even better I’ll swat the nypd,” and recognized the safety risks posed by swatting, warning Victim-2 that “your choice u can wind up dead cause the armoured cops will come raid u.”
As part of this harassment campaign, ROWE also compromised the grading system and online educational platform used by Victim-2’s high school. A search of ROWE’s computer, conducted pursuant to a judicially authorized search warrant, revealed that ROWE possessed student grading information taken from Victim-2’s high school, as well as hundreds of usernames and passwords associated with the high school.
In addition, ROWE conducted a number of computer intrusions of government and private sector websites. Evidence obtained from ROWE’s computer indicated that he had launched, or was planning to launch, unauthorized intrusions of various websites, including an inmate tracking website used by federal and local law enforcement, a website for a state Department of Motor Vehicles, a police department website, and the website for a hospital in the Bronx, New York.
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ROWE is charged with one count of cyberstalking, which carries a maximum sentence of five years in prison, and one count of unauthorized access to a computer, which carries a maximum sentence of five years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD in this case.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Dina McLeod is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Tax preparer sentenced to federal prison for cheating IRS out of $2.6 millionRead the Press Release
ATLANTA – Thomas Holmes has been sentenced to federal prison for preparing and filing hundreds of fraudulent federal tax returns for his clients. Holmes was the owner of TKO Tax Pros, a tax preparation business in Austell, Georgia.
“Holmes stole $2.6 million by claiming false deductions and credits on his clients’ tax returns over a number of years,” said U.S. Attorney Byung J. “BJay” Pak. “Tax preparers who cheat the IRS and skim off the top of their clients’ tax refunds can look forward to spending tax seasons behind bars. As this tax season approaches, preparers should be warned that the government diligently finds and prosecutes this kind of fraudulent conduct.”
“With the April 15 tax deadline looming, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today,” said Andrew M. Thornton, Jr., Acting Special Agent in Charge of the Atlanta Field Office. “This sentencing of Thomas Holmes again emphasizes that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who would attempt to defraud America's tax system.”
According to U.S. Attorney Pak, the charges and other information presented in court: Holmes was identified by Internal Revenue Service - Criminal Investigation (IRS-CI) as potentially filing fraudulent returns through his tax business, TKO Tax Pros. The investigation revealed that between 2011 and 2019, Holmes prepared and filed thousands of federal income tax returns, and on hundreds of the returns, he listed false information, including false Schedule C business losses and false Schedule A itemized deductions, causing taxpayers to claim millions of dollars in refunds that they were not entitled to. When the IRS issued those refunds, Holmes frequently kept a portion of the fraudulent refunds for himself and paid the balance to his clients. During the investigation, the IRS revoked Holmes’ e-filing privileges, but Holmes continued to file fraudulent returns through the mail.
Thomas Holmes, 41, of Austell, Georgia, has been sentenced to three years, one month in prison, two years of supervised released, and he was ordered to pay $2,601,957 in restitution to the IRS. Holmes pleaded guilty to these charges on September 6, 2019.
The Internal Revenue Service Criminal Investigation investigated this case.
Assistant U.S. Attorney Annalise K. Peters prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
T&A Crips gang members plead guilty to murder in aid of racketeeringRead the Press Release
COLUMBUS, Ohio – Three Columbus men pleaded guilty today as part of a gang-related racketeering conspiracy. Each of the men accepted responsibility for their roles in three separate murders.
Two other defendants have also agreed to plead guilty in this case and will appear before the Court next month.
The five men are part of 19 defendants charged as members and associates of the Trevitt and Atcheson Crips gang known as T&A.
The gang derived its name from Trevitt and Atcheson streets in the King-Lincoln District of Columbus, where its members predominantly reside.
Beginning in June 2010, T&A members and associates conspired in a racketeering enterprise and engaged in murders, attempted murders, drug trafficking, firearms trafficking, witness tampering, robbery, assault and other crimes.
The gang controlled the neighborhood through intimidation, fear and violence. Gang members were expected to retaliate with acts of violence when their members and associates were disrespected, threatened, intimidated or subjected to acts of violence.
Specifically, co-conspirators are charged with five murders:
the murder of Franky Tention on July 1, 2012, in the area of 431 Ellison Street;
the murder of William Moore on March 15, 2013;
the murder of Marvin Ector on December 23, 2013, on East 5th Avenue;
the murder of Quincy Story on January 24, 2015; and
the murder of Deaonte Fisher on March 4, 2016.
Terrell Hansard, 22, also known as “T Body,” pleaded guilty in U.S. District Court today to participating in a racketeering conspiracy, conspiring to traffic drugs and murder in aid of racketeering. Hansard accepted responsibility for his role in the March 2016 murder of 7-year-old Deaonte Fisher. The boy was a bystander in a shooting between rival gang members.
Hansard also distributed and possessed with the intent to distribute between 280 and 840 grams of crack cocaine as part of T&A’s West Virginia drug operation.
Brandon Martin, 27, also known as “Gunner,” pleaded guilty to participating in the racketeering conspiracy and murder in the aid of racketeering. According to his court documents, Martin shot and killed rival gang member William Moore in March 2013 on Mount Vernon Avenue. Martin was involved in another gunfight the next day, shooting at a number of other rival gang members and striking one of them.
Charles Carson, 24, also pleaded guilty today in federal court in Columbus. Carson pleaded guilty to participating in the racketeering conspiracy and took responsibility for the January 2015 murder of Quincy Story. Carson shot and killed Story on S. James Road in Columbus. Story was perceived as disrespecting a fallen associate of a T&A subgroup called Waun Gang.
Plea agreement documents have been filed on behalf of two other T&A defendants: Deswan “Dezzy” Robinson and Michael Watson.
Robinson has offered to accept responsibility for his role in the murder of William Moore in March 2013. The Court will consider his plea at a hearing on March 11.
Watson has agreed to plead guilty to participating in a racketeering conspiracy and conspiring to distribute controlled substances, including responsibility for his role in the December 2013 murder of Marvin Ector. He is scheduled to appear before the Court on March 18.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Columbus Police Chief Tom Quinlan; United States Marshal Pete Tobin and Franklin County Prosecutor Ron O’Brien announced the pleas. Assistant United States Attorneys Kevin W. Kelley and Noah R. Litton are representing the United States in this case.
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Statement from U.S. Attorney Lelling Regarding Court’s Decision in U.S. v. Brissette and SullivanRead the Press Release
“An impartial jury, following legal instructions written by the Court, voted unanimously to convict these two men. We are disappointed by this decision and will review our options.”