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12 November 2019
Former U.S. Army range director pleads guilty to conspiracyRead the Press Release
HONOLULU, Hawaii – Victor Garo, 67, of Mililani, Hawaii, pleaded guilty today in federal court to one count of conspiracy to accept over $100,000 in bribes and one count of illegally transporting firearms across state lines. Garo admitted that he helped steer federal contracts worth more than $18 million to a contractor. Sentencing is scheduled for March 2020 before Chief U.S. District Judge J. Michael Seabright.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Kenji M. Price for the District of Hawaii, Special Agent in Charge Ray Park of the U.S. Army Criminal Investigation Command (Army CID), Special Agent in Charge Bryan Denny of the U.S. Defense Criminal Investigative Service (DCIS) and Special Agent in Charge Eli S. Miranda of FBI’s Honolulu Field Office made the announcement.
U.S. Attorney Price stated that according to court documents and information presented in court, from 2011 to 2018, Garo, while employed as the range director at Schofield Barracks in Hawaii, accepted over $100,000 worth of bribes from an employee of a federal contractor that sought and received business from the U.S. Army. The bribes included cash, automobiles, and firearms. In return, Garo used his position to benefit the contractor in securing U.S. Army contracts. Garo is the third public official to plead guilty as a result of an ongoing investigation into fraud and bribery at Schofield Barracks.
The case was investigated by Army CID, DCIS, FBI, and the Defense Contract Audit Agency. It was prosecuted by Trial Attorney Laura Connelly and Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marc Wallenstein for the District of Hawaii.
Former Secretary/Treasurer Indicted for Stealing from Plattsburg Road DistrictRead the Press Release
KANSAS CITY, Mo. – The former secretary/treasurer of the Plattsburg Special Road District was indicted by a federal grand jury today for stealing from the agency.
Ava Lea Langner, 58, of Lathrop, Missouri, was charged with theft from an agency receiving federal funds in an indictment returned by a federal grand jury in Kansas City, Missouri.
According to a public report issued by the Missouri State Auditor, at least $286,615 was misappropriated from the district from 2011 to 2018.
Today’s indictment alleges that Langner stole more than $5,000 from the road district from May 1, 2016, to April 30, 2017. Langner allegedly made unauthorized payments to her personal business, Langner Enterprises, LLC, to her personal credit card, and to other vendors for personal expenses. Langner was able to write checks, electronically transfer funds, and otherwise make payments using funds from a checking account owned by the road district.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Leigh Farmakidis and Thomas M. Larson. It was investigated by the FBI, the Missouri State Highway Patrol, and the Missouri State Auditor.
Former Scott County Sheriff’s Deputy Pleads Guilty to Embezzlement, Wire FraudRead the Press Release
Abingdon, VIRGINIA – A former Scott County Sheriff’s Deputy pleaded guilty today in U.S. District Court in Abingdon to embezzling more than $20,000 of unworked overtime payments from a federal DMV program over the course of three years and wire fraud for his role in a scheme to defraud the Department of Criminal Justice Services, United States Attorney Thomas T. Cullen announced.
Jeffrey Scott Spicer, 51, of Gate City, Va., pleaded guilty today to one count of embezzlement and one count of wire fraud. At sentencing, Spicer faces up to 20 years in prison and/or a fine of $250,000.
“Corruption and self-dealing by public officials jeopardizes the public’s trust in vital government functions and the rule of law,” U.S. Attorney Cullen stated today. “We will continue to investigate credible allegations of criminal misconduct by public officials, including police officers, and, when appropriate, prosecute violations in federal court.”
According to court records, between 2014 and 2017, while working as a deputy with the Scott County Sheriff’s Office, Spicer submitted approximately 47 fraudulent requests to be paid for 765 hours of overtime and was, in fact, paid a total of $21,346 in overtime payments to which he was not entitled. These payments were made to Spicer by the Scott County Sheriff’s Office out of funds allotted to certain grants including an asset forfeiture grant and Selective Enforcement DMV grant.
In addition, Spicer owned and operated a company known as Spicewater Home Electronic Monitoring, or Spicewater. Through this company, the defendant was tasked with providing home electronic monitoring services to individuals as ordered by the Scott County Virginia Circuit Court. As the owner and operator of Spicewater, Spicer was responsible for ensuring that the individuals ordered to be on home electronic monitoring were in fact being electronically monitored and complying with the terms of electronic monitoring ordered by the Scott County Circuit Court.
Mr. Spicer’s company contracted with another business that actually provided the electronic monitoring services, but the individuals being monitored paid Spicer for the monitoring services. From approximately March 20, 2017, through July 2017, the other business contracted by Spicewater stopped providing home electronic monitoring services. Spicer, however, continued to receive $13,797 in payments from the individuals for the monitoring services even though no such monitoring services were actually being performed. Additionally, Spicer solicited nude photographs via text message and sex from some of the females placed on home electronic monitoring, in exchange for payment and for not notifying the court of their non-compliance with the conditions of home electronic monitoring imposed by the court.
Further, Spicer devised a scheme to defraud the Department of Criminal Justice Services. As part of his scheme, Spicer logged onto the Department of Criminal Justice Services’ website with individual law enforcement officer’s usernames and passwords, completed online courses, took online tests on the law enforcement officers’ behalves, and then certified that those individual law enforcement officers had completed the courses when, in fact, they had not. Spicer received monetary payments in exchange for completing the online training courses for some of the law enforcement officers.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Virginia State Police. Assistant United States Attorney Lena Busscher is prosecuting the case for the United States.
Former Program Manager of Twin Cities Nonprofit Charged with Fraud, False StatementsRead the Press Release
United States Attorney Erica H. MacDonald today announced a felony information charging CLARISSA LYNN COMBS, 48, with conspiracy to commit wire fraud and false statements. COMBS will make her initial appearance in U.S. District Court at a later date. BRIDGIT YVETTE MICHAUD, 54, JALONDA LEEANN COMBS, 37, and AUDREY SEBILETTA HEATH, 34 were also charged via felony information with one count each of conspiracy to commit wire fraud for their roles in the conspiracy. [1] Five defendants previously pleaded guilty to one count each of conspiracy to commit wire fraud for their roles in the conspiracy.
According to the allegations in the information, between April 2012 and February 2019, COMBS, a former program manager for a Twin Cities non-profit organization that provides housing and related services to the homeless, devised and participated in a scheme to fraudulently obtain at least $684,081.90 in charitable funds from the organization. As part of the scheme, COMBS recruited other employees of the non-profit, as well as her family and friends, to pose as fictitious homeless clients. During the course of the investigation of the alleged conduct, COMBS made false statements to Special Agents of the Office of the Inspector General of the Department of Housing and Urban Development and the Federal Bureau of Investigation, and a United States Postal Inspector, at the United States Attorney’s Office in Minneapolis, in the District of Minnesota.
This case is the result of an investigation conducted by the Office of the Inspector General of the Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), the Federal Bureau of Investigation (FBI), and the United States Postal Inspection Service (USPIS).
Assistant United States Attorney Miranda E. Dugi is prosecuting the case.
Defendant Information:
CLARISSA LYNN COMBS, 48
Brooklyn Park, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- False statements, 1 count
BRIDGIT YVETTE MICHAUD, 54
Minneapolis, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
JALONDA LEEANN COMBS, 37
Brooklyn Park, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
AUDREY SEBILETTA HEATH, 34
Woodbury, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Park Avenue Bank Director Mendel Zilberberg and Co-Conspirator Charged in $1.4 Million Bank FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Jay N. Lerner, Inspector General of the Federal Deposit Insurance Corporation (“FDIC”), announced today the unsealing of an Indictment charging attorney MENDEL ZILBERBERG, a former director of Park Avenue Bank (the “Bank”), and ARON FRIED with bank fraud and related charges for perpetrating a fraudulent scheme to obtain a $1.4 million loan from the Bank. The defendants caused the Bank to issue the loan to a straw borrower on the basis of false statements and misrepresentations, when in fact the defendants received and used the loan proceeds, resulting in a loss of over $1 million to the Bank when the loan defaulted. ZILBERBERG was also separately charged with embezzlement and misappropriation of Bank funds while he was a director and insider of the Bank. ZILBERBERG and FRIED were arrested this morning and will be presented later today before U.S. Magistrate Judge Katharine H. Parker. The case has been assigned to U.S. District Judge George B. Daniels.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Mendel Zilberberg and Aron Fried conspired with another to defraud the bank where Zilberberg served as a director. In a textbook case of self-dealing and breach of fiduciary duty, Zilberberg allegedly exploited his position at the bank to grease the skids for a loan given under blatantly false pretenses, a huge chunk of the proceeds of which he himself dipped into.”
FBI Assistant Director-in-Charge William F. Sweeney Jr said: “As alleged, when Fried and his co-conspirator realized they wouldn’t be able to secure a loan the traditional way – by legitimately obtaining the money from an authorized financial institution – they brought a straw borrower and bank director into their circle to effectively carry out the fraudulent activity. As alleged, Mendel Zilberberg, the bank’s director, played a key role in carrying out this scheme, driving the loan through the approval process while shrouding the details in secrecy. When the bank realized a loss of more than $1 million, the defendants allegedly walked away with the money from the defaulted loan. Making false statements and misrepresentations on a loan application is a federal crime, a lesson those charged today have learned the hard way. Furthermore, bank insiders, of all people, should model the legal and ethical obligations of the financial institutions they serve, instead of breaking the law.”
According to the allegations contained in the Indictment[1] unsealed today in Manhattan federal court:
In or about 2009, ARON FRIED and a co-conspirator not named in the Indictment (“CC-1”) sought to obtain a fraudulent loan from the Bank in Manhattan in order to finance an investment in a home health care business. However, knowing that CC-1 would not be credit-worthy and had a criminal record, FRIED and CC-1 used a straw borrower (the “Straw Borrower”) for the loan application who was recruited by CC-1. To effectuate the scheme, FRIED and CC-1 partnered with MENDEL ZILBERBERG, then a director of the Bank, who had the power to personally shepherd the fraudulent loan through the Bank’s approval process and guard it from scrutiny. Together, the defendants concocted a false premise for the loan, supported the loan application with false representations, and set up pass-through bank accounts to funnel the proceeds of the fraudulent loan to themselves. Specifically, the defendants made or otherwise caused false statements to be made to the Bank regarding, among other things, (a) that the borrower on the loan was the Straw Borrower, when in fact the actual borrowers and beneficiaries of the loan were ZILBERBERG, FRIED, and CC-1; and (b) that the purpose of the loan was for business investments by the Straw Borrower, when in fact the actual purpose of the loan was to benefit ZILBERBERG, FRIED, and CC-1.
Based on the false representations made to the Bank and ZILBERBERG’s involvement in the loan approval process, the Bank issued a $1.4 million loan to the Straw Borrower, which was quickly disbursed to the defendants through multiple bank accounts and transfers. In total, ZILBERBERG received at least approximately $466,000 of the loan proceeds, FRIED received at least approximately $434,000 of the loan proceeds, and CC-1 received the remainder of the loan proceeds. The loan ultimately defaulted, resulting in a loss of over $1 million.
* * *
ZILBERBERG, 61 of Monsey, New York, and FRIED, 46 of Toms River, New Jersey, are each charged with one count of conspiracy to commit bank fraud, one count of bank fraud, and one count of making false statements to a bank, each of which carries a maximum sentence of 30 years in prison, as well as one count of conspiracy to make false statements to a bank, which carries a maximum sentence of five years in prison. ZILBERBERG is also charged with one count of embezzlement and misappropriation of bank funds, which carries a maximum sentence of 30 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the investigative work of the FBI and the FDIC, Office of the Inspector General, and noted that the investigation remains ongoing. Mr. Berman also thanked the Office of the Special Inspector General for the Troubled Asset Relief Program (“SIGTARP”) and the New York State Department of Financial Services for their assistance with the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Kimberly Ravener and Sagar K. Ravi are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Clarence Center Soccer Trainer Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shelby Garigen, 41, of Clarence Center, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to access with intent to view child pornography. The charge carries a maximum penalty of 10 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between November 2018 and February 2019, the defendant communicated with two minors (Victim 1 and Victim 2), both of whom were 17-years-old at the time, using the Snapchat application. During Garigen’s communications with Victim 1, she received and viewed approximately three sexually explicit images of Victim 1. During the defendant’s communications with
Victim 2, she received and viewed approximately 10 sexually explicit images of Victim 2. Garigen knew that both victims were minors.
The plea is the result of an investigation by the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Gary Loeffert, and the Cheektowaga Police Department, under the direction of Chief David Zack.
Sentencing is scheduled for February 28, 2020, at 1:00 p.m. before Judge Arcara.
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District Man Sentenced to 17 Years in Prison for 2016 Murder in Southeast WashingtonRead the Press Release
WASHINGTON – Quincy Green aka Wayne Wright, 37, of Washington, D.C. was sentenced on Friday to 17 years in prison for killing a man in May 2016 as he walked down Southern Avenue in Southeast Washington, U.S. Attorney Jessie K. Liu announced.
Green pled guilty in the Superior Court of the District of Columbia to one count of second-degree murder while armed and one count of solicitation of murder in August 2019. He was sentenced by the Honorable Craig Iscoe. Following the prison term, Green will be placed on five years of supervised release. The sentence also included a period of incarceration for another charge that Green pled guilty to in which he solicited the murder of the fiancée of a potential witness for the trial of the May 2016 murder. The sentences will run concurrently
According to the government’s evidence, during the early evening hours of May 19, 2016, in the 800 block of Southern Avenue, S.E., Green followed behind the decedent, Dana Hamilton, as he walked down the street. As he approached Mr. Hamilton, Green retrieved a firearm and shot him multiple times. Green then fled the area.
Members of the Metropolitan Police Department responded to the scene, and Mr. Hamilton was taken to a local hospital, where he subsequently succumbed to his injuries and was declared dead a short while later.
Following jury selection in the trial related to Green’s murder of Mr. Hamilton, on November 17, 2018, the Government disclosed the identity and plea and cooperation agreement of a witness expected to testify against Green. After learning this information. Green wrote a letter to another individual in which he solicited the murder of the cooperating witness’s fiancée.
In announcing the sentence, U.S. Attorney Liu commended the work of the detectives, officers, and mobile crime technicians who worked on the case from the Metropolitan Police Department. She also expressed appreciation for the assistance provided by the FBI’s Cellular Analysis Survey Team. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Paralegal Specialist Sharon Newman; Paralegal Specialists Kelly Blakeney and Lashone Samuels; Victim Witness Specialist Jennifer Clark; M. Laverne Perry, Lesley Slade, Tanya Via and all of the Victim/Witness Assistance Unit; Investigative Analyst Zachary McMenamin; and Litigation Technology Specialists Leif Hickling, and William Henderson.
Finally, U.S. Attorney Liu commended the work of Assistant U.S. Attorneys Charles J. Willoughby, Jr. and Kevin Flynn, who investigated and prosecuted the matter.
District Man Sentenced to 15 Years in Prison for Killing One Man and Injuring Another in Northeast ShootingRead the Press Release
WASHINGTON – Malik Morris, 21, of Washington, D.C., was sentenced to 15 years in prison for killing one man and injuring another in a shooting in Northeast, D.C., announced U.S. Attorney Jessie K. Liu.
