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18 October 2019
Two CEOs of Wholesale Pharmaceutical Companies and Two Owners of Bank Accounts Used for Money Laundering Indicted in Alleged Prescription Diversion SchemeRead the Press Release
Joshua Ryan Joles, the CEO of LLC Wholesale Supply, LLC, Mohammad Mehdi Salemi, the CEO of Wholesalers Group, Inc. and Wholesalers Group, LLC, and bank account holders Angel Caminero Alvarez and Leonides Herrera were indicted on charges of money laundering, committing violations of the Federal Food, Drug, and Cosmetic Act, and mail fraud, related to their alleged participation in a scheme to sell diverted pharmaceuticals to unwitting pharmacies and consumers.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida stated, “The allegations set forth in this scheme strike at the peace of mind we should all feel when we buy prescription drugs from a pharmacy. We all expect and should rest assured knowing that the drugs we are buying are safe, effective, and properly stored and handled. Today and whenever necessary, we will continue to strike back at those who seek to profit by robbing the public of that peace of mind through brazen, criminal schemes.”
According to the indictment, Joles and Salemi are alleged to have purchased and distributed millions of dollars in diverted pharmaceuticals, which are prescription drugs illegally trafficked in a secondary or underground market (Case No. 19-20674-CR-Gayles). The indictment explains that the diverted pharmaceuticals are not controlled substances, but rather, high priced medical drugs used to treat such conditions as mental illness, human immunodeficiency virus (HIV), and cancer. They are branded drugs, produced by the original pharmaceutical developers as opposed to lower-priced generic drugs, but are acquired unlawfully -- through fraud, pharmacy burglaries, and cargo thefts.
Joles and Salemi are alleged to have acquired such drugs in large quantities, at a cost well-below normal wholesale prices, and then introduced the diverted drugs back into the legitimate marketplace. The indictment further alleges that, because the pharmaceutical distribution system is regulated, to get diverted drugs back into the market, the diverters must, among other things, establish seemingly legitimate wholesale companies and bank accounts, produce fraudulent paperwork, and professionally package and ship the medicines to their pharmacy customers. Joles and Salemi are alleged to have produced or caused the production of fraudulent paperwork, including falsified pedigrees, which are documents that identify the products and batch numbers of pharmaceuticals, describe their dates of manufacture and origin, indicate who purchased them, show when and where they were shipped, how they were purchased, and other information needed to trace them through the marketing chain. Utilizing these false pedigrees, Joles and Salemi allegedly sold or caused the sale of these diverted pharmaceuticals to unsuspecting pharmacies and their patients.
Additionally, Joles and Salemi, with the assistance of Alvarez and Herrera, are alleged to have laundered money as part of this scheme, including conducting financial transactions to promote the carrying on of the scheme and to conceal the nature, source and ownership of the money.
“This investigation into a South Florida based drug diversion group spanned the entire country, from California to Puerto Rico,” said George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office. “It is truly an example of multiple federal and state agencies working together with private industry to take out of circulation thousands of bottles of potentially dangerous drugs, and also disrupt a money laundering scheme that moved millions of dollars a month through South Florida.”
“U.S. consumers are put at risk when prescription drugs are diverted from the FDA-regulated supply chain and then returned clandestinely for distribution to the public, as there is no longer any assurance that the products are safe and effective for their intended uses,” said Justin D. Green, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations’ (FDA-OCI) Miami Field Office. “We will continue to pursue and bring to justice those who put the public health at risk.”
Herrera was arrested this morning and will have his initial appearance Monday afternoon, Oct. 21, 2019, before U.S. Magistrate Judge Alicia M. Otazo-Reyes. Joles and Salemi will have their initial appearances on later dates. Alvarez remains a fugitive.
The prosecution was part of Operation Southern Hospitality, one 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 praised the outstanding investigative work of the FBI and FDA-OCI. She also thanked the U.S. Attorney’s Offices for the Northern District of California, the District of Arizona, and the Western District of Washington, the FBI’s Los Angeles, Phoenix and Seattle Field Offices, the U.S. Marshal’s Service in Miami, Florida Department of Law Enforcement, Attorney General's Office of Statewide Prosecution in Fort Lauderdale, and Medicaid Fraud Control Unit for their invaluable assistance.
The prosecution of this case is being handled by Assistant U.S. Attorneys Frank Tamen and Walter M. Norkin. Assistant U.S. Attorney Nicole Grosnoff is handling the asset forfeiture aspects of this matter.
The charges contained in the indictment are merely accusations and the defendants are 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.
Trumbull County man indicted for claiming he led charity that did not exist and soliciting gifts for service members that he kept for himselfRead the Press Release
A Hubbard man was indicted in federal court for allegedly falsely representing he was the leader of a military booster club that did not exist and soliciting gifts from businesses, some of which he kept for himself.
Timothy McKenna, 58, was indicted on six counts of mail fraud.
“This man allegedly took advantage of the good will area businesses have toward the men and women who protect us and used it to enrich himself,” U.S. Attorney Justin Herdman said.
McKenna, from 2009 through November 4, 2017, mailed letters on Air Force letterhead soliciting donations from various businesses on behalf of the Youngstown Air Reserve Station, 910th Operations Group Booster Club. The club did not exist, according to the indictment.
McKenna falsely represented that the gifts would be given away as prizes at a Christmas Ball to service members who had been deployed all year and provided vital support operations at the base. Instead, McKenna allegedly kept some of the gifts for himself, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique
to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The U.S. Air Force Office of Special Investigations investigated the case, which is being prosecuted by Assistant U.S. Attorney Yasmine Makridis.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Troy Man Sentenced to 121 Months for Attempted Online Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Michael Varian, age 52, of Troy, New York, was sentenced on Wednesday to 121 months in prison, to be followed by 15 years of supervised release, for attempted online enticement of a minor.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Varian, a school bus driver, admitted that he attempted to entice an individual, whom he believed to be a 14-year-old boy, to have sex. After weeks of exchanging sexually explicit text messages with undercover law enforcement officers posing as the boy, Varian arranged to meet the boy at a fast food restaurant in Albany County, where Varian was arrested.
In sentencing Varian, Senior United States District Judge Thomas J. McAvoy specifically found that Varian had previously engaged in a pattern of activity involving prohibited sexual conduct. This included an incident where Varian had a sexual encounter with a minor boy in the public bathroom of an Albany County mall, which Varian admitted as part of his guilty plea.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the Colonie Police Department. The case was prosecuted by Assistant United States Attorney Joshua R. Rosenthal.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Three Indicted for International Money Laundering Scheme Pairing Mexican Drug Traffickers and Chinese NationalsRead the Press Release
PORTLAND, Ore.—Billy J. Williams, U.S. Attorney for the District of Oregon, announced today the indictment of three people for their roles in a complex scheme to launder proceeds from the sale of illegal narcotics by facilitating the transfer of bulk cash from Mexican drug trafficking organizations to Chinese nationals residing in the U.S.
Shefeng Su, 39, Xinhua Li Yan, 39, and Xiancong Su, 46, are each charged with conspiracy to commit money laundering. Shefeng Su and Li Yan were residents of Portland during the timeframe alleged in the indictment.
According to the indictment, the defendants’ money laundering scheme was designed to remedy two separate problems: drug trafficking organizations’ inability to repatriate drug proceeds into the Mexican banking system and wealthy Chinese nationals restricted by China’s capital flight laws from transferring large sums of money held in Chinese bank accounts for use abroad.
The first group, drug traffickers, are challenged by their inability to transport U.S. currency acquired from the sale of illegal narcotics in the U.S. to Mexico while avoiding detection by law enforcement and Mexican banking regulators. Mexico’s anti-money laundering regulations limit the amount of cash deposits of U.S. dollars that Mexican financial institutions can receive. As a result, drug trafficking organizations work with professional money launderers to bundle and sell bulk U.S. dollars in order to convert them to pesos, a more readily depositable currency in Mexico.
The second group, Chinese nationals living outside China, are challenged by China’s limit on the amount of personal funds that can be transferred out of Chinese bank accounts for use in a foreign country. Currently, China limits these transfers to $50,000 per year. As a result, some Chinese nationals have a need to acquire large quantities of U.S. dollars via other means.
The defendants’ scheme facilitated the transfer of cash between these two groups. Their money laundering organization would facilitate the transfer of funds from the buyer’s Chinese bank account to another Chinese bank account held by the money laundering organization. Once the Chinese renminbi (RMB) were transferred between these bank accounts, the funds were repatriated back to Mexico and converted to pesos to complete the money laundering cycle. This scheme has been described by some as the “Chinese Underground Banking System.”
All three defendants are at-large and believed to be outside the U.S.This case was investigated by the Drug Enforcement Administration (DEA) and IRS-Criminal Investigation (IRS-CI) and is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Tarrant County Man Guilty of Child Coercion and Enticement ViolationRead the Press Release
PLANO, Texas – A 47-year-old Saginaw, Texas man has been found guilty of attempted child coercion and enticement in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew J. DeSarno today.
Adam Rene Rodriguez was found guilty by a jury today of attempted coercion and enticement of a minor following a trial before U.S. District Judge Sean D. Jordan.
According to information presented at trial, on May 3, 2019, Rodriguez was arrested by members of the FBI Dallas Field Office and the Plano Police Department when he traveled to Plano to engage in sex acts with an individual he believed to be a 14-year old child.
During the 4-day trial, jurors heard that an undercover agent entered a sexually-oriented messaging group that was run by Rodriguez. Between April 10, 2019 and May 3, 2019, Rodriguez engaged in continuing messages with the undercover persona, even after being repeatedly advised of the persona's age. In the messages, Rodriguez (as username "Texasarod") repeatedly asked for photos of the child, sent the child sexually explicit material, and offered to "train" the child to engage in various sex acts. Evidence presented to the jury also included messages in which Rodriguez instructed the child on how to conceal her online activities and avoid detection by her parents. The exchanges culminated in a meeting on May 3, 2019, to which Rodriguez arrived in his personal vehicle and bringing condoms and sexual lubricant in order to engage in illegal sex acts with the child. Rodriguez testified on his own behalf, contending that he believed that he was communicating with an adult who was role playing or fantasizing about pretending to be a child.
“This is another example of the dangers that are out there online for children,” said U.S. Attorney Joseph D. Brown. “Law enforcement will continue to be aggressive in deterring this behavior. Predators should know by now that we are online as well, and they will eventually be caught.”
