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15 August 2019
Jamaican lottery scammer receives 34 months for defrauding elderly victims and making death threatsRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the conviction and sentencing of Oraine Gray a/k/a “James Cooper”, a 23-year-old resident of Jamaica, to 34 months in federal prison after his admission of guilt to devising a lottery scam that swindled elderly and vulnerable victims throughout the United States of their retirement accounts and savings, and to making death threats in furtherance of the scam. The defendant was arrested in Jamaica on September 20, 2018 and waived extradition to the United States.
“This defendant preyed on these elderly victims in the most despicable way – by taking from them through lies and deceit over a significant time period,” said Minkler. “Protecting the most vulnerable members of society from these scammers, no matter where they reside, is a top priority of this office. This sentence sends a message that the Southern District of Indiana will go after international scammers, extradite, and prosecute them to the fullest extent of the law.”
From in or about April 2014 and continuing until on or about September 5, 2018, the defendant, and other unknown individuals residing in Jamaica, defrauded and attempted to defraud elderly victims located throughout the United States in a complex lottery scam. The defendant and others represented to the victims that they were lottery/contest winners who needed to pay certain taxes and fees to collect millions of dollars of their lottery winnings and/or prizes. In reality, the victims were not actual lottery or contest winners. None of the victims received the money promised to them during the course of the scam.
The defendant and others masked their identities through the use of various telephone applications and other technologies. Through these applications, they directed the victims to send money to the defendant and others in Jamaica to obtain their purported lottery or contest winnings. The defendant and others also directed the victims to send such money to other victims and individuals throughout the United States in an attempt to conceal tracing of the proceeds of the scam. The victims sent this money by mail and wire transfers, such as Western Union, MoneyGram, U.S. Mail, and other means, most of which ended up in Jamaica. When victims attempted to stop contact with the defendant by changing telephone numbers, he searched for and used local businesses, such as pizza delivery and taxi services, to attempt to find out the new telephone numbers so that he could continue such contact. On one occasion, when a victim located in the Southern District of Indiana did not send the money as requested, the defendant threatened to kill the victim and her family, and sent individuals to her residence to try and collect the money. The defendant caused the victims to transfer over $90,000 to Jamaica and elsewhere in furtherance of the scheme.
This case was investigated by the Federal Bureau of Investigation.
“Targeting seniors and their savings – money they’ve worked hard to save over their lifetime - is an intolerable crime. Today’s sentence sends a strong message to con artists such as Mr. Gray that the FBI won’t stand by and let some of our most vulnerable citizens be preyed upon in this manner,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “The FBI and our law enforcement partners will continue to do everything in our power to root out these fraudsters and ensure they are held accountable, no matter where they are, so they can no longer victimize the elderly.”
According to Assistant United States Attorney MaryAnn T. Mindrum, who prosecuted this case for the government, Gray will not serve any supervised release following his sentence because he will be deported back to Jamaica after completing his sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who engage in complex, large-scale fraud schemes that exploit vulnerable victims, those who engage in cyber-threats, and those who hide behind new technologies to commit such crimes. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 4.1, 4.4, and 5.1.
Internal Revenue Service Analyst Pleads Guilty to Making Unauthorized Disclosure of Suspicious Activity ReportsRead the Press Release
SAN FRANCISCO - John C. Fry pleaded guilty to illegally disclosing information from Suspicious Activity Reports (SARs), announced United States Attorney David L. Anderson, Financial Crimes Enforcement Network (FinCEN) Director Kenneth A. Blanco, and United States Department of the Treasury, Treasury Inspector General for Tax Administration (TIGTA), Special Agent in Charge Rod Ammari. The plea agreement was accepted by the Honorable Edward M. Chen, United States District Judge.