On October 25, 2019, pursuant to Morris’ guilty plea, the Honorable Ronna L. Beck of the Superior Court of the District of Columbia sentenced Morris to 15 years in prison. Morris pled guilty to second degree murder while armed and assault with intent to kill at a prior proceeding on June 21, 2019. Upon completion of his sentencing, Morris will also be placed on five years of supervised release.
According to the government’s evidence, on November 26, 2018, at approximately 1:49 p.m. in the 1800 block of Benning Road, Northeast, Morris observed several people, including the decedent in a convenience store. Morris did not enter the store, instead, he went to an adjacent parking lot where he adjusted his pants and moved an object consistent with a firearm around his waistband. Shortly thereafter Morris ran past the convenience store and toward the decedent and another individual who were walking on Benning Road. Morris fired several shots in the direction of the decedent striking him and injuring another victim. After the shooting, Morris fled the scene. He was subsequently arrested in Slippery Rock, Pennsylvania on December 6, 2018, before he was extradited back to the District of Columbia to face charges.
In announcing the sentence, U.S. Attorney Liu commended the work of the Metropolitan Police Department officers who investigated the case. She also acknowledge the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including, Investigative Analyst Zachary McMenamin, Paralegal Specialist Lashone Samuels, and Victim/Witness Advocate Marcey Rinker.
Finally, she commend the work of Assistant U.S. Attorney Sarah Santiago, who investigated and prosecuted the case.
District Man Sentenced to 104 Months on Federal Firearm and Narcotics ChargesRead the Press Release
WASHINGTON – Darrin Chase, Jr., 22, of Washington, D.C., was sentenced to 104 months in prison on federal firearm and narcotics charges tied to the robbery of a pharmacy in which he stole Oxycodone, OxyContin, and other controlled substance medications while armed with afirearm.
The announcement was made by U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
The charges against Chase followed a law enforcement investigation that showed that he robbed a pharmacy of Oxycodone, OxyContin, and other controlled substance medications while armed with a firearm. On October 8, 2019, the Honorable John D. Bates of the U.S. District Court for the District of Columbia sentenced Chase to 84 months in prison on the firearms charge to be followed by 20 months in prison on the narcotics charge. Chase, Jr. pled guilty to using and brandishing a firearm during a crime of violence and unlawful possession with intent to distribute OxyCodone on June 5, 2019.
According to the government’s evidence, on the evening of December 4, 2018, at approximately 10:30 a.m., Chase, Jr. entered a pharmacy located in 5100 block of MacArthur Boulevard, N.W, Washington, D.C. Chase, Jr. pulled a firearm from a duffel bag that he had been carrying. He pointed the weapon at three pharmacy employees and demanded, “OxyContin! SubOxone! Oxycodone!” He walked behind the counter and continued to point the weapon at pharmacy employees while demanding the medications. The employees complied with Chase’s demands and gave him fourteen bottles of controlled substance medication.
Chase, Jr. left the pharmacy on foot. A pharmacy employee followed the defendant from a safe distance and saw the defendant get into the rear of a SUV. The employee called 911 and relayed this information to law enforcement. MPD officers with the Second District quickly located the SUV and learned that it was an Uber vehicle. The officers were then able to identify Chase as a suspect by speaking with the Uber account holder. Officers located Chase three days later in Washington, D.C. Within a few feet of where he was found, officers found pproximately $1, 160 in cash and five bottles of Oxycodone and OxyContin. FBI agents later determined that these bottles came from the pharmacy on MacArthur Blvd.
In announcing the verdict, U.S. Attorney Liu and Chief Newsham commended the work of the MPD officers and FBI agents from the Washington Field Office involved in the arrest and prosecution of Chase. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Sara Vanore and Nihar Mohanty of the Violent Crime and Narcotics Trafficking Section, and Paralegal Specialist Candace Battle.
District Man Pleads Guilty to Killing Two Men Sitting on Park Bench in Downtown Washington While Drunk DrivingRead the Press Release
WASHINGTON – Jeoffrey R. Williams, 57, of Southeast Washington, DC, pled guilty to two counts of voluntary manslaughter stemming from a traffic collision last July where he struck and killed two men who were sitting on a bench in James Monroe Park on Pennsylvania Avenue NW while driving drunk, announced U.S. Attorney Jessie K. Liu and Gregory Monahan, Acting Chief of the United States Park Police (USPP).
Williams pled guilty on November 8, 2019, in the Superior Court of the District of Columbia. The plea calls for a sentence of between three to five years in prison for causing each of the two deaths, for a total of between six and ten years. He will sentenced on February 14, 2020, by the Honorable Todd Edelman.
The fatal traffic collision occurred on Wednesday, July 10, 2019 at approximately 11:45 p.m. The victims, Dwight Thomas Spriggs and Jesus Llanes-Datil, were sitting on a park bench in James Monroe Park, in the 2000 block of Pennsylvania Avenue NW. At the same time, Williams was driving a 2003 GMC Yukon SUV at a high rate of speed west bound on Pennsylvania Avenue on the wrong side of the street, and sped into the park, striking and killing Mr. Spriggs and Mr. Llanes-Datil. Officers arrived on the scene almost immediately and pulled Williams from the driver’s seat of the wrecked SUV. Both Mr. Spriggs and Mr. Llanes-Datil were killed instantly.
Williams was taken to George Washington University Hospital where he was treated for non-life threatening injuries. While at the hospital, he admitted to police that he had been drinking alcohol earlier in the night, and he consented to have his blood drawn to determine if he was impaired. Hospital staff also drew Williams’ blood for diagnostic purposes and police obtained a search warrant for his blood drawn by hospital staff. Toxicology tests of both the blood drawn with the Williams’ consent and the blood drawn by hospital staff indicated that the he was intoxicated by alcohol when the fatal crash occurred.
Police also obtained a search warrant and recovered the crash data recorder from the GMC Yukon SUV that Williams was driving. Police downloaded the crash data recorder and the recovered data indicated that at 5 seconds before the crash, the defendant was driving the SUV at 63 miles per hour in the 25 mile per hour zone, without braking. Williams accelerated and at 1 second before the crash, he drove the SUV at 68 miles per hour without braking.
In announcing the plea, U.S. Attorney Liu and Acting Chief Monahan commended the work of the officers and detectives who investigated the case from both the United States Park Police and the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Investigative Analyst Zachary McMenamin, Paralegal Specialist Stephanie Siegerist and Victim/Witness Advocate Jennifer Allen.
Finally, they commended the work of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the case.
Director of Guatemalan Bank Arrested on Federal Money Laundering Charge and Money Laundering Charges Unsealed Against Former Guatemalan Presidential CandidateRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge Timothy M. Dunham of FBI's Washington Field Office Criminal Division, and Special Agent in Charge Adolphus P. Wright of the Drug Enforcement Administration’s (DEA) Miami Field Division, announced today the arrest of Alvaro Estuardo Cobar Bustamante, the director of a national Guatemalan bank, on a charge of money laundering, and the unsealing of a money laundering case against Manuel Antonio Baldizon Mendez, a former candidate for president of Guatemala.
The criminal complaint and indictment charging Cobar Bustamante with money laundering was unsealed today in the Southern District of Florida (Case Nos. 19mj03536, 18cr20706). According to allegations in the complaint, after multiple cooperating witnesses, who were prosecuted for narcotics trafficking, informed the FBI that Cobar Bustamante was involved in helping the traffickers to launder their drug proceeds, the FBI initiated a sting operation to gather evidence of Cobar Bustamante’s money laundering activity. In recorded conversations, Cobar Bustamante is alleged to have agreed to accept what was represented to be money earned from drug trafficking and to secretly move that money to the United States by using his position as the director of a national Guatemalan bank. Tomorrow, Cobar Bustamante is scheduled to have his initial appearance before U.S. Magistrate Judge Edwin G. Torres in Miami.
Baldizon Mendez was prosecuted in a separate case that was unsealed today in the Southern District of Florida (Case No. 19cr20706). According to court documents, including a Stipulated Factual Proffer, as a campaign supporter and later as a presidential candidate, Baldizon Mendez solicited money to fund his political campaigns. Baldizon Mendez accepted campaign contributions knowing they were being made by narcotics traffickers and were the proceeds of narcotics trafficking. Thereafter, Baldizon Mendez engaged in financial transactions, including the purchase of property in Miami, to hide the fact that he had knowingly accepted campaign contributions (money) from narcotics traffickers.
Baldizon Mendez previously pled guilty to money laundering and was sentenced to 50 months in prison.
U.S. Attorney Ariana Fajardo Orshan stated, “Narcotics trafficking is a very serious crime that not only poisons our communities and the people who use drugs, but can also contaminate some of the highest levels of business and politics. Purportedly upstanding members of society who help narcotics traffickers wash their money are no better in the eyes of the law than the traffickers themselves. Money launderers and their conspirators will be treated with the same justice meted out to the traffickers.”
“These prosecutions are another example of the Department of Justice and our foreign partners working together to identify, disrupt and dismantle criminal enterprises engaged in narcotics trafficking and related corruption," said FBI Special Agent in Charge Timothy M. Dunham. "We will aggressively pursue and bring justice to the corrupt business and community leaders who help drug traffickers poison the communities with their criminal activity."
“The laundering of illicit funds derived from drug trafficking is a serious crime,” said DEA Special Agent in Charge Adolphus P. Wright. “Those responsible, whether domestic or foreign, will be subject to investigation by law enforcement authorities if they attempt to foster this criminal activity against the United States. The DEA will continue to work with our local, state, federal, and foreign partners to target and investigate illegal drug related activities which put our communities in harm’s way.”
The prosecution was part of Operation Black Mass, which is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking and money laundering enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
U.S. Attorney Fajardo Orshan thanked the following entities and agencies for their collaboration, investigative work and assistance with these cases: the government of Guatemala, the Narcotics and Dangerous Drugs Section of the U.S. Department of Justice’s Criminal Division, the U.S. Attorney’s Office for the Southern District of California, the Office of International Affairs of the U.S. Department of Justice’s Criminal Division, FBI’s Miami Field Office, FBI’s Office in Guatemala, DEA’s Office in Guatemala, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Miami and San Diego, and Customs and Border Protection in Miami.
The prosecution of these cases is being handled by Assistant U.S. Attorney Walter M. Norkin.
The charges contained in the complaint against Cobar Bustamante are merely accusations, and the defendant is presumed innocent unless proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Department of Justice Awards more than $100 Million to Combat Human Trafficking and Assist VictimsRead the Press Release
Jackson, Miss. – The U.S. Department of Justice announced today it has awarded more than $100 million in funding, including grants to Mississippi recipients, to combat human trafficking and provide vital services to trafficking victims throughout the United States.
“Human traffickers remain a dire threat to human rights across the globe and their actions pose a serious danger to public safety right here in our own country,” said Attorney General William P. Barr. “I’m proud that these resources will help our law enforcement officers and victim service providers hold perpetrators accountable and give victims of these abominable crimes a place to turn for refuge and support.”
“We have made the fight against human trafficking a priority in this office, and today’s DOJ grant awards to our fellow members of the Mississippi Human Trafficking Council will allow us all to do even more of this important work. It is only through proactive collaboration and diligent cooperation with our law enforcement, victim service providers, and other stakeholders that we will be able to continue to successfully protect victims, prevent trafficking, and prosecute these criminals,” said U.S. Attorney Mike Hurst, Southern District of Mississippi.
“Preventing and combatting human trafficking is a priority in this District and across our State,” said Chad Lamar, U.S. Attorney for the Northern District of Mississippi, noting the importance of these grants in helping to combat human trafficking in Mississippi. “We are continuing to develop and expand strategic partnerships in efforts to curb human trafficking and raise awareness about this issue across our State and the entire Southeastern region. We are fortunate to have so many strong partners who are working together to prevent human trafficking in all forms, to hold accountable those individuals who choose to prey on others for their own financial gain, to raise awareness about this critical issue, and to assist and serve victims of these offenses. These grants will be of tremendous assistance to our recipient partners and will help further the important efforts of our entire state-wide anti-trafficking coalition.”
“The Mississippi State Department of Health is incredibly pleased to receive this $900,000 grant. We look forward to expanding and enhancing the accessibility and quality of services that will benefit victims of all forms of human trafficking in Mississippi. It is also a great opportunity to partner with the Mississippi Human Trafficking Council in its effort to prevent these crimes and protect its victims, and to also prosecute perpetrators of this type of crime,” said Heather Wagner, Director of the Office Against Interpersonal Violence for the Mississippi Department of Health.
“The Department of Public Safety is excited to bring these federal funds to Mississippi to aid the Mississippi Bureau of Investigation in formulating official law enforcement-led task forces to fight those who choose to traffic human beings in this state,” said Commissioner Marshall L. Fisher.
The Mississippi State Department of Health received a $900,000 Office of Victims of Crimes grant under the Direct Services to Support Victims of Human Trafficking program, which gives nearly $53 million to 77 organizations to enhance the quality and quantity of services available to victims of all forms of trafficking.
The Mississippi Department of Public Safety received an $800,000 Bureau of Justice Assistance grant for building capacity and operational effectiveness as a core member of collaborative, multidisciplinary human trafficking task forces. BJA awarded 13 total grants totaling nearly $11 million under the Enhanced Collaborative Model to Combat Human Trafficking: Supporting Law Enforcement’s Role.
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://ojp.gov/newsroom/pressreleases/2019/ojp-news-10082019_a.pdf
On September 9, 2019, U.S. Attorneys Mike Hurst and Chad Lamar, along with their state partners and other stakeholders, launched the Mississippi Human Trafficking Council, the first-ever, state-wide effort with a mission to prevent trafficking, protect victims, and prosecute criminals using a victim-centered, collaborative, and multi-disciplinary model. The Council is led by three Co-Chairs: (1) Susan Bradley, Assistant U.S. Attorney, Northern District of Mississippi; (2) Kathlyn Van Buskirk, Assistant U.S. Attorney, Southern District of Mississippi; and (3) Ashlee Lucas, Mississippi Human Trafficking Coordinator, Mississippi Department of Public Safety. The Council has a Steering Committee, five subcommittees (Outreach and Public Awareness; Strategic Planning and Trafficking Protocols; Policy and Legislation; Training; and Victim Services), and multiple small, regional law enforcement task forces that investigate and prosecute human trafficking.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Department of Justice Awards Nearly $153 Million to Reduce Crime and Improve Public Safety in GeorgiaRead the Press Release
Principal Deputy Associate Attorney General Claire Murray and Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan today joined Georgia First Lady Marty Kemp in announcing awards of almost $153 million to fight crime and improve community safety in Georgia. Nearly $4.3 million will help law enforcement officials and victim service providers in the state investigate and prosecute human traffickers and aid human trafficking survivors. U.S. Attorney for the Northern District of Georgia Byung J. “BJay” Pak, U.S. Attorney for the Middle District of Georgia Charlie Peeler and Georgia Attorney General Chris Carr also participated in the announcement.
“Human trafficking is a cruel and barbaric practice that calls to mind the darkest moments of our history, and sadly it has left its mark on the communities of Georgia,” said Principal Deputy Associate Attorney General Murray. “Under the direction of Attorney General Barr, the Department of Justice is putting the full weight of its resources behind the brave men and women of the state who are fighting trafficking perpetrators and bringing relief to victims. We commend these courageous and compassionate professionals and are proud to lend them our full support.”
