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17 October 2019
Justice Department Settles Immigration-Related Discrimination Claim Against Texas-Based National Restaurant Franchise OwnerRead the Press Release
The Department of Justice announced today that it has reached a settlement agreement with MUY Brands LLC, a San Antonio, Texas-based owner and operator of approximately 78 Taco Bell restaurant franchises in six states, and a related management company, MUY Consulting Inc. The settlement resolves the Department’s investigation into whether the companies violated the Immigration and Nationality Act (INA) by discriminating against lawful permanent residents because of their citizenship status when verifying their authorization to work in the United States.
"Employers cannot require that a worker provide more or different documents than necessary to legally prove work authorization based on the worker’s citizenship status or national origin,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division is committed to enforcing the Immigration and Nationality Act and rooting out unlawful discrimination in the employment eligibility verification process to help ensure equal employment opportunities.”
The Department’s investigation concluded that, from at least July 2015 to March 2017, MUY Brands and MUY Consulting required specific work authorization documents from all lawful permanent residents who worked at their Taco Bell restaurants, while not imposing a similar requirement on U.S. citizens. As a result, some lawful permanent residents lost work opportunities, even though they had presented sufficient documentation to prove their authorization to work. Federal law allows all work-authorized individuals, regardless of citizenship status, to choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States. The anti-discrimination provision of the INA prohibits employers from requesting more or different documents than necessary to prove work authorization based on employees’ citizenship status or national origin.
Under the terms of the agreement, the companies will pay a civil penalty of $175,000, establish a $50,000 backpay fund to pay affected workers, and be subject to departmental monitoring and reporting requirements. Additionally, certain employees will be required to attend training on the requirements of the INA’s anti-discrimination provision.
The Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
More information on how employers can avoid discrimination in the Form I-9 and E-Verify processes is available here. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Jury Convicts Businessman of $1.4 Million Fraud ConspiracyRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a North Carolina man late yesterday on charges of conspiracy to commit wire fraud and wire fraud for his role in orchestrating a scheme that caused over $1.4 million in losses to multiple victims.
According to court records and evidence presented at trial, Anthony Eric Mitchell, 52, of Charlotte, was one of the two managing principals of a company called Aura Exchange LLC (AURA). Mitchell and his co-conspirator Armando Almirall, through AURA, promised their clients that they could help obtain funding for a host of business purposes, such as real estate transactions and television projects. Instead, Mitchell and Almirall spent large portions of their clients’ funds on personal expenses, including trips to casinos, concert tickets, stays at beach resorts, cash withdrawals and wire transfers.
In order to induce the victims to provide AURA with money, Mitchell and Almirall made a host of fraudulent misrepresentations, including representing to clients that they were guaranteed to receive their initial equity deposits back when, in fact, none of the victims ever received any money from AURA. Mitchell and Almirall claimed that AURA had offices in Zurich, London, and New York when no such offices existed. Mitchell also claimed to victims and their associates that AURA was a widely-successful global company that was backed by the assets of billionaires when, in reality, AURA had never closed a deal for a single client.
Mitchell and Almirall also maintained a website for AURA that contained a number of misrepresentations, including claims that AURA was an industry leader in a number of fields, that AURA was an international business with access to hundreds of financiers, and that AURA could turn around funding to its clients in as little as 24 hours. AURA never made any money for any of its clients, and in fact, victims of the fraud suffered losses of at least $1.6 million.
Mitchell’s business partner and co-conspirator, Armando Almirall, previously pleaded guilty to conspiracy to commit wire fraud and was sentenced to 63 months in prison in February.
Mitchell faces a maximum penalty of 20 years in prison on each count of conviction when sentenced on Jan. 3, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict. Assistant U.S. Attorney Jamar K. Walker and Special Assistant U.S. Attorney Russell L. Carlberg are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-101.
Indianapolis Man Indicted for Money Laundering funds from Elderly VictimsRead the Press Release
LEXINGTON, Ky. – An Indianapolis man was indicted Thursday for conspiring to launder money illegally obtained from victims of elder financial exploitation.
A federal grand jury in Lexington returned an indictment charging 33-year-old Ismaila Fafunmi, a Nigerian national who is a lawful permanent resident of the United States, with one count of conspiracy to commit money laundering.
According to court records, a female victim living in the Eastern District of Kentucky met an individual on an online dating website, and was eventually defrauded into believing she was in a romantic relationship with a member of the United States military, who was stationed abroad. Through the course of their online communications, the perpetrator convinced the victim to send him money, electronics, and other items, to give him access to her bank accounts online, and to obtain a home equity line of credit to pay for his separation fee from the military. In total, she lost approximately $200,000 at the direction of her supposed online companion.
These same records indicated there was another female victim, who was defrauded into believing a friend on Facebook had pointed her to an opportunity to win a grant. She sent approximately $183,000 at the direction of the perpetrators, believing these up-front costs would lead to her award of the grant money.
According to the indictment, a portion of this money was either sent to Fafunmi himself, through the mail, or to individuals he recruited to receive money in bank accounts he had them set up, in and around the Indianapolis area.
This case is being prosecuted as part of the Department of Justice’s efforts to identify and prosecute those persons who facilitate elder financial exploitation.
The Department of Justice’s Elder Justice Mission, being carried out through the Kentucky Elder Justice Task Force, is to seek justice for victims of elder financial exploitation. Anyone who knows someone who may be a victim of an elder financial exploitation, is encouraged to contact law enforcement.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, jointly announced the indictment.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The indictment was presented to the grand jury by Assistant U.S. Attorney Kathryn M. Anderson.
A date for the defendant to appear in court has not yet been scheduled. The defendant faces up to twenty years in prison for the money laundering conspiracy and a maximum fine of $500,000. However, any sentence following a conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Illegal Immigrant, Twice Deported, Again Facing Federal Firearms ChargesRead the Press Release
NASHVILLE, Tenn. – October 17, 2019 – Angel Daniel-Garcia, 35, of Mexico, was indicted yesterday by a federal grand jury on charges of being an aggravated felon who illegally re-entered the United States after having been previously deported; being a convicted felon in possession of a firearm; and being an illegal alien in possession of a firearm, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Court records indicate that Daniel-Garcia was deported in 2010 after he brandished a pistol and robbed two gas stations on Murfreesboro Road in Nashville, Tennessee. Daniel-Garcia returned to the United States and was charged and convicted in federal court of being an aggravated felon who illegally entered the United States after previously being deported. In October 2015, he was sentenced to 27 months in prison and deported after the completion of his sentence.
Daniel-Garcia again returned to the United States and according to the indictment, on September 10, 2019, he was found in possession of a Smith & Wesson 9mm pistol. Daniel-Garcia is also facing felony drug and firearms charges in Davidson County, Tennessee in relation to a shooting incident on the same day.
If convicted, Daniel-Garcia faces up to 10 years in prison on each firearm violation and up to 20 years in prison on the immigration charge.
The Bureau of Alcohol, Tobacco, Firearms & Explosives; the Department of Homeland Security-Immigration & Customs Enforcement; and the Metropolitan Nashville Police Department are investigating the case. Assistant U.S. Attorney Ahmed Safeeullah is prosecuting the case.
The defendant is presumed innocent until proven guilty in a court of law.
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INTERPOL Washington Leads U.S. Delegation to INTERPOL General AssemblyRead the Press Release
The U.S. Delegation to the INTERPOL General Assembly.Wayne H. Salzgaber, director of INTERPOL Washington—the U.S. National Central Bureau—is leading the U.S. Delegation to the 88th INTERPOL General Assembly this week in Santiago, Chile. The General Assembly meets annually and makes all of the major decisions affecting general policy, the resources needed for international cooperation, working methods, finances and programs of activities for INTERPOL.
From October 15th to 18th, the conferees will discuss proposals to advance INTERPOL’s technical and operational support to police worldwide. This year’s gathering of law enforcement officials from around the world will also address current and future organized crime and terrorism threats.
In addition to setting INTERPOL’s agenda and budget, the General Assembly voted yesterday to reappoint Mr. Jürgen Stock INTERPOL Secretary General to a second and final five-year term.
The General Assembly is INTERPOL's supreme governing body and comprises delegates appointed by the governments of member countries.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Houston man charged in Laredo for transporting nearly 100 undocumented aliensRead the Press Release
LAREDO, Texas – A Laredo grand jury has returned a nine-count indictment against a 50-year-old Houston man for a firearms charge in addition to conspiracy and transporting undocumented aliens, announced U.S. Attorney Ryan K. Patrick.
Bernard Jerome Leffyear is set to appear in Laredo federal court before U.S. Magistrate Judge Sam Sheldon at 1 p.m. today. Originally charged by criminal complaint, a grand jury returned the f0rmal indictment Oct. 8.
The charges allege that on Sept. 21, authorities were working their assigned duties at the Border Patrol (BP) checkpoint on Interstate Highway 35, north of Laredo. Leffyear allegedly approached the primary inspection lane, driving a tractor-trailer.
Agents inspected the vehicle, at which time they detected anomalies resembling human bodies inside his trailer, according to the charges.
Court records indicate he was transporting a total of 93 undocumented aliens.
In addition to discovering the undocumented aliens inside his trailer, authorities also found a black Smith & Wesson pistol. Having a prior felony conviction, he is prohibited by federal of possessing any type of firearm or ammunition.
If convicted of any of the charges, he faces up to 10 years in federal prison and a $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Francisco Rodriguez is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Harrison County Constable Indicted for Producing Child PornographyRead the Press Release
LEXINGTON, Ky. - A Harrison County Constable and former Bourbon County firefighter was indicted today, for the producing child pornography.
A federal grand jury in Lexington returned an indictment charging 36 year-old William Michael Fields Jr. with two counts of using a minor to engage in sexually explicit conduct for the purpose of creating a visual depiction of that conduct.