Under federal statutes, Rodriguez faces a minimum of 10 years and up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation’s Dallas Field Office and the Plano Police Department and prosecuted by Assistant U.S. Attorneys Marisa Miller and Lesley Brooks.
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Strangulation murder of woman sends Box Elder man to prison for more than 21 yearsRead the Press Release
GREAT FALLS—A Box Elder man who admitted strangling a woman to death on the Rocky Boy’s Indian Reservation was sentenced this week to 21 years and four months in prison followed by five years of supervised release, U.S. Attorney Kurt Alme said.
Gavin Tyrone Sutherland, 35, pleaded guilty in May to second degree murder.
U.S. District Judge Brian M. Morris presided at the Oct. 17 hearing. Judge Morris also ordered Sutherland to pay $3,500 restitution.
“Violence against Native American women is all too common in our country and must stop. Those who harm these wives, mothers, sisters and daughters will be prosecuted to the full extent of the law,” U.S. Attorney Alme said.
The prosecution said in court records that Sutherland strangled the victim to death on July 7, 2018 at the victim’s home on the Rocky Boy’s Indian Reservation. Late in the evening on July 6, Sutherland arrived at the victim’s home. Two other adults and the victim’s two-year-old child were present in the residence. Sometime after midnight, the victim became upset over some money she thought had been stolen from her and she called Sutherland into her bedroom. A few minutes later, the two other adults heard the victim scream and other noises and thought that Sutherland was trying to rob her. The two adults got scared and ran to a neighbor’s house. The victim’s body was found shortly after the murder by the victim’s 12-year-old son, who arrived at the house after being away.
Sutherland told investigators he intentionally killed the victim by choking her and that he had fled the scene and the state after the murder.
Assistant U.S. Attorney Jared Cobell prosecuted the case, which was investigated by the FBI and Rocky Boy’s Criminal Investigations.
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Special Counsel to the U.S. Attorney for the District of Columbia Renata Cooper Delivers Testimony Before the D.C. Council on Community Safety and Health Amendment Act of 2019Read the Press Release
Chairman Allen and Members of the Council:
Thank you for the opportunity to appear today, on behalf of the United States Attorney’s Office for the District of Columbia, to share the Office’s views regarding Bill 23-318, the Community Safety and Health Amendment Act of 2019.
The issue regarding whether to decriminalize prostitution and related criminal statutes is not new. Indeed, lawmakers and human rights organizations across this country and the world have been considering this issue for some time. Thus, the United States Attorney’s Office, whose mission is to help ensure public safety, lauds the Council’s efforts to address this issue through a proposal for which the primary stated purpose is “to promote public health and safety.” However, given the strong interest of our Office and the U.S. Department of Justice in prosecuting sex trafficking and preventing the exploitation of vulnerable persons, we have serious concerns that full decriminalization of prostitution and related offenses would adversely affect the ability of law enforcement to investigate and prosecute sex traffickers and thereby adversely affect the public health and safety of some of the most vulnerable members of our community: sex trafficking survivors.
To understand why Bill 23-318 would make it more difficult to prosecute human trafficking, it is important to understand the difficulties of detecting human trafficking and obtaining sufficient evidence to charge and successfully prosecute the trafficker as well to understand how the trafficker’s influence on the victim thwarts law enforcement anti-trafficking efforts.
The U.S. Attorney’s Office aggressively investigates and prosecutes human traffickers. As the Chair of the D.C. Human Trafficking Task Force for the last 15 years, our prosecutors and advocates are highly skilled at working with trafficking victims, investigating these crimes, and prosecuting traffickers. Based on our experience, it is difficult to uncover evidence of human trafficking, primarily because most victims are extremely reluctant to cooperate in the government’s investigation of their trafficker. As a result, law enforcement must develop evidence of trafficking through other means, including initially investigating and prosecuting the potential trafficker for lesser offenses.
The control that traffickers exert over their victims is well known. Traffickers of both adults and children frequently employ extensive “grooming” techniques with the goal of making their victims dependent on the traffickers. These grooming techniques include, among other things, targeting vulnerable individuals (who may have a history of sexual abuse); seeking to create a relationship of dependency; punishing the victim for violating the rules of the trafficker; buying gifts for trafficking victims or employing other means to create the illusion of a friendship or caregiving role; and pitting one victim against another. Once the trafficker has created isolation and dependency, abuse will begin, often with a trafficker demanding that the victim engage in sex with others to obtain money to repay some debt allegedly owed to the trafficker. The trafficker’s goal is to maintain control of the victim, often through physical, sexual, and/or verbal abuse. Because of the control and dependency dynamic, victims may be loyal to their traffickers and abusers, and may be unwilling to cooperate with law enforcement, including being unwilling to provide information about the scope, manner, and means of the trafficker’s operation.
As introduced, the Bill would decriminalize the offense of procuring so long as “the arrangement involves no force, fraud, coercion, or any violation of the Prohibition Against Human Trafficking Amendment Act of 2010.” But as we have indicated, the government may rely on an array of offenses for its trafficking investigation, including relying on potential lesser charges as a basis to obtain search warrants for items yielding information regarding social media platforms used to perpetuate trafficking and information regarding locations where trafficking may occur.
In addition to affecting investigations and prosecutions of violent traffickers of adults, full decriminalization will affect child trafficking investigations and prosecutions. As with evidence of violent trafficking of adults, it is similarly extremely difficult to identify and locate child trafficking victims and to develop sufficient evidence to prosecute their traffickers successfully. Traffickers in children frequently do not promote their victims to potential buyers as children. Rather, traffickers often advertise these child victims as adults, and some buyers may even believe them to be adults. Law enforcement may have suspicions that a child is being trafficked, but may not have sufficient proof. In such scenarios, it is also common for law enforcement to rely on search warrants for offenses other than trafficking. This is because in order to obtain a search warrant, law enforcement must have probable cause to believe that a perpetrator has committed an offense, and at an early stage of an investigation, the evidence of child sex trafficking may not rise to that level. Such search warrants allow law enforcement to investigate the charge contemplated by the search warrant, as well as to conduct appropriate additional investigation to ascertain if the perpetrator is procuring a child, or if the perpetrator is involved in trafficking. The proposed Bill, therefore, would remove an anti-trafficking law enforcement tool.
The Bill as introduced would decriminalize both the sale and purchase of sex, which likely will increase the demand for commercial sex in the District of Columbia. If the purchasers of sex can go unpunished and unchecked, the sex marketplace will grow, as will its profits – thereby making the District of Columbia more attractive to traffickers looking to exploit the newly created market. To support the higher demand, traffickers will need to acquire more supply and exploit new victims. To meet that demand, traffickers will likely recruit children and adults by use of force, fraud, and coercion. Further, some victims of sex trafficking report that the buyers of sex can be just as violent and cruel as traffickers. Normalizing the purchase of sex will convey the message that the purchase of sex is acceptable in the District and embolden sex buyers.
Other jurisdictions’ experiences with the decriminalization of prostitution counsel against the approach in the Bill as introduced. There has been discussion of an alternative approach, often called the “Nordic model,” in which the sale, but not the purchase, of sex would be decriminalized. The theory underpinning this approach is that individuals have a right to sell their own body, but no right to exploit someone else’s body. Although the U.S. Attorney’s Office believes that the Nordic model is preferable to full decriminalization, we have concerns about the practical impact of that model as well. If the sale of sex is decriminalized, the U.S. Attorney’s Office is concerned that more individuals who want to engage in commercial sex will come to the District, which will increase the demand for commercial sex here. The U.S. Attorney’s Office is concerned that as both supply and demand for commercial sex grow, trafficking will increase steadily as well. Traffickers will continue to seek out vulnerable individuals and recruit them, and the more people engage in commercial sex work in the District, the more individuals traffickers will recruit. Again, reducing the demand for the purchase of sex is essential to any strategy to prevent sex trafficking.
The U.S. Attorney’s Office is concerned foremost about public safety and the wellbeing of all individuals in our community. We believe that this Bill will undermine public safety, and will significantly impede our ability to investigate and prosecute those who traffic vulnerable members of our community. We appreciate the opportunity to appear before the Committee, and look forward to working with the Committee, and the various stakeholders who have appeared here today, as we continue to discuss this important issue of public safety in the District.
South Florida Resident Pleads Guilty to Selling Firearms to a Designated Foreign Terrorist Organization, the ELNRead the Press Release
MIAMI - A South Florida resident pled guilty today to illegally selling firearms to the National Liberation Army (ELN), a designated Foreign Terrorist Organization and a violent paramilitary group operating in South America.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, Diane J. Sabatino, Director, Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Anthony Salisbury, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office announced that Francisco Joseph Arcila Ramirez (Arcila), a Colombian national, pled guilty to providing material support to a foreign terrorist organization, in violation of Title 18, United States Code, Section 2339B(a)(1).
According to court records, on August 16, 2018, Arcila instructed two co-conspirators to illegally purchase six firearms in Miami-Dade County on Arcila’s behalf. These firearms included four Draco 7.62mm caliber AK-style pistols and two Zastava M92 7.62mm AK-style pistols. The firearms were then concealed in Husky air-compressors purchased by Arcila at a Miami-area Home Depot and shipped to Barranquilla, Colombia. This shipment also contained approximately one hundred AK-47 ammunition magazines.
On Sept. 5, 2018, Arcila attended a meeting in Colombia, where he met with an ELN weapons broker to discuss the sale of the six firearms Arcila had recently shipped into Colombia. In addition to agreeing to the sale of these six firearms, Arcila and the weapons broker further discussed other future sales, to include firearm magazines and firearm components in the coming months. At the conclusion of this meeting, the weapons broker provided approximately sixty million Colombian pesos as the purchase price for the firearms.
Arcila is scheduled to be sentenced in Miami by U.S. District Judge Jose E. Martinez on Dec. 19, 2019 at 1:45 p.m. (Case No. 19CR20036). Arcila faces a maximum statutory sentence of 20 years in prison, a lifetime term of supervised release, and a maximum fine of $250,000.
U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI, CBP, ATF and ICE-HSI. This case is being prosecuted by Southern District of Florida Assistant U.S. Attorneys Randy A. Hummel and Michael R. Sherwin, and by DOJ Counterterrorism Section Trial Attorney David Smith.
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 at http://pacer.flsd.uscourts.gov.
Slidell Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – NATHANIEL LOUIS, age 45, of Slidell, Louisiana, was sentenced on October 17, 2019 before the Honorable Carl J. Barbier for violations of the Federal Controlled Substances Act, announced U.S. Attorney Peter G. Strasser.