“Human trafficking is an obscene violation of human rights and human dignity, affecting millions of people worldwide, countless victims in this country and hundreds if not thousands of men, women and children right here in Georgia,” said Principal Deputy Assistant Attorney General Sullivan. “We are so grateful to the law enforcement officers who pursue these vicious criminals and to the dedicated service providers who work around the clock to get survivors the help they so desperately need and deserve.”
Department officials and First Lady Kemp made the announcement at a press event alongside law enforcement officials, anti-trafficking advocates and members of the Georgia Criminal Justice Coordinating Council. Georgia’s leaders have concentrated the state’s resources on fighting human trafficking, establishing a Human Trafficking Prosecution Unit in the Georgia Department of Law. First Lady Kemp co-chairs the Georgians for Refuge, Action, Compassion and Education, or GRACE, Commission, a task force of public officials, law enforcement and health care professionals, for-profit and non-profit organizations and subject matter experts dedicated to combating human trafficking in Georgia.
Many trafficking victims in Georgia are teenagers who are sexually exploited. Of the 375 cases reported from the state to the National Human Trafficking Hotline last year, most involved sex trafficking and almost a quarter involved a minor. During an FBI-led, month-long, nationwide operation focused on recovering child victims of sex trafficking, known as Operation Independence Day, the FBI, in cooperation with 400 law enforcement agencies, identified and/or recovered more than 100 child victims of sex trafficking, including seven in Georgia. Law enforcement officials also arrested 67 suspected traffickers. Grantee organizations that received previous Justice Department funding served 140 human trafficking clients in 2018.
The awards today support a range of activities designed to bring sex and labor traffickers to justice and provide critical services to victims. A grant to the Georgia Criminal Justice Coordinating Council will fund a multidisciplinary task force composed of law enforcement agencies, including the Georgia Bureau of Investigation, and several victim service organizations. Funds will also support direct victim services provided under the auspices of the Georgia Coalition to Combat Human Trafficking. Other awards will help ensure that children and minors who are victimized receive counseling, case management and other critical services. Georgia Care Connection Office, Inc.; Wellspring Living, Inc.; Tapestri, Inc.; and the Georgia Center for Child Advocacy are among the grant recipients.
“Human and sex trafficking are not victimless crimes. These grants will go a long way in not just furthering our prosecutorial efforts for these terrible crimes, but also in providing much needed victim-centered services. Our office continues to be fully committed to eradicating human trafficking within the Northern District of Georgia,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia.
“In Georgia, the fight against human trafficking is a coordinated effort of federal, state and local law enforcement and prosecuting agencies working together to identify, arrest and prosecute those who choose to engage in this horrific industry,” said U.S. Attorney for the Middle District Charlie Peeler. “In the Middle District, we aggressively investigate and prosecute cases where offenders prey on vulnerable citizens, taking advantage of their age, their desire for love and affection, their financial status and their addictions. I am confident that these federal dollars will provide critical support to those who are dedicated to protecting victims and arresting perpetrators, which will lead to the end of human trafficking in our state.”
“Human trafficking is a pervasive, growing threat plaguing communities across our state and country,” said First Lady Kemp. “I applaud the federal, state and local partners who are committed to healing victims, seeking justice and holding bad actors accountable. By working together, we will end this criminal enterprise – once and for all.”
“We thank the Department of Justice for making it possible for us to continue and expand on our anti-trafficking efforts in Georgia,” said Georgia Attorney General Chris Carr. “The resources announced today, will help ensure more victims in Georgia get the support they need and help ensure that our law enforcement officials have every tool at their disposal to put buyers and traffickers behind bars where they belong.”
The remainder of the state’s awards cover a wide range of criminal justice, juvenile justice and victim service activities. Grants will support school safety initiatives, law enforcement hiring, services for domestic violence and sexual assault victims, inmate reentry services, youth mentoring and efforts to combat online child exploitation and manage sex offenders. Awards were made by the three grant-making components of the Department of Justice — OJP, the Office of Community Oriented Policing Services and the Office on Violence Against Women.
A full list of OJP awards, organized under specific grant programs, is available online at https://ojp.gov/funding/Explore/OJPAwardData.htm. For COPS awards, please visit https://cops.usdoj.gov/grants. OVW awards can be found at https://www.justice.gov/ovw/awards.
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
About the Office on Violence Against Women:
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Department of Justice Awards More than $100 Million to Combat Human Trafficking and Assist VictimsRead the Press Release
The Department of Justice announced today it has awarded more than $100 million in funding, through the Office of Justice Programs (OJP), to combat human trafficking and provide vital services to trafficking victims throughout the United States.
“Human traffickers remain a dire threat to human rights across the globe and their actions pose a serious danger to public safety right here in our own country,” said Attorney General William P. Barr. “I’m proud that these resources will help our law enforcement officers and victim service providers hold perpetrators accountable and give victims of these abominable crimes a place to turn for refuge and support.”
“The fight against human trafficking is never ending, and it is our front-line law enforcement officers and an army of compassionate service providers who are leading the charge,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Attorney General has made it clear that the Department of Justice will use every means at its disposal to bring traffickers to justice and serve trafficking victims. We are proud to support his vision of a nation, and a world, free of the scourge of human trafficking.”
Approximately $80 million of the funds were awarded under five Office for Victims of Crime (OVC) grant programs. The remaining $20 million were awarded by OJP's Bureau of Justice Assistance (BJA), National Institute of Justice (NIJ) and Office of Juvenile Justice and Delinquency Prevention (OJJDP) to jurisdictions, service providers and task forces all over the country.
Grants awarded under FY 2019 OVC programs aim to enhance the quality and quantity of services available to survivors of human trafficking. Specific programs being funded include:
- The Direct Services to Support Victims of Human Trafficking program gives nearly $53 million to 77 organizations to enhance the quality and quantity of services available to victims of all forms of trafficking.
- The Integrated Services for Minor Victims of Human Trafficking program awards over $15 million total to 32 programs to provide minor victims of trafficking with high-quality services that are developmentally appropriate and tailored for their individual needs.
- The Improving Outcomes for Child and Youth Victims of Human Trafficking program gives over $6 million total to four organizations to integrate human trafficking policy and programming at the state level and to enhance coordinated, multidisciplinary and statewide approaches to serving trafficked youth.
- The Field-Generated Innovations in Assistance to Victims of Human Trafficking program awards $4 million total to five programs to fill gaps and improve the victim services field’s response to human trafficking.
- The Specialized Human Trafficking Training and Technical Assistance and Resource Development program awarded $1 million to provide efficient and streamlined technical assistance and training to improve services offered to labor trafficking victims nationwide.
Grants awarded under FY 2019 OJJDP programs will support organizations in developing their capacity to respond to the needs of children and youth who are victims of domestic sex trafficking and labor trafficking. The Specialized Services and Mentoring for Child and Youth Victims of Sex Trafficking and Sexual Exploitation and the Preventing Sex Trafficking of Girls and Involvement in the Juvenile Justice System grant programs provide more than $4 million to nine organizations to support child and youth victims of sexual exploitation and domestic sex trafficking and girls involved in the juvenile justice system.
BJA awarded 13 grants totaling nearly $11 million under the Enhanced Collaborative Model to Combat Human Trafficking: Supporting Law Enforcement’s Role. This initiative helps law enforcement organizations build capacity and operational effectiveness as core members of collaborative, multidisciplinary human trafficking task forces.
NIJ awarded over $2 million to five research organizations under the Research and Evaluation on Trafficking in Persons Program, which funds research and evaluation projects that help federal, state, local and tribal criminal justice agencies and victim service providers respond to the challenges posed by human trafficking in their jurisdictions.
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://ojp.gov/newsroom/pressreleases/2019/ojp-news-10082019_a.pdf
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Department of Justice Awards Nearly $153 Million to Reduce Crime and Improve Public Safety in GeorgiaRead the Press Release
WASHINGTON - Principal Deputy Associate Attorney General Claire Murray and Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan today joined Georgia First Lady Marty Kemp in announcing awards of almost $153 million to fight crime and improve community safety in Georgia. Nearly $4.3 million will help law enforcement officials and victim service providers in the state investigate and prosecute human traffickers and aid human trafficking survivors. U.S. Attorney for the Northern District of Georgia Byung J. "BJay" Pak, U.S. Attorney for the Middle District of Georgia Charlie Peeler and Georgia Attorney General Chris Carr also participated in the announcement.
"Human trafficking is a cruel and barbaric practice that calls to mind the darkest moments of our history, and sadly it has left its mark on the communities of Georgia," said Principal Deputy Associate Attorney General Murray. "Under the direction of Attorney General Barr, the Department of Justice is putting the full weight of its resources behind the brave men and women of the state who are fighting trafficking perpetrators and bringing relief to victims. We commend these courageous and compassionate professionals and are proud to lend them our full support."
"Human trafficking is an obscene violation of human rights and human dignity, affecting millions of people worldwide, countless victims in this country and hundreds if not thousands of men, women and children right here in Georgia," said Principal Deputy Assistant Attorney General Sullivan. "We are so grateful to the law enforcement officers who pursue these vicious criminals and to the dedicated service providers who work around the clock to get survivors the help they so desperately need and deserve."Department officials and First Lady Kemp made the announcement at a press event alongside law enforcement officials, anti-trafficking advocates and members of the Georgia Criminal Justice Coordinating Council. Georgia’s leaders have concentrated the state’s resources on fighting human trafficking, establishing a Human Trafficking Prosecution Unit in the Georgia Department of Law. First Lady Kemp co-chairs the Georgians for Refuge, Action, Compassion and Education, or GRACE, Commission, a task force of public officials, law enforcement and health care professionals, for-profit and non-profit organizations and subject matter experts dedicated to combating human trafficking in Georgia.
Many trafficking victims in Georgia are teenagers who are sexually exploited. Of the 375 cases reported from the state to the National Human Trafficking Hotline last year, most involved sex trafficking and almost a quarter involved a minor. During an FBI-led, month-long, nationwide operation focused on recovering child victims of sex trafficking, known as Operation Independence Day, the FBI, in cooperation with 400 law enforcement agencies, identified and/or recovered more than 100 child victims of sex trafficking, including seven in Georgia. Law enforcement officials also arrested 67 suspected traffickers. Grantee organizations that received previous Justice Department funding served 140 human trafficking clients in 2018.
The awards today support a range of activities designed to bring sex and labor traffickers to justice and provide critical services to victims. A grant to the Georgia Criminal Justice Coordinating Council will fund a multidisciplinary task force composed of law enforcement agencies, including the Georgia Bureau of Investigation, and several victim service organizations. Funds will also support direct victim services provided under the auspices of the Georgia Coalition to Combat Human Trafficking. Other awards will help ensure that children and minors who are victimized receive counseling, case management and other critical services. Georgia Care Connection Office, Inc.; Wellspring Living, Inc.; Tapestri, Inc.; and the Georgia Center for Child Advocacy are among the grant recipients.
"Human and sex trafficking are not victimless crimes. These grants will go a long way in not just furthering our prosecutorial efforts for these terrible crimes, but also in providing much needed victim-centered services. Our office continues to be fully committed to eradicating human trafficking within the Northern District of Georgia," said Byung J. "BJay" Pak, U.S. Attorney for the Northern District of Georgia.
"In Georgia, the fight against human trafficking is a coordinated effort of federal, state and local law enforcement and prosecuting agencies working together to identify, arrest and prosecute those who choose to engage in this horrific industry," said U.S. Attorney for the Middle District Charlie Peeler. "In the Middle District, we aggressively investigate and prosecute cases where offenders prey on vulnerable citizens, taking advantage of their age, their desire for love and affection, their financial status and their addictions. I am confident that these federal dollars will provide critical support to those who are dedicated to protecting victims and arresting perpetrators, which will lead to the end of human trafficking in our state.""Human trafficking is a pervasive, growing threat plaguing communities across our state and country," said First Lady Kemp. "I applaud the federal, state and local partners who are committed to healing victims, seeking justice and holding bad actors accountable. By working together, we will end this criminal enterprise - once and for all."
"We thank the Department of Justice for making it possible for us to continue and expand on our anti-trafficking efforts in Georgia," said Georgia Attorney General Chris Carr. "The resources announced today, will help ensure more victims in Georgia get the support they need and help ensure that our law enforcement officials have every tool at their disposal to put buyers and traffickers behind bars where they belong."
The remainder of the state’s awards cover a wide range of criminal justice, juvenile justice and victim service activities. Grants will support school safety initiatives, law enforcement hiring, services for domestic violence and sexual assault victims, inmate reentry services, youth mentoring and efforts to combat online child exploitation and manage sex offenders. Awards were made by the three grant-making components of the Department of Justice - OJP, the Office of Community Oriented Policing Services and the Office on Violence Against Women.
A full list of OJP awards, organized under specific grant programs, is available online at https://ojp.gov/funding/Explore/OJPAwardData.htm. For COPS awards, please visit https://cops.usdoj.gov/grants. OVW awards can be found at https://www.justice.gov/ovw/awards.About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
About the Office on Violence Against Women:
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Dallas Man Charged with Carjacking After Brutal Assault Inside Parking GarageRead the Press Release
A Laredo man has been charged via federal criminal complaint with carjacking resulting in serious bodily injury after brutally assaulting a woman in a downtown Dallas parking garage, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
David Cadena – who had twice bonded out of Dallas County Jail after being charged by the state with aggravated assault with a deadly weapon and aggravated robbery – made his initial appearance in federal court Tuesday afternoon.
“Violent criminals should not be released when they pose a danger to the community. In this instance, a violent defendant was released not once, but twice, after posting minor bonds,” said U.S. Attorney Nealy Cox. “The citizens of Dallas deserve a better system – one that fairly detains individuals who pose significant danger to their victims and to the public. The U.S. Attorney’s Office is determined to hold Mr. Cadena accountable for his brutal crime – and to keep him detained pending trial.”
“FBI Dallas’s Violent Crime Task Force is focused on apprehending individuals who routinely commit acts of violence and are a threat to the community,” said FBI Special Agent in Charge of the Dallas Field Office Matthew J. DeSarno. “The defendant brutally attacked the victim in this case. The FBI is committed to working with our law enforcement partners to eradicate violent offenders and protect the communities we serve.”
According to the complaint, Mr. Candea, 25, allegedly savagely assaulted the victim with a fire extinguisher in the parking garage of the Statler Hotel around 2:30 a.m. on Saturday, Sept. 21.
He then allegedly carjacked her 2015 Toyota Corolla, drove it around the garage, and slammed it into a wall. A Statler security guard observed Mr. Candea behind the wheel of the wrecked vehicle and removed him from the car for his own safety.
Authorities discovered 27-year-old victim, identified in court documents as J.K., unconscious, with severe bruising and swelling to her face and head. She was transported to Baylor Hospital, where she lay in a coma for two days, and medical professionals documented nerve damage to her arms and legs as a result of the beating.
A criminal complaint is a formal accusation of criminal conduct, not evidence. Like all defendants, Mr. Candea is innocent unless and until proven guilty in a court of law.
If convicted, he faces a sentence of up to 25 years in federal prison. Magistrate Judge Irma C. Ramirez ordered the defendant detained pending trial.
The Federal Bureau of Investigation Dallas Field Office and Dallas Police Department conducted the investigation. Assistant U.S. Attorney Gary Tromblay is prosecuting the case.