In May of 2018, Fry, 54, of San Francisco, was an Investigative Analyst for the Internal Revenue Services’ law enforcement arm, the Criminal Investigation Division. Fry’s responsibilities included supporting IRS Agents in the Northern District of California area and reviewing SARs for activity that could potentially lead to a criminal investigation. In his position with the IRS, he had access to various law enforcement databases, including the FinCEN database that manages the collection and maintenance of SARs and an analytic software used to integrate investigative data from multiple internal and external data sources. According to his plea agreement, he admitted he knowingly and willingly disclosed confidential SAR information to Michael Avenatti.
"Financial institutions trust that FinCEN will safeguard the sensitive information like SARs they are obligated to file, which is absolutely critical to protecting our national security” said FinCEN Director Blanco. “We take seriously our responsibility to protect this information, and we will not hesitate to investigate and help prosecute anyone who breaks the law by disclosing or misusing protected data.”
“When an IRS employee accesses and misuses government data, and then discloses that data for personal reasons, their selfish actions erode confidence in the IRS and in the institutions that are tasked with protecting this data,” said Special Agent in Charge Ammari. “The Treasury Inspector for Tax Administration, along with our law enforcement partners, are committed to prosecuting these individuals to the fullest extent to deter illegal disclosures in the future.”
According to the plea agreement, Fry admitted that on May 4, 2018, he logged onto the a private government database from his work computer and downloaded five SARs related to Michael Cohen and his company Essential Consultants. Fry further admitted he twice called Michael Avenatti, an attorney based in Newport Beach, Calif., from his personal cell phone. Fry acknowledged that during his phone conversations with Avenatti, he verbally provided information to Michael Avenatti that was contained in the five SARs. Fry further admitted that he used one of his personal email accounts to email screenshots of the SARs to Michael Avenatti.
Further, Fry admitted that on May 7, 2018, he logged on to the FinCEN database from his work computer and conducted additional searches related to Michael Cohen and Essential Consultants. He then called Michael Avenatti from his personal cell phone and verbally provided information contained in the searches. Fry admitted he had no official reason to disclose SAR records related to Cohen or the various companies listed in the SARs.
On February 28, 2019, a federal grand jury indicted Fry with one count of unauthorized disclosure of suspicious activity reports, in violation of 31 U.S.C. § 5322(a); two counts of misuse of a computer, in violation of 18 U.S.C. § 1030(a)(2); and one count of illegal use of a social security number, in violation of 42 U.S.C. § 408(a)(8). Fry pleaded guilty to the unauthorized disclosure count. If Fry complies with the plea agreement, the remaining counts will be dismissed at sentencing.
Judge Chen scheduled Fry’s sentencing for December 18, 2019. Fry faces a maximum sentence of 5 years in prison, and a fine of $250,000, for the violation. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is being prosecuted by the Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California. This case was investigated by FinCEN and TIGTA.
Inland Empire Man Arrested on Federal Indictment for Allegedly Engaging in Sextortion with Victims He Messaged on FacebookRead the Press Release
LOS ANGELES – A San Bernardino County man was arrested today on a federal grand jury indictment alleging he blackmailed young women on Facebook by threatening to publish nude photographs and videos unless they complied with his demands of sending him additional sexually explicit images.
Jorge Esteban Sanchez Ramos, 23 – who used a series of online aliases, including “Nathan Ramirez,” “Juan Romero” and “George Sanchez” – was arrested without incident this morning at his Ontario residence by special agents with the Federal Bureau of Investigation.
Sanchez was charged with four felony counts of stalking in an indictment returned by a federal grand jury on May 24. Sanchez is scheduled to be arraigned on the indictment this afternoon in United States District Court in Los Angeles.
According to the indictment, Sanchez’s conduct between April 2016 and May 2018 typically involved him using multiple aliases and Facebook accounts in order to contact his victims. Sanchez allegedly sent his victims – the indictment specifically alleges four women ranging in age between 18 and 24 – a series of messages complimenting the women and requesting that the women send him nude photographs or nude videos of themselves. After the victims sent Sanchez nude photographs or videos, Sanchez – using a different screen name – sent menacing messages that threatened to post their nude images to social media unless they sent him additional sexually explicit images, the indictment alleges.