The indictment alleges that Fields produced child pornography on March 17 and 23, 2019, each time in Bourbon County, Kentucky.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Chief Raymond Johnson of the Cynthiana Police Department, and John Condon, Special Agent in Charge of Homeland Security Investigations (HSI), jointly announced the indictment.
The investigation preceding the indictment was conducted by the Cynthia Police Department with assistance from HSI. The indictment was presented to the grand jury by Assistant U.S. Attorneys Erin Roth and Mary Melton.
A date for Fields to appear in court has not yet been scheduled. He faces up to 30 years in prison and a maximum fine of $5,000 for each count. However, any sentence following a conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Harrisburg Man Indicted for Cumberland County Armed Bank RobberiesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Aaron Johnson, age 29, of Harrisburg, Pennsylvania, was indicted on October 16, 2019, by a federal grand jury on four counts of armed bank robbery.
According to United States Attorney David J. Freed, the indictment alleges that Johnson committed four armed bank robberies in Cumberland County between February and September 2019:
- AmeriChoice Federal Credit Union on February 15, 2019;
- Centric Bank on July 12, 2019;
- BB&T Bank on July 31, 2019; and
- PNC Bank on August 19, 2019.
The case was investigated by the Federal Bureau of Investigation, the Lower Allen Police Department, East Pennsboro Township Police Department, Camp Hill Borough Police Department, and the Hampden Township Police Department. Assistant U.S. Attorney Johnny Baer is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is up to 100 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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GBK Gang Member Sentenced for Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH - A member of the Greenway Boy Killas (GBK) gang has been sentenced in federal court to 18 months’ imprisonment on his conviction of conspiracy to distribute heroin, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Rashem Littleberry, age 29, of Pittsburgh, PA.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Rashem Littleberry and his co-conspirators conspired to distribute quantities of heroin.
According to additional information presented to the court, Littleberry has a pending state court homicide case for criminal activity that occurred at the Greenway Park Apartments during the wiretap investigation.
Prior to imposing sentence, Senior Judge Schwab stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration along with the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department for the investigation leading to the successful prosecution of Littleberry.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Fresno Man Indicted for Conspiring to Distribute Methamphetamine, Heroin and CocaineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Israel Chavez Tamayo, 33, of Fresno, charging him with conspiracy to distribute and possess with the intent to distribute methamphetamine, cocaine, and heroin, distribution of cocaine, distribution of methamphetamine, and two counts of possessing methamphetamine and heroin with the intent to distribute, U.S. Attorney McGregor W. Scott announced.
According to court documents, Tamayo negotiated the sale of 8 kilograms of methamphetamine and 1 kilogram of heroin to an individual and was then stopped on his way to deliver the drugs. Officers found approximately 17 pounds of methamphetamine and over 2 pounds of heroin in his vehicle. An additional quantity of methamphetamine and heroin was found at his residence pursuant to a search warrant.
This case is the product of an investigation by the Drug Enforcement Administration, California Highway Patrol, the Merced Area Gang and Narcotics Team, the Madera County Narcotic Enforcement Team, Fresno County Sheriff’s Office, and the Fresno High Impact Investigation Team. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Tamayo faces a maximum statutory penalty of 10 years to life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Frederick, Maryland Man Pleads Guilty to Cocaine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Teion Enlyn Vandamm, age 43, of Frederick, Maryland, entered a guilty plea to Possession With Intent To Distribute Cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 and not more than 40 years imprisonment, a fine up to $5,000,000.00, or both.
The Indictment alleges that on or about December 20, 2018, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine, a Schedule II controlled substance.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Jarrod Leaman represented the United States.
Four Aliens Indicted on Illegal Reentry Charges, False Attestation, Fraud and Misuse of Visas, Permits, and Other Documents, False Representation of Social Security Number and Aggravated Identity TheftRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging EDWIN MONROY-ABASOLO, age 30, of Mexico, JOSE QUISTIAN-LUPES, age 34, of Mexico, and OSCAR GEOVANI OLIVERA-HERNANDEZ, age 26, of Honduras with Illegal Reentry of a Deported Alien.
Additionally, the grand jury returned an indictment charging JOSE JUAN PEREZ-CAMPOZANO, age 47, of Mexico, with false attestation, fraud and misuse of visas, permits, and other documents, false representation of a social security number, and aggravated identity theft.
If convicted of illegal reentry of a deported alien, MONROY-ABASOLO, previously deported and found in Wake County, and QUISTIAN-LUPES, previously deported and found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
OLIVERA-HERNANDEZ, previously deported twice and found in Wake County, is alleged to have been previously removed subsequent to an aggravated felony conviction (3 counts of indecent liberties with a child). Therefore, if convicted, he would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of false attestation, fraud and misuse of visas, permits, and other documents, false representation of a social security number, and aggravated identity theft, PEREZ-CAMPOZANO, found in Sampson County, would face maximum penalties of 27 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Former employee admits guilt in $63K bank embezzlement schemeRead the Press Release
HOUSTON – A 33-year-old Brenham resident and ex-employee of Wells Fargo bank has admitted to embezzlement, announced U.S. Attorney Ryan K. Patrick.
Natasha Hudgeons pleaded guilty today.
From December 2014 through March 2019, she embezzled $63,500 while employed as a teller. Hudgeons admitted she took the money in $500 to $1,000 increments. She concealed the theft by putting falsified entries into the bank’s books and records and “selling” back and forth between the cashbox and coin machine cash lines. Both were considered “single control” cash lines, meaning tellers could conduct transactions on that account line without a second person.
U.S. District Judge Alfred Bennett accepted the plea and set sentencing for Jan. 9, 2020. At that time, Hudgeons faces up to 30 years in federal prison and a possible $1 million maximum fine.
She was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Former Prince George’s County Delegate Pleads Guilty to Federal Wire Fraud ChargeRead the Press Release
Greenbelt, Maryland – Former Maryland State Delegate Tawanna P. Gaines, age 67, of Berwyn Heights, Maryland, pleaded guilty today to a federal wire fraud charge, admitting that she converted more than $22,000 in campaign funds to her personal use.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“Our elected officials are entrusted to make decisions in the best interests of the people they represent, not to use their positions of authority to line their own pockets,” said United States Attorney Robert K. Hur. “We will pursue and prosecute those who betray the public trust and break the law, and bring them to justice.”
“Those who serve in public office positions must uphold the public’s trust. Sadly, Tawanna Gaines abused her position for personal gain,” said Special Agent in Charge Jennifer Boone of the FBI's Baltimore Division. “Today’s plea announcement sends a signal that the FBI will investigate any public official who attempts to abuse their position of trust to enrich themselves.”
According to her plea agreement, Gaines was a Maryland State Delegate from December 2001 through the present, representing District 22, which covered portions of Prince George’s County. Over her years in the House of Delegates, Gaines held many committee assignments, including vice-chair of the Appropriations Committee and Assistant Majority Leader. The “Friends of Tawanna P. Gaines” (FTPG) candidate committee was the name of the finance entity for the Gaines campaign for Maryland State Delegate from June 2002 to the present. FTPG was a regulated state election campaign committee with a designated bank account. Separately, Gaines held exclusive control over a PayPal account used to accept electronic donations to FTPG which was not disclosed in State campaign finance filings.
Gaines admitted that from at least January 2015 through April 2018, she defrauded the campaign and its contributors of more than $22,000. Specifically, Gaines solicited campaign contributions, falsely representing to contributors that the funds would be used to facilitate her reelection and maintain her leadership positions within the Maryland General Assembly. Gaines accepted donations from campaign contributors into the FTPG PayPal account, then without authorization and in violation of Maryland campaign finance laws, utilized campaign funds from the FTPG account for her personal use. Gaines admitted that she received campaign contributions and converted them to her own use without causing the contributions to be identified on reports made to the Maryland State Board of Elections.
As detailed in her plea agreement, Gaines used the campaign funds from the FTPG PayPal account to pay for personal expenses, such as fast food, hair styling, dental work, a cover for the pool at her personal residence, an Amazon Fire TV stick, Amazon Prime membership, and payments to Amazon.com. In addition, during the course of the conspiracy Gaines withdrew a total of approximately $1,952.75 in cash from ATM machines and electronically transferred at least $2,061.55 from the FTPG PayPal account directly to her personal checking account. The total loss as a result of Gaines’ fraud was at least $22,565.03. As part of her plea agreement, Gaines is required to forfeit and pay restitution in that amount.
Gaines faces a maximum sentence of 20 years in federal prison for wire fraud. U.S. District Judge Theodore D. Chuang has scheduled sentencing for January 3, 2020, at 10:00 a.m. She is released on her own recognizance under the supervision of U.S. Pretrial Services.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Thomas P. Windom, who is prosecuting the case.
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Former Postal Employee Indicted for Theft of MailRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Vashaurid Gibbs, age 24, of Harrisburg, Pennsylvania, was indicted on October 16, 2019, by a federal grand jury for theft of mail by a postal employee.
According to United States Attorney David J. Freed, the indictment alleges Gibbs removed money from letters, postal cards, packages, and mail that had come into his possession as a postal employee on July 8, 2019.
The case was investigated by the United States Postal Service Office of Inspector General. Assistant U.S. Attorney Christian T. Haugsby is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is a term of five years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Postal Employee Charged with EmbezzlementRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kassidy D. Atherton, age 24, of McVeytown, Pennsylvania, was indicted on October 16, 2019, by a federal grand jury on embezzlement charges.
According to United States Attorney David J. Freed, the indictment alleges that between December 2018 and January 31, 2019, in Huntington and Fulton Counties, Atherton, while a Postal Service employee, knowingly issued fraudulent postal money orders and deposited the funds into her own bank account.
The case was investigated by the United States Postal Service Office of Inspector General. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Mammoth Cave Employee Sentenced to Prison for TheftRead the Press Release
PADUCAH, Ky. – United States Chief Judge Greg Stivers has sentenced Leslie Lewis to 2 years imprisonment, 3 years of supervised release following the sentence, and ordered him to pay restitution of $169,322 for theft of public money.