DOJ Awards More Than $100 Million to Combat Human Trafficking and Assist Victims – Awards Given to South Florida PartnersRead the Press Release
WASHINGTON – The Department of Justice announced today it has awarded more than $100 million in funding, through the Office of Justice Programs (OJP), to combat human trafficking and provide vital services to trafficking victims throughout the United States.
“Human traffickers remain a dire threat to human rights across the globe and their actions pose a serious danger to public safety right here in our own country,” said Attorney General William P. Barr. “I’m proud that these resources will help our law enforcement officers and victim service providers hold perpetrators accountable and give victims of these abominable crimes a place to turn for refuge and support.”
“The fight against human trafficking is never ending, and it is our front-line law enforcement officers and an army of compassionate service providers who are leading the charge,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Attorney General has made it clear that the Department of Justice will use every means at its disposal to bring traffickers to justice and serve trafficking victims. We are proud to support his vision of a nation, and a world, free of the scourge of human trafficking.”
Approximately $80 million of the funds were awarded under five Office for Victims of Crime (OVC) grant programs. The remaining $20 million were awarded by OJP's Bureau of Justice Assistance (BJA), National Institute of Justice (NIJ) and Office of Juvenile Justice and Delinquency Prevention (OJJDP) to jurisdictions, service providers and task forces all over the country.
Grants awarded under FY 2019 OVC programs aim to enhance the quality and quantity of services available to survivors of human trafficking. Specific programs being funded include:
- The Direct Services to Support Victims of Human Trafficking program gives nearly $53 million to 77 organizations to enhance the quality and quantity of services available to victims of all forms of trafficking.
- The Integrated Services for Minor Victims of Human Trafficking program awards over $15 million total to 32 programs to provide minor victims of trafficking with high-quality services that are developmentally appropriate and tailored for their individual needs.
- The Improving Outcomes for Child and Youth Victims of Human Trafficking program gives over $6 million total to four organizations to integrate human trafficking policy and programming at the state level and to enhance coordinated, multidisciplinary and statewide approaches to serving trafficked youth.
- The Field-Generated Innovations in Assistance to Victims of Human Trafficking program awards $4 million total to five programs to fill gaps and improve the victim services field’s response to human trafficking.
- The Specialized Human Trafficking Training and Technical Assistance and Resource Development program awarded $1 million to provide efficient and streamlined technical assistance and training to improve services offered to labor trafficking victims nationwide.
Grants awarded under FY 2019 OJJDP programs will support organizations in developing their capacity to respond to the needs of children and youth who are victims of domestic sex trafficking and labor trafficking. The Specialized Services and Mentoring for Child and Youth Victims of Sex Trafficking and Sexual Exploitation and the Preventing Sex Trafficking of Girls and Involvement in the Juvenile Justice System grant programs provide more than $4 million to nine organizations to support child and youth victims of sexual exploitation and domestic sex trafficking and girls involved in the juvenile justice system.
BJA awarded 13 grants totaling nearly $11 million under the Enhanced Collaborative Model to Combat Human Trafficking: Supporting Law Enforcement’s Role. This initiative helps law enforcement organizations build capacity and operational effectiveness as core members of collaborative, multidisciplinary human trafficking task forces.
NIJ awarded over $2 million to five research organizations under the Research and Evaluation on Trafficking in Persons Program, which funds research and evaluation projects that help federal, state, local and tribal criminal justice agencies and victim service providers respond to the challenges posed by human trafficking in their jurisdictions.
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://ojp.gov/newsroom/pressreleases/2019/ojp-news-10082019_a.pdf
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Crawford County Man Charged with Armed Robbery of Erie Gas StationRead the Press Release
ERIE, Pa. - A former resident of Cochranton, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of Hobbs Act robbery and using and carrying a firearm during a crime of violence, United States Attorney Scott W. Brady announced today.
The two-count indictment named Jack Elijah Turner, 21, as the sole defendant.
According to the indictment presented to the court, on August 11, 2019, Turner robbed a Kwik Fill gas station at 3360 West 38th Street in Erie at gunpoint.
Project Safe Neighborhood (PSN) is the centerpiece of the Department of Justice’s violent crime reductions 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 prevent and reentry programs for lasting reductions in crime.
The law provides for a maximum total sentence of life in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police and the Millcreek Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Columbia County Man Sentenced to 37 Months for Heroin and Fentanyl DealingRead the Press Release
ALBANY, NEW YORK – Timothy J. Simpson, Jr., age 41, of Philmont, New York, was sentenced today to 37 months in prison, to be followed by 3 years of supervised release, for heroin and fentanyl trafficking in Columbia County.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, New York Division, U.S. Drug Enforcement Administration (DEA); and Columbia County Sheriff David P. Bartlett.
In pleading guilty, Simpson admitted that between April 2017 and March 2018, he purchased heroin and fentanyl from a supplier residing in the Bronx, New York. Simpson and the supplier, Saul E. Pacheco, regularly met in the parking lot of a casino in Yonkers, New York. They met so that Pacheco could resupply Simpson with heroin and fentanyl – typically between 40 and 60 grams per meeting. After being supplied with heroin and fentanyl, Simpson drove back to Columbia County and sold the drugs to customers.
On March 22, 2018, Columbia County Sheriff’s Deputies stopped Simpson as he was driving on Route 9H in the Town of Claverack, Columbia County. Simpson was driving back from a meeting with Pacheco in Yonkers.
Deputies located two bags, each containing a powder substance, wrapped in black electrical tape, which Simpson had hidden above his car’s muffler. One bag contained approximately 56.1 grams of heroin. The other bag contained approximately 11.4 grams of fentanyl.
On September 10, 2019, Pacheco was sentenced to 5 years in prison for his role in the conspiracy.
This case was investigated by the DEA and the Columbia County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Cibolo Businessman Faces Federal Charges Related to a Scheme to Defraud High School StudentsRead the Press Release
George Alberto Barragan, 45 of Cibolo, TX, faces federal charges in connection with an alleged scheme to steal money from high school students who paid for group travel opportunities to celebrate their graduations, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
A federal grand jury indictment unsealed today charges Barragan with three counts of mail fraud, four counts of wire fraud and one count of aggravated identity theft.
According to the indictment, Barragan owned and operated several travel agencies, including EB Worldwide, Exhibit Tours and Senior Grad Trips. He was the sole individual in charge of negotiating and contracting with customers, as well as booking and arranging travel accommodations for large groups. Victim groups would pay Barragan by check or online payment portal either in full up front, or provide an initial deposit with a deadline by which payment needed to be completed. Once in possession of victims’s funds, Barragan would make reservations and provide confirmations and itineraries to victims purporting to show that desired travel arrangements had been arranged.
Prior to travel, Barragan would cancel reservations and thus, receive a refund of the victims’s monies into an account he controlled. Barragan never notified his victims of the cancellations. In fact, he kept communicating with his victims after he cancelled their trip, informing them that their travel was still taking place. In at least two instances, large groups of students arrived at the designated time and location to begin their trip, only to find out that their trip had been cancelled. The indictment also specifically alleges that in April 2018, Barragan illegally used a credit card number and personal information provided by a customer to make a $6,000 payment for a set of hotel rooms in San Diego, CA, for an unrelated client.
According to the indictment, Barragan perpetrated his scheme on no less than six different high school student groups between May 2015 and June 2018, resulting in an approximate total loss of $160,000.
Following his initial appearance today, Barragan was released on bond. Upon conviction, Barragan faces up to a mandatory two years in federal prison for aggravated identity theft and up to 20 years in federal prison on each of the remaining mail and wire fraud charges.
The FBI investigated this case. Assistant U.S. Attorney Justin Chung is prosecuting this case on behalf of the government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is innocent until proven guilty in a court of law.
Chinese National Pleads Guilty to Committing Theft of Trade SecretsRead the Press Release
Hongjin Tan, a 35 year old Chinese national and U.S. legal permanent resident, pleaded guilty Tuesday in federal court to committing theft of trade secrets from his employer, a U.S. petroleum company.
Tan pleaded guilty to theft of a trade secret, unauthorized transmission of a trade secret, and unauthorized possession of a trade secret. The defendant stole the information from a U.S.-based petroleum company regarding the manufacture of a “research and development downstream energy market product” that is worth more than $1 billion.
“China’s economic aggression poses a threat to America’s emerging high-technology industries. Industrial spies like Hongjin Tan engage in espionage to steal American trade secrets and intellectual property born out of the innovation that is innate in our free market system,” said U.S. Attorney Trent Shores for the Northern District of Oklahoma. “Thanks to a vigilant company and the investigative efforts of the FBI, Hongjin Tan was caught red handed and prosecuted. American ingenuity and know-how are the envy of the international market, and the U.S. Attorneys community will work to protect our economic infrastructure.”
“Tan’s guilty plea continues to fill in the picture of China’s theft of American intellectual property,” said Assistant Attorney General for National Security John C. Demers. “The Department launched its China Initiative to battle precisely the type of behavior reflected in today’s plea—illegal behavior that costs Americans their jobs--and we will continue to do so.”
"Trade secret theft is a serious crime which hurts American businesses and taxpayers. The FBI will continue to protect our country's industries from adversaries who attempt to steal valuable research and technology," said FBI Special Agent in Charge Melissa Godbold of the Oklahoma City Field Office.
Tan was employed as an associate scientist for the U.S. petroleum company starting in June 2017 until December 2018. The defendant was assigned to work within a group at the company with the goal of developing next generation battery technologies for stationary energy storage, specifically flow batteries. In his plea agreement, Tan admitted to intentionally copying and downloading research and development materials without authorization from his employer.
On Dec. 11, 2018, Tan used a thumb drive to copy hundreds of files. He subsequently turned in his resignation and was escorted from the premises on Dec. 12, 2018. Later that day, he returned the thumb drive, claiming that he had forgotten to do so before leaving his employer’s property. Upon examination, it was discovered that there was unallocated space on the thumb drive, indicating five documents had previously been deleted. Investigators with the FBI searched Tan’s premises and found an external hard drive. They discovered that the same five missing files from the thumb drive had been downloaded to the hard drive. Tan maintained the files on a hard drive so he could access the data at a later date. Further accessing the material would have been financially advantageous for Tan but caused significant financial damage to his Oklahoma employer.
U.S. District Judge Gregory K. Frizzell presided over the plea hearing and set sentencing for Feb. 12, 2020.
The FBI conducted this investigation. Assistant U.S. Attorney Joel-lyn A. McCormick of the Northern District of Oklahoma and Trial Attorney Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section (CES) are prosecuting the case, with assistance from Trial Attorney Matthew R. Walczewski and Assistant Deputy Chief Brian J. Resler of the Criminal Division’s Computer Crimes and Intellectual Property Section (CCIPS).
Chinese National Pleads Guilty to Committing Theft of Trade SecretsRead the Press Release
Hongjin Tan, a 35 year old Chinese national and U.S. legal permanent resident, pleaded guilty Tuesday in federal court to committing theft of trade secrets from his employer, a U.S. petroleum company.
Tan pleaded guilty to theft of a trade secret, unauthorized transmission of a trade secret, and unauthorized possession of a trade secret. The defendant stole the information from a U.S.-based petroleum company regarding the manufacture of a “research and development downstream energy market product” that is worth more than $1 billion.
“Tan’s guilty plea continues to fill in the picture of China’s theft of American intellectual property,” said Assistant Attorney General for National Security John C. Demers. “The Department launched its China Initiative to battle precisely the type of behavior reflected in today’s plea —illegal behavior that costs Americans their jobs — and we will continue to do so.”
“China’s economic aggression poses a threat to America’s emerging high-technology industries. Industrial spies like Hongjin Tan engage in espionage to steal American trade secrets and intellectual property born out of the innovation that is innate in our free market system,” said U.S. Attorney Trent Shores for the Northern District of Oklahoma. “Thanks to a vigilant company and the investigative efforts of the FBI, Hongjin Tan was caught red handed and prosecuted. American ingenuity and know-how are the envy of the international market, and the U.S. Attorneys community will work to protect our economic infrastructure.”
"Trade secret theft is a serious crime which hurts American businesses and taxpayers. The FBI will continue to protect our country's industries from adversaries who attempt to steal valuable research and technology," said FBI Special Agent in Charge Melissa Godbold of the Oklahoma City Field Office.
Tan was employed as an associate scientist for the U.S. petroleum company starting in June 2017 until his arrest in December 2018. The defendant was assigned to work within a group at the company with the goal of developing next generation battery technologies for stationary energy storage, specifically flow batteries. In his plea agreement, Tan admitted to intentionally copying and downloading research and development materials without authorization from his employer.
On Dec. 11, 2018, Tan used a thumb drive to copy hundreds of files. He subsequently turned in his resignation and was escorted from the premises on Dec. 12, 2018. Later that day, he returned the thumb drive, claiming that he had forgotten to do so before leaving his employer’s property. Upon examination, it was discovered that there was unallocated space on the thumb drive, indicating five documents had previously been deleted. Investigators with the FBI searched Tan’s premises and found an external hard drive. They discovered that the same five missing files from the thumb drive had been downloaded to the hard drive. Tan maintained the files on a hard drive so he could access the data at a later date. Further accessing the material would have been financially advantageous for Tan but caused significant financial damage to his Oklahoma employer.
U.S. District Judge Gregory K. Frizzell presided over the plea hearing and set sentencing for Feb. 12, 2020.
The FBI conducted this investigation. Assistant U.S. Attorney Joel-lyn A. McCormick of the Northern District of Oklahoma and Trial Attorney Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section (CES) are prosecuting the case, with assistance from Trial Attorney Matthew R. Walczewski and Assistant Deputy Chief Brian J. Resler of the Criminal Division’s Computer Crimes and Intellectual Property Section (CCIPS).
Charlotte Private School Owner Is Sentenced to Prison for Scheme Involving Student VisasRead the Press Release
CHARLOTTE, N.C. – Evelyn P. Mack, the owner and principal of a Charlotte-area private school, was sentenced to 18 months in prison on charges of conspiracy to harbor aliens, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Mack, 65, of Charlotte, to serve one year under court supervision upon completion of her prison term.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Charlotte, and Edwin Guard, Special Agent in Charge of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service (DSS), join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from March 2011 to December 2016, Mack was the owner, operator and principal of the Evelyn Mack Academy (EMA), a private school located in Charlotte. Court records show that EMA was approved and authorized by the Department of Homeland Security’s (DHS) Student and Exchange Visitor Program (SEVP) to enroll foreign national students in grades nine through twelve, with Mack as the school’s Primary Designated School Official (PDSO).
According to court records, as the school’s PDSO, Mack had the authority to issue I-20 forms for foreign national students to enroll in and attend EMA on a full-time basis. The I-20 forms are necessary for potential foreign national students to obtain their F-1 student visas. In addition to preparing immigration forms and other necessary documents for incoming foreign students, Mack was also responsible for creating and maintaining student records for new and existing students in the Student and Exchange Visitor Information System, used by DHS to ensure that foreign national students in the United States are in compliance with the terms and conditions of their F-1 visa status.
Court records show that Mack conspired with other individuals, many of whom were basketball coaches and recruiters with organizations in the United States and other countries, to use Mack’s status as PDSO to admit foreign national students without complying with the terms of the F-1 student visa program. As part of the scheme, Mack falsely represented that approximately 75 foreign students were full-time students at EMA, when in fact the majority of the students, who were minors, were mostly recruited as athletes by the co-conspirators. Mack was paid by her co-conspirators an administrative enrollment fee of $1,000 per student and other benefits, in exchange for her participation in the scheme.