For example, in April 2016, Sanchez sent one 18-year-old woman a request to send nude images, and then sent her a series of messages from different Facebook accounts. On April 20, 2016, according to the indictment, Sanchez sent the victim a Facebook message that included a full-frontal nude image she had sent and a message stating, “Yes do it or I’ll post these nude [photos] some guy sent me how do you think I found you.” Sanchez allegedly sent the victim follow-up Facebook messages in which he instructed her how to film a sexually explicit video of herself, and he also demanded a nude video of herself that day. In between his demands for more sexually explicit images of the victim, Sanchez wrote, “Unblock me or I’ll ruin you” and “I know where you live,” the indictment states.
In April 2016, Sanchez, using aliases, contacted another 18-year-old woman via Facebook and offered to pay her $600 in exchange for a nude image of herself, the indictment states. Sanchez allegedly sent the victim threatening Facebook messages where he demanded sexually explicit videos of the victim and threatened to post sexually explicit videos of the victim to her classmates and her parents.
In May 2018, Sanchez allegedly sent the same victim a Facebook message containing a topless photograph of herself and then sent her messages, which stated, “Just reply…or i swear i will always be here” and “Good luck facing everyone after this. xD” Sanchez then posted a comment on Facebook offering to show third parties nude photos of the victim, the indictment alleges.
If convicted of the four counts in the indictment, Sanchez would face a statutory maximum sentence of 20 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter was investigated by the Federal Bureau of Investigation and the Pomona Police Department.
This case is being prosecuted by Assistant United States Attorney Aron Ketchel of the Public Corruption and Civil Rights Section.
Indictment: Registered Sex Offender Produced, Distributed Child PornographyRead the Press Release
WICHITA, KAN. – A man from El Dorado was indicted Wednesday on charges that even though he already was a registered sex offender he produced and distributed child pornography, U.S. Attorney Stephen McAllister said.
Daniel Eric Merida, 35, El Dorado, Kan., was charged in a superseding indictment with one count of producing child pornography, two counts of committing crimes against minors while registered as a sex offender, two counts of distributing child pornography, one count of possessing child pornography, one count of sending obscene material to a minor and one count of transporting child pornography. The crimes are alleged to have occurred at various times from 2014 to 2018 in Butler County, Kan.
Upon conviction, the crimes carry the following penalties:
Producing child pornography: Not less than 25 years and not more than 50 years in federal prison and a fine up to $250,000.
Felonies involving minors while a registered sex offender: A term of 10 years, consecutive to sentences on other counts.
Distributing child pornography: Not less than five years and not more than 20 years and a fine up to $250,000.
Possessing child pornography: Not less than five years and not more than 20 years and a fine up to $250,000.
Sending obscene material to a minor: Up to 10 years and a fine up to $250,000.
Transporting child pornography: Not less than five years and not more than 20 years and a fine up to $250,000.
Homeland Security Investigations investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
OTHER INDICTMENTS
Jeremy Vos, 21, Wichita, Kan., is charged with one count of bank robbery. The indictment alleges that on July 23, 2019, the defendant robbed the Intrust Bank at 5500 E. Harry in Wichita.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. AUSA Ryan McCarty is prosecuting. The FBI investigated.
Linh Simmons, 41, Grapevine, Texas, is charged with seven counts of making false representations in order to obtain federal contracts set aside for women-owned small businesses and 14 counts of wire fraud.
If convicted, she faces up to 10 years in federal prison and a fine up to $500,000, and up to 20 years and a fine up to $250,000. The Defense Criminal Investigative Service investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
John Carl McMillan, 35, Garden City, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred May 21, 2019, in Finney County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $2 million. The Finney County Sheriff’s Office investigated. Special Assistant U.S. Attorney Katherine Andrusak is prosecuting.