According to the court records, LOUIS had previously pleaded guilty to conspiring to distribute and to possession with the intent to distribute heroin. The case resulted from a lengthy Title III wire intercept investigation conducted by the Drug Enforcement Administration in which LOUIS and his co-conspirators were captured discussing heroin sales, making sales, and arranging to pay back heroin sources of supply in Chicago. A search warrant at LOUIS’s apartment led to the seizure of approximately ¼ kilogram of heroin.
Judge Barbier sentenced LOUIS to 50 months in federal prison to be followed by five years of supervised release, where federal probation officers will monitor his behavior.
This case was investigated by Special Agents of the Drug Enforcement Administration (DEA). The prosecution is being handled by Assistant United States Attorney David Haller.
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Sioux City Woman Pleads Guilty to Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine pled guilty October 16, 2019, in federal court in Sioux City.
Stephanie Holbrook, age 32, from Sioux City, Iowa, was convicted of conspiracy to distribute methamphetamine and distribution of methamphetamine.
At the plea hearing, Holbrook admitted that from about September 2018 through April 2019, she and others conspired to distribute more than three pounds of methamphetamine in the Woodbury County, Iowa area. On four separate occasions Holbrook, with the aid of another co-conspirator, distributed nearly one pound of pure methamphetamine (in total) to an individual cooperating with law enforcement. Then on April 17, 2019, after a co-conspirator helped arrange for a methamphetamine transaction, Holbrook was caught with nearly a half pound of pure methamphetamine.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Holbrook will remain in custody pending sentencing. Holbrook faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4029.
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Serial Sex Offender Sentenced in Alaska and Florida to Serve a Total of 43 Years in Federal PrisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced the sentencing of a Maryland registered sex-offender charged in Alaska federal court for attempted production of child pornography involving a minor victim in Anchorage.
William Patrick King, 37, was indicted in Alaska on July 19, 2017, and arraigned on Nov. 14, 2018. After being charged in Alaska, King was prosecuted in the Middle District of Florida for substantially similar conduct and sentenced to serve 35 years in federal prison. Today, King was sentenced in Alaska to serve 35 years, with 8 years to run consecutive to his Florida sentence followed by lifetime supervised release. To protect the public from King, he will serve a total of 43 years in federal prison followed by a lifetime supervised release.
In May 2017, the 15-year-old victim notified Anchorage Police Department (“APD”) School Resource Officers (“SROs”) of being harassed and extorted by King. Records explain that King targeted the minor victim through the use of social media applications, attempted to extort and threaten the victim to self-produce images and videos depicting child pornography. King went so far as to photoshop images in an attempt to blackmail the victim into self-producing child exploitation images. King also created false online personas to persuade the victim to refrain from reporting his conduct to law enforcement.
The victim exhibited admirable poise under the circumstances and promptly reported King’s threats to her Anchorage Police Department School Resource Officers. During sentencing, U.S. District Judge Sharon L. Gleason commended the victim for her courage and maturity. Anchorage Police Department was also praised for their work in the investigation of this case.
U.S. Attorney Bryan Schroder stated, "A survivor's report of sexual exploitation to law enforcement is an act of bravery that greatly assists efforts to identify and prosecute dangerous offenders."
The Anchorage Police Department (“APD”) with the assistance of the Federal Bureau of Investigation’s (“FBI”) Child Exploitation Task Force conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Adam Alexander.
Saratoga County Man Pleads Guilty to Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK - Robert Gibeault, Jr., age 50, of Gansevoort, New York, pled guilty today to three counts of distribution of child pornography, and one count of possession of child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, Gibeault admitted to using file-sharing program BitTorrent to distribute child pornography to other BitTorrent users from May 2017 through September 2017. His laptop computer contained approximately 400 video files and 100 image files depicting child pornography. These included files that Gibeault had previously distributed over the BitTorrent network.
Sentencing is scheduled for February 11, 2020.
Gibeault, who is detained pending sentencing, faces a minimum term of imprisonment of 5 years, and a maximum term of imprisonment of 20 years. The Court is also required to impose a term of supervised release of between 5 years and life, and Gibeault will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors
This case was investigated by HSI, with assistance from the New York State Police and Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Saint Regis Mohawk Tribe Awarded over $1.3 Million in DOJ FundingRead the Press Release
WASHINGTON – The Department of Justice announced today that it has awarded over $273.4 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.
“Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive,” said Attorney General William P. Barr. “We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it.”
The Saint Regis Mohawk Tribe in the Northern District of New York was awarded $1,320,514 in funding, comprised of a Justice Systems and Alcohol and Substance Abuse award of $420,574 from the Bureau of Justice Assistance and a Violence Against Women Tribal Governments Program award of $899,940 from the Office of Violence Against Women.
“We are proud to be part of the effort to ensure that Saint Regis Mohawk Tribe has the resources needed for important youth programs and their work to prevent violence and help victims find hope and healing,” said United States Attorney Grant C. Jaquith. “We look forward to continuing our longstanding partnership to promote public safety and justice for all there.”
The Saint Regis Mohawk Council issued a statement saying, “The Saint Regis Mohawk Tribe extends its appreciation for the financial support from our partnering agencies to enhance public safety measures that prevent and protect female survivors of criminal acts, as well as to educate and engage our youth through programming designed to assist our community in healing from traumatic events.”
Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s announced CTAS awards is available at: https://www.justice.gov/tribal/awards. A listing of all other announced tribal awards are available at: https://go.usa.gov/xVJuE.
Romanian National Sentenced for Skimming SchemeRead the Press Release
SPRINGFIELD, Mo. – A Romanian national, who was arrested with her son at a bank ATM with dozens of re-encoded gift cards that contained stolen credit and debit card information, was sentenced in federal court today for her role in a skimming operation at several local banks.
Loredana Baceanu, 31, was sentenced by U.S. Chief District Judge Beth Phillips to two years and six months in federal prison without parole. The court also ordered Baceanu to pay a total of $35,807 in restitution to her victims.
On June 24, 2019, Baceanu pleaded guilty to possessing counterfeit and unauthorized access devices. Baceanu’s criminal conduct was part of a conspiracy with others who targeted at least six local bank branches, placing skimming devices on various bank ATMs, and recording, stealing and using critical financial information from bank customers to commit fraud, theft, and identity theft.
Over the span of approximately two weeks, according to court documents, Baceanu and her co-conspirators compromised the financial information of hundreds and possibly thousands of victims. Her intent was to steal as much money as possible before being detected by law enforcement, and then flee the area and repeat the same economic destruction in other communities.
Bank officials at Central Bank of the Ozarks in Springfield notified law enforcement on Oct. 12, 2018, of suspicious activity that had occurred at an ATM. The bank’s monitoring software had alerted them to the presence of a skimming device – a small electronic device used to steal credit card information – being placed on their ATM. When a person swipes a credit or debit card through a machine on which a skimmer is attached, the device captures and stores all the details stored in the card’s magnetic stripe. The stripe contains the credit card number and expiration date and the credit card holder’s full name. Thieves use the stolen data to make fraudulent charges either online or with a counterfeit credit card or gift card.
On Oct. 23, 2018, bank officials at Southern Bank discovered unidentified individuals targeting four different ATM locations, withdrawing money from multiple accounts. Bank officials stated that they believed these suspects were using stacks of re-encoded credit cards to facilitate the theft of funds from compromised credit and debit card accounts. Bank officials identified suspect photos at four different ATM locations in Springfield and Nixa, Missouri.
The Nixa branch manager was in the process of filing a police report on Oct. 23, 2018, when Baceanu returned to that branch’s ATM. The Nixa police officer who was taking the report returned to his patrol vehicle and initiated a traffic stop on Baceanu’s vehicle in the parking lot of the bank. Baceanu, who was with her 14-year-old son, had 49 gift card/credit cards in a concealed pocket within an undergarment she was wearing and $880 concealed in her bra. A Micro SD media storage card and a Florida identification card fell from somewhere within Baceanu’s shirt to the ground during her arrest.
Upon using a card reader, investigators learned that the magnetic stripes on all 49 generic gift cards had been re-encoded and counterfeited with different account numbers not original to the gift card. The Micro SD card contained stolen account information for hundreds of bank customers from various banks throughout the region.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Secret Service, the Nixa, Mo., Police Department, the Springfield, Mo., Police Department, and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Rockford Man Sentenced to 15 Years in Prison on Child Pornography ChargeRead the Press Release
ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Philip G. Reinhard to 15 years in federal prison, to be followed by a lifetime term of supervised release, on a child pornography charge.
GREGORY GREENE, 59, pleaded guilty on July 11, 2019, to one count of transporting child pornography via the internet. In a written plea agreement, Greene admitted that on May 31, 2016, he shared a child pornography video over the internet depicting the lewd exhibition of a minor child. Greene also admitted that on Dec. 13, 2016, he possessed a computer containing approximately 1,650 images of child pornography, and a thumb drive containing approximately 1,200 images and videos of child pornography, some of which involved minors under 12 years of age.
In addition to the prison sentence, Greene also was ordered to pay $39,000 in restitution to certain victims.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The government was represented by Assistant U.S. Attorney Margaret J. Schneider.
Registered Sex offender Charged with Possession of Child PornographyRead 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 James A. Stivers, 65, of Lockport, NY, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Caitlin M. Higgins, who is handling the case, stated that according to the complaint, after tracing to the defendant an image of child pornography that was uploaded to the internet, investigators secured a search warrant for Stiver’s residence. During the execution of that warrant, investigators seized various computers, electronic devices, and electronic media. A preliminary review found some of the devices contained images of child pornography.
Stivers was previously convicted of Sexual Abuse in the First Degree in August 1995 in Niagara County Court, and is a registered sex offender.
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and is being held pending a detention hearing on October 21, 2019.
The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Real Estate Developer Sentenced in College Admissions CaseRead the Press Release
BOSTON – A California real estate developer became the tenth parent to be sentenced in connection with the college admissions case.
Robert Flaxman, 62, of Laguna Beach, Calif., was sentenced by U.S. District Court Judge Indira Talwani to one month in prison, one year of supervised release, ordered to complete 250 hours of community service and to pay a fine of $50,000. In May 2019, Flaxman pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
The government recommended a sentence of eight months in prison, one year of supervised release and a fine of $40,000.
Beginning in the 2016, Flaxman conspired with William “Rick” Singer and others to have his daughter’s ACT exam corrected, thereby fraudulently inflating the score. As part of the scheme, Flaxman took steps to secure extended time for his daughter to take the ACT and to take the exam at a test center in Houston, Texas, that Singer “controlled” through a corrupt test administrator. On Oct. 22, 2016, Flaxman’s daughter and the child of another client of Singer both took the ACT with the assistance of co-conspirator Mark Riddell. Riddell assisted in answering exam questions and instructed the students to answer different questions incorrectly so that the ACT would not suspect cheating. As a result of the cheating scheme, Flaxman’s daughter received a score of 28 out of 36 on the exam.
Two days prior to the exam, Flaxman made a purported charitable donation of $75,000 to Singer’s sham charity, Key Worldwide Foundation, to pay for the fraud. Thereafter, Flaxman deducted the bribe payment from his income taxes, thereby defrauding the IRS.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Raleigh County Man Pleads Guilty to Production of Child PornographyRead the Press Release
CHARLESTON, W.Va. – A Coal City man pled guilty to a child pornography offense, announced United States Attorney Mike Stuart. Charles Larry Wallace, Jr., pled guilty to production of images of child pornography.
“These cases are some of the most painful and emotional cases for my office to handle,” said United States Attorney Mike Stuart. “Adults are supposed to protect children, not exploit them. A violation of the solemn responsibility to protect our children is something that can’t be forgotten or forgiven.”
Wallace admitted that on January 5, 2019, he used a cell phone to take several sexually explicit photographs of a prepubescent minor who was in his care at the time. Wallace then backed the photographs up to his Google Photos account and sent them to another individual via the Internet.
Wallace faces up at least 15 and up to 30 years in prison when sentenced on February 6, 2020.
The West Virginia State Police Crimes Against Children Unit and the Beckley Police Department conducted the investigation. United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Provincetown Man Charged with Possessing and Receiving Child PornographyRead the Press Release
BOSTON – A Provincetown man was arrested yesterday and charged in federal court in Boston with receipt and possession of child pornography.
Kerry Adams, 59, was charged with one count of receipt of child pornography and one count of possession of child pornography. Adams was held pending a detention hearing scheduled for Oct. 22, 2019, before U.S. District Court Magistrate Judge M. Page Kelley.
According to court documents, a federal search warrant was executed on Oct. 17, 2019 at Adams’s residence in Provincetown were multiple devices, including laptops, thumb drives and SD cards were located. During an initial on-scene forensic review of a laptop, hundreds of files in the computer’s peer-to-peer software program were located. At least a dozen of these files were found to contain child pornography, and three of the files contained videos depicting pre-pubescent boys engaging in sexual acts. During a consensual interview, Adams initially denied downloading child pornography onto his computer, but eventually admitted that he had searched the term “teen boy,” in the past. It is alleged that Adams initially denied that there would be pornography of 10-14 year-old-boys on his computer, but later admitted that 13-15 year-old-boys were once of sexual interest to him, but are not anymore.
The charging statute provides for a sentence of up to 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Stephen Marks, Special Agent in Charge of U.S. Secret Service in Boston; and Barnstable Police Chief Matthew Sonnabend made the announcement today. Valuable assistance was provided by Provincetown Police Department. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
Members of the public who have questions, concerns, or information regarding this case should call 617-748-3274.
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/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Professor Pleads Guilty to A Scheme to Defraud the National Science FoundationRead the Press Release
HAMMOND – Dr. Qingyou Han, 61, of West Lafayette, Indiana, pled guilty today to committing the criminal felony offense of wire fraud, before U.S. District Court Judge Philip P. Simon. Dr. Han’s wife, Lu Shao, 53, of Lakewood, Ohio, also pled guilty, on behalf of her company Hans Tech, LLC (“Hans Tech”), to participating in the same wire fraud scheme.
The charging documents in the case allege that Dr. Han, a Purdue University professor and the Director of its Center for Materials Processing Research, devised a scheme to defraud the National Science Foundation (“NSF”) into giving Hans Tech over $1.3 million in research grants through its Small Business Innovation Research (“SBIR”) and Small Business Technology Transfer (“STTR”) programs by making materially false and fraudulent pretenses, representations, promises and material omissions. In pleading guilty, Dr. Han, individually, and Ms. Shao on behalf of Hans Tech, acknowledged that the purpose of the scheme was to obtain grant funds allocated for research and to use some or all of those funds for other purposes, including to pay personal expenses or for the enrichment of Dr. Han, Ms. Shao, or their children.
In pleading guilty, each defendant acknowledged that the factual allegations in the charging documents were true and accurate. One such allegation was that Dr. Han wrote grant proposals on behalf of Hans Tech and submitted them and other documents to NSF electronically using his wife’s name. In submitting those proposals, neither Dr. Han nor Ms. Shao informed NSF that they were married or that Dr. Han, who was not affiliated as an owner or employee of the company, was actually running Hans Tech behind the scenes. In some of the Hans Tech proposals to NSF, the company recommended that Dr. Han, in his capacity as a Purdue professor, be hired as a subcontractor to assist in carrying out the research. Other documents justified the use of research funds to pay employees who, unbeknownst to the NSF, were actually Dr. Han and Ms. Shao’s minor children who were between the ages of 9 and 16 at the time they allegedly worked for Hans Tech. Another justification given to NSF’s Office of Inspector General (“OIG”) for the use of research funds was the payment of $3,000 per month in “rent” for a “laboratory” where the research would be performed. Unbeknownst to NSF at the time, the “laboratory” was actually a single family residence, and the over $150,000 in “rent” was to be paid to Ms. Shao despite the fact that Hans Tech funds had been used to purchase the residence and the company owned the property outright. At one point in the scheme, Dr. Han also used a company in his name to pose as a “third-party” wishing to invest $100,000 in Hans Tech. Unbeknownst to NSF at the time, the “investment” derived in part from Hans Tech’s own funds and, after it was made, $120,000 (at least $80,000 of which were grant funds) was transferred to a bank account of Dr. Han. Subsequently, the money was moved through various accounts until checks totaling just under $75,000, at least one of which could not have been written without NSF grant funds, were used to pay off the home mortgage of Dr. Han and Ms. Shao.
U.S. Attorney Thomas Kirsch said, “The National Science Foundation small business grants are funded by taxpayer dollars and are meant to be used as seed money to help fuel innovation and advancement in science and technology. Schemes such as this, carried out by an otherwise well-respected member of the scientific community, are an affront to NSF and the hard-working employees who administer its grants, and they also deprive other more deserving small businesses from bringing their innovations and advancements to the U.S. marketplace.” Mr. Kirsch concluded that “this kind of taxpayer funded program fraud will be aggressively prosecuted by my office going forward, just as it was in this case.”
“The SBIR/STTR program is a valuable tool in advancing NSF’s mission to promote the progress of science by increasing opportunities for innovative research by small businesses,” stated National Science Foundation Inspector General Allison Lerner. “The NSF Office of Inspector General is committed to vigorously pursuing fraud, waste and abuse in the SBIR/STTR programs. I commend the U.S. Attorney’s Office and our investigative partners for their strong support in this effort.”
This case was the result of an investigation by National Science Foundation, Office of Inspector General with assistance from the Internal Revenue Service, the Federal Bureau of Investigation, and the Michigan City Police Department.
This case was handled by Assistant United States Attorney Jill Koster and NSF OIG Investigative Attorney Sonia Khanzode. Ms. Khanzode was designated by U.S. Attorney Kirsch to serve as a Special Assistant United States Attorney in this case.
The sentencing hearings for Dr. Han and Hans Tech have been set for Tuesday, January 21, 2020, beginning at 1p.m.
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Portland Man Pleads Guilty for Cyber Intrusion of Former EmployerRead the Press Release
PORTLAND, Ore.—Kristopher Ives, 33, of Portland, pleaded guilty today to fraud in connection with computers for illegally accessing the computer network and data of his former employer, Gearbox Studios, after being terminated.
According to court documents, in 2008, Ives began working as a computer programmer for Gearbox Studios, a Portland-based digital marketing agency. Ives eventually became Gearbox Studio’s lead programmer for server architecture and support, a position of trust with access to the computer networks and data of both the company and the company’s clients.
Between February and May 2015, after being terminated from his position, Ives illegally accessed Gearbox’s computers to steal and tamper with data. He used this data to attack Gearbox’s servers and various websites belonging to Gearbox customers. Ives deleted nearly 20,000 products from customer websites and changed prices for various items. Ives also stole names and credit card numbers from these Gearbox customer websites and threatened to release the information unless Gearbox made payment to a bitcoin address.
Ives faces a maximum sentence of 10 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on January 22, 2020 before U.S. District Court Judge Michael H. Simon.
As part of the plea agreement, Ives has agreed to pay restitution to his victims as ordered by the court.
This case was investigated by the FBI’s Oregon Cybercrime Task Force and is being prosecuted by Quinn P. Harrington, Assistant U.S. Attorney for the District of Oregon.
Any public or private entity suspecting a cyber intrusion or attack should contact the FBI through the Internet Crime Complaint Center at www.ic3.gov or by calling your nearest FBI office.
Operators of Suburban Chicago Manufacturing Company Charged with Illegally Hiring Undocumented WorkersRead the Press Release
CHICAGO — The operators of a suburban Chicago manufacturing company have been charged in federal court with knowingly hiring and harboring undocumented workers.
DORA KUZELKA, 81, of Elgin, KENNETH KUZELKA, 62, of Chicago, KARI KUZELKA, 56, of Elgin, and KEITH KUZELKA, 58, of Elgin, are charged with one count of knowingly harboring an illegal alien and one count of knowingly engaging in a pattern or practice of hiring illegal aliens.
The Kuzelkas knowingly hired at least 18 undocumented workers at KSO MetalFab Inc., a sheet metal fabrication company in Streamwood, Ill., according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Keith Kuzelka left the company last year, while the three other Kuzelkas continue to serve in executive management positions, the complaint states.
Dora Kuzelka, Kenneth Kuzelka and Kari Kuzelka were arrested this morning, while Keith Kuzelka self-surrendered to authorities this afternoon. All four defendants made initial appearances in federal court in Chicago this afternoon and were ordered released on recognizance bonds. U.S. Magistrate Judge Sheila M. Finnegan scheduled status hearings for Oct. 29, 2019.
The complaint and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The U.S. Department of Labor and U.S. Social Security Administration provided valuable assistance. The government is represented by Special Assistant U.S. Attorney Christine Young and Assistant U.S. Attorneys Christopher Parente and Michelle Petersen.
According to the complaint, HSI’s Chicago office conducted a civil audit of KSO MetalFab in 2017 and determined that 36 of the company’s 67 employees were suspected of using fraudulent work authorization documents to verify their eligibility for employment. HSI served the company with a written notice of the suspected violations, and the company responded by attesting that it had terminated all 36 of the identified employees. KSO MetalFab later re-hired at least 18 of the previously terminated workers by utilizing a staffing agency, the complaint states. KSO MetalFab instructed the workers to go to the staffing agency so that they could return to the company after the audit, the charges allege. Many of the workers used the same names that they previously used before the audit, the complaint states.
The public is reminded that a criminal complaint is 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.
Knowingly harboring an illegal alien carries a maximum sentence of five years in prison, while knowingly engaging in a pattern or practice of hiring illegal aliens is punishable by up to six months in prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Okoboji Man Pleads Guilty to Meth and Illegal Possession of Ammunition ChargesRead the Press Release
A man who conspired to distribute methamphetamine and illegally possessed ammunition pled guilty October 17, 2019, in federal court in Sioux City.
Cole Rongved, 26, from Okoboji, Iowa, was convicted of one count of conspiring to distribute methamphetamine and one count of illegally possessing ammunition, as Rongved was subject to an order of protection in the Iowa District Court for Dickinson County.
At the plea hearing, Rongved admitted that he was involved in a conspiracy from May 2018 through January 2019 that distributed more than 3 pounds of methamphetamine in the Dickinson County, Iowa area. Rongved admitted he and two associates acquired over two pounds of methamphetamine from a source in Council Bluffs for later distribution in the Lakes area. During search warrants executed at Rongved’s residence, law enforcement located and seized over 1000 rounds of ammunition, over 5 pounds of marijuana, 37 doses of LSD, 4 grams of methamphetamine, over 2 pounds of psilocybin mushrooms, nearly $38,000 in cash, and other items of drug trafficking and drug paraphernalia.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Rongved remains in custody of the United States Marshal pending sentencing. Rongved faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, Dickinson County Sheriff’s Office, Palo County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4025.
Follow us on Twitter @USAO_NDIA.
North Carolina Woman Pleads Guilty to Running Tax Refund Scam in SyracuseRead the Press Release
UTICA, NEW YORK – Lathisa Smokes, age 36, of Charlotte, North Carolina, pled guilty today to filing false tax returns, and assisting others in preparing false tax returns, which caused the IRS to issue fraudulent refunds exceeding $100,000.
The announcement was made by United States Attorney Grant C. Jaquith, and Special Agent in Charge Jonathan D. Larsen, Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.
In pleading guilty, Smokes admitted that from January 2013 to March 2014, she falsely represented herself as a licensed tax preparer, and told taxpayers in Syracuse that she could obtain refunds for them by filing their individual federal tax returns. Smokes convinced the taxpayers to supply her with their dates of birth, social security numbers, addresses, and other information for themselves and their minor dependents. Smokes then prepared and filed 21 returns that she knew contained false information relating to the taxpayers’ income, withholding, and eligibility for certain tax credits. The false returns caused the IRS to transfer $102,918 in fraudulent refunds to the taxpayers and Smokes. The IRS has recovered the majority of the money.
Smokes will be sentenced on February 13, 2020, by United States District Judge David N. Hurd in Utica.
Smokes faces a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
Nigerian National Sentenced for Internet Fraud and False Tax Return SchemesRead the Press Release
SPRINGFIELD, Mo. – A Nigerian national who lived in St. Robert, Missouri, was sentenced in federal court today for his role in a large fraud conspiracy that used various internet scams to defraud victims.
Segun Prosper Otaru, 27, was sentenced by U.S. Chief District Judge Beth Phillips to four years and three months in federal prison without parole. The court also ordered Otaru to pay $25,056 in restitution, and to forfeit the same amount to the government.
Otaru is a Nigerian citizen and a legal permanent resident of the United States. According to court documents, Otaru entered the United States in April 2013, under apparently fraudulent pretenses; contrary to the requirements of his student visa, he did not even begin his studies in the United States. The year after entering the United States, Otaru obtained lawful permanent status through marriage to a citizen.
On May 2, 2019, Otaru pleaded guilty to one count of conspiracy to commit wire fraud and one count of aiding and abetting the theft of public money. According to court documents, over the course of his five years in the United States, Otaru used 13 aliases and multiple bank accounts opened under false identities in order to move funds and perpetrate various frauds as a part of an organized crime network.
Otaru admitted that, at least as early as 2016, he participated in a scheme to defraud people through various scams, such as posting internet advertisements on sites such as Craigslist.com for goods, services, and rental accommodations. Conspirators sought to induce individuals responding to the advertisements to pay for the goods and services, which they had no intention to provide.
For example, conspirators used existing pictures and descriptions of properties found from legitimate websites to create fraudulent Craigslist postings under properties for rent. When victims responded to the advertisement, conspirators instructed them to send a deposit in order to hold the property.
Conspirators also defrauded business wholesalers by tricking them into wiring funds into accounts they controlled as purported “shipping fees” for merchandise they purchased using stolen credit card numbers. After using a stolen credit card number to purchase items from the victim businesses, conspirators claimed the merchandise needed to be shipped to a foreign country. Conspirators insisted on using their own shipper and instructed victims to charge the full amounts for the merchandise plus shipping fees to the stolen credit card numbers. They instructed victims to send the shipping fees to “their shipper” at the provided bank account maintained by the conspirators, including Otaru’s accounts.
Otaru also participated in a scheme to submit false and fraudulent federal income tax returns in order to receive refunds. Conspirators used stolen identities to file returns that listed false employers, wages, and employment taxes paid. At least 167 false and fraudulent federal income tax returns were designated for deposit to seven different bank accounts controlled by Otaru and another person. These 167 federal tax returns requested refunds totaling approximately $644,280. They actually received at least $24,356 in fraudulently-obtained tax refunds.
Otaru opened and maintained a series of bank accounts – some in his own name and in the names of various aliases. In order to open bank accounts using false names, Otaru obtained from his co-conspirators false identification documents, usually counterfeit passports and drivers’ licenses, purportedly issued by nations in Africa, such as Nigeria, Gambia, Ghana, Liberia, Sierra Leone, and South Africa. The false passports contained forged and counterfeit United States visas, as false evidence of the bearer’s evidence of authorized stay and employment in the United States.
Periodically, Mr. Otaru received shipments from Africa in which false identification documents were concealed.
In April 2017, U.S. Customs and Border Protection seized a package sent to Otaru from Nigeria that was manifested as “local body scrub.” In addition to a container of soap, the package contained four counterfeit passports (purportedly issued by Nigeria, Ghana, Liberia, and Sierra Leone) with four corresponding foreign driver’s licenses. All documents displayed Otaru’s picture but bore different names. All documents were fraudulent, and the passports further contained counterfeit United States visas.
In August 2017, U.S. Customs and Border Protection seized a package sent to Otaru from Nigeria that was manifested as “native suite and sandals.” Hidden in the soles of the sandals were four counterfeit passports (purportedly issued by Nigeria, Gambia, South Africa, and Liberia) with four corresponding foreign driver’s licenses. All documents displayed Otaru’s picture, but bore different names. All documents were fraudulent, and the passports further contained counterfeit United States visas.
Otaru also possessed and used a fraudulent Kenyan passport and two fraudulent Nigerian passports.
Otaru kept some of the funds obtained from the schemes for his own use. He transferred some of the funds to co-conspirators in the United States and in other countries. He sometime laundered proceeds of the various frauds by purchasing vehicles and shipping them overseas to co-conspirators in Africa through his business, Big-O-Motors.
Court documents note that following Otaru’s release from incarceration, it is expected that he will be removed from the United States.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), ICE Enforcement and Removal Operations, and IRS-Criminal Investigation.
Niagara Falls Woman Pleads Guilty for Her Role in Cocaine ConspiracyRead 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 Katherine Dejesus-Gonzalez, 36, of Niagara Falls, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiring to possess with intent to distribute and distribute, five kilograms or more of cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine of $10,000,000.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between October 2017 and July 19, 2018, the defendant conspired with Edgar Joel Jimenez-Rodriguez, Jose Garcia-Santiago, and others to sell cocaine. On May 26, 2018, the New York State Police conducted a traffic stop of a vehicle being driven by co-conspirator Jose Garcia-Santiago. Dejesus-Gonzalez was a passenger. Troopers seized five kilograms of cocaine from the vehicle.
In addition, investigators intercepted conversations involving the defendant facilitating drug trafficking activities with her co-conspirators. In September 2017, the U.S. Postal Service intercepted packages arriving from Puerto Rico which were addressed to various residences in Niagara Falls. Postal inspectors seized approximately five kilograms of cocaine that were intended for the defendant and her co-conspirators. One of the packages was addressed directly to the defendant’s home address. Another was addressed to the home of Garcia-Santiago.
Edgar Joel Jimenez-Rodriguez and Jose Garcia-Santiago were previously convicted. Jimenez-Rodriguez has been sentenced, Garcia-Santiago is awaiting sentencing.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Niagara Falls Police Department, under the direction of Superintendent Thomas Licata; and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major Mary Clark.
Sentencing is scheduled for December 16, 2019, at 10:30 a.m. before Judge Geraci.
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New York City Man Sentenced to 70 Months for Trafficking Drugs in PlattsburghRead the Press Release
ALBANY, NEW YORK – Stephen D. Jacques-Scott, age 33, of New York City, was sentenced today to 70 months in prison, to be followed by 4 years of supervised release, for trafficking fentanyl and crack cocaine in Plattsburgh.
The announcement was made by United States Attorney Grant C. Jaquith; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division; and New York State Police Superintendent Keith Corlett.
In May 2017, Jacques-Scott travelled to Plattsburgh several times to distribute crack cocaine and fentanyl to another person for sale in Plattsburgh. On May 18, 2017, Jacques-Scott agreed to pay Shatoya Lee $300 to transport him to Plattsburgh to distribute more crack cocaine. While northbound on I-87 to Plattsburgh, Lee was pulled over by the New York State Police. During a consensual pat-down of Jacques-Scott, a Trooper found approximately 27.9 grams of crack cocaine that Jacques-Scott intended to distribute.
Lee was sentenced on June 3, 2019 to time served (7 months in jail) and 3 years of supervised release for her involvement in the May 18 crime.
This case was investigated by DEA and the New York State Police, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
New Orleans Man Sentenced for Hancock Whitney Bank RobberyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that on Thursday, October 17, 2019, JOHN L. MURRAY, age 66, was sentenced to 41 months imprisonment by United States District Judge Eldon E. Fallon for violating federal law by committing a bank robbery at the Hancock Whitney Bank in New Orleans. Additionally, MURRAY was ordered to pay $500 in restitution, serve (3) years of supervised release and pay a 100.00 special assessment fee.
According to court documents, MURRAY robbed the Hancock Whitney Bank located at 2421 St. Claude Avenue in New Orleans, Louisiana on February 13, 2019. He presented two hand written demand notes to the bank teller and requested five $100 dollar bills in U.S. currency from the bank teller. MURRAY was apprehended on February 17, 2019.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
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New Boston Man Convicted of East Texas Drug Trafficking CrimesRead the Press Release
TEXARKANA, Texas – A 47-year-old New Boston, Texas, man has been convicted of federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Armando Moya was found guilty of conspiracy to possess with intent to distribute and distribution of heroin, fentanyl, and cocaine. The verdict was reached today following a four-day trial before U.S. District Judge Robert W. Schroeder III.
According to information presented in court, on June 7, 2018, law enforcement officers from the Drug Enforcement Administration and supporting law enforcement agencies executed a search warrant at Moya’s home. During the search, law enforcement officers located $198,184.00 in rubber-banded bundles of cash hidden in boxes in Moya’s closet with a pistol. Moya then confessed to being part of an international drug-trafficking ring: smuggling large quantities of drugs from Mexico to cities across the United States and returning with large quantities of United States currency. Moya described how he received drugs from his brother, Jose Roberto Moya. He also explained that the bulk currency hidden in his house was drug proceeds from New York that was destined for Mexico. In addition to his brother, Armando Moya identified multiple people involved in their drug-trafficking conspiracy, including their boss in Mexico named Don Roberto. The defendant’s brother, Jose Roberto Moya, was arrested earlier on his way to Armando Moya’s New Boston residence with eight kilograms of heroin and one kilogram of fentanyl. Testimony and extensive digital evidence at trial established that Armando Moya was responsible for delivering as much as 150 kilograms of heroin, fentanyl, and cocaine from November 2017 through June 2018 to Illinois, New York, Ohio, Tennessee, and Pennsylvania. Special Agents from the DEA also testified at trial regarding the deadly role that heroin and fentanyl are currently playing in the nation-wide opioid epidemic.
Armando Moya’s codefendant and brother-in-law, Oscar Alan Chavez-Belman, has pleaded guilty and is awaiting sentencing. According to the factual basis in Chavez-Belman’s plea agreement and testimony at trial, Armando Moya supervised Chavez-Belman’s involvement in the conspiracy. Jose Moya has also pleaded guilty and been sentenced to federal prison. Armando Moya was indicted by a federal grand jury on June 21, 2018.
Under the federal statute, Moya faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The case was investigated by the Drug Enforcement Administration’s Tyler, Corpus Christi, and Chicago offices and prosecuted by Assistant U.S. Attorneys Jonathan R. Hornok and Ryan D. Locker.
Marshall County man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Joshua R. Sipe, of Moundsville, West Virginia, has admitted to distributing cocaine, U.S. Attorney Bill Powell announced.
Sipe, age 31, pled guilty to one count of “Possession with Intent to Distribute Cocaine.” Sipe admitted to having cocaine in March 2019 in Marshall County.
Sipe faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Manhattan Beach Man Pleads Guilty to Federal Fraud Offense in Movie Investment Scam that Cost Overseas Investors $14 MillionRead the Press Release
LOS ANGELES – A Manhattan Beach man pleaded guilty to a fraud charge this afternoon in United States District Court and admitted bilking foreign investment groups out of $14 million by falsely claiming the money would be used to produce a feature film that Netflix would distribute.
Adam Joiner, 41, entered a guilty plea to one count of wire fraud before United States District Judge André Birotte Jr.
As a result of the guilty plea, Joiner will face a statutory maximum sentence of 20 years in federal prison when he is sentenced by Judge Birotte on March 6, 2020.
Joiner used fake documents and forged signatures to raise millions of dollars from foreign investment firms based in South Korea and China for a movie project he said would be called “Legends,” he admitted in a plea agreement filed in this case.
Joiner, who operated a company called Dark Planet Pictures, LLC, defrauded Korea Investment Global Contents Fund, a South Korean investment fund whose assets are managed by Korean Investment Partners Co., Ltd. (KIP), which suffered $8 million in losses. Joiner also defrauded a Chinese investment firm called Star Century Pictures Co., Ltd. and a related company called PGA Yungpark Capital Ltd, which invested $6 million into “Legends.”
As part of the scheme, Joiner falsely told the investors that Netflix had agreed to distribute the picture, a claim Joiner supported with a bogus distribution agreement that contained the forged signature of a Netflix executive. Joiner subsequently told the investors that he had terminated the distribution agreement with Netflix and had secured a new agreement with Amblin Partners, all of which was false.
The FBI reviewed Dark Planet Pictures bank records and determined that approximately $5.2 million of the investors’ money was used to purchase Joiner’s Manhattan Beach residence and another $4.3 million was transferred to a bank account that may be linked to another film in development linked to Joiner.
This matter was investigated by the FBI.
This case is being prosecuted by Assistant United States Attorney Alexander B. Schwab of the Major Frauds Section.
Manchester Man Sentenced to 36 Months for Gun CrimeRead the Press Release
CONCORD – Kenneth Kirkpatrick, 33, of Manchester, was sentenced in federal court on Thursday to 36 months in prison for illegally possessing a firearm and ammunition, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, law enforcement officers obtained information that Kirkpatrick was selling firearms. On July 26, 2018, Kirkpatrick sold a firearm, ammunition, and firearm accessories to an individual who was cooperating with the ATF. As a convicted felon, Kirkpatrick could not lawfully possess a firearm or ammunition.
Kirkpatrick’s previously pleaded guilty on June 3, 2019.
“Federal law prohibits felons from possessing firearms,” said U.S. Attorney Murray. “The law is intended to reduce violent crime by keeping guns out of the hands of criminals. Through Project Safe Neighborhoods, we work closely with our law enforcement partners to identify, prosecute, and incarcerate those who violate federal gun laws.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Anna Krasinski.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Man Sentenced for Smuggling Firearms and Ammunition to HondurasRead the Press Release
ALEXANDRIA, Va. – An Arlington man was sentenced today to 18 months in prison for his role in the trafficking of firearms to his native country of Honduras.
According to court documents, in October 2018, Chris Rodriguez, 57, attempted to smuggle a firearm and 247 rounds of ammunition out of the United States, concealed in a bucket of roofing tar destined for Honduras. An inspection of the container by U.S. Customs and Border Protection using an X-Ray machine, showed the firearm and ammunition inside the bucket of tar. Further investigation revealed that Rodriguez purchased 26 firearms and illegally smuggled them to Honduras. Rodriguez would then travel to Honduras and sell the firearms on the street.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; and John C. Demers, Assistant Attorney General for National Security; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Casey Durst, Director of U.S. Customs and Border Protection’s Baltimore Field Office made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III.
Assistant U.S. Attorney Ronald L. Walutes, Jr. and Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-153.
Man Pleads Guilty to Misuse of Social Security NumberRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that ALVARO JOSE MEZA-GONZALEZ, (MEZA-GONZALEZ), age 39, pled guilty on October 17, 2019 before United States District Court Judge Carl J. Barbier, to a one-count bill of information charging him with misuse of a Social Security Number, in violation of Title 18, United States Code, Section 408(a)(7)(B).
According to court documents, MEZA-GONZALEZ, a citizen of Nicaragua, presented a false Social Security card when attending a pre-employment safety class at the Gulf Coast Safety Council in St. Rose, Louisiana. MEZA-GONZALEZ falsely represented that a social security number was assigned to him when in fact, the social security number had been assigned by the Commissioner of Social Security to another individual.
MEZA-GONZALEZ faces a possible sentence up to five (5) years imprisonment, a fine of $250,000 and one (1) year of supervised release following any term of imprisonment. United States District Court Judge Barbier set sentencing for January 23, 2020.
U.S. Attorney Peter G. Strasser praised the work of the U.S. Department of Homeland Security, Immigration and Customs Enforcement, United States Border Patrol and the Office of Inspector General, Social Security Administration. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
Luzerne County Man Sentenced to 20 Years’ Imprisonment for Drug Distribution Resulting in DeathRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rodney Williams, age 36, of Wilkes-Barre, Pennsylvania, was sentenced on October 17, 2019 to 20 years’ imprisonment followed by three years on supervised release by Senior U.S. District Court Judge A. Richard Caputo, for distributing fentanyl and heroin to another person that resulted in the death of that person.
According to United States Attorney David J. Freed, Williams previously pleaded guilty to supplying fentanyl and heroin to a drug customer on December 17, 2017, and the customer subsequently died as a result of ingesting the drugs in Kingston, Pennsylvania. Police found the deceased’s body on December 19, 2017.
Agents and police seized several firearms from Williams’ residence during the investigation, and Judge Caputo ordered the firearms forfeited to the government.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Kingston Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Long Island Chiropractor Sentenced to 18 Months’ Imprisonment for Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Raymond R. Pellegrino, a chiropractor with offices in West Hempstead and Hicksville, New York, was sentenced by United States District Judge Joanna Seybert to 18 months’ imprisonment for committing health care fraud. The Court also ordered Pellegrino to forfeit $504,444 and to pay restitution of $2,427,101.13 to Anthem Blue Cross/Blue Shield (BC/BS).
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.
Between December 2013 and September 2014, Pellegrino used the National Provider identification numbers of medical doctors who worked for him on a part-time basis to submit fraudulent claims for medical services to BC/BS. The claims falsely indicated that osteopathic manipulation and other services had been provided to patients by the doctors. As a result, Pellegrino received more than $2.4 million in payments from BC/BS for services that he knew had not been provided.
“Pellegrino abused his chiropractic license by manipulating insurance claims instead of patients’ muscles, and now will pay the price for stealing millions of dollars from an insurance company,” stated United States Attorney Donoghue. Mr. Donoghue expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, the U.S. Department of Health and Human Services and the New York State Department of Financial Services for their assistance with the case.
The government’s case is being handled by the Office’ Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
RAYMOND R. PELLEGRINO
Age: 50
McKinney, Texas,E.D.N.Y. Docket No. 18-CR-496 (JS)
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Senior United States District Judge Richard G. Kopf sentenced Angelo Benjamin Ybarra today to ten years and one month, (121 months), in prison for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine between July of 2017 and March of 2019. Information provided to law enforcement indicated Ybarra, 39, of Lincoln, was responsible for the distribution of at least 1.5 kilograms (approximately three pounds) of methamphetamine in the Lincoln area during that time-frame.