On June 25, 2018, Mack pleaded guilty to conspiracy to harbor aliens. She will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility to begin serving her sentence. All federal sentences are served without the possibility of parole.
U.S. Attorney Murray thanked the ICE-HSI, and Greensboro Resident Office of the Diplomatic Security Service, for their investigation of this case.
Assistant U.S. Attorney Kenneth Smith, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charlotte Man Sentenced to Prison for Conspiring to Defraud the GovernmentRead the Press Release
A Charlotte, North Carolina, man was sentenced to 46 months in prison today for conspiracy, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Andrew Murray for the Western District of North Carolina.
In September 2018, a jury convicted Arthur Joseph Gerard, III, of conspiring to defraud the United States. According to the evidence presented at trial, between October 2007 and May 2016, Gerard conspired with his client, Reuben DeHaan, to hide from the Internal Revenue Service (IRS) over $2.7 million in gross receipts DeHaan earned through his holistic medicine business.
To conceal DeHaan’s income from the IRS, Gerard helped DeHaan funnel his income through multiple layers of straw companies and bank accounts held by nominees. Gerard devised the scheme, caused the organization of straw companies in several states, recruited his friend to serve as a nominee on DeHaan’s bank accounts, and at times, cashed checks for DeHaan. Gerard charged DeHaan a fee of between $1,000 and $2,500 for each straw company.
Gerard also assisted DeHaan in preparing and filing false documents with the IRS. Gerard helped DeHaan file false 2005 and 2006 tax returns that fraudulently reported more than $200,000 in withheld federal income taxes. Gerard also assisted DeHaan in creating and filing false liens against DeHaan’s property to give the appearance that there was no equity in DeHaan’s property for IRS debt collection purposes. In total, Gerard’s conduct caused a tax loss to the IRS of approximately $560,000.
In addition to the term of imprisonment imposed, Gerard was ordered to serve three years of supervised release and to pay restitution in the amount of $567,665 to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Murray commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney William Miller and Trial Attorney Mara Strier of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Brothers from India Facing Charges Related to a Marriage Fraud SchemeRead the Press Release
PITTSBURGH, PA – Two brothers residing in the Pittsburgh-area have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and visa fraud, United States Attorney Scott W. Brady announced today.
The three-count Indictment, returned on Nov. 6 and unsealed Friday, named Rajinder Singh, 43, of Pittsburgh, and Makhan Singh, 53, of Monroeville, as defendants.
According to the Indictment, Rajinder and Makhan Singh, who are brothers and citizens of India, entered into a conspiracy in 2011 with a woman known to the grand jury as D.H. to enter into a sham marriage for the purpose of evading immigration laws The court was further informed that Makhan introduced D.H. to his brother and paid her to marry him and to make false statements to the United States Citizenship and Immigration Service (CIS). The "couple" further staged pictures and opened joint bank accounts, and Makhan made payments for D.H.’s benefit, including paying for car insurance for a vehicle jointly registered to D.H. and Rajinder in order to falsely document their relationship and marriage. The Indictment also alleges that Rajinder made false statements to CIS on or about March 11, 2016 and December 14, 2017 when he stated that he did not live at a separate address from D.H., when they had lived separately.
The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The defendants remain on bond pending the resolution of the case
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Department of Homeland Security conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Brandon Aria, A/K/A "the Drug Llama," Sentenced to 9 Years for Distributing Fentanyl on the Dark WebRead the Press Release
Earlier today, in the United States District Court for the Southern District of Illinois, Brandon
Arias (a/k/a “The Drug Llama”) was sentenced to 108 months in federal prison for conspiring to distribute fentanyl throughout the United States via the “dark web.”1 The nine-year sentence represents the culmination of a prosecution that began in January 2019, when a superseding indictment was filed against Arias (34) and his co-conspirator, Melissa Scanlan (32).The superseding indictment charged Arias with conspiracy to distribute fentanyl, illegally distributing fentanyl (five counts), selling counterfeit drugs, and misbranding drugs. He pleaded guilty to all eight charges back in July. Scanlan has also pleaded guilty to her role in the conspiracy, as well as her participation in an international money laundering conspiracy and a separate count of aiding the distribution of fentanyl resulting in death. She is scheduled to be sentenced on Feb. 10, 2020. Both Arias and Scanlan have been in federal custody since their arrest earlier this year.
According to court filings, Arias and Scanlan created an account on “Dream Market,” a dark web marketplace where users buy and sell illegal substances and services, and sold substantial quantities of narcotics under the moniker, “The Drug Llama.” The pair ran their illicit operation from their hometown of San Diego, California. During their nearly two-year run, Arias was actively involved in Scanlan’s distribution of 1,000 fentanyl and acetyl fentanyl pills every week. They raked in over $100,000 from their dark web drug trafficking and split the proceeds evenly.
Fentanyl is a highly addictive and oftentimes lethal opioid painkiller.
In recent comments, U.S. Attorney Steven D. Weinhoeft assailed the culture of criminality that exists on the dark web. “Criminals like Brandon Arias who recklessly flood our communities with opioids may think they can evade detection in the shadowy corners and back alleys of the internet.
But they will find no quarter there. Where they go, we will follow. With the collaboration of outstanding investigators at our partner agencies, we will use every tool and method available to find these people and prosecute them to the fullest extent of the law.”Footnote 1: The dark web is an underground computer network that is unreachable by traditional search engines and users. This false cloak has led to a proliferation of dark web marketplaces, like the one used by Arias.
“Illicit opioid distribution, whether online or through conventional drug distribution methods, and the resulting overdoses and deaths are a continuing national crisis; those who contribute to that crisis through their illegal actions will be brought to justice,” said Special Agent in Charge
Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We are fully committed to disrupting and dismantling illegal prescription drug distribution networks that misuse the internet at the expense of public health and safety.”“Drug traffickers who operate from the dark corners of the internet are not immune from arrest and prosecution,” stated DEA Special Agent in Charge William Callahan of the St. Louis Division. “The men and women of the DEA and our law enforcement partners are well positioned to investigate, locate, and arrest cyber drug traffickers, and their co-conspirators, who spread their poison in the Greater St. Louis Metropolitan area, no matter where they operate from.”
This case was part of a months-long, coordinated national operation involving the Food and Drug
Administration (FDA) Office of Criminal Investigations (OCI), the Drug Enforcement Administration
(DEA), the United States Postal Inspection Service, the Department of Homeland Security, U.S.
Customs and Border Protection, the U.S. Attorney’s Office for the Southern District of California, and the U.S. Attorney’s Office for the Southern Dist ict of Illinois. Assistant U.S.
Attorney Derek J. Wiseman is the prosecuting attorney on the case.
Atomwaffen Division Member Pleads Guilty to Firearms ChargeRead the Press Release
ALEXANDRIA, Va. – A member of the Atomwaffen Division, a white supremacist organization, pleaded guilty today to possessing firearms while being an unlawful drug user and making a false statement in order to illegally purchase a firearm.
“Marijuana and firearms are a potentially deadly mix,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “If you are a drug user, you are prohibited by federal law from possessing a firearm. Simple as that.”
According to court documents, in October 2017, Andrew Thomasberg, 21, of McLean, purchased a semiautomatic rifle and claimed to be the true purchaser. In fact, Thomasberg knew this statement was false and that he was purchasing the gun for a third party. He transferred that firearm to that third party after purchasing it. Thomasberg also possessed at least four firearms while unlawfully using controlled substances, including marijuana, psilocybin mushrooms, and opium.
"Thomasburg lied in order to illegal purchase a firearm," said Timothy R Slater, Assistant Director in Charge of the FBI's Washington Field Office. "The FBI works with our partners to take criminals possessing illegal firearms off the streets to ensure a safer community for all citizens."
According to court documents and testimony, Thomasberg has association with white supremacist organizations, such as Vanguard America and Atomwaffen Division.
Thomasberg pleaded guilty to making a material false statement in relation to the purchase of a firearm and to possessing firearms while being an unlawful user of or addicted to controlled substances. He faces a maximum penalty of 20 years in prison when sentenced on Feb 28, 2020. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Timothy R. Slater, Assistant Director of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Special Assistant U.S. Attorney Anthony W. Mariano and Assistant U.S. Attorney Ronald L. Walutes, Jr. 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. 1:19-cr-337.
19 Davenport Area Men Charged with Federal Gun and Robbery ViolationsRead the Press Release
DAVENPORT, Iowa – Nineteen individuals are facing 38 criminal charges as part of federal gun, robbery and drug investigations announced United States Attorney Marc Krickbaum. Sixteen Indictments by a Federal Grand Jury were filed in the last eight weeks in United States District Court in Davenport, Iowa. This is in addition to the 25 individuals charged for federal violations of gun crimes announced in August 2019 by United States Attorney Marc Krickbaum.
All of the investigations occurred in Scott County, Iowa, and involved the seizure of multiple firearms and drugs. The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
“The reduction of violent crime is our highest priority,” said Davenport Police Chief Paul Sikorski. “Through effective collaboration and partnerships with our Federal, State and Community partners, we have a shared focus in vigorously investigating and pursuing violent offenders. All areas of our Department are committed and focused on reducing violent crime. Our Gun Investigation Unit has been instrumental in our violent crime reduction strategy with the seizure of 62 firearms and the service of 58 search warrants in the first six months of existence. It is our solid partnerships with our Federal and Local prosecutors and law enforcement agencies, as well as initiatives such as Project Safe Neighborhoods and the National Public Safety Partnership where we share an effective violent crime strategy. This year Davenport has experienced a 5% reduction in violent crime.”
“In the past few years our office in Davenport has substantially increased prosecutions of violent criminals, with a focus on those who illegally use and possess guns,” said United States Attorney Krickbaum. “That has been possible only because of our partnerships with law enforcement, which are as strong today as they have ever been.”
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. The cases were investigated by the Davenport Police Department, Scott County Sheriff’s Office, Bettendorf Police Department, Federal Bureau of Investigation, and the Drug Enforcement Administration. The cases are being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
To date, 13 defendants have been arrested and are outlined below. The other cases remain sealed pending arrest.
DEFENDANT
Darrell Kenneth Holloway Case Number 3:19-cr-92
SUMMARY OF CHARGES
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years in custody
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(C) – Possession with Intent to Distribute a Controlled Substance
Maximum Penalty is 20 years in custody
DEFENDANT
Paris Larue Davis Case Number 3:19-cr-100
SUMMARY OF CHARGES
Title 18, U.S.C. § 841(a)(1), 841(b)(1)(C) – Possession With Intent to Distribute a Controlled Substance
Maximum Penalty is 20 years in custody
Title 18, U.S.C. § 924(c)(1)(A)(i) – Possession of a Firearm During and In Relation to a Drug Trafficking Crime
Maximum Penalty is life in custody; 5 year mandatory minimum
DEFENDANT
Alex Rogelio Barrera Case Number 3:19-cr-78
SUMMARY OF CHARGES
Title 18, U.S.C. § 1951 – Interference with Commerce by Robbery
Maximum Penalty is 20 years in custody
Title 18, U.S.C. § 924(c)(1)(A)(ii) – Use and Carry a Firearm During and In Relation to a Crime of Violence
Maximum Penalty is life in custody; 5 year mandatory minimum
DEFENDANT
James Curtis Pryor Case Number 3:19-cr-78
SUMMARY OF CHARGES
Title 18, U.S.C. § 1951 – Interference with Commerce by Robbery
Maximum Penalty is 20 years in custody
DEFENDANT
Christopher Lee Schultz Case Number 3:19-cr-79
SUMMARY OF CHARGES
Title 18, U.S.C. § 2113(a) – Armed Bank Robbery (Three Counts)
Maximum Penalty is 20 years in custody per count
DEFENDANT
Benjamin David Watkins Case Number 3:19-cr-79
SUMMARY OF CHARGES
Title 18, U.S.C. § 2113(a) – Armed Bank Robbery (Two Counts)
Maximum Penalty is 20 years in custody per count
DEFENDANT
Alexander Rene Holcomb Case Number 3:19-cr-70
SUMMARY OF CHARGES
Title 21, U.S.C. § 846 – Conspiracy to Distribute a Controlled Substance
Maximum Penalty is life imprisonment; 10 year mandatory minimum
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years in custody
DEFENDANT
Curlie Marque Quarterman Case Number 3:19-cr-85
SUMMARY OF CHARGES
Title 18, U.S.C. § 1951 – Interference with Commerce by Robbery
Maximum Penalty is 20 years in custody
DEFENDANT
James Lawrence Salkil Case Number 3:19-cr-86
SUMMARY OF CHARGES
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years in custody
Title 21, U.S.C. § 844(a) – Possession of a Controlled Substance
Maximum Penalty is 1 year in custody
DEFENDANTS
Isaiah Ramon Henderson Case Number 3:19-cr-94
Jaquan Leonte Jones Case Number 3:19-cr-95
Justin Lee Watson Case Number 3:19-cr-96
Tray Everett Miller Case Number 3:19-cr-101
SUMMARY OF CHARGES
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years in custody
11 November 2019
Statement from Attorney General William P. Barr on Veterans DayRead the Press Release
Attorney General William P. Barr issued the following statement:
"On Veterans Day, we honor the brave Americans who, from the founding of our nation to the present, have sacrificed so much to answer the call to service. The American people are deeply fortunate that there have been people at every crossroad of history willing to stand up to safeguard our great nation. At the Department of Justice, we recognize that our critical work has only been possible because of the courageous Americans who have given so much while serving at home and abroad. We thank our veterans now and always for their contributions to safety, security, and peace."
Louisville Metro Police Officer’s Credit Union Vice President Sentenced for FraudRead the Press Release
LOUISVILLE, Ky. – United States District Court Judge Joseph H. McKinley, Jr. has sentenced Josephine M. Crowe to 132 months’ imprisonment followed by 3 years supervised release. He also ordered restitution in the amount of $3,049,025 for fraud and aggravated identity theft, announced United States Attorney Russell Coleman.
“The outcome in this case was the result of some outstanding investigation by the FBI and one of our finest career federal prosecutors,” said U.S. Attorney Russell Coleman.
Crowe, 46, of Louisville, Kentucky, was charged in a criminal Information with one count of financial institution fraud and one count of aggravated identity theft as part of a scheme to defraud the Louisville Metro Police Officer’s Credit Union of over $3 million during a four year period.
According to a Sentencing Memo, beginning no later than January 2013, and continuing to on or about November 2017, Crowe, as the Vice President of the Metro Police Officer’s Credit Union stole over $3 million. She used access to the Credit Union’s funds and information granted to her by virtue of her position as Vice President to devise and execute a scheme to steal cash from the Credit Union’s vault and teller drawers, to transfer Credit Union funds into accounts belonging to herself and certain of her family members, and to make payments on certain unwitting Credit Union members’ loans with Credit Union funds that did not belong to the members for whose benefit they were credited. Crowe also created and recorded fictitious, unauthorized loans at the Credit Union and used the proceeds of these loans to issue an Official Check, which she then directed individuals to cash at local pawn shops or financial institutions. The defendant would then place these cash proceeds in the Credit Union’s vault and teller drawers to cover up the cash missing due to her previous thefts. In order to create and record these fictitious loans, the defendant knowingly misused the means of identification of many members of the Credit Union.