Teresa Grant, 38, Arkansas City, Kan., is charged with one count of unlawfully receiving Social Security survivor’s benefits and two counts of making false statements to the Social Security Administration. The crimes are alleged to have occurred at various times from 2016 to 2019 in Sedgwick County, Kan.
If convicted, she faces up to 10 years in federal prison and a fine up to $250,000 on the charge of unlawfully receiving benefits, and up to five years and fine up to $250,000 on each of the other two counts. The Social Security Administration investigated. Assistant U.S. Attorney Aaron Smith investigated.
Nelson Noel Vasquez-Ponca, 34, Garden City, Kan., is charged with one count of document fraud, one count of aggravated identity theft and two counts of identity theft. The crimes are alleged to have occurred in 2017 and 2018 in Finney County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000 on the document fraud count, a mandatory two years (consecutive) and a fine up to $250,000 on the aggravated identity theft and up to 15 years and a fine up to $250,000 on each identity theft count. The Kansas Department of Revenue investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Independence Man Pleads Guilty to Arson Conspiracy to Damage a Local BusinessRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, man pleaded guilty in federal court today to his role in an arson conspiracy to damage a local business.
Randell Eugene Yeager, Jr., 46, pleaded guilty before U.S. District Judge Roseann Ketchmark to participating in a conspiracy to damage property by means of arson.
By pleading guilty today, Yeager admitted that he was hired on two occasions to damage Bobby Jackson’s Trading, a gold-buying business located at 302 E. 23rd Street in Independence.
Yeager admitted that he was paid $800 to damage the business on July 17, 2017. Yeager drove a stolen Jeep Grand Cherokee in front of the business at approximately 3:20 a.m. Yeager then began to reverse towards the building before colliding into the building through the front door and front business windows, causing approximately $10,000 in damage. Yeager then accelerated out of the business and drove away. The stolen Jeep Grand Cherokee was located later by the Independence Police Department, unoccupied and still running, with evidence from the damaged building still attached to the vehicle.
Yeager also admitted that he was paid $800 to set fire to Bobby Jackson’s Trading on Aug. 4, 2017. Yeager used containers of gasoline to set fire to the front of the business, which caused approximately $5,000 in damage to the exterior and interior of the building.
Yeager was arrested on Nov. 24, 2018. At that time, he was in possession of a Heckler & Koch 9mm semi-automatic handgun and .936 grams of methamphetamine.
Under federal statutes, Yeager 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 Bruce Rhoades. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Independence, Mo., Police Department.
Illegal Alien Sentenced to 6 Months in Prison for Illegally Re-entering U.S. after Being DeportedRead the Press Release
JOHNSTOWN, Pa. - A citizen of Mexico pleaded guilty in federal court in Johnstown to a charge of re-entry of an illegal alien, and immediately following, was sentenced to six months imprisonment, United States Attorney Scott W. Brady announced today.
Francisco Covias-Lopez, 40, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on December 1, 2018, Covias-Lopez, an alien who had been deported from the United States on June 22, 2012, was found in Cambria County, Pa. He had unlawfully re-entered this country without receiving permission to do so from the Secretary of the Department of Homeland Security.
Assistant United States Attorney Arnold Bernard, Jr. prosecuted this case on behalf of the government.
Mr. Brady commended the Department of Homeland Security/Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Covias-Lopez.
Honduran National Pleads Guilty and is Sentenced for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that FREDY ANTONIO MENDOZA-CHIRINOS (“CHIRINOS”), age 27, pleaded guilty on August 14, 2019 and was sentenced on a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
After accepting CHIRINOS guilty plea, U.S. District Judge Martin C. Feldman sentenced CHIRINOS to time served and a $ 100 special assessment. CHIRINOS has been incarcerated since November 21, 2018. The defendant will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to documents signed by the defendant and filed in open court, CHIRINOS admitted to being a citizen of Honduras, and being illegally present in the United States. He further admitted to illegally re-entering the United States after being deported in 2017.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
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Harrison County woman sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Stormey Angel Lois-Hite, of Anmoore, West Virginia, was sentenced today to three years probation with the first six months on home detention for a firearms charge, United States Attorney Bill Powell announced.