“Instead of serving as a steward to protect Mammoth Cave National Park, Ms. Lewis stole from one of the most iconic public spaces in our Commonwealth,” said U.S. Attorney Russell Coleman. “As a consequence, the defendant will soon find herself in radically different surroundings, federal prison.”
Lewis, age 61 of Cave City, a former 30-year employee of Mammoth Cave National Park was charged by a Grand Jury on January 9, 2019, with one count of Theft of Public Money. Lewis pled guilty to the charge, admitting that she has stolen more than $1,000 from the Park.
According to a victim impact statement from Mammoth Cave National Park, Lewis, who was employed to supervise, track, reconcile, and safeguard recreational fees to the park instead repeatedly used her position to steal publicly collected funds from the park by manipulating the fee collection system and the employees she supervised. During a five-year period examined by investigators, it was determined Lewis stole nearly $170,000. Lewis confessed to using several means to steal from the Park, including: cutting and pasting to create false deposit documents, filling out false deposit reports, and utilizing a duplicate check scheme, allowing her to take cash for a check amount that didn’t exist.
This case was prosecuted by Assistant United States Attorney Madison Sewell and investigated by the Office of the Inspector General and the National Park Service.
Former Madison County Man Arrested on Child Pornography ChargesRead the Press Release
HUNTSVILLE – Federal agents yesterday arrested a former Madison County man on various charges of child exploitation involving multiple victims, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
A 16-count indictment filed in the U.S. District Court charges JUSTIN DAVID BEATTY, 29, with production of child pornography, receipt of child pornography, and coercion and enticement of a minor between March 2013 and August 2014. Beatty was indicted in September.
“These crimes are detestable and our investigators and prosecutors will remain ever vigilant in protecting victims,” Town said. “He now faces federal charges in federal court, and if convicted will occupy bed space reserved for him in federal a prison.”
According indictment, Beatty persuaded, induced and coerced 5 minor victims to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct and to engage in sexual activity for which any person could be charged with an offense. Beatty received and attempted to receive child pornography and material that contains child pornography involving 6 minor victims.
Beatty is charged with 5 counts of production of child pornography which carries a maximum penalty of 30 years in prison and 5 counts of coercion and enticement of a minor which carries a maximum penalty of life in prison. Beatty is also charged with 6 counts of receipt of child pornography which carries a maximum penalty of 20 years in prison.
FBI Huntsville Resident Agency and FBI Birmingham Division Child Exploitation Task Force, along with the City of Madison Police Department investigated the case, which Assistant U.S. Attorney R. Leann White is prosecuting.
An indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
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Former Hopi Indian Reservation Ranger Convicted in Arizona on Sexual Assault Charges and Destruction of EvidenceRead the Press Release
A federal jury in the District of Arizona convicted Mackenzie Davis, 25, a former Ranger with the Hopi Resource Enforcement Services, of sexually assaulting a female arrestee in his custody and destroying evidence to cover up his crimes.
“Any law enforcement officer who uses his official authority to target and sexually assault a person in his custody will be held accountable,” said Assistant Attorney General Dreiband. “The Department of Justice commends the victim who came forward to report this reprehensible conduct, so that this officer’s crimes could see the light of day.”
“A sexual assault is doubly devastating to the victim when perpetrated by a law-enforcement officer whose only duty was to protect her from such harm,” said Michael Bailey, U.S. Attorney for the District of Arizona. “It’s also a breach of the community’s trust, and an affront to work of the earnest and honest officers who sacrifice daily on our behalf.”
“The FBI will not tolerate officials who abuse their authority and violate the very people they were sworn to protect,” said Sean Kaul, Special Agent in Charge of the FBI’s Phoenix Field Office. “We too commend the victim who came forward to report this crime. The FBI will continue to work alongside our state, local, federal, and tribal law enforcement partners to protect all of our communities and hold those who abuse their positions of power, accountable.”
Evidence presented at trial established that on Nov. 15, 2016, Davis arrested the victim for driving under the influence. During a nearly two-hour transport to a detention center, Davis pulled over onto the side of the road and sexually assaulted C.A. Another witness testified that he engaged in similar conduct with her five years prior, when he was not a law enforcement officer.
A jury found Davis guilty of violating C.A.’s civil rights, abusive sexual contact in Indian Country, and destruction of evidence.
The defendant was remanded into custody and sentencing is set for Feb. 24, 2020. The defendant faces up to 23 years imprisonment.
The case was investigated by the Flagstaff Resident Agency of the Phoenix Division of the FBI and is being prosecuted by Assistant United States Attorney Abbie Broughton Marsh, and Special Litigation Counsel Fara Gold and Trial Attorney Maura White of the Civil Rights Division.
Former High School Teacher Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A former Narraganset Regional High School math teacher was sentenced yesterday in federal court in Boston for receipt and possession of child pornography.
Warren Anderson, 27, of Lowell and Harvard, was sentenced by U.S. District Court Judge Allison D. Burroughs to 45 months in prison and five years of supervised release. In July 2019, Anderson pleaded guilty to one count each of receipt and possession of child pornography.
As part of an investigation into the online trade of child pornography through the use of Kik messenger, Anderson was interviewed in August 2018 and admitted accessing sites on the dark web to obtain child pornography. Forensic analysis of his computers revealed that he had thousands of files of child pornography, and that he had used both Kik and a dark web-based messaging platform to discuss and trade child pornography.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations made the announcement today. Assistance was provided by the Harvard and Templeton Police Departments. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former Del Rio Sector U.S. Border Patrol Agent Pleads Guilty to Production and Possession of Child PornographyRead the Press Release
In San Antonio this afternoon, a former Del Rio Sector U.S. Border Patrol agent assigned to the Uvalde Station admitted to producing and possessing child pornography, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before U.S. Magistrate Judge Henry Bemporad, 37-year-old Vernon Lee Millican of Leakey, TX, pleaded guilty to one count of production of child pornography and one count of possession of child pornography. By pleading guilty, Millican admitted that between April 2015 and June 2018, he used multiple devices to produce and possess images and videos of himself sexually assaulting a prepubescent minor; and, depicting the minor engaging in sexually explicit conduct.
Millican was arrested on January 31, 2019, after a federal search warrant was executed at his home. He has since remained in federal custody. Millican faces between 15 and 30 years in federal prison. Sentencing is scheduled for 10:00 a.m. on January 23, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio.
FBI agents, together with the Department of Homeland Security Office of the Inspector General and the Clackamas County Sheriff’s Office in Oregon, investigated this case with assistance from the Real County Sheriff’s Office. Assistant U.S. Attorney Tracy Thompson is prosecuting this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Chief Operating Officer of Davis Bio-Pesticide Company Pleads Guilty to Conspiracy to Commit Mail, Wire, and Securities FraudRead the Press Release
SACRAMENTO, Calif. — Hector Absi, 51, of Las Vegas, Nevada, pleaded guilty today to one count of conspiracy to commit mail fraud, wire fraud, and securities fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, Absi is the former head of the sales department of Marrone Bio Innovations Inc. (MBI), a company headquartered in Davis, California that produces “bio-based” pesticides. Absi also served as MBI’s Chief Operating Officer from January 2014 until his resignation in August 2014. MBI is a publicly traded company; its stock trades on the NASDAQ exchange under the ticker symbol “MBII.” As a publicly traded company, it is required to file quarterly and annual reports with the Securities and Exchange Commission (SEC). In its reports, MBI stated that it recorded revenue in accordance with generally accepted accounting principles (GAAP).
According to Absi’s plea agreement, in order to increase sales, Absi sold MBI products to customers with side agreements that offered “inventory protection” under which MBI agreed to either repurchase the product from the customer or continue the date by which the customer would need to make full payment for the product. Under GAAP, revenue from sales that include such agreements cannot be recognized on the company’s books at the time of the sales. Between March 2013 and July 2014, Absi conspired with at least one other MBI employee to misrepresent to MBI’s accounting department, its external auditors, and the investing public that MBI had made sales under such terms. By concealing the practice, Absi caused MBI to report a doubling of its revenue in 2013 in comparison to 2012. Absi also conspired to backdate the delivery of certain shipments of MBI’s products to enhance MBI’s reported revenues for the quarter. Absi received a performance-based bonus and exercised stock options during a time when MBI’s inflated revenue figures were being reported.
The Securities and Exchange Commission has also filed a civil complaint against Absi in the U.S. District Court for the Eastern District of California, alleging that Absi violated the Securities Act of 1933, and the Securities Exchange Act of 1934, and federal rules issued under the Exchange Act, and seeking an injunction against Absi, disgorgement of wrongfully obtained benefits, and civil penalties.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Lee S. Bickley is prosecuting the case.
U.S. District Judge Morrison C. England Jr. is scheduled to sentence Absi on Feb. 20, 2020. Absi faces a maximum statutory penalty of 25 years in prison and a $250,000 fine or twice the gross loss or gain. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Camden County Deputy Pleads Guilty to Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – A former Camden County, Missouri, sheriff’s deputy pleaded guilty in federal court today to receiving child pornography.
Leonard Jerome Wilson, 40, formerly of Camdenton, Missouri, pleaded guilty before U.S. District Judge Stephen R. Bough to. Under the terms of today’s plea agreement, Wilson must surrender his peace officer license and enter guilty pleas in two related state cases.
Wilson was employed as a Camden County sheriff’s deputy at the time of the offenses. During an internal investigation for allegations of sexual misconduct and behavior while he was both on and off duty, deputies obtained a tablet and two cell phones used by Wilson. One cell phone contained a MicroSD card with 18 images of child pornography and 49 images of child erotica. All of the images were of infant, toddler, and prepubescent children.
Under federal statutes, Wilson is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Camden County, Mo., Sheriff’s Department, the Missouri State Technical Assistance Team and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Five Members of a Large-Scale Heroin and Fentanyl Distribution Network IndictedRead the Press Release
Memphis, TN – Five members of a large-scale heroin and fentanyl distribution network have been indicted for conspiracy to possess with intent to distribute more than 1 kilogram of heroin; conspiracy to possess with intent to distribute more than 400 grams of fentanyl; possession of heroin and fentanyl with intent to distribute; and being a convicted felon in possession of handguns. U.S. Attorney D. Michael Dunavant announced the indictment today.
According to information presented in court, on September 19, 2019, a federal grand jury indicted Decarlos Rodgers, 41, Darius Chalmers, 26, Entonyo Chalmers, 28, Louis Taylor, 35, and Blake Owens, 50, as part of a heroin and fentanyl trafficking scheme. In June, the Shelby County District Attorney's Office announced the indictment of 30 individuals for a large heroin and fentanyl organization. These five defendants were significant to that criminal organization. The organization used several different cell phones to take orders from customers who ordered heroin and fentanyl. The orders would then be filled, provided to the customer and exchanged the heroin and fentanyl for money.
Investigators with the Memphis Police Department Organized Crime Unit were able to discover the methods of distribution, conduct surveillance to find out who the distributors were, and buy some of the drugs themselves to find out exactly what was being distributed. In each case, investigators discovered the substances being sold were a mixture of heroin and fentanyl.
According to other evidence presented in court, Owens bought heroin and fentanyl from the organization and then redistributed the drugs to his workers and construction crews who were working to open a new club in Memphis. Owens is the son of Danny Owens, a well-known Memphian once known as the "topless night club kingpin." In the 1990s, both Danny and Blake Owens served long prison sentences for their roles in gambling, prostitution, and money laundering crimes. Blake Owens served more than 15 years in federal prison for his role in the kidnapping and torture of an individual related to the gambling and nightclub business.
What is fentanyl? Fentanyl is a synthetic opioid and a Schedule II substance under the Controlled Substance Act which is fifty times more potent than heroin and one hundred times more so than morphine. Fentanyl has undoubtedly contributed to the sharp increase in opioid deaths both nationally and locally. Because of the rise in deaths associated with the introduction of this narcotic into the drug market, the Department of Justice and this District have taken an aggressive approach in identifying distributors, especially those whose distribution results in death.
If convicted, Rodgers faces a minimum sentence of 25 years in prison and up to life. Both Owens and Darius Chalmers face a minimum sentence of 15 years in prison and up to life. Entonyo Chalmers and Taylor face a minimum sentence of 10 years in prison and up to life. There is no possibility of parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Fentanyl is a deadly drug that destroys lives, and the substantial quantity of fentanyl possessed by the defendants for resale could have caused countless injuries and deaths. Under the new opioid strategy of this office and the Department of Justice, we will seek maximum sentencing penalties for any person distributing any amount of fentanyl in West Tennessee. If you are a drug dealer causing addiction, pain, and death for selfish personal gain, we will find you and hold you accountable."
The Memphis Police Department Organized Crime Unit investigated this case.
Special Assistant U.S. Attorney Joseph Griffith is prosecuting this case on behalf of the government. This case is part of the Heroin Initiative in collaboration with the Shelby County District Attorney General’s Office.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Federal Jury finds Jackson Man Guilty of Illegally Possessing a Firearm under Project EJECTRead the Press Release
Jackson, Miss. - Jonathan Beasley, 28, of Jackson, was found guilty today by a jury of being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi. The jury returned the verdict following a two-day trial before Chief U.S. District Judge Daniel P. Jordan III in Jackson.
On December 20, 2016, Beasley was convicted of felonious possession with intent to distribute marijuana in Hinds County and was sentenced to time served. On March 19, 2017, just three months after his conviction, Beasley was found with a firearm in his possession after wrecking his car at a gas station in Hinds County. During a subsequent law enforcement interview, Beasley admitted to possessing the gun and to purchasing the gun off the street.
Beasley will be sentenced by Chief Judge Jordan on January 13, 2020 at 9:00 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Federal Bureau of Investigation and the Jackson Police Department investigated the case. It is being prosecuted by Assistant United States Attorneys Andrew W. Eichner and Theodore Cooperstein.
Federal Grand Jury Criminal Indictments Announced -extendedRead the Press Release
United States Attorney Trent Shores announced today the results of the October 2019 Federal Grand Jury B extended.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Maria Gonzalez and Jorge Alberto Moreno. Maintaining a Drug-Involved Premises (Count 1); Distribution of Methamphetamine (Counts 2-7) Drug Conspiracy (Count 8). Gonzalez, 49, of Commerce, is charged with maintaining a place for the purpose of manufacturing, distributing and using methamphetamine. Gonzalez is also charged with knowingly distributing methamphetamine on Aug. 23, 2018; she is also charged with knowingly distributing 5 grams or more of methamphetamine on Aug. 5, 2019; and she is charged with knowingly distributing methamphetamine on Sept. 12, 2019. Moreno, 38, of Commerce, is charged with knowingly distributing 5 grams or more of methamphetamine on March 21, 2019; he is also charged with knowingly distributing 50 grams or more of methamphetamine on March 27, 2019; and he is charged with knowingly distributing 50 grams or more of methamphetamine on April 22, 2019. Finally, both Gonzalez and Moreno are charged with conspiring to possess with intent to distribute methamphetamine and distributing methamphetamine. The Oklahoma Bureau of Narcotics and Dangerous Drugs and the Drug Enforcement Administration are the investigative agencies.
Enrique Beltran Prado. Drug Conspiracy; Possession of Methamphetamine With Intent to Distribute; Maintaining a Drug-Involved Premises. Prado, 32, of Commerce, is charged with conspiring to possess with intent to distribute 50 grams or more of methamphetamine. He is further charged with knowingly possessing with intent to distribute 500 grams or more of methamphetamine. Finally, he is charged with knowingly maintaining a place for the purpose of manufacturing, distributing and using methamphetamine. The Oklahoma Bureau of Narcotics and Dangerous Drugs and the Drug Enforcement Administration are the investigative agencies.
FCI Danbury Employee Who Smuggled Phones into Prison is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ERIC WILLIAMS, 38, of Danbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to two years of probation for smuggling phones into the Federal Correctional Institution in Danbury (FCI Danbury) where he was employed. Judge Bolden ordered Williams to perform 100 hours of community service while on probation.
According to court documents and statements made in court, Williams worked in the Food Service Department at FCI Danbury. On July 9, 2017, Williams attempted to smuggle four mobile phones and an electric beard trimmer into the prison by hiding the items in his hat as he entered the facility through the staff entrance. When a corrections officer arrived at the staff entrance to screen Williams for admission into the facility, Williams abandoned the attempt and left his hat containing the contraband in the entrance area. When a supervisory officer found the hat and asked Williams if it belonged to him, Williams denied that it was his hat.
Williams was arrested on July 20, 2018. On July 1, 2019, he pleaded guilty to one count of providing contraband in prison.
This matter was investigated by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation, with cooperation from the Federal Bureau of Prisons. The case was prosecuted by Assistant U.S. Attorneys Marc H. Silverman and Maria del Pilar Gonzalez.
Employee Pleads Guilty to Embezzlement and False Tax ReturnRead the Press Release
COEUR D’ALENE - Jamie Gillette, 53, of Bonners Ferry, Idaho, pleaded guilty to wire fraud and making and subscribing a false tax return, U.S. Attorney Bart M. Davis announced today. Pursuant to a written plea agreement filed with the Court, Gillette waived indictment and pleaded guilty to a two-count criminal information filed by the U.S. Attorney’s Office.
According to court records, from in or about 2011 through in or about 2015, Gillette devised a scheme to defraud, and to misappropriate without authority, money and property belonging to her employer, Bendable Bright Light, Inc. (“BBL”). Specifically, Gillette had access to BBL’s business bank account at Mountain West Bank, both as signor on the account and through the online payment portal. Using this access, Gillette issued checks from BBL’s account to her personal bank account at Navy Federal Credit Union, and made online payments from BBL’s account for personal expenses associated with her accounts, without the knowledge or authorization of BBL. On this occasion, and on multiple other occasions, Gillette acted with the intent to cheat or deceive BBL by misappropriating for her use money that belonged to BBL. The total amount of money that Gillette misappropriated will be determined at her sentencing hearing.
According to court records, on or about April 7, 2014, Gillette electronically signed and filed a Form 1040 federal income tax return for the calendar year 2013 that she knew contained false information as to a material matter. Specifically, on Line 22 “Total Income,” she reported that her taxable income for the calendar year 2013 was $8,003, when she knew that her taxable income was much greater.
According to court records, on August 30, 2017, law enforcement agents interviewed Gillette. She stated that she was a paid employee of BBL and earned approximately $65,000 per year. Gillette admitted that she did not pay taxes on all the income she received from BBL in 2011 through 2015.
For the wire fraud count, Gillette faces a statutory maximum term of imprisonment of 20 years, a $250,000 fine, and not more than 3 years of supervised release.
For the false tax return count, Gillette faces a maximum term of imprisonment of 5 years, a $100,000 fine, and not more than 3 years of supervised release.
Sentencing for Gillette is set for January 15, 2020, before Chief U.S. District Judge David C. Nye at the federal courthouse in Coeur D’Alene.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation Division.
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El Departamento de Justicia Resuelve una Denuncia de Discriminación Relacionada con la Inmigración contra el Dueño de una Franquicia Nacional de Restaurantes con Sede en TexasRead the Press Release
WASHINGTON - El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con MUY Brands LLC, un propietario y operador de aproximadamente 78 franquicias del restaurante Taco Bell en seis estados, con sede en San Antonio, Texas, y una empresa relacionada de gestión empresarial, MUY Consulting Inc. El acuerdo resuelve la investigación del Departamento sobre posibles contravenciones por parte de las empresas de la Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a los residentes permanentes legales por motivos de su estatus de ciudadanía cuando verificaron su autorización para trabajar en los Estados Unidos.