In order to compensate for the depletion of cash the defendant engaged in various methods to obtain cash for day-to-day operations including: instructing Credit Union employees, members, and others to withdraw cash from an ATM using either a debit card she provided or the individual’s personal debit card and return the cash to her for Credit Union operating needs; (b) obtaining credit card cash advances from members’ credit cards; (c) wire transferring funds to external accounts at various other financial institutions and then obtaining cash from the transfer; and (d) recording fictitious, unauthorized loans and using the proceeds of these loans to issue an Official Check, which she directed individuals to cash at local pawn shops or financial institutions and to return the cash proceeds to her so that she could then place it in the Credit Union’s vault and teller drawers.
Crowe took numerous steps to conceal her scheme to defraud from detection by the Credit Union and others, according to the Sentencing Memo. During the course of the scheme the defendant engaged in elaborate check kiting wherein she issued unauthorized Official Checks from certain members’ accounts at the Credit Union and deposited those Official Checks into other members’ accounts, all without the members’ knowledge, and continued issuing new checks to cover insufficient funds notices on the original checks when she overdrew the members’ accounts. As the funds that were purportedly on deposit for these Official Checks were largely non-existent, over $675,000 of checks were returned for insufficient funds when the defendant’s scheme was uncovered and her kiting of checks brought to a halt. The defendant also manipulated the books and records of the Credit Union to conceal her thefts from the Credit Union and make it appear that the fraudulent loan agreements, related documents, and subsequently generated loans were legitimate contracts and loans. Among other things, the defendant deleted information from and added false information to files, manipulated the Credit Union’s general ledger in various ways, and manipulated members’ accounts and account statements to conceal unauthorized changes she had made to the accounts. When the defendant’s scheme was discovered by the Credit Union and brought to an end in November 2017, the defendant took further steps to attempt to conceal her fraudulent activity even after she had been suspended and removed from her position, including remotely accessing the Credit Union’s data processing system, making changes to the general ledger, and deleting significant files and information from her computer at the Credit Union.
Crowe’s scheme to defraud had dramatic consequences. In December 2017, the Credit Union was placed into conservatorship by the National Credit Union Association (“NCUA”) and considerable efforts were undertaken to untangle the defendant’s scheme, address the harms it caused, and correct the operational weaknesses the defendant had created at the Credit Union. Ultimately, as a result of the scheme, the Credit Union suffered catastrophic losses, was rendered insolvent with no prospect for restoring viable operations, and had to be liquidated by the NCUA. Due to fraudulent activity within their accounts as a result of defendant Crowe’s criminal conduct and other record keeping errors, 247 member accounts had to be written off by the NCUA for a loss of almost $3.9 million.
The case was prosecuted by Assistant United States Attorney Stephanie Zimdahl and was investigated by the Federal Bureau of Investigation (FBI).
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Broken Arrow Man Convicted of Online ExtortionRead the Press Release
A Broken Arrow man pleaded guilty Friday in U.S. District Court to extorting a woman by threatening to post nude photographs of her online, announced U.S. Attorney Trent Shores.
Ivan David Arroyo III, 27, pleaded guilty to interstate communication with intent to extort. In March 2018, Arroyo sent messages from three Instagram accounts containing nude photographs of the victim. In the messages, he told the victim to send more suggestive photographs of herself or he would post the nudes publicly, thus harming her reputation. The woman refused.
“Disturbingly, sextortion is becoming increasingly more frequent,” said U.S. Attorney Trent Shores. “Sexual predators extort, manipulate and taunt their victims online hoping the supposed anonymity of the internet will help conceal their identity and their sick crimes. But thanks to brave victims who come forward and the excellent work of law enforcement officials, we are able to follow the digital footprint of these sextortionists and hold them accountable.”
U.S. District Judge Claire V. Eagan set sentencing for Feb. 10, 2020.
The Cherokee Nation Marshal Service and FBI conducted the investigation. Assistant U.S. Attorney Shannon Cozzoni is prosecuting the case.
8 November 2019
Waterbury Man Sentenced for Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RYAN GRAY, 24, of Waterbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 15 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on January 30, 2019, Gray possessed two loaded handguns in Waterbury.
Grays’ criminal history includes state felony convictions for firearms, robbery and larceny offenses.
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.
Gray has been detained since his arrest by Waterbury Police on January 30, 2019. On August 8, 2019, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco Firearms and Explosives and the Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorney Heather Cherry.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Vancouver, Washington, man charged with possessing and distributing a controlled substance manufactured in ChinaRead the Press Release
Tacoma – A Vancouver, Washington, man who allegedly ran a drug trafficking operation out of his mobile home and storage facilities throughout the South Sound region was arrested November 7, 2019, on a complaint charging him with two counts of possession of alpha-Pyrrolodinopentiophenone with intent to distribute. HARLEY SKYBERG, 40, of Vancouver, Washington, will make his initial appearance in U.S. District Court in Tacoma at 2:30 PM today. The controlled substance is known as alpha-PVP or ‘bath salts’. The arrest and charges follow a lengthy investigation by the U.S. Postal Inspection service that traced packages from Chehalis, Washington, to addresses throughout the U.S.
According to the criminal complaint, SKYBERG operated a website ‘wickedherbals.guru’ that offered a variety of bath salt substances for sale with names such as “White Water Rapid,” “White Lightening,” “High Octane,” “Snowman,” “Wicked Yeti,” “Scooby Snax,” “Klimax,” “White Tiger,” “Kush Extra,” and “Supergirl.” The U.S. Postal Inspection Service (USPIS) intercepted a variety of packages allegedly mailed by SKYBERG that contained white powdery substances with those names. The substances contained various levels of chemicals known as ‘bath salts.’ Law enforcement also determined that SKYBERG was obtaining his chemicals from China and intercepted at least one package destined for his post office box in Chehalis. Investigators searched three storage lockers SKYBERG appears to have rented in connection with his drug trafficking activities. The storage facilities were in Lacey, Kelso, and Vancouver, Washington.
At the time of the arrest, law enforcement seized four 27-gallon tubs of substances consistent with ‘bath salts,’ as well as a capsule-filling device and empty packaging from shipments from China.
Possession of alpha-Pyrrolidinopentiophenone with intent to distribute is punishable by up to 20 years in prison and $1,000,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the U.S. Postal Inspection Service (USPIS) and is being prosecuted by Assistant United States Attorney Seungjae Lee.
skyberg_complaint.pdfUndocumented alien sentenced for assault on federal officersRead the Press Release
LAREDO, Texas – A 24-year-old man from Zacatecas, Mexico, has been ordered to federal prison following his conviction of assaulting three Border Patrol (BP) agents, announced U.S. Attorney Ryan K. Patrick. Luis Gustavo Ramirez-Saucedo pleaded guilty June 25.
Today, U.S. District Judge Diana Saldana handed Ramirez-Saucedo a 33-month sentence. Not a U.S. citizen, he is expected to face removal proceedings following the sentence. At the hearing, the court heard additional testimony from three BP agents who testified as to how they were assaulted. Ramirez-Saucedo testified that he only intended to flee.
Authorities were working their assigned duties in Laredo during the late evening of March 29 when they responded to an alert of a large group crossing the Rio Grande River from Mexico. They made contact with various illegal aliens in the 20-person group, one of whom was Ramirez-Saucedo.
Soon after, Ramirez-Saucedo violently resisted the efforts of three BP agents to apprehend him, striking one in the face with his hand. Ramirez-Saucedo later assaulted another agent by throwing a ladder at him which struck him in the arms. He assaulted a third agent by striking him in the face with his forearm, causing his nose to begin bleeding.
Following his apprehension, Ramirez-Saucedo admitted he was a citizen or national of Mexico with no authority to be in or to enter the United States and had just entered the United States illegally.
Ramirez-Saucedo has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and BP conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez prosecuted the case.
U.S. Attorney’s Office Launches Law Enforcement Reading ProgramRead the Press Release
United States Attorney Christina E. Nolan announced today the rollout of a Law Enforcement Reading Program. The U.S. Attorney’s Office created this program for purposes of outreach to children in rural communities. Under the program, local police officers will read a book to students in grades 1 through 3 in the classroom, then engage in open-ended discussion of the content, themes, and lessons. Book topics and themes will range from personal safety and character building to good citizenship and family life. Students will receive copies of the book to begin their own personal library.
The goal of this program is to build trust, and foster positive relationships and interactions between law enforcement and young children. Sadly, too often little children have formative experiences with police officers only in times of crisis and during responses to emergency calls; these difficult memories understandably color their view of law enforcement as they grow older. The reading program represents an attempt to shift this dynamic, by introducing children to their police officer protectors in the positive, peaceful, and safe setting of the schoolhouse.
The first reading will occur in Dover, Vermont on November 12, with Dover police officers conducting the reading. Other readings are scheduled to occur in Thetford and Royalton this month. The U.S. Attorney’s Office thanks the local participating police departments for their support and contribution.
U.S. Attorney Nolan praised her office’s Law Enforcement Coordinator, Kraig LaPorte, for designing and implementing this creative youth outreach program, tailored to the needs of Vermont: “With this program, we promote children’s trust and confidence in our brave men and women in uniform, while also helping to nurture and educate them and jump-start their home libraries. We intend to share the concept, which advances several important goals, with our counterparts across the country. Through our charging decisions and our outreach, the U.S. Attorney’s Office will continue to make the well-being of children – the future of Vermont – our highest priority. I thank local law enforcement in Vermont for supporting this program and recognizing its importance.”
Two Men Sentenced in Rowan County Drug Distribution ConspiracyRead the Press Release
GREENSBORO, N.C. – A Rowan County man and a resident of Cartersville, Georgia were each sentenced to prison for acts committed in a conspiracy to distribute methamphetamine in Salisbury, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
DANIEL DEWAYNE WOOD, 41, of Rockwell, N.C., pleaded guilty on April 24, 2019, to one count of possession with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine. WOOD was sentenced on November 6, 2019, by United States District Judge William L. Osteen, Jr.to 100 months’ imprisonment, followed by 3 years of supervised release.
ROBERT EARL HOLCOMB, age 64, pleaded guilty on March 8, 2019, to one count of conspiracy to distribute methamphetamine. HOLCOMB was sentenced on November 7, 2019, by United States District Judge N. Carlton Tilley, Jr. to 60 months of imprisonment, followed by 3 years of supervised release.
Both WOOD and HOLCOMB were among 60 defendants charged as part of a large-scale, multi-state methamphetamine distribution conspiracy.
These cases were investigated by the Rowan County Sheriff’s Office and the Department of Homeland Security, and prosecuted by Assistant United States Attorney Terry M. Meinecke for the Middle District of North Carolina.
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Two Former Owners of Binary Options Company and 13 Other Individuals Charged in $140 Million Fraud SchemeRead the Press Release
Fifteen individuals, including two former company owners, were charged in a superseding indictment unsealed today for their alleged participation in a scheme to defraud investors in the United States and worldwide by fraudulently marketing approximately $140 million in financial instruments known as “binary options,” announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office.
Yakov Cohen, 27; Yosef Herzog, 54; Ori Maymon, 33; Nissim Alfasi, 33; Elad Bigelman, 37; Runal Jeebun, 29; Sabrina Elofer, 28; Afik Tori, 27; Anog Maarek, 28; Oron Montgomery, 38; David Barzilay, 41; Gilad Mazugi, 36; Hadas Ben Haim, 34; Yousef Bishara, 32; and Nir Erez, 29, all current or former residents of Israel, were charged in an indictment returned in the District of Maryland with one count of conspiracy to commit wire fraud and three counts of wire fraud. Maarek appeared Friday before U.S. Magistrate Judge Timothy J. Sullivan in the District of Maryland. Maarek was extradited from Hungary, after his arrest in September 2019, by Hungarian law enforcement.
The indictment alleges that beginning in 2014, the defendants and their co-conspirators fraudulently sold and marketed binary options to investors located in the United States and throughout the world through two websites, known as BinaryBook and BigOption. The indictment alleges that the defendants and their co-conspirators all worked for an Israel-based company called Yukom Communications, a purported sales and marketing company. The indictment further alleges that Cohen and Herzog had ownership interests in Yukom Communications and other related entities that were used to perpetrate the fraud scheme.
As alleged in the indictment, the defendants and their co-conspirators misled investors by falsely claiming to represent the interests of investors when, in fact, the owners of BinaryBook and BigOption profited when investors lost money. In addition, the indictment alleges that the defendants and their co-conspirators misrepresented the suitability of and expected return on investments through BinaryBook and BigOption, used false names and qualifications when talking to investors, and falsely claimed to be working from London, when they were working from Israel. The indictment alleges the defendants and their co-conspirators also misrepresented whether and how investors could withdraw funds from their accounts and misrepresented the terms of so-called “bonuses,” “risk free trades” and “insured trades,” and deceptively used these supposed benefits in a manner that in fact harmed investors.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In a related case, Lee Elbaz, the former CEO of Yukom and a citizen of Israel, was found guilty in August 2019 after a three-week jury trial of one count of conspiracy to commit wire fraud and three counts of wire fraud. Five additional former employees of Yukom and its affiliated companies have also pleaded guilty to conspiracy to commit wire fraud.
The FBI’s Washington Field Office investigated this case. Assistant Chiefs L. Rush Atkinson and Caitlin R. Cottingham of the Criminal Division’s Fraud Section are prosecuting the case. The Criminal Division’s Office of International Affairs also provided assistance in this matter.
Two Charged in Gun Trafficking ConspiracyRead the Press Release
WASHINGTON – Kofi Appiah-Mainoo, 30, of Temple Hills, Maryland, and James Hutchings, Jr., 38, of Waldorf, Maryland, were arrested on November 5, 2019, on a federal charge stemming from an ongoing investigation into the trafficking of firearms into the Washington, D.C. metropolitan area.
U.S. Attorney Jessie K. Liu, Timothy M. Dunham, Special Agent in Charge, FBI Washington Field Office, Criminal Division, and Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
The charges were filed in an indictment unsealed in the U.S. District Court for the District of Columbia. The investigation began after law enforcement recovered multiple firearms in a residence located at 4215 Foote Street, N.E., Washington, D.C. on December 19, 2018. Along with the firearms, law enforcement seized more than 44 kilograms of heroin laced with fentanyl, more than 50 pounds of marijuana, and drug paraphernalia located throughout the home. Linwood Douglas Thorne, of Northeast, Washington, D.C. was arrested in connection with that incident and is charged by indictment in a separate case (18-cr-389) (BAH).
Law enforcement continued to investigate the source of the firearms and determined that three of the firearms were purchased earlier in 2018 in Columbus, Georgia. ATF and FBI determined that Appiah, a Second Lieutenant in the United States Army, purchased the firearms, coordinated their transfer to the Washington, D.C. metropolitan area, and sold them to Hutchings, Jr., who acted as a courier once the firearms were brought north. Hutchings, Jr., a person previously convicted of a crime punishable by a term of imprisonment exceeding one year, is considered a prohibited person and is legally prohibited from possessing any firearm.
“This investigation is another example of our determination to disrupt and prosecute the trafficking of guns and drugs into the District of Columbia,” said U.S. Attorney Liu. “Through this coordinated law enforcement effort, we were able to remove deadly narcotics from the street and identify firearms traffickers who enable such dangerous conduct.”
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime-reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts.