Lois-Hite, age 25, pled guilty to one count of “Unlawful Transfer of Firearm to Prohibited Person” in April 2019. Lois-Hite admitted to purchasing a .22 caliber pistol for a convicted felon in January 2018 in Harrison County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Harrison County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kevin Alexander Miske, of Clarksburg, West Virginia, was sentenced today to 46 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Miske, age 27, pled guilty to one count of “Unlawful Possession of a Firearm” in April 2019. Miske, having been previously convicted of a felony, admitted to having a .357 magnum revolver in December 2018 in Harrison County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksburg Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Gulfport Man Sentenced to Almost Six Years in Federal Prison for Accessing Child PornographyRead the Press Release
Gulfport, Miss. – Michael Alex Miller, 19, of Gulfport, was sentenced Tuesday by U.S. District Judge Sul Ozerden to 70 months in federal prison, followed by a lifetime of supervised release, for accessing with intent to view visual depictions of minors engaged in sexually explicit conduct, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in Mississippi.
Judge Ozerden also ordered Miller to pay $5,000 under the Justice for Victims of Trafficking Act of 2015 and $3,000 under the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018, in addition to $18,000 in restitution.
In February 2019, the FBI received information that a specific Internet Protocol (IP) address associated with a Gulfport residence had previously accessed a website used to access child pornography. On February 8, 2019, agents went to that Gulfport address and Michael Alex Miller answered the door. Miller agreed to voluntarily speak with the agents who conducted a non-custodial interview with Miller. Miller admitted to looking at child pornography on his cellular telephone and viewing or accessing multiple images of the same. Forensic examination of Miller’s cellular devices confirmed Miller accessed multiple images of minors engaging in such conduct. A review of the images by the National Center for Missing and Exploited Children also confirmed that the images included known minors.
Miller was indicted on February 20, 2019, for accessing the images of the minors. He pled guilty before Judge Ozerden on April 25, 2019.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Andrea Jones. This 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. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Greensboro Man Sentenced to 7 Years in Prison in Child Pornography Case That Involved Thousands of ImagesRead the Press Release
Winston-Salem, N.C. – A man who pleaded guilty to receipt of child pornography was sentenced today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
MARK DENVER TOWNSEND, 48, of Greensboro, North Carolina, pleaded guilty on February 4, 2019, to one count of receipt of child pornography. He was sentenced by United States District Judge Loretta Copeland Biggs to 84 months of imprisonment followed by 10 years of supervised release. He was ordered to pay a total of $114,500 in restitution to eighteen victims.
In 2018, an investigator with the North Carolina SBI Computer Crimes Unit learned that an individual located at TOWNSEND’s residence was likely downloading child pornography using a sophisticated peer-to-peer network. The network is known to law enforcement and designed to allow users to anonymously share and download files. In October, the SBI investigator and a special agent with Homeland Security Investigations interviewed TOWNSEND at his residence. The investigators seized TOWNSEND’s external hard drive which contained 15,029 images and 1,502 videos constituting child pornography. The contraband files were located in a folder titled “CP” and sorted into sub-folders labeled “pics,” “mov,” and “to watch.” Their created-on dates ranged from June 2015 to August 2018.
The North Carolina State Bureau of Investigation (SBI) and Homeland Security Investigations (HSI) are both members of the North Carolina Internet Crimes Against Children (ICAC) Task Force. The case was prosecuted by Assistant United States Attorney Eric L. Iverson.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Grand Junction Jury Convicts Gunnison Man for Destroying Acres of Federal Land with a BulldozerRead the Press Release
GRAND JUNCTION -- A Grand Junction Jury took less than an hour of deliberation to convict Robert Timothy Allen of depredation of federal property. The guilty verdict was announced on August 14, 2019, in the United States District Court for the District of Colorado.