“Los empleadores no deben pedir que sus empleados entreguen documentos adicionales o diferentes a lo necesario para comprobar legalmente su autorización para trabajar por motivos del estatus de ciudadanía o de la nacionalidad de origen del trabajador,” dijo el Fiscal General Adjunto Eric Dreiband de la División de Derechos Civiles. “La División de Derechos Civiles se compromete con hacer cumplir la Ley de Inmigración y Nacionalidad, y con erradicar la discriminación ilegal en el proceso de verificación de la elegibilidad para trabajar para asegurar la igualdad de oportunidades de empleo.”
A raíz de la investigación, el Departamento concluyó que entre al menos julio de 2015 y marzo de 2017, MUY Brands y MUY Consulting exigieron documentos específicos de autorización para trabajar a todos los residentes permanentes legales que trabajaban en sus restaurantes Taco Bell, mientras que no impusieron un requisito similar a los ciudadanos estadounidenses. Por consiguiente, algunos residentes permanentes legales perdieron oportunidades de empleo a pesar de haber presentado documentación suficiente para comprobar su autorización para trabajar. Las leyes federales les permiten a todas las personas con autorización para trabajar, independientemente de su estatus de ciudadanía, que elijan cuáles documentos válidos y legalmente aceptables presentarán para demostrar su competencia para trabajar en los Estados Unidos. La disposición antidiscriminatoria de la INA les prohíbe a los empleadores que soliciten más documentos de lo necesario o documentos distintos para comprobar la autorización para trabajar con fundamento en el estatus de ciudadanía o nacionalidad de origen de los empleados.
Según los términos del acuerdo, las empresas pagarán una sanción civil de $175,000, establecerán un fondo de $50,000 para sueldos retroactivos, y estarán sujetas a los requisitos de monitoreo por parte del Departamento así como la entrega de informes. Asimismo, ciertos empleados tendrán que asistir a capacitaciones sobre los requisitos de la disposición antidiscriminatoria de la INA.
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) tiene la responsabilidad de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe, entre otras cosas, la discriminación por motivos de estatus de ciudadanía y origen nacional en la contratación, despido o reclutamiento o en la recomendación de empleo por comisión; las prácticas documentales injustas; las represalias; y la intimidación.
Para mayor información sobre las maneras en que los empleadores pueden evitar la discriminación en el Formulario I-9 y procesos de E-Verify consulte este enlace. Para mayor información sobre las protecciones contra la discriminación en el empleo conforme a las leyes de inmigración, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para las personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para las personas con discapacidades auditivas); inscríbase en un seminario web gratis; envíe un correo electrónico a [email protected]; o visite los sitios web del IER en inglés y en español. Suscríbase a GovDelivery para recibir boletines de la IER.
Los postulantes o empleados que crean que han sido objeto de discriminación por motivos de su ciudadanía, estatus migratorio u nacionalidad de origen en la contratación, despido o reclutamiento o en la recomendación de empleo por comisión; o discriminación en el proceso de verificación de la elegibilidad para trabajar (Formulario I-9 y E-Verify) con fundamento en su ciudadanía, estatus migratorio u origen nacional; o represalias, podrán presentar una denuncia o solicitar ayuda comunicándose con la línea directa de la IER para trabajadores.
Eighteenth Member of Massive Drug Conspiracy Convicted at TrialRead the Press Release
Fort Myers, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Elizabeth Kuc (47, North Fort Myers) guilty of one count of conspiracy to distribute controlled substances, including cocaine base, fentanyl, and heroin, and two counts of distributing controlled substances. Kuc faces a maximum penalty of 40 years in federal prison for the conspiracy charge and up to 20 years’ imprisonment for each count of distributing controlled substances. Her sentencing hearing has been set for January 13, 2020.
According to court documents and evidence at trial, Kuc, who was known by various other names, including “Auntie,” was a dealer working for a large drug distribution ring operating for years in the Suncoast Estates neighborhood of North Fort Myers. The organization was headed and supplied by Tony Wilson, Jr. (also known as “Big Homie” and “Caine”) and occupied several houses and trailer homes in Suncoast Estates. Inside those residences, dealers worked side-by-side to distribute drugs to customers. During the investigation, law enforcement conducted dozens of undercover drug purchases from dealers at the drug houses. Agents also executed multiple search warrants resulting in the seizure of tens of thousands of dollars, multiple firearms, and large quantities of crack cocaine, heroin, and fentanyl. The evidence showed that the organization often generated more than $10,000 per day in sales. Kuc’s residence in Suncoast Estates was often used to manufacture and store the crack cocaine before it was distributed among the nearby houses.
Seventeen others previously pleaded guilty for their roles in the drug ring:
Name Charge(s) Case StatusTony Wilson, Jr.
(31, Lehigh Acres)
Conspiracy to distribute controlled substances; distribution of controlled substances; and firearms offenses
Pleaded guilty, faces up to life in federal prison.
Monique Moore
(47, North Fort Myers)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to life in federal prison.
Patrick Graham
(25, Labelle)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Michael Perez
(38, North Fort Myers)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
James Estrella
(50, North Fort Myers)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Danielle Hallmon
(32, Pine Island)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Dorothy Rochford
(27, North Fort Myers)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Darniel Williams
(24, Labelle)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Kenneth Tippins
(48, North Fort Myers)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Eileen Smith
(22, Labelle)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Malik Timbers
(26, St. Petersburg)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Christopher Connor
(30, Labelle)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 20 years in federal prison.
William Thomas
(26, Labelle)
Conspiracy to distribute controlled substances and distribution of controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Tyrome Wright
(46, North Fort Myers)
Conspiracy to distribute controlled substances and distribution of controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Jeffrey Beard, II
(29, Labelle)
Conspiracy to distribute controlled substances and distribution of controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Michelle Gladys
(49, North Fort Myers)
Distribution of a controlled substance
Sentenced to 33 months in federal prison.
Samantha Badger
(23, North Fort Myers)
Distribution of a controlled substance
Sentenced to 15 months in federal prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Michael Leeman and Trent Reichling.
East Bay Man Sentenced to 14 Years in Prison for Transporting A Minor Across State Lines to Prostitute in OaklandRead the Press Release
OAKLAND– Eugene Latrell McNeely, aka Sleepy, aka Slim Sleep da Mac, was sentenced to 14 years in prison for transporting a minor with intent to prostitute, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The Honorable James Donato, U.S. District Judge, handed down the sentence.
McNeely, 37, of Oakland, pleaded guilty to the charge on June 27, 2019. According to public filings, McNeely admitted that on October 3, 2015, he drove from Oakland to Salem, Oregon, picked up a 14-year old minor female that he had been communicating with by text message and through Facebook messenger, and drove her across state lines back to Oakland, California to work as one of his prostitutes. For approximately three months thereafter, the minor female worked as a prostitute and McNeely was her pimp. According to documents filed by the government, from October 2015 until January 2016, at least one other victim, not including the 14-year old, worked as a prostitute for the defendant, who was their pimp. Defendant forced the victims to work for him as prostitutes seven days a week, performing sex acts on strangers and then giving all of their earnings to the defendant. Both victims were raped, on separate occasions, while working for the defendant. The defendant regularly physically beat them, and he used guns to intimidate them and make them continue working for him. The defendant also gave one of the victims heroin, knowing that she was addicted, so that she would continue to prostitute for him.
On November 1, 2018, a federal grand jury issued a superseding indictment charging McNeely with one count of transportation of a minor for prostitution, in violation of 18 U.S.C. § 2423(a); one count of sex trafficking of children, in violation of 18 U.S.C. §§ 1591(a)(1), (b)(2), and (c); and two counts of sex trafficking by force, fraud, or coercion, in violation of 18 U.S.C. §§ 1591(a)(1) and (b)(1). McNeely pleaded guilty to the first count. The remaining counts are pending.
In addition to the prison term, Judge Donato ordered McNeely to serve 15 years of supervised release. McNeely has been in federal custody since May of 2017 and will begin serving his sentence immediately.
Assistant U.S. Attorneys Ross Weingarten and Shailika Kotiya are prosecuting the case with the assistance of Madeline Wachs. The prosecution is the result of an investigation by the FBI and the Oakland Police Department.
Digital Advertising Business Owner and Operator Arrested for Defrauding Investors of over $5 MillionRead the Press Release
LAS VEGAS, Nev. – A Nevada business owner and operator was arraigned in federal court today on charges related to a fraud scheme that allegedly defrauded from investors over $5 million, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
“The U.S. Attorney’s Office is committed to prosecuting individuals who engage in acts of financial fraud,” said U.S. Attorney Trutanich. “The alleged scheme deceived more than 200 investors and caused a loss of more than $5 million.”
Robert Cortez Marshall, 39, was charged by a grand jury on October 16, 2019, in an indictment with five counts of wire fraud and five counts of money laundering. He was arrested today and arraigned before U.S. Magistrate Judge Elayna J. Youchah.
According to allegations contained in the indictment, between approximately January 2014 and April 2015, Marshall owned and operated R.B.J. Generational Weatlth Management LLC d/b/a Adz on Wheelz. Marshall devised a scheme to defraud victims by inducing them to invest in Adz on Wheelz based on false representations and omissions, such as claims that Adz on Wheelz owned and operated a fleet of luxury vehicles that could be customized for digital advertising, that investors would receive a guaranteed weekly royalty payment, and that Adz on Wheelz had earned millions of dollars of commitments from advertisers. Instead, Marshall operated Adz on Wheelz almost entirely as a Ponzi scheme, using money solicited from new investors to make the “royalty payments” owed to prior investors. Marshall also transferred investor funds to other accounts under his control and used investor money for his own personal expenses. Through this scheme, Marshall defrauded more than 200 investors who invested a total of more than $5 million in Adz on Wheelz.
A jury trial has been scheduled for December 17, 2019. If convicted, the maximum penalty is 150 years in prison, a three-year term of supervised release, and a fine of more than $10,000,000.
The charges are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and the U.S. Secret Service. Assistant U.S. Attorney Tony Lopez is prosecuting the case.
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Department of Justice Prosecuted a Record-Breaking Number of Immigration-Related Cases in Fiscal Year 2019Read the Press Release
The Justice Department today announced that in fiscal year 2019 (FY19), its U.S. Attorneys’ Offices prosecuted the highest number of immigration-related offenses since record keeping began more than 25 years ago. These numbers successfully reverse the trend in previous years of declining prosecutions for felony Illegal Reentry defendants, misdemeanor Improper Entry defendants and felony Alien Smuggling defendants.
“These record-breaking numbers are a testament to the dedication of our U.S. Attorneys’ Offices throughout the nation, especially our Southwest border offices,” said Deputy Attorney General Jeffrey A. Rosen. “In addition to the usual workload of each case the Department prosecutes, this effort was made possible after our U.S. Attorneys’ Offices restored essential partnerships with national, state and local law-enforcement partners.”
The newly announced numbers show the U.S. Attorneys’ Offices charged 25,426 defendants with felony Illegal Reentry (8 U.S.C. §1326) in FY19, an increase of 8.5 percent from FY18.
80,866 defendants were charged with misdemeanor Improper Entry (8 U.S.C. §1325(a)), surpassing the record set just last year by 18.1 percent.
4,297 defendants were charged with Alien Smuggling (8 U.S.C. §1324), an increase of 15.4 percent from FY18.
The increased prosecutions are part of the Department of Justice’s commitment to enforcing America’s laws to address the crisis at the border. This announcement comes one week after the Department of Justice announced its Executive Office for Immigration Review completed 275,000 cases in FY19, the second highest number of completed cases in the court’s history.
Daniel Oliver-Perez Pleads Guilty to Assaulting Ice OfficersRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, DANIEL OLIVER-PEREZ, 20, of Greenville, North Carolina pled guilty to a two-count criminal information charging him with assaulting, resisting, or impeding certain officers and employees of the Department of Homeland Security, Immigration and Customs Enforcement (ICE) while they were attempting to execute an administrative arrest warrant against an individual known to the OLIVER-PEREZ (hereinafter “known person” or “KP”).
United States Attorney Higdon commented, “Law enforcement officers – including ICE agents – all across the country perform a vital service to each of us as they enforce our criminal, civil and administrative laws. They must be allowed to do these jobs without interference and without the risk of harm. Federal prosecutors in this District stand ready to support our law enforcement partners at every level and will prosecute those who place their security and safety at risk.”
“ICE Deportation Officers conduct arrests according to federal law, as enacted by Congress. They are sworn law enforcement officers who carry out our nation’s immigration laws in support of public safety and the integrity of our immigration system. Impeding ICE Officers in the performance of their duties is dangerous and will not be tolerated, and ICE will continue to aggressively pursue criminal charges against such individuals,” said John Tsoukaris, Interim Director, Atlanta Field Office. “I would like to thank our partners in the US Attorney’s Office for the Eastern District of North Carolina for supporting our officers and the critically important work they do on behalf of this great nation.”
“Homeland Security Investigations (HSI) conducted the investigation that led to the federal charges against Mr. Oliver-Perez. It’s unacceptable for individuals to assault or obstruct federal law enforcement officers while they are enforcing our nation’s laws,” said Ronnie Martinez, Special Agent in Charge of HSI Charlotte.
On November 23, 2018, OLIVER-PEREZ accompanied the KP to the Department of Homeland Security - Citizenship and Immigration Services Application Support Center (ASC) in Morrisville, North Carolina. Once the KP and OLIVER-PEREZ joined a waiting line an ICE officer identified himself as an immigration officer and told KP he needed to come with the officer. The defendant then grabbed the KP by the jacket to preclude the ICE officers from detaining/arresting the KP.
The ICE Officer and another officer attempted to pull the OLIVER-PEREZ away from the KP while another officer attempted to arrest the KP. Due to the struggling of both the defendant and the KP, both they and the officers fell to the floor. An officer was able to handcuff the KP and two officers then began to remove the KP from the waiting area through the back door.
As the KP was being escorted out, the OLIVER-PEREZ again tried to get ahold of the KP. The Officer grabbed the defendant around the waist to prevent the defendant’s interference with the safe removal of the KP. OLIVER-PEREZ grabbed the Officer by the neck in a chokehold grip. The Officer instructed the defendant to let him go. After several seconds, the Officer was able to release himself from the defendant’s grip. During the altercation, the Officer sustained a cut on his hand and had difficulty breathing during the chokehold.
OLIVER-PEREZ then followed the officers who had removed the KP from the waiting area and had taken him to the ICE transport van. The assigned driver of the van was another ICE Officer who was sitting in the driver’s seat. The defendant gained access to the inside of van and hit this Officer on the head and chest area with his right hand while grabbing the steering wheel with his left hand. The Officer was able to turn his body, lean back, and kick OLIVER-PEREZ away from him. During the scuffle, the door to the van became unhinged and the Officer had to exit the vehicle in order to close it. The Officer was able to get back into the vehicle and shut the doors.
OLIVER-PEREZ then approached the first Officer who had now exited the ASC building. The defendant again attempted to physically confront the Officer and while doing so ripped the Officer’s shirt.
DOE Subcontractor Working at Bettis Lab in West Mifflin Admits Stealing $250K in Company FundsRead the Press Release
PITTSBURGH - A resident of West Mifflin, Pennsylvania pleaded guilty in federal court to a charge of theft of government funds, United States Attorney Scott W. Brady announced today.
Robert Lazur, 30, pleaded guilty yesterday to one count beforeSenior or Chief United States District Judge William S. Stickman.
In connection with the guilty plea, the court was advised that Lazur was employed as a Logistics Coordinator for a subcontractor who was performing work at the Bettis Atomic Power Laboratory in West Mifflin, PA. The contract was funded by the United States Department of Energy. During his employment, Lazur used company credit cards and open purchase orders to make several hundred personal purchases. He then sold the majority of the items on eBay to convert the items to cash. Other items, however, he kept for his own personal use or gifted to his friends. The total loss was approximately $250,000.
Judgelast name of judge scheduled sentencing for March 18, 2020 at 10:00 AM. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant.
Pending sentencing, the court permitted Lazur to remain out of prison on a $25,000 bond.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The United States Department of Energy and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Lazur.
Convicted Felon Sentenced to 130 Months for Multiple Firearm ChargesRead the Press Release
COLUMBUS, Ga.— A Columbus man with a prior felony conviction was sentenced to 130 months in prison after pleading guilty to three firearm charges, said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. Anthony Kimbrough, 24, of Columbus, Georgia previously pleaded guilty to two counts of possession of a firearm by a convicted felon and one count of possession of a firearm in furtherance of a drug trafficking crime. U.S. District Judge Clay Land sentenced Mr. Kimbrough on Tuesday, October 15, 2019 to 130 months in federal prison for his crimes. After he is released from federal prison, Mr. Kimbrough will serve three years of supervised release. There is no parole in the federal system.
“To all convicted felons: It is illegal for you to possess guns. Felons caught with guns and those who possess guns in furtherance of drug trafficking will be prosecuted in Middle Georgia, and the punishment is severe” said Charlie Peeler, the U.S. Attorney. “We are working closely with our law enforcement partners to reduce violent crime in our communities, and removing guns from the hands of convicted criminals and drug traffickers is a common sense step toward achieving this goal. I want to thank the Columbus Police Department and the FBI for their work in this case.”
According to the signed plea agreement, Mr. Kimbrough was arrested in April and August 2018. During each encounter with law enforcement, the defendant was the passenger in a car stopped for a traffic violation. Mr. Kimbrough was found each time to be in possession of at least one gun (a 9mm FMK Patriot in April 2018 and a Glock 22 and a 9 mm pistol in August 2018), several different smaller amounts of drugs, including fentanyl, heroin and crack cocaine, and drug distribution paraphernalia. At the time of his arrests, Mr. Kimbrough was on probation for a prior felony drug conviction in Muscogee County Superior Court. He admitted to possessing the Glock 22 and 9 mm pistol while trafficking drugs.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Columbus Police Department and the FBI. Assistant U.S. Attorney Amelia G. Helmick prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Concord Man Pleads Guilty to Illegally Possessing SilencerRead the Press Release
CONCORD – Isaiah Goodwin, 42, of Concord, pleaded guilty in federal court to possessing a firearm silencer that was not registered to him in the National Firearms Registration and Transfer Record, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Goodwin purchased the silencer on a website and received it at his home in Concord. The ATF seized it during a search of his residence. The silencer was not registered, as required, in the National Firearms Registration and Transfer Record.
Goodwin is scheduled to be sentenced on January 30, 2020.
“Unregistered silencers can be used by criminals to commit violent crimes,” said U.S. Attorney Murray. “We will work closely with ATF to enforce federal law in order to protect the citizens of our community from potential harm."
“ATF will continue work with its federal, state and local partners to enforce federal firearm laws for the unregulated sale and possession of unregistered silencers, which in the wrong hands, pose a threat to public safety,” said Kelly D. Brady, Special Agent in Charge of the Boston Field Division.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorney Georgiana L. Konesky.
This case was prosecuted as part of Project Safe Neighborhoods, a national initiative undertaken by the U.S. Department of Justice to reduce gun crime in America through, among other things, community outreach and vigorous prosecution of firearms offenses.
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Charlestown Man Sentenced for Distributing FentanylRead the Press Release
BOSTON – A Charlestown man was sentenced today in federal court in Boston for distributing fentanyl out of a Chelsea apartment.
Cruz Villar, 32, was sentenced by U.S. District Court Judge Indira Talwani to three years in prison and five years of supervised release. In June 2019, Villar pleaded guilty to one count of distribution and possession with intent to distribute fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl.
On June 22, 2018, Villar was observed by law enforcement in a hand-to-hand sale of fentanyl to a customer in a parking lot in Dorchester. After the sale, agents recovered approximately 11 grams of fentanyl from the customer and approximately $1,446 in cash from Villar. A subsequent search of an apartment in Chelsea that Villar had been renting—but in which he had not been residing— resulted in the recovery of approximately 87.4 additional grams of fentanyl, along with components of a drug press, a digital scale, two blenders, bottles of a cutting agent, and packaging materials, including plastic wrap and plastic baggies. In addition, Villar made regular trips from the Chelsea apartment to an address in Mashpee in a manner consistent with the distribution of narcotics.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Assistant U.S. Attorney Brian A. Pérez‑Daple of Lelling’s Criminal Division prosecuted the case.
Browning man sentenced for assaulting womanRead the Press Release
GREAT FALLS—A Browning man who admitted hitting a woman in the face after their vehicle struck an ambulance on the Blackfeet Indian Reservation was sentenced today to 18 months of probation, U.S. Attorney Kurt Alme said.
Christopher Harwood Mason, 55, pleaded guilty in July to assault by striking, beating or wounding, a misdemeanor.
U.S. Magistrate Judge John T. Johnston presided.
The prosecution said in court records that on Dec. 30, 2018, the Blackfeet Emergency Medical Services personnel were on a call in Browning when their ambulance was struck from the rear by a vehicle driven by Mason. The EMS personnel saw Mason back up and park in his driveway. They then observed Mason exit the vehicle, go around to the passenger side and begin hitting the victim, a woman, in the face. Law enforcement photographed injuries and blood on the victim’s face. Mason was transported to the hospital for assessment of potential injuries from the crash. Mason admitted to Glacier County Sheriff’s Office law enforcement at the hospital that he had struck the victim in the face.
Assistant U.S. Attorney Kalah Paisley prosecuted the case, which was investigated by the Glacier County Sheriff’s Office.
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Broward County Business Owner Sentenced to Prison for Immigration Fraud SchemeRead the Press Release
A Coral Springs business owner was sentenced to prison yesterday for a visa fraud immigration scheme. She attempted to obtain visas with false information for individuals from overseas.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
Jenny Hernandez, 51, of Parkland, was sentenced to eighteen months in prison after previously pleading guilty to visa fraud, in violation of Title 18, United States Code, Section 1546(a) before U.S. District Judge Marcia G. Cooke (Case No. 19-cr-60134). A restitution hearing is scheduled for Dec. 18, 2019.
According to the court record, including stipulated facts and statements made during hearings, Hernandez knowingly made false material statements in immigration documents, specifically Form I-140’s, Immigrant Petitions for Alien Workers. Hernandez owned and operated the Immigration Form Center, Inc. (IFC) in Coral Springs. The defendant stated in applications she filed with U.S. Citizenship & Immigration Services (USCIS) that individuals from overseas were to be employed at certain businesses as multinational executives or managers. However, these businesses never knew about these individuals and, furthermore, never made employment offers to them. Hernandez profited from these misrepresentations, by receiving between $14,200 to $50,900 from individual applicants. Hernandez also filed an application for an overseas individual to work at her bakery in Coral Springs, as a multinational executive or manager, when the individual was only selling jewelry inside the bakery. This individual paid $64,000 to the defendant.
All of these petitions were completed at IFC in Coral Springs and subsequently filed with USCIS. In addition to these documents, Hernandez filed additional documents accompanying the I-140 Petitions, including I-485 applications to adjust for permanent residency in the United States. All of these payments were deposited into business checking accounts primarily controlled by the defendant.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HSI in this matter. She thanked the members of USCIS for their assistance. The case was prosecuted by Assistant U.S. Attorney Randy Katz.
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.
Bronx Narcotics Supplier Pleads Guilty to Conspiring to Distribute a Kilogram of Heroin in SchenectadyRead the Press Release
ALBANY, NEW YORK – Jean Carlos Rivera-Perez, aka “Tego,” age 37, of the Bronx, New York, pled guilty today to conspiring to traffic a kilogram or more of heroin in Schenectady.
The announcement was made by United States Attorney Grant C. Jaquith; Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and New York State Police Superintendent Keith M. Corlett.
In pleading guilty, Rivera-Perez admitted to being a member of a drug-trafficking organization that distributed a kilogram or more of heroin in Schenectady between 2017 and December 20, 2018. Rivera-Perez was the organization’s supplier and, through a courier, regularly delivered hundreds of grams of heroin from the Bronx to Schenectady, receiving thousands of dollars in return. The heroin was then sold in personal-use amounts in and around Schenectady by other members of the organization.
Rivera-Perez was one of nine people indicted earlier this year as part of law enforcement’s dismantling of the heroin distribution ring. Six defendants, including Rivera-Perez, have pled guilty; the others are presumed innocent unless and until proven guilty.
Rivera-Perez faces at least 10 years and up life in prison, a term of supervised release of at least 5 years and up to life, and a maximum fine of $10 million when he is sentenced on February 18, 2020, by United States District Judge Mae A. D’Agostino. 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, the New York State Police, the U.S. Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Amsterdam Police Department, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Bronx Man Charged with 2011 MurderRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment charging RANDY MARTINEZ, a/k/a “Rampage,” with the October 17, 2011, murder of Davon Jackson. MARTINEZ was presented today before U.S. Magistrate Judge Stewart D. Aaron. This case is assigned to U.S. District Judge Naomi Reice Buchwald.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the Indictment, Randy Martinez exchanged gunfire with members of a rival gang, during which 16-year-old Davon Jackson was shot in the head and killed. On the eight-year anniversary of Jackson’s death, the defendant now faces prosecution for this terrible crime, thanks to the persistence of our partners at the NYPD.”
NYPD Commissioner James P. O’Neill stated: “Today’s indictment comes eight years to the day after a 16-year-old was struck by gunfire and killed in the Bronx. The NYPD will never tolerate gangs and the violence that they are too often responsible for. I thank the detectives and our law enforcement partners for their tireless work in this case.”
According to the allegations in the Indictment unsealed in Manhattan federal court[1]:
MARTINEZ was a member of the Young Gunnaz, a violent gang operating in the Bronx, New York, that engaged in narcotics trafficking and acts of violence, including murder and attempted murder. On October 17, 2011, MARTINEZ exchanged gunfire with members of a rival gang in the vicinity of 146th Street and Third Avenue in the Bronx, New York, during which Davon Jackson, 16, was shot in the head and killed.
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Martinez, 28, of the Bronx, New York, is charged with one count of murder in aid of racketeering, which carries a maximum sentence of life in prison or death, and a mandatory minimum sentence of life in prison, and one count of using a firearm to commit murder in furtherance of a crime of violence and aiding and abetting the same, which carries a maximum sentence of life in prison or death, and a mandatory minimum sentence of five years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer and Danielle R. Sassoon are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Brockton Gang Member Pleads Guilty to Second Federal Firearm OffenseRead the Press Release
BOSTON – A Brockton man affiliated with the Junior Kaos gang pleaded guilty today in federal court in Boston to illegally possessing a firearm and ammunition.
Dwayne Leaston-Brown, 29, pleaded guilty to one count of being a felon in possession of a firearm and ammunition and is scheduled to be sentenced on Jan. 23, 2020. Leaston-Brown was arrested and charged in November 2018 and has been in custody since.
On Sept. 8, 2018, a Boston police officer encountered Leaston-Brown with a loaded firearm on his person near the corner of Fairway Street and Blue Hill Avenue in the Mattapan Square area of Boston. Federal law prohibits Leaston-Brown from possessing a firearm or ammunition because of a prior felony conviction. Leaston-Brown was previously convicted in federal court in November 2014 of being a felon in possession of a firearm.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and Boston Police Commissioner William Gross made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
British Shipping Company Sentenced for Role in Smuggling SchemeRead the Press Release
ALEXANDRIA, Va. – A British shipping company pleaded guilty yesterday and was ordered to forfeit $175,000 for smuggling into the United States over 100 undeclared wildlife items, including items protected by the Endangered Species Act and the Convention on International Trade in Endangered Species.
Keith Foster, 61, of Upperville, operated an antique store in Middleburg known as The Outpost. In December 2018, Foster and his business pleaded guilty to selling items that constituted or contained parts of endangered species and other wildlife illegally imported into the United States. According to court documents, Foster imported the wildlife items through a British shipping company, Thasi Limited, doing business as The British Shop (TBS). TBS employees in England helped Foster hide his wildlife imports from the Fish and Wildlife Service, which included items such as sea turtle shell, sawfish blades, crocodile skin bags, coral, and mounted birds of prey.
Between 2013 and 2018, TBS (on behalf of Foster) shipped from England to the United States at least 35 separate cargo shipments of merchandise for resale at The Outpost, which contained wildlife and wildlife parts of a market value that was more than $250,000 but less than $500,000. The wildlife within those shipments was not properly declared to the U.S. Fish and Wildlife Service upon import. To conceal the existence of wildlife pieces in the shipments, such wildlife pieces were, at Foster's direction, often labeled by TBS employees in a generic manner that failed to signal the true nature of the items.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Edward Grace, Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Gordon D. Kromberg 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-281.
Brewer Man Pleads Guilty to Child Sexual Exploitation OffenseRead the Press Release
Bangor, Maine: A former Brewer resident pleaded guilty today in federal court in Bangor to possessing images of child exploitation, U.S. Attorney Halsey B. Frank announced.
According to court records, Joseph L. Messier, 55, possessed videos of children engaging in sexually explicit conduct, which he had purposefully sought out and received through the internet sometime between January 2018 and March 2018. These videos depicted the sexual exploitation of prepubescent children under the age of 12.
Messier faces an enhanced sentence of 10–20 years in prison as a result of a prior sex offense conviction. He also faces a $250,000 fine and from five years to a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Maine State Police Computer Crimes Unit investigated this case. The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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.
Boyd County Man Indicted for Robbing Bluegrass Community Federal Credit Union in AshlandRead the Press Release
LEXINGTON, Ky. – A Boyd County man was indicted Thursday on a charge of robbing the Bluegrass Community Federal Credit Union (BCFCU), located in Ashland, Kentucky.
Danny P. Chaffin, 37, of Boyd County, was charged with taking over $12,000 from BCFCU, a federally insured financial institution, on April 5, 2019. On Thursday, a grand jury in Lexington returned the single-count indictment charging Chaffin with violating 18 U.S.C. § 2113(a), the federal bank robbery statute.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Todd Kelley, Chief of the Ashland Police Department, jointly announced the indictment. The investigation preceding the indictment was conducted by the Ashland Police Department and the Federal Bureau of Investigation.
A date for Chaffin to appear in federal court has not yet been scheduled. He faces up to 20 years in prison and a fine of $250,000. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Bessemer Man Convicted with Being a Felon in Possession of a FirearmRead the Press Release
BIRMINGHAM -- A federal jury convicted a Bessemer man, of being a felon in possession of a firearm, announced United States Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
The jury returned its guilty verdict against ANTONIO DEMETRIUS ROGERS, 45, on October 16, 2019, after a single day of testimony before U.S. District Judge L. Scott Coogler. His sentencing date has not yet been set.
“Felons who possess firearms pose a threat to the safety and security of our community,” Town said. “It continues to be among my highest priorities to remove trigger pullers and felons with guns to federal court and federal prison. We have an abundance of bed-space complimented by an absence of parole.”
“ATF’s Crime Gun Intelligence Centers are the driving force to reduce the violent crime that plagues our neighborhoods. This sentencing illustrate the effective partnerships with law enforcement and the community,” Watson said.
Evidence at trial showed that the Gulf Coast Regional Fugitive Task Force (GCRFTF) sought Rogers on a federal arrest warrant in August 2018. Agents with the GCRFTF went to two houses in Bessemer simultaneously the morning of August 23, 2018. One of the occupants of the house, where Rogers was located, answered the door and told law enforcement officers that Rogers was inside. After getting the other occupants out of the house, agents continued to call out to Rogers, telling him the police were there with an arrest warrant, and that he should come out. Rogers did not come out until an investigator broke the window of the back bedroom and saw Rogers. Rogers was then taken into custody. A deputy U.S. Marshal found a loaded revolver on the floor of the bedroom that Rogers had been in, and confirmed with the investigator, who broke the window, that Rogers had been standing where the revolver was found.
The maximum penalty for being a felon in possession of a firearm is ten years in prison.
Rogers has prior felony convictions for receiving stolen property, first degree; escape, first degree; and manslaughter.
ATF investigated the case, which was prosecuted by Assistant United States Attorneys John Geer and Brittney Bucak.
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Authorities seek human smuggler who illegally transported Chinese and other nationalsRead the Press Release
VICTORIA, Texas – A 48-year-old Mexican national who resided in McAllen and Houston is now a fugitive from justice, announced U.S. Attorney Ryan K. Patrick.
Humberto Ramirez-Santos was set to appear in Victoria federal court Oct. 2 to receive his sentence for a conspiracy to transport illegal aliens. He did not show. Today, a federal grand jury indicted him on another charge of failure to appear and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the U.S. Marshals Service at 361-220-1800.
Ramirez-Santos pleaded guilty July 8 to his involvement in a conspiracy to transport illegal aliens between October 2011 to July 2017. The alien smuggling organization facilitated the smuggling of illegal aliens from multiple countries including individuals from China, Russia, India, Brazil, Honduras, El Salvador, Guatemala and Mexico. Ages of those smuggled into the country ranged from toddlers to the elderly but were mostly comprised of young adults.
At the time of his plea, the court heard that smuggling trips were taken every week and the total number of aliens transported are incalculable.
The organization used various methods to facilitate the smuggling. Co-conspirators drove cars and trucks to locations south of Border Patrol (BP) checkpoints. There, they were guided through South Texas ranches to avoid detection. They also used Penske trucks and tractor trailers to smuggle illegal aliens through various checkpoints.
A particular tactic was to select a tractor trailer parked at a South Texas truck stop with a suitable temperature. They would then remove the seal and load the illegal aliens. Members of the organization would follow the vehicle to the next stop somewhere north of the checkpoint to later retrieve them. The drivers would be unaware of their human cargo and were potentially exposed to criminal liability. The aliens were then be transported in closed Penske trucks to Houston.
Ramirez-Santos provided aliens to be smuggled through his contacts in Mexico. He also trained the young members of the organization in how to do counter-surveillance and instructed younger family members in how to move aliens.
Immigration and Customs Enforcement’s Homeland Security Investigations, Border Patrol and Houston Police Department conducted the investigation. Assistant U.S. Attorney Patti Hubert Booth is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Asst. U.S. Attorney Honored with 2019 Neil J. Houston, Jr. AwardRead the Press Release
PROVIDENCE – Assistant United States Attorney Sandra R. Hebert, Deputy Criminal Chief for the United States Attorney’s Office for the District of Rhode Island, has been awarded a 2019 Neil J. Houston, Jr. Memorial Award by Justice Assistance.
Ms. Hebert is one of four 2019 Neil J. Houston, Jr. Memorial Award recipients honored at the 38th annual awards presentation by Justice Assistance “for dedicated service and citizen contribution toward the justice profession and the public interest.”
The Neil J. Houston, Jr. Memorial Award is named in memory of Neil J. Houston, Jr., a Cranston resident, who dedicated his career toward the betterment of the criminal justice system and assisting the individuals who pass through it. Prior to his untimely passing, Mr. Houston was the Director of the Gardiner Howland Shaw Foundation in Massachusetts--which funds reforms of the criminal justice system, and the Frederick E. Weber Charities Corporation--a nonprofit organization that helps individuals in need.
Ms. Hebert joined the United States Attorney’s Office in Rhode Island in June of 2006, after having served as an Assistant United States Attorney in the Western District of Texas – Midland/Odessa Division. During her Justice Department career, AUSA Hebert has investigated and prosecuted hundreds of defendants and conducted numerous jury trials. Notably, AUSA Hebert prosecuted wiretap cases, substantial fraud cases, and numerous child exploitation cases. Prior to joining the Department, Ms. Hebert served for four years in the United States Army as a Judge Advocate General (JAG) officer stationed at Fort Hood, Texas, and served as a Special Assistant U.S. Attorney in Waco, Texas, where she investigated and prosecuted civilians accused of committing offenses on Fort Hood.
United States Attorney Aaron L. Weisman said, “Ms. Hebert’s award is so well-deserved and timely. Her dedicated service to the United States in the prosecution of criminal offenses, day in and day out, is, and continues to be, an inspiration not only to the Department of Justice, but also to all players in the justice profession and those serving the public interest.”
Also honored with a 2019 Neil J. Houston, Jr. Memorial Award are Joseph P. Ippolito, Jr., Magistrate, Rhode Island District Court; Lynette J. Labinger, Attorney-at-Law; and the Rhode Island Department of Corrections’ Correctional Industries.
Justice Assistance also honored Noah J. Kilroy, Attorney-at-Law, by presenting him with the 2019 R. Kevin Horan Emerging Leader Award. The Emerging Leader Award is named for R. Kevin Horan, Attorney-at-Law, founding member of Justice Assistance’s Board of Directors and dedicated organization sponsor. Justice Assistance’s Emerging Leader Award recognizes a young professional who has demonstrated an enthusiasm and ability to impact his or her community in an effective and meaningful manner. This promising leader has the potential to effect positive, longstanding change in a complex and always changing society. The R. Kevin Horan Emerging Leader Award is not given out annually.
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Asheville Man Is Indicted for $13.5 Million Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has returned a criminal indictment against Hal H. Brown Jr., 69, of Asheville, N.C., charging him with securities fraud, wire fraud and transactional money laundering, for orchestrating a $13.7 million investment scheme, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the indictment, from at least 2012 through September 2019, Brown fraudulently obtained more than $13.5 million from at least 23 victims, some of whom were at, or near, retirement age, by engaging in an investment scheme through his company Oodles Inc. and its various affiliates (collectively “OODLES”). As alleged in the indictment, to induce victims to invest their money, Brown falsely represented that OODLES owned hundreds of millions of dollars in intellectual property, namely family entertainment shows and movies. As part of the scheme, Brown repeatedly lied to victims about the imminent sale of those intellectual properties to various well-known media companies. To perpetuate the fraud, the indictment alleges that Brown developed marketing material seeking investments or loans for OODLES that claimed large returns on funds invested or lent to the company.
As alleged in the indictment, to convince victims the scheme was legitimate and to appease investors who sought an explanation about delays in payouts, Brown provided victims with a number of fraudulent and misleading statements and fictitious information, including fake bank statements and falsified company agreements, among others.
Brown used a substantial part of victim money on personal expenses unrelated to purported OODLES transactions, and to perpetuate the fraud by making payments to existing investors from funds contributed by new investors, commonly referred to as “Ponzi” payments.
The securities fraud charge carries a maximum prison sentence of 20 years and a $5 million fine. The wire fraud charge carries a maximum prison term of 20 years and a $250,000 fine. The transactional money laundering charge carries a maximum prison term of 10 years and a fine of not more than twice the amount of criminally derived property in the transaction or $250,000.
The details contained in the indictment are allegations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Charlotte Field Office is leading the investigation.
Assistant U.S. Attorneys Daniel Ryan and Mark Odulio of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: /usao-wdnc/elder-justice-initiative.