The Office has partnered with the D.C. Metropolitan Police Department (MPD), the United States Attorney's Office for the Eastern District of Virginia, and ATF in an effort to address a significant source of illegal firearms in the District. This collaborative approach allows the Office to identify specific incidents and trends in the District, which provides an avenue to prevent and deter gun violence.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Liu, Special Agent in Charge Benedict, and Special Agent in Charge Dunham commended the work of those who investigated the case, including ATF and FBI. They also expressed appreciation for the assistance provided by the U.S. Marshals Service, Prince George’s County, Md. Police Department, and the U.S. Attorney’s Office for the District of Maryland. Finally, they commended the work of the U.S. Attorney’s Office for the Middle District of Georgia, who assisted in the arrest of Appiah.
Finally, they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, Assistant U.S. Attorneys Gregory Rosen and Andrea Duvall of the Violent Crime and Narcotics Section, Paralegal Specialist Teesha Tobias, Kim Hall, Catherine O’Neal, and Legal Assistant Emma Atlas.
Three Felons Appear in Court in Connection with Federal Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Three felons appeared before United States District Judge Joseph R. Goodwin this week in connection with federal gun crimes, announced United States Attorney Mike Stuart.
Dana Stevenson, 28, of Charleston, was sentenced to 14 months in prison for being a felon in possession of a firearm. Stevenson previously admitted that on August 14, 2017, Charleston Police Department officers were searching for a suspect that was seen driving a stolen vehicle. Officers saw Stevenson walking by the Kanawha River. As officers approached, Stevenson threw a firearm into the river. The Charleston Police Department Dive Team later recovered a Glock .40 caliber pistol from the river. Stevenson was prohibited from possessing a firearm under federal law because of a 2014 felony malicious wounding conviction in Kanawha County, West Virginia. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
In another case, Clayton Cato, 36, of Brooklyn, New York, pled guilty to being a felon in possession of a firearm. Cato admitted that on November 20, 2018 he was a passenger in a vehicle that was stopped on the East End of Charleston for a defective light. Upon officers approaching the vehicle, they smelled marijuana. All occupants were asked to step out of the vehicle. Cato stepped out of the vehicle and ran from the traffic stop on foot. While fleeing, he put his hands near his hoody pocket and was apprehended. During a pat-down for officer safety, officers located a Smith & Wesson 32 caliber pistol. Cato admitted he knew he had a 2003 felony conviction in the Southern District of West Virginia for distribution of cocaine base. Cato faces up to 10 years in prison when sentenced on January 27, 2020. Assistant United States Attorney Ryan A. Saunders is handling the prosecution.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department conducted the investigations of Stevenson and Cato.
Gary Scott, 35, of St. Albans, was sentenced to 46 months in prison for being a felon in possession of a firearm. Scott previously admitted that on April 23, 2019, in St. Albans, he was driving a vehicle while under the influence of narcotics. He eventually parked at a Go-Mart, got out of the vehicle, and left the passenger in the vehicle. Officers eventually located Scott in the alley near the Go-Mart. Scott admitted to the officers that he had marijuana on his person. Officers searched him and found syringes, marijuana, Alprazolam, heroin, and methamphetamine. Officers detained Scott and transported him back to his vehicle. As they pulled up to the vehicle, Scott told the officers that he had a firearm in the glove box and that he knew that he was not allowed to possess firearms because he is a convicted felon. During a search of the vehicle, officers located a .357 Braztech revolver loaded with five rounds in the glove box. They also located a box of ammunition in the vehicle. The St. Albans Police Department conducted the investigation. Assistant United States Attorney Monica D. Coleman handled the prosecution.
These cases are being prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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.
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Tahlequah Man Indicted for Possession of Firearm and MethamphetamineRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tahlequah, Oklahoma, resident Haskell Doak Willis, age 65, was Indicted for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both; and for Possession Of Methamphetamine (Misdemeanor), in violation of Title 21, United States Code, Section 844(a), punishable by not more than 1 year imprisonment, and/or up to a minimum $1,000.00 fine.
The Indictment alleges that on or about August 26, 2019, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The Indictment further alleges that on or about August 26, 2019, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess methamphetamine, a Schedule II controlled substance.
The Tahlequah Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives each participated in the investigation that lead to the Indictment. Assistant United States Attorney Shannon Henson represents the United States.
The above named individual has been charged with a federal crime, or crimes, by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
Syracuse Man Sentenced to 252 Days for Threatening to Kill VA EmployeesRead the Press Release
SYRACUSE, NEW YORK – Mark W. Sweeney, age 61, of Syracuse, was sentenced yesterday by United States District Judge David N. Hurd to 252 days in prison (time-served) for threatening to kill staff members employed at the Syracuse Veterans Affairs Hospital in Syracuse, announced United States Attorney Grant C. Jaquith and Chief Jon Godfrey, Veterans Affairs Police, Syracuse, New York.
As part of his previously entered guilty plea, Sweeney admitted that he made a telephone call to the Veterans Crisis Line and made threatening statements directed toward Veterans Affairs Hospital staff, including that he intended to kill several people who treated him and had a plan and the means to do so.
United States District Judge David N. Hurd also imposed a one-year term of supervised release and ordered the defendant not to have contact with the victims of his offense.
This case was investigated by the Veterans Affairs Police Department (Syracuse) and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
State Senator Charged with Making False StatementRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that WESLEY T. BISHOP, age 51, of New Orleans was charged today with making a false statement, a crime punishable by up to five years’ imprisonment.
According to the bill of information, BISHOP knowingly and willfully made a false statement to the United States Department of Housing and Urban Development. U.S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, BISHOP faces a maximum sentence of five years, three years of supervised release, a restitution order, a fine, and a mandatory special assessment of $100.
U.S. Attorney Strasser praised the work of the United States Department of Housing and Urban Development Office of Inspector General and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Andre J. Lagarde is in charge of the prosecution.
St. Charles Corporate Executive Indicted for Fraudulent Use of Company's Credit CardRead the Press Release
St. Louis, MO –Tara Sabatini, 44, of St. Charles, Missouri, was indicted by a federal grand jury on Thursday, November 7, 2019, on three counts of wire fraud. She appeared this afternoon for her initial appearance.
According to the Indictment, Sabatini was employed as the “Senior Director of Sales” by “Company #1,” a company located in St. Louis, Missouri that sold wholesale amounts of food to various commercial customers, typically grocery store chains. Company #1 provided Ms. Sabatini with a company-funded corporate credit card, and authorized her to use the credit card for official business, including work travel and some client expenses.
During 2017-18, Sabatini used her corporate credit card to fund personal expenses, including but not limited to purchasing plane tickets for a friend of her husband, purchasing plane tickets for her parents, purchasing hotel rooms for her husband and his friends, and purchasing gift cards for personal use.
Moreover, Sabatini purchased luxury ticket packages from a Major League Baseball team that was located in New York, frequently using electronic communications with New York based employees of the team for ticket purchase and delivery purposes. After receiving these baseball tickets, Sabatini attended some of the baseball games, and also gave some of the tickets to her friends and family. Sabatini further sold some of the baseball tickets through an Internet service, deposited the proceeds in a joint account that she shared with her husband, and spent the proceeds of the ticket sales on her personal expenses.
If convicted, each charge of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation is investigating this case.
Charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Settlement Reached with Dow Chemical Co. to Restore Natural Resources in Three Mid-Michigan CountiesRead the Press Release
Under a proposed settlement announced today by the United States, the State of Michigan and the Saginaw Chippewa Indian Tribe of Michigan, The Dow Chemical Company will implement and fund an estimated $77 million in natural resource restoration projects intended to compensate the public for injuries to natural resources caused by the release of hazardous substances from Dow’s Midland, Michigan facility. The proposed settlement, which was lodged today in the U.S. District Court for the Eastern District of Michigan, is subject to public comment and to approval by the court.
According to a complaint filed on behalf of federal, state and tribal natural resource trustees, Dow released dioxin-related compounds and other hazardous substances from its Midland, Michigan, facility, and such releases caused injuries to natural resources. The complaint alleges that hazardous substances from Dow’s facility adversely affected fish, invertebrates, birds and mammals, contributed to the adoption of health advisories to limit consumption of certain wild game and fish, and resulted in soil contact advisories in certain areas including some public parks.
The settlement identifies a number of specific natural resource restoration projects that will be implemented in different parts of Midland, Saginaw and Bay counties, consistent with provisions of a natural resource restoration plan developed by designated natural resource trustees, including the Department of the Interior’s U.S. Fish and Wildlife Service and Bureau of Indian Affairs; the State of Michigan’s Department of Natural Resources (DNR), Department of Environment, Great Lakes, and Energy (EGLE), and Department of Attorney General; and the Saginaw Chippewa Indian Tribe of Michigan.
Dow will implement eight natural resource restoration projects described in the settlement at the company’s expense, subject to oversight and approval by the natural resource trustees. In addition, Dow will pay $6.75 million, plus interest, to a Restoration Account that will used by Trustees to fund five other restoration projects described in the settlement.
The settlement also requires Dow to pay another $15 million, plus interest that will be used by the Trustees for various purposes. At least $5 million of this funding will be used to support implementation of additional natural resource restoration projects that will be selected by the trustees in the future, after a separate opportunity for public input on restoration project proposals. This funding will also be used to cover costs of long-term monitoring and maintenance of restoration projects under the settlement, as well as costs that the Trustees will incur in overseeing restoration projects.
Finally, Dow is required to reimburse costs previously incurred by federal and state trustees in connection with the assessment of natural resource damages relating to Dow’s releases.
“Today’s settlement is good news for communities in this region, and it builds upon ongoing cleanup efforts under the direction and supervision of the EPA and the Michigan Department of Environment, Great Lakes and Energy,” said Principal Deputy Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division. “The extensive habitat restoration provisions of this settlement will help accelerate recovery of natural resources over a large area where resources have been adversely impacted as a result of decades of exposure to Dow’s hazardous substances.”
“With this settlement, the natural resources in the Saginaw Bay area will be restored through the creation of natural habitat areas, nature preserves, hiking and biking trails, and greater access for fishing, hunting, and canoeing,” said U.S. Attorney Matthew Schneider of the Eastern District of Michigan. “We are thankful to Dow and the trustees for their work in reaching this excellent result, which will benefit the residents of the Saginaw Bay area and the wildlife and waterfowl that inhabit it.”
“The settlement requires Dow to implement and fund restoration projects outlined in a draft restoration plan that will benefit fish and wildlife and provide increased outdoor recreation opportunities for the American public,” said Charles Wooley, Regional Director for the U.S. Fish and Wildlife Service. “This restoration work can now begin even while separate, ongoing clean-up efforts continue.”
“The trustees are working to compensate the public for past and expected future losses to recreational fishing, park use and hunting as a result of public health advisories issued because of releases from Dow’s Midland facility,” said Michigan DNR Director Dan Eichinger. “We appreciate being at the table to ensure that the citizens of Michigan are appropriately compensated for resource damage, and we look forward to continuing to improve the natural resources, wildlife and fisheries opportunities for people within these areas.”
“In addition to the Natural Resource Damage Assessment and Restoration settlement, the State is simultaneously resolving some claims with Dow that will result in both the funding and the property to support two additional projects that benefit the community,” said Michigan EGLE Director Liesl Eichler Clark. “These projects include a docking facility and education center to bolster BaySail’s environmental science program and the renovation of the Saginaw River Rear Range Lighthouse to allow public use.”
Restoration Projects Highlights
The restoration projects described in the settlement compensate the public for injuries to natural resources, including lost uses of natural resources by recreational anglers, park users, and hunters, by improving habitat for fish and game species, and through creating new – or improving existing – habitat areas that also provide public access to natural resources in and around the Tittabawassee River, Saginaw River and Saginaw Bay.
Several restoration projects under the settlement will benefit fishery resources through measures that include construction of fish spawning areas in Saginaw Bay, construction of a rock ramp or similar structure to promote increased fish passage over a dam situated at Dow’s Midland facility and improvements to water control structures in the Shiawassee National Wildlife Refuge.
Other projects will enhance and preserve natural habitat on thousands of acres of property. Several projects will include planting native species and using natural seedbeds to restore diverse types of suitable natural habitats in areas that currently provide limited habitat value to wildlife. Some projects include provisions for creation of new wetland habitat or enhancement of existing wetland areas. One project will preserve an extensive green corridor along the Tittabawassee River that will be beneficial to wildlife.
Several of the restoration projects will establish publicly accessible nature areas that will provide increased opportunities for recreational use and enjoyment of restored natural resources, through establishment of amenities such as nature trails, fishing platforms, and a bike trail. One of the projects will support increased recreational boating and fishing in Saginaw River and Bay by expanding an existing boat launch facility at the mouth of the Saginaw River.
Other Terms of the Settlement
In addition to resolving natural resource damage claims against Dow, the proposed settlement also incorporates an agreement, exclusively between the State and Dow, that would waive potential State claims for recovery of a limited set of response costs identified in the settlement, in exchange for Dow’s commitment to implement two other projects along the lower Saginaw River that are not part of the Trustees’ proposed natural resource restoration program.
The settlement does not address Dow’s liability to clean up contamination from the Midland facility. Dow has been addressing certain offsite contamination from the Midland facility under a series of administrative orders issued by the EPA. Much of that effort to date has focused on contamination within the Tittabawassee River or in riverbank and floodplain areas adjacent to the river. At this point, EPA mandated cleanup activity is continuing in and along the Tittabawassee River and then downstream into the Saginaw River. Dow has also been addressing other contamination related to the Midland facility under the direction of EGLE. The settlement reserves all rights of the United States and the State to require Dow to continue and complete cleanup of contamination from the Midland facility.
Similarly, except for the limited waiver of State response costs referred to above, the settlement does not resolve Dow’s liability to reimburse the governments for costs they incur in responding to contamination from the Midland facility.
Finally, the proposed settlement will resolve potential claims by Dow against the United States for recovery of a portion of any natural resource damage expenses and cleanup costs relating to any past or future releases of hazardous substances from the Midland facility. Dow contends that the United States is liable for a portion of these costs, based primarily on federal involvement in WWII era production activities at the Midland facility.
Guiding the Settlement
Concurrently with the settlement, trustees released for public comment a draft restoration plan that will guide restoration activities carried out in response to contamination from Dow’s Midland facility. Restoration activities under the settlement must be consistent with the final restoration plan adopted by the Trustees.
The natural resource trustees assessed injuries to natural resources under the Natural Resources Damage Assessment and Restoration program, which aims to compensate the public for past, present and future loss of fish, wildlife habitat and use of natural areas resulting from releases of contaminants into the environment.
As part of this program, the trustees identify parties responsible for contamination and either litigate or negotiate settlements to fund restoration actions.
History of Contamination
The Dow facility in Midland, Michigan, began operating in 1897. Chemical production through the years resulted in the generation of waste products, including dioxins, which were released into the Tittabawassee River.
These chemical waste products contaminated the Tittabawassee River and its floodplains and moved into the Saginaw River and Saginaw Bay.
The natural resources settlement is separate from the ongoing cleanup of the area being implemented by Dow under the direction of the Michigan Department of Environment, Great Lakes, and Energy and the U.S. Environmental Protection Agency.
Under this settlement, restoration work can begin within the watershed, while cleanup efforts in and along the rivers continue.
Public Review and Comment
The proposed consent decree and the Draft Restoration Plan and Environmental Assessment are available at https://www.fws.gov/midwest/es/ec/nrda/TittabawasseeRiverNRDA/
The Department of Justice will publish a Federal Register Notice advising the public of the opportunity to submit comments on the proposed Consent Decree, as well as on the Draft Restoration Plan and Environmental Assessment, within 45 days from the date of publication of the Federal Register Notice. A copy of the Federal Register Notice will be posted at https://www.fws.gov/midwest/es/ec/nrda/TittabawasseeRiverNRDA/.
Comments on the Consent Decree may be submitted to the Department of Justice at [email protected] or Deputy Assistant Attorney General, U.S. DOJ – ENRD, P.O. Box 7611, Washington, D.C. 20044-7611.
Comments on Draft Restoration Plan and Environmental Assessment may submitted to [email protected] or Lisa Williams, U.S. Fish and Wildlife Service, 2651 Coolidge Road, Suite 101, East Lansing, MI. 48823.
The U.S. Attorney will join trustees at a public meeting to provide more information on the plan and to answer questions at 7 p.m. Thursday, Nov. 21, at the Four Points by Sheraton Saginaw, 4960 Towne Centre Road in Saginaw.
Settlement Reached with Dow Chemical Co. to Restore Natural Resources in Three Mid-Michigan CountiesRead the Press Release
Midland, MI – Under a proposed settlement announced today by the United States, the State of Michigan and the Saginaw Chippewa Indian Tribe of Michigan, The Dow Chemical Company will implement and fund an estimated $77 million in natural resource restoration projects intended to compensate the public for injuries to natural resources caused by the release of hazardous substances from Dow’s Midland, Michigan facility. The proposed settlement, which was lodged today in the United States district court for the Eastern District of Michigan, is subject to public comment and to approval by the court.
U.S. Attorney Matthew Schneider will join trustees at a public meeting to provide more information on the plan and to answer questions at 7 p.m. Thursday, Nov. 21, at the Four Points by Sheraton Saginaw, 4960 Towne Centre Road in Saginaw.
According to a complaint filed on behalf of federal, state and tribal natural resource trustees, Dow released dioxin-related compounds and other hazardous substances from its Midland, Michigan, facility, and such releases caused injuries to natural resources. The complaint alleges that hazardous substances from Dow’s facility adversely affected fish, invertebrates, birds and mammals, contributed to the adoption of health advisories to limit consumption of certain wild game and fish, and resulted in soil contact advisories in certain areas including some public parks.
The settlement identifies a number of specific natural resource restoration projects that will be implemented in different parts of Midland, Saginaw and Bay counties, consistent with provisions of a natural resource restoration plan developed by designated natural resource trustees, including the Department of the Interior’s U.S. Fish and Wildlife Service and Bureau of Indian Affairs; the State of Michigan’s Department of Natural Resources (DNR), Department of Environment, Great Lakes, and Energy (EGLE), and Department of Attorney General; and the Saginaw Chippewa Indian Tribe of Michigan.
Dow will implement eight natural resource restoration projects described in the settlement at the company’s expense, subject to oversight and approval by the natural resource trustees. In addition, Dow will pay $6.75 million, plus interest, to a Restoration Account that will used by Trustees to fund five other restoration projects described in the settlement.
The settlement also requires Dow to pay another $15 million, plus interest that will be used by the Trustees for various purposes. At least $5 million of this funding will be used to support implementation of additional natural resource restoration projects that will be selected by the trustees in the future, after a separate opportunity for public input on restoration project proposals. This funding will also be used to cover costs of long-term monitoring and maintenance of restoration projects under the settlement, as well as costs that the Trustees will incur in overseeing restoration projects.
Finally, Dow is required to reimburse costs previously incurred by federal and state trustees in connection with the assessment of natural resource damages relating to Dow’s releases.
“Today’s settlement is good news for communities in this region, and it builds upon ongoing cleanup efforts under the direction and supervision of the EPA and the Michigan Department of Environment, Great Lakes and Energy,” said Principal Deputy Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division “The extensive habitat restoration provisions of this settlement will help accelerate recovery of natural resources over a large area where resources have been adversely impacted as a result of decades of exposure to Dow’s hazardous substances.”
“With this settlement, the natural resources in the Saginaw Bay area will be restored through the creation of natural habitat areas, nature preserves, hiking and biking trails, and greater access for fishing, hunting, and canoeing,” said U.S. Attorney Matthew Schneider of the Eastern District of Michigan. “We are thankful to Dow and the trustees for their work in reaching this excellent result, which will benefit the residents of the Saginaw Bay area and the wildlife and waterfowl that inhabit it.”
“The settlement requires Dow to implement and fund restoration projects outlined in a draft restoration plan that will benefit fish and wildlife and provide increased outdoor recreation opportunities for the American public,” said Charles Wooley, Regional Director for the U.S. Fish and Wildlife Service. “This restoration work can now begin even while separate, ongoing clean-up efforts continue.”
“The trustees are working to compensate the public for past and expected future losses to recreational fishing, park use and hunting as a result of public health advisories issued because of releases from Dow’s Midland facility,” said Michigan DNR Director Dan Eichinger. “We appreciate being at the table to ensure that the citizens of Michigan are appropriately compensated for resource damage, and we look forward to continuing to improve the natural resources, wildlife and fisheries opportunities for people within these areas.”
“In addition to the Natural Resource Damage Assessment and Restoration settlement, the State is simultaneously resolving some claims with Dow that will result in both the funding and the property to support two additional projects that benefit the community,” said Michigan EGLE Director Liesl Eichler Clark. “These projects include a docking facility and education center to bolster BaySail’s environmental science program and the renovation of the Saginaw River Rear Range Lighthouse to allow public use.”
Restoration Projects Highlights
The restoration projects described in the settlement compensate the public for injuries to natural resources, including lost uses of natural resources by recreational anglers, park users, and hunters, by improving habitat for fish and game species, and through creating new – or improving existing – habitat areas that also provide public access to natural resources in and around the Tittabawassee River, Saginaw River and Saginaw Bay.
Several restoration projects under the settlement will benefit fishery resources through measures that include construction of fish spawning areas in Saginaw Bay, construction of a rock ramp or similar structure to promote increased fish passage over a dam situated at Dow’s Midland facility and improvements to water control structures in the Shiawassee National Wildlife Refuge.
Other projects will enhance and preserve natural habitat on thousands of acres of property. Several projects will include planting native species and using natural seedbeds to restore diverse types of suitable natural habitats in areas that currently provide limited habitat value to wildlife. Some projects include provisions for creation of new wetland habitat or enhancement of existing wetland areas. One project will preserve an extensive green corridor along the Tittabawassee River that will be beneficial to wildlife.
Several of the restoration projects will establish publicly accessible nature areas that will provide increased opportunities for recreational use and enjoyment of restored natural resources, through establishment of amenities such as nature trails, fishing platforms, and a bike trail. One of the projects will support increased recreational boating and fishing in Saginaw River and Bay by expanding an existing boat launch facility at the mouth of the Saginaw River.
Other Terms of the Settlement
In addition to resolving natural resource damage claims against Dow, the proposed settlement also incorporates an agreement, exclusively between the State and Dow, that would waive potential State claims for recovery of a limited set of response costs identified in the settlement, in exchange for Dow’s commitment to implement two other projects along the lower Saginaw River that are not part of the Trustees’ proposed natural resource restoration program.
The settlement does not address Dow’s liability to clean up contamination from the Midland facility. Dow has been addressing certain offsite contamination from the Midland facility under a series of administrative orders issued by the EPA. Much of that effort to date has focused on contamination within the Tittabawassee River or in riverbank and floodplain areas adjacent to the river. At this point, EPA mandated cleanup activity is continuing in and along the Tittabawassee River and then downstream into the Saginaw River. Dow has also been addressing other contamination related to the Midland facility under the direction of EGLE. The settlement reserves all rights of the United States and the State to require Dow to continue and complete cleanup of contamination from the Midland facility.
Similarly, except for the limited waiver of State response costs referred to above, the settlement does not resolve Dow’s liability to reimburse the governments for costs they incur in responding to contamination from the Midland facility.
Finally, the proposed settlement will resolve potential claims by Dow against the United States for recovery of a portion of any natural resource damage expenses and cleanup costs relating to any past or future releases of hazardous substances from the Midland facility. Dow contends that the United States is liable for a portion of these costs, based primarily on federal involvement in WWII era production activities at the Midland facility.
Guiding the Settlement
Concurrently with the settlement, trustees released for public comment a draft restoration plan that will guide restoration activities carried out in response to contamination from Dow’s Midland facility. Restoration activities under the settlement must be consistent with the final restoration plan adopted by the Trustees.
The natural resource trustees assessed injuries to natural resources under the Natural Resources Damage Assessment and Restoration program, which aims to compensate the public for past, present and future loss of fish, wildlife habitat and use of natural areas resulting from releases of contaminants into the environment.
As part of this program, the trustees identify parties responsible for contamination and either litigate or negotiate settlements to fund restoration actions.
History of Contamination
The Dow facility in Midland, Michigan, began operating in 1897. Chemical production through the years resulted in the generation of waste products, including dioxins, which were released into the Tittabawassee River.
These chemical waste products contaminated the Tittabawassee River and its floodplains and moved into the Saginaw River and Saginaw Bay.
The natural resources settlement is separate from the ongoing cleanup of the area being implemented by Dow under the direction of the Michigan Department of Environment, Great Lakes, and Energy and the U.S. Environmental Protection Agency.
Under this settlement, restoration work can begin within the watershed, while cleanup efforts in and along the rivers continue.
Public Review and Comment
The proposed consent decree and the Draft Restoration Plan and Environmental Assessment are available at https://www.fws.gov/midwest/es/ec/nrda/TittabawasseeRiverNRDA/
The Department of Justice will publish a Federal Register Notice advising the public of the opportunity to submit comments on the proposed Consent Decree, as well as on the Draft Restoration Plan and Environmental Assessment, within 45 days from the date of publication of the Federal Register Notice. A copy of the Federal Register Notice will be posted at https://www.fws.gov/midwest/es/ec/nrda/TittabawasseeRiverNRDA/.
Comments on the Consent Decree may be submitted to the Department of Justice at [email protected] or Deputy Assistant Attorney General, U.S. DOJ – ENRD, P.O. Box 7611, Washington, D.C. 20044-7611.
Comments on Draft Restoration Plan and Environmental Assessment may submitted to [email protected] or Lisa Williams, U.S. Fish and Wildlife Service, 2651 Coolidge Road, Suite 101, East Lansing, MI. 48823.
Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Dwight Black Spotted Horse, age 35, was indicted on September 10, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 6, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Black Spotted Horse was convicted of Sexual Abuse of a Minor in October 2006. As a result of this conviction, he is required to register as a sex offender. It is alleged that between June 16, 2019, and September 10, 2019, Black Spotted Horse, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Black Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Black Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Randolph Man Sentenced for Child ExploitationRead the Press Release
BOSTON – A Randolph man was sentenced yesterday in federal court in Boston on child exploitation charges.
Michael Lee, 52, was sentenced by U.S. District Court Judge Indira Talwani to 20 years in prison and five years of supervised release. In June 2019, Lee pleaded guilty to one count of sexual exploitation of children and one count each of distribution, receipt and possession of child pornography.
A search warrant at Lee’s Randolph home was conducted as part of an investigation into the online trade of child pornography through the use of Kik, an instant messaging app. During an interview with agents, Lee admitted to trading images and videos of child pornography with other Kik users, including a New Hampshire man who provided Lee with images and videos documenting the sexual abuse of the man’s eight-year-old daughter at Lee’s direction. Forensic analysis of Lee’s cell phone and Kik account corroborated his admissions and showed that he had created videos of himself in which he directed the child’s father how to sexually abuse her, and had received videos in return that showed the man abusing her. Forensic review of the evidence also showed that Lee had been trading child pornography with other Kik users.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is 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/.
Penn Hills Man Sentenced to More than 5 Years in Prison for Firearms Offenses Related to West End Drug InvestigationRead the Press Release
PITTSBURGH - A resident of Penn Hills, PA, has been sentenced in federal court to 68 months’ imprisonment on his conviction of conspiracy to possess firearms in furtherance of drug trafficking, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Reggie B. Walton imposed the sentence on Jaamiyl Dean, age 43.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. Jaamiyl Dean was intercepted over the wiretap discussing drug transactions. When agents executed a search warrant at Dean’s home and on his vehicle on June 20, 2018, they recovered, among other things, two firearms, several rounds of ammunition, drug packaging materials, and over $64,000 in cash. Dean has previously been convicted of a felony offense, and was prohibited from possessing the firearms and ammunition.
Prior to imposing sentence, Senior Judge Walton stated that a sentence within the advisory Sentencing Guideline range was appropriate in this case.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration, who jointly led the multi-agency investigation, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, for the investigation leading to the successful prosecution of Dean.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Passenger Charged with Criminal Sexual Misconduct for Actions during an American Airlines Flight Diverted to TulsaRead the Press Release
A man who caused an American Airlines’ flight to be diverted to Tulsa on Tuesday night was charged today in federal court for engaging in unwanted sexual contact with a female passenger, announced U.S. Attorney Trent Shores.
“This week, American flight 807, traveling from North Carolina to Utah, was diverted to Tulsa due to the alleged conduct of passenger James Clayton Cholewinski-Boy. Today, the United States Attorney’s Office filed criminal charges as a result of Mr. Cholewinski-Boy’s alleged actions on the plane,” said U.S. Attorney Trent Shores of the Northern District of Oklahoma. “The public should know these allegations pertain to criminal sexual misconduct by Mr. Cholewinski-Boy against a female passenger, not a threat to the plane or air travel. The Federal Bureau of Investigation along with Tulsa International Airport law enforcement officers responded swiftly and professionally to this situation as soon as the plane touched down in Tulsa. The FBI will investigate this matter moving forward. I am thankful for the men and women of law enforcement who work to ensure the safety and security of the traveling public.”
The flight was en route to Salt Lake City, Utah, from Charlotte, North Carolina, when the incident occurred.
Law enforcement officials with the FBI, Tulsa International Airport and U.S. Department of Homeland Security’s Transportation Security Administration conducted the investigation. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
Ocala Man Convicted of Conspiring to Distribute Large Quantities of Cocaine, Heroin, and FentanylRead the Press Release
Ocala, Florida – A federal jury has found Kevin Gene Hart (31, Ocala) guilty of conspiracy to distribute 5 kilograms or more of cocaine, 1 kilogram or more of heroin, and 400 grams or more of fentanyl. He faces a minimum mandatory penalty of 15 years, up to life, in federal prison. A sentencing hearing has been scheduled for January 28, 2020.
Hart was indicted on March 27, 2019.
According to testimony and evidence presented at trial, between January 2012 and May 2019, Hart conspired with others to distribute hundreds of kilograms of cocaine and heroin through a network of stash houses in Marion County. Large quantities of the heroin were also laced with fentanyl. On April 10, 2019, after learning of his federal indictment, Hart fled from federal agents in a high-speed vehicle chase. He was apprehended by agents in Marion County on May 24, 2019, as he attempted to flee through a local business.
This case was investigated by the Drug Enforcement Administration, the City of Ocala Police Department, the Unified Drug Enforcement Strike Team (UDEST), and the Marion County Sheriff’s Office. It was prosecuted by Assistant United States Attorney William S. Hamilton.