Defendant Allen was indicted in 2016 and charged for damaging federal land in Saguache County between July 24, 2013, and May 22, 2014. After indictment, Allen evaded arrest for nearly two years before being arrested and ultimately detained in 2018. According to evidence presented at this week’s trial, Allen dug-up about three acres of federal land with a bulldozer. While he claimed to be lawfully prospecting federal land, he received four official notices from the Bureau of Land Management and the Colorado Division of Reclamation, Mining, and Safety that he was violating the law and directing him to stop. After refusing to stop violating the law, he was prosecuted by the United States Attorney’s Office.
“Colorado is known for its beautiful scenery, and our public lands are a treasure for all Coloradans,” said United States Attorney Jason Dunn. “Together with our federal partners, my office will ensure that these public lands are protected so that we all may enjoy them for years to come.”
“The BLM appreciates the coordinated effort with the Department of Justice in resolving this case,” said BLM Colorado State Director Jamie Connell. “Managing our public lands and its public resources are obligations we take seriously.”
Sentencing is currently scheduled for November 4, 2019.
Assistant United States Attorneys Jeremy Chaffin and Kelly Winslow prosecuted this matter.
Case No. 16-cr-0169
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Government Contractor Settles Civil False Claims Act AllegationsRead the Press Release
ALEXANDRIA, Va. – ManTech Advanced Systems International, Inc., a federal government contractor located in Herndon, has agreed to pay $750,000 to settle civil fraud allegations that ManTech falsely represented that its principal manager of a contract for security services at U.S. Environmental Protection Agency (EPA) had a Top Secret clearance.
ManTech was awarded a subcontract on an EPA contract that required that certain tasks be performed only by individuals with a Top Secret clearance. ManTech represented that the principal project manager for the contract, and one of the individuals who would be performing those tasks, had the required Top Secret clearance. The United States alleged that when the project manager’s clearance was revoked, ManTech failed to inform EPA of the loss of the manager’s clearance. In a proposal to extend ManTech’s contract with EPA, ManTech allegedly again represented that the same project manager had a Top Secret clearance. The settlement resolves allegations that from the time the project manager’s clearance had been revoked until the time the project manager was removed from the project, ManTech billed EPA $325,701 for his services.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and EPA’s Office of Inspector General (OIG). The matter was investigated by EPA OIG Special Agents, Assistant U.S. Attorney Krista Anderson and Special Assistant U.S Attorney Ron Fiorillo. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Gonzales Man Pleads Guilty in Federal Court to Possession of Child PornographyRead the Press Release
United States Attorney Brandon J. Fremin announced today that HENRY BABIN, age 29, of Gonzales, Louisiana, pled guilty before Brian A. Jackson to possessing child pornography. As a result of his conviction, Babin faces a term of imprisonment, a fine, and a period of supervised release.
According to admissions made during his plea, on January 26, 2018, Internet Crimes Against Children Task Force agents executed a search warrant for Babin’s property. During the execution of the warrant, Babin emerged from a detached shed that had been converted into a private residence, in which he solely resided.
Electronic devices were discovered and a preview of these devices on scene revealed numerous images and videos of child pornography. A subsequent forensic examination of Babin’s computer and cell phone revealed at least 600 images of child pornography including images and videos of prepubescent minors, including infants, engaged in various sex acts.
U.S. Attorney Brandon J. Fremin stated, “Our children are among the most vulnerable in our society and deserve our protection. This plea demonstrates our dedication to protecting children from those who seek to exploit them by possessing vile and disgusting images such as those found in this case. We are committed to this fight and will make every effort to prevent child predators from taking advantage of our youth. I want to thank our prosecutor, the FBI, and the Louisiana Attorney General’s Cyber Crime Unit for their partnership and collaboration on this case.”