On March 11, 2019, a search warrant was executed at Ybarra’s Lincoln residence. During that search, officers found more than 26 ounces of methamphetamine, a handgun and more than $15,000 in cash.
Following the prison term, Ybarra will serve five years on supervised release. Ybarra will also forfeit $15,867.01 in cash to the United States of America.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Leader of Counterfeiting Ring Charged with Conspiracy to Pass over $75,000 in Counterfeit $100 BillsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Daquan Jones, 28, of Wilkes-Barre, Pennsylvania, charged in by Indictment which was unsealed today with conspiracy to pass more than $75,000 in counterfeit $100 bills to numerous retail stores across Pennsylvania and elsewhere.
The Indictment alleges that Jones manufactured the counterfeit $100 bills at his home in Wilkes-Barre, and then employed numerous co-conspirators to pass the counterfeit notes to retail stores across the Commonwealth, including in Berks County, Delaware County, Centre County and Blair County. These co-conspirators, charged elsewhere, are alleged to have used the counterfeit $100 bills to purchase retail items in order to receive legitimate U.S. currency as change, which the co-conspirators would return to Jones along with the purchased items. The indictment alleges the conspiracy spanned from June of 2018 until June of 2019.
“Criminal counterfeiting of U.S. currency is a serious crime,” said U.S. Attorney McSwain. “Indeed, it is a slap in the face to everyone who puts in an honest day’s work to earn their money. This indictment sends a clear message that we take this type of fraud very seriously and we will pursue it to the fullest extent of the law.”
“The U.S. Secret Service was originally founded to combat counterfeit currency and remains one of our core missions today. The results of this investigation should serve as a reminder that the Secret Service will aggressively investigate and seek prosecution of those considering manufacturing counterfeit U.S. currency to defraud the citizens and businesses of Pennsylvania.”
If convicted, the defendant faces a maximum possible sentence of twenty years’ imprisonment.
The case was investigated by the United States Secret Service, and is being prosecuted by Assistant United States Attorney Matthew T. Newcomer.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Kentucky Physician Pleads Guilty to Unlawfully Distributing OpioidsRead the Press Release
LEXINGTON, Ky. – A Floyd County, Kentucky-based physician pleaded guilty Thursday for his role in unlawfully distributing opioids by pre-signing blank prescriptions that were ultimately completed by others and delivered to patients not seen by him.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. of the Eastern District of Kentucky, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta Field Office, Special Agent in Charge D. Christopher Evans of the U.S. Drug Enforcement Administration’s (DEA) Louisville Field Division and Director Michelle Rudovich of the Kentucky Medicaid Fraud Control Unit (MFCU) made the announcement.
Mohammed A.H. Mazumder, M.D., 48, of Prestonsburg, Kentucky, pleaded guilty to one count of conspiracy to unlawfully distribute controlled substances. He is scheduled to be sentenced on Feb. 19, 2020, by U.S. District Judge Gregory F. Van Tatenhove of the Eastern District of Kentucky, who accepted his plea.
Mazumder was a licensed physician employed by a family practice clinic located in Prestonsburg, Kentucky. A substantial part of the clinic’s practice was pain management, and Mazumder routinely prescribed controlled substances, including opioids, to patients of the clinic. According to admissions made as part of his plea agreement, on occasion, when Mazumder was planning to be absent from the clinic, in anticipation of patients nevertheless coming to the clinic, Mazumder pre-signed prescriptions for opioids, which later were completed by other staff members of the clinic and ultimately delivered to patients not seen by Mazumder. Specifically, as part of his plea, Mazumder admitted to pre-signing prescriptions for opioids prior to traveling abroad.
“This medical professional conspired to unlawfully distribute controlled substances and violated his oath to do no harm,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “He was supposed to serve the needs of his patients; instead, he contributed to the opioid epidemic, allowing powerful opioids to be unnecessarily prescribed, even when he was not physically present at his medical clinic, by using pre-signed prescriptions. We are proud to work in partnership with our law enforcement colleagues as part of the ARPO Strike Force and to help combat this dangerous and illegal conduct.”
HHS-OIG, the DEA and the Kentucky MFCU investigated the case. Assistant Chief Dustin M. Davis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew E. Smith of the Eastern District of Kentucky are prosecuting the case.
The Fraud Section leads the ARPO Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills.
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Kent, Washington man who made multiple online threats sentenced to 5 years in prisonRead the Press Release
Seattle – A 27-year-old Kent, Washington, man was sentenced today in U.S. District Court in Seattle to five years in prison and three years of supervised release for two counts of making interstate threats. CHASE BLISS COLASURDO made multiple online posts threatening members of President Trump’s family and media figures in Southern California and made threats to bomb synagogues. COLASURDO, was arrested May 1, 2019 after he attempted to purchase a firearm. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez said, “Mental illness may explain the intensity, but it does not excuse the actions that he took or the threats that he made instilling fear in his victims.”
“This case shines a spotlight on the frightening intersection of mental illness and weapons,” said U.S. Attorney Moran. “I commend law enforcement who closely monitored this defendant so that he was arrested before he could commit any violent acts. Supervision following prison is designed to stop him from such frightening threats and behavior in the future.”
According to records in the case, in March 2019, a member of the public reported to the FBI concerns about Instagram and other social media posts where COLASURDO threatened to execute members of President Donald Trump’s family. Additionally, COLASURDO sent messages to five different media organizations that he was going to execute the family member. COLASURDO posted a photo on Instagram showing a hand with a firearm pointed at the photo of a Trump family member. When initially contacted by law enforcement in March, COLASURDO claimed his social media accounts had been hacked.
Despite his statements that he was not responsible for the posts, COLASURDO continued to make threatening comments, specifically threats to members of the Jewish community. In one post, he wrote it was time to start “bombing synagogues.” Throughout April 2019, COLASURDO sent threatening email messages and online posts to media figures in Southern California using anti-Semitic slurs and threats to kill. As law enforcement continued to track his activity, it became clear he was purchasing various items related to firearms, such as a holster, bulletproof vest, and ammunition. COLASURDO attempted to purchase a firearm but was denied.
When law enforcement served search warrants at COLASURDO’s apartment, they recovered Nazi and Adolph Hitler related items, as well as ammunition, night vision goggles, and a gas mask.
“People need to understand that such threats will be taken seriously,” Chief Judge Martinez said. “It makes no difference to the victims that the person was mentally ill.”
The case was investigated by the FBI and U.S. Secret Service, in conjunction with an investigation by the Los Angeles Police Department. Significant assistance was provided by the Sound Regional Violent Crimes Task Force. The case was prosecuted by Assistant United States Attorney Todd Greenberg
Justice Department Awards over $273.4 Million to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
The Department of Justice announced today that it has awarded over $273.4 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.
“Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive,” said Attorney General William P. Barr. “We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it.”
President Trump is the first President to sign a proclamation recognizing acts of violence committed against American Indian and Alaska Native people, particularly women and children.
Two-hundred and thirty six grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s announced CTAS awards is available at: https://www.justice.gov/tribal/awards. A listing of all other announced tribal awards are available at: https://ojp.gov/newsroom/pressreleases/2019/factsheets/FY19_FINAL_Tribal%20Awards%20Fact%20Sheet.pdf.
Attorney General Barr announced the public safety funding for Alaska Native villages in a video teleconference with the Alaska Federation of Natives yesterday evening that can be viewed at:
https://www.justice.gov/opa/video/attorney-general-william-p-barr-gives-remarks-through-video-conference-alaska-federation.
Justice Department Awards over $270 Million to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
WASHINGTON – The Department of Justice announced today that it has awarded over $273.4 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.
“Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive,” said Attorney General William P. Barr. “We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it.”
In Maine, the Houlton Band of Maliseet Indians was awarded $899,863 in funding as part of the Violence Against Women Tribal Governments Program.
Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
In Maine, the Passamaquoddy Tribe at Indian Township was awarded over $197,000 for the coordination and expansion of an existing victim service program.
“I congratulate our tribal partners on their successful grant applications,” said U.S. Attorney Halsey Frank. “The grants will assist the tribes in addressing violence in their communities and providing much-needed services to victims.”
“The Passamaquoddy Tribe – Indian Township is excited to receive nearly $200,000 in funding to expand our services, said Governor William J. Nicholas Sr. “Our community is thankful for the grant award, and continued support for victims in Indian Country.”
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s announced CTAS awards is available at: https://www.justice.gov/tribal/awards. A listing of all other announced tribal awards is available at: https://go.usa.gov/xVJuE.
Justice Department Awards over $273.4 Million to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
WASHINGTON, D.C. - WASHINGTON – The Department of Justice announced today that it has awarded over $273.4 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.
“Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive,” said Attorney General William P. Barr. “We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it.”
Eight Tribes in the District of Arizona were awarded over $7,626,420 in funding. The tribes in Arizona receiving grants that were announced today are Gila River Indian Community, Navajo Nation, Pascua Yaqui Tribe, Quechan Indian Tribe, Salt River Pima-Maricopa Indian Community, San Carlos Apache Tribe, the Hopi Tribe, and Yavapai-Apache Nation.
“These awards to eight Arizona tribes demonstrate our continued support and commitment to improving public safety in Indian Country,” said United States Attorney Michael Bailey. “These resources will help our tribal partners combat violent crimes and domestic abuse, and provide expanded services for the victims of these crimes.”
Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s announced CTAS awards is available at: https://www.justice.gov/tribal/awards. A listing of all other announced tribal awards are available at: https://go.usa.gov/xVJuE.
Justice Department Awards over $273.4 Million to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
BOISE – U.S. Attorney Bart M. Davis joins the Department of Justice in announcing it has awarded over $273.4 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.
“Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive,” said Attorney General William P. Barr. “We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it.”
Two Tribes in the District of Idaho, the Coeur d’Alene and the Shoshone-Bannock, were awarded over $4.2 million in funding. The Coeur d’Alene Tribe received $2,019,213 and the Shoshone-Bannock Tribes received $2,278,781. The tribes will use these funds to enhance law enforcement, combat domestic violence, dating violence, stalking and sex trafficking, bolster justice systems, prevent and control juvenile delinquency, strengthen the juvenile justice system, serve sexual assault and elder victims, and support other efforts to address crime.
“The Department of Justice and my office are committed to improving public safety and serving crime victims in our tribal communities,” said U.S. Attorney Davis. “This increase in resources, together with aggressive federal and tribal investigations, will help strengthen Idaho tribal communities for years to come.”
Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s announced CTAS awards is available at: justice.gov/tribal/awards.
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Justice Department Awards over $273.4 Million to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
WASHINGTON – The Department of Justice announced today that it has awarded over $273.4 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.
“Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive,” said Attorney General William P. Barr. “We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it.”
The Mississippi Band of Choctaw Indians in the Southern District of Mississippi was awarded $363,000 in federal funding under the Tribal Victim Services Program.
“Helping victims of crime is one of the most important things we do in the U.S. Attorney’s Office, and this grant will greatly improve services for crime victims among the Choctaw Indians. We are committed to continuing our close partnership with the Tribe in order to prevent and reduce violence and ensure victims are provided the services they deserve,” said U.S. Attorney Hurst.
“The Mississippi Band of Choctaw Indians’ Department of Family and Community Services is indeed grateful to receive this much-needed US DOJ grant for our Tribal Victim Services Program. We are making a concerted effort to combat domestic violence on the Choctaw Indian Reservation, and our strategic approach can use all of the fiscal and human resources that we can garner to eliminate this chronic problem. Innocent Tribal victims of family violence are in need of our direct and immediate assistance to foster their safety and healing, while our Tribal Government continues working to diminish the instances and effects of violent crime,” said Tribal Chief Cyrus Ben.
Chad Lamar, U.S. Attorney for the Northern District of Mississippi also praised the Department’s decision to award federal grant funding to the Mississippi Band of Choctaw Indians. “The fight against violent crime is ongoing and always a priority throughout our District,” Lamar stated. “This grant will greatly assist our Tribal partners in efforts to combat violent crime and domestic abuse and to better serve crime victims within our communities.”
Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s announced CTAS awards is available at: https://www.justice.gov/tribal/awards. A listing of all other announced tribal awards are available at: https://go.usa.gov/xVJuE.
Justice Department Awards over $273.4 Million to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
The Department of Justice announced today that it has awarded over $273.4 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities. In Oklahoma, 15 tribes and nations received in total $14,142,025.
“Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive,” said Attorney General William P. Barr. “We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it.”
Four tribes in the Northern District of Oklahoma were awarded more than $3.1 million in funding. The Quapaw Tribe of Oklahoma received $955,668 for corrections and correctional alternatives from the Bureau of Justice Assistance (BJA) and $613, 860 for tribal victim services from the Office of Victims of Crime (OVC). Cherokee Nation received $794,575 for public safety and community policing from the Office of Community Oriented Policing Services (COPS). The Delaware Tribe of Indians received $672, 192 for tribal victim services from OVC, and Wyandotte Nation received $132, 648 for public safety and community policing from the COPS office.
“U.S. Attorneys from coast to coast are committed to improving public safety for American Indian and Alaska Native communities. We will uphold our trust responsibility in the justice arena. Today, the Justice Department provided critical funding to assist tribal communities as they implement self-determined, impactful programs to protect their citizens,” said Trent Shores, U.S. Attorney for the Northern District of Oklahoma and Chair of the Attorney General’s Advisory Subcommittee on Native American Issues. “I am especially proud of the strong partnerships forged between my office and the 13 federally recognized tribes in the Northern District of Oklahoma. Our partnerships with tribal law enforcement, prosecutors and victim services are vital to the fulfillment of the mission of justice.”
“The Quapaw Nation has grown and developed a good deal in the past 15 years, in a way that has outpaced the growth and expansion of some of our services. We are immensely grateful for U.S. Attorney Trent Shores’ support in bringing about this opportunity to improve safety and justice services for our Nation members,” said Quapaw Nation Chairman John L. Berrey. “We will certainly put the money to very good use, and we look forward to seeing how all of these grants produce positive change throughout Indian Country.”
“The Cherokee Nation will use these funds to better protect our tribal lands and citizens as part of our fight against opioid and methamphetamine use and the potential criminal activity associated with it,” Cherokee Nation Principal Chief Chuck Hoskin Jr. said. “Our Cherokee Nation Marshals patrol 4.4 million rural acres within our Cherokee Nation tribal boundaries, and we will use these dollars to upgrade radio equipment and smartphone devices so that our marshals can more quickly and effectively connect or call in local law enforcement agencies for quicker assistance. Arming our protectors with the latest technology is essential for us to be proactive in ending this national epidemic in Indian Country.”
Also included in the Oklahoma funding are the Absentee Shawnee Tribe of Indians of Oklahoma, Cheyenne and Arapaho Tribes, Choctaw Nation of Oklahoma, Citizen Potawatomi Nation, Comanche Nation, Kaw Nation, Otoe-Missouria Tribe of Indians, Seminole Nation of Oklahoma, Chickasaw Nation, Thlopthlocco Tribal Town and Tonkawa Tribe of Indians of Oklahoma.
Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s announced CTAS awards is available at: https://www.justice.gov/tribal/awards. A listing of all other announced tribal awards are available at: https://go.usa.gov/xVJuE.
Justice Department Awards over $273.4 Million to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
WASHINGTON—The Department of Justice announced today that it has awarded over $273.4 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.
Six tribes and one tribal commission in the District of Oregon were awarded over $3.3 million in funding. Award recipients include the Burns Paiute Tribe; Columbia River Inter-Tribal Fish Commission; Confederated Tribes of Coos, Lower Umpqua, and Siuslaw Indians; Confederated Tribes of the Grand Ronde Community of Oregon; Coquille Indian Tribe; Cow Creek Band of Umpqua Tribe of Indians; and the Klamath Tribes.
“Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive,” said Attorney General William P. Barr. “We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it.”
“These awards underscore the Justice Department’s sincere commitment to improving public safety in tribal communities throughout the U.S. Pursuing justice on behalf of tribal crime victims in Oregon remains a key focus of the U.S. Attorney’s Office. We will not stop until all tribes have the resources they need to keep their communities safe and effectively enforce the administration of justice on tribal land,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s announced CTAS awards is available at: https://www.justice.gov/tribal/awards. A listing of all other announced tribal awards are available at: https://go.usa.gov/xVJuE.
Justice Department Awards over $273.4 Million to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
Bay Mills Indian Community, Hannahville Indian Community and Little Traverse Bay Bands of Odawa Indians in the Western District of Michigan Awarded over $1.8 Million in Funding
GRAND RAPIDS, MICHIGAN – The Department of Justice announced today that it has awarded over $273.4 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.
"Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive," said Attorney General William P. Barr. "We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it."
Three Tribes in the Western District of Michigan were awarded a total of $1,890,469 in funding, as follows:
MICHIGAN
TOTAL AMOUNT:
Bay Mills Indian Community
$992,448
Corrections and Correctional Alternatives (BJA)
$580,840
Violence Against Women Tribal Governments Program
$411,608
Hannahville Indian Community
$764,822
Public Safety and Community Policing (COPS)
$88,742
Violence Against Women Tribal Governments Program
$676,080
Little Traverse Bay Bands of Odawa Indians
$133,199
Public Safety and Community Policing (COPS)
$133,199
United States Attorney Andrew Birge commented that: "These grants are welcome news. The Department of Justice has a trust responsibility with the Tribes in Michigan. And these funds will support Tribal efforts to enhance public safety and victim assistance in important ways, such as through improvements to the buildings that house their justice services, providing direct intervention and aid to victims of sexual assault, and securing equipment and training for their police departments."
Bryan Newland, Chairman of the Bay Mills Indian Community Executive Council, expressed his appreciation for the awards: "We are grateful for the support from our Trustee to help us in our work to create a justice system that protects women and children in our community, and that is focused on making our community a healthier place – rather than cycling repeat offenders in and out of jail."
Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s announced CTAS awards is available at: https://www.justice.gov/tribal/awards.
END
Justice Department Awards over $273.4 Million to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
The Department of Justice announced today that it has awarded over $273.4 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.
“Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive,” said Attorney General William P. Barr. “We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it.”
United States Attorney Erica MacDonald said, “Here in the District of Minnesota, the Department has awarded more than $4.6 million to five tribes in response to their most pressing public safety needs, including violence against women, opioids, and substance abuse. As U.S. Attorney, I am committed to working with our tribal leaders and law enforcement partners to address these very issues. Our Native American communities deserve to thrive in safety and stability.”
Five Tribes in the District of Minnesota were awarded a total of $4,655,998 in funding. The Leech Lake Band of Ojibwe will receive a total of $810,821, the Mille Lacs Band of Ojibwe will receive a total of $624,180, the Red Lake Band of Chippewa Indians will receive a total of $1,544,538, the Upper Sioux Community will receive a total of $243,008, and the White Earth Reservation Tribal Council will receive a total of $1,433,451.
Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation (“CTAS”), a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s announced CTAS awards is available at: https://www.justice.gov/tribal/awards. A listing of all other announced tribal awards are available at: https://go.usa.gov/xVJuE.
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Justice Department Awards over $273.4 Million to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
WASHINGTON – The Department of Justice announced today that it has awarded over $273.4 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.
“Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive,” said Attorney General William P. Barr. “We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it.”
The Mississippi Band of Choctaw Indians in the Southern District of Mississippi was awarded $363,000 in federal funding under the Tribal Victim Services Program.
“Helping victims of crime is one of the most important things we do in the U.S. Attorney’s Office, and this grant will greatly improve services for crime victims among the Choctaw Indians. We are committed to continuing our close partnership with the Tribe in order to prevent and reduce violence and ensure victims are provided the services they deserve,” said U.S. Attorney Hurst.
“The Mississippi Band of Choctaw Indians’ Department of Family and Community Services is indeed grateful to receive this much-needed US DOJ grant for our Tribal Victim Services Program. We are making a concerted effort to combat domestic violence on the Choctaw Indian Reservation, and our strategic approach can use all of the fiscal and human resources that we can garner to eliminate this chronic problem. Innocent Tribal victims of family violence are in need of our direct and immediate assistance to foster their safety and healing, while our Tribal Government continues working to diminish the instances and effects of violent crime,” said Tribal Chief Cyrus Ben.
Chad Lamar, U.S. Attorney for the Northern District of Mississippi also praised the Department’s decision to award federal grant funding to the Mississippi Band of Choctaw Indians. “The fight against violent crime is ongoing and always a priority throughout our District,” Lamar stated. “This grant will greatly assist our Tribal partners in efforts to combat violent crime and domestic abuse and to better serve crime victims within our communities.”
Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s announced CTAS awards is available at: https://www.justice.gov/tribal/awards. A listing of all other announced tribal awards are available at: https://go.usa.gov/xVJuE.
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