“The protection of our children is one of the most sacred responsibilities entrusted to the FBI. The FBI takes a proactive approach to identify unknown individuals involved in the sexual exploitation of children and the production of child pornography. We remain vigilant and continue our active role to ensure children are protected. We reaffirm our commitment to removing sexual predators from children’s lives through the justice system,” stated Acting Special Agent in Charge Andrew Anderson.
“It is critical that people who are exploiting our children are found and brought to justice,” said Attorney General Landry. “The victimization of our state’s youth will not be tolerated, and we will continue working with our law enforcement partners to put an end to it.”
This matter is being investigated by the Federal Bureau of Investigation with critical assistance from the Louisiana Attorney General’s Office - Cyber Crime Unit and is being prosecuted by Assistant United States Attorney Demetrius Sumner.
Gate City Transportation Sentenced for Health Care FraudRead the Press Release
WINSTON-SALEM, N.C. - A Greensboro-based medical transport company was sentenced today in federal court for health care fraud, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina and North Carolina Attorney General Josh Stein.
GATE CITY TRANSPORTATION, INC. was ordered to pay a $100 fine, a $400 special assessment, and restitution in the amount of $5,245,640.02 to the N.C. Fund for Medical Assistance by United States District Court Judge Loretta Copeland Biggs of the Middle District of North Carolina. The defendant corporation pleaded guilty to one count of health care fraud in October 2018.
“Fraud does not pay in the long run. With today’s judgment, taxpayers will get back over $5M that was taken from Medicaid,” said U.S. Attorney Martin, “This case demonstrates how agencies work together to find and stop healthcare fraud. I commend the IRS, the U.S. Department of Health and Human Services, and the NC AG’s office for their excellent work.”
“Corporations that defraud the Medicaid program are cheating taxpayers and taking away resources from people who need health care,” said Attorney General Josh Stein. “My office will continue to fight health care fraud and waste.”
In April 2008, GATE CITY TRANSPORTATION enrolled with the North Carolina Medicaid Program as an ambulance provider. Initially, GATE CITY TRANSPORTATION owned and operated convalescent ambulances. Convalescent ambulance services are used to provide non-emergency medical transportation to stretcher-bound patients.
From November 2010 until February 2015, GATE CITY TRANSPORTATION stopped operating convalescent ambulances and provided non-emergency transport to ambulatory and wheelchair bound clients using vans. The majority of GATE CITY TRANSPORTATION’s clients were Medicaid recipients. Medicaid did not directly reimburse companies for providing van transportation. GATE CITY TRANSPORTATION could have applied to the county Division of Social Services (DSS) for approval to provide non-emergency medical van transportation to ambulatory and wheelchair bound clients, but did not do so.
Despite providing van transportation, GATE CITY TRANSPORTATION continued to submit claims to Medicaid using ambulance codes which were reimbursed at a higher rate. GATE CITY TRANSPORTATION was deliberately ignorant to the false claims because it wanted to continue receiving the higher reimbursement rate. The false claims caused the Medicaid program to suffer a loss of over five million dollars.
During the investigation of GATE CITY TRANSPORTATION, law enforcement seized and forfeited more than $5 million in cash and property representing proceeds of the scheme. Federal authorities will request authorization to apply the forfeited funds toward restitution.
The case was investigated by the Internal Revenue Service-Criminal Investigations, the U.S. Department of Health and Human Services, and the North Carolina Attorney General’s Medicaid Investigations Unit. The case was prosecuted by former Assistant United States Attorney Robert M. Hamilton and Assistant United States Attorney Lisa B. Boggs.
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Four Individuals Indicted in August 2019 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the August 2019 Federal Grand Jury.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
ETHAN COLE ENDRES, age 27, of Okmulgee, OklahomaFelon In Possession Of Firearm
The Indictment alleges that on or about April 11, 2019, in the Eastern District of Oklahoma, the defendant, ETHAN COLE ENDRES, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, did knowingly possess in and affecting commerce, a firearm, to wit: one (1) Ruger, Model 10/22, .22 caliber semi-automatic rifle, serial number 118-17229, which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Federal Bureau of Investigation.
Assistant United States Attorney Dean Burris
AARON DEWAYNE TERRY, age 66, of Wichita Falls, Texas
CHRISTINA ROCHELLE ANGLIN, age 44, of Burnsville, North Carolina
Theft By An Agent Of An Indian Tribal Government Receiving Federal Funds
Conspiracy To Commit Theft Or Bribery Of Programs Receiving Federal Funds
Wire Fraud
Conspiracy To Commit Wire Fraud
Bribery Concerning Programs Receiving Federal Funds
Conspiracy To Commit BriberyThe attached Superseding Indictment contains the entirety of the allegations against the defendants.
Agencies responsible for the multi-year investigation which led to the indictment include the Federal Bureau of Investigation, Defense Criminal Investigative Service, Internal Revenue Service – Criminal Investigation, Office of Inspector General – General Services Administration, Office of Inspector General – Small Business Administration, Naval Criminal Investigative Service, and Army Criminal Investigation Command.
Assistant United States Attorney Douglas Horn
RONALD JUSTIN JOHNSON, age 37, of Howe, Oklahoma
Conversion Of Mortgaged Property
The Indictment alleges that from on or about April 1, 2016, and continuing through on or about July 14, 2016, within the Eastern District of Oklahoma and elsewhere, the defendant, RONALD JUSTIN JOHNSON, did knowingly and with intent to defraud, willfully dispose of and convert to his own use certain property, to-wit: thirty-two (32) head of cattle, said property having a value in excess of $1,000.00, and which was at the time of said disposition and conversion, mortgaged, pledged to and held by the United States Department of Agriculture – Farm Service Agency, in violation of Title 18, United States Code, Section 658. punishable by not more than 5 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the U.S. Department of Agriculture - Office of Inspector General.
Assistant United States Attorney Ben Gifford
Fort Myers Man Charged with Federal Firearm OffenseRead the Press Release
Fort Myers, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Keith Dewayne Drayton, Jr. (23, Ft. Myers) with possessing a firearm as a convicted felon. If convicted, Drayton faces a maximum penalty of 10 years in federal prison.
According to the indictment, on May 15, 2019, Drayton illegally possessed a firearm. Due to his prior state conviction for unlicensed carrying of a concealed firearm, Drayton is prohibited from carrying a firearm or ammunition under federal law.
This case is part of Operation Triple Beam (OTB), a U.S. Marshals-led 90-day operation to reduce violent gang crime. OTB was designed to target and arrest violent fugitives and criminal offenders who committed high-profile crimes such as homicide, felony assault and sexual assault, illegal possession of firearms, illegal drug distribution, robbery and arson. The operation concluded on August 1, 2019, and resulted in 120 arrests.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
The operation was conducted by the U.S. Marshals Service Florida/Caribbean Regional Fugitive Task Force, along with the Fort Myers Police Department, the Lee County Sheriff's Office, the Cape Coral Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This will be prosecuted by Assistant United States Attorney Simon Eth.
Former Washington Resident Pleads Guilty to Wire Fraud and Money Laundering in Fraudulent IPO Stock SchemeRead the Press Release
A former Seattle area resident who defrauded dozens of investors of at least $5.8 million pleaded guilty today in U.S. District Court in Seattle to wire fraud and money laundering, announced U.S. Attorney Brian T. Moran. KEENAN A. GRACEY, 28, formerly of Newcastle, Washington, defrauded Seattle-area investors and others out of millions of dollars by pretending to sell them stock that GRACEY did not own and had no right to sell. Under the terms of the plea agreement, both the prosecution and the defense will recommend a prison term of 153 months in custody when GRACEY is sentenced by Chief U.S. District Judge Ricardo S. Martinez on November 15, 2019.
According to records in the case, between 2016 and 2018, GRACEY posed as a British billionaire with degrees from the London School of Economics and Oxford University. He drove expensive cars such as Bentleys and Ferraris and claimed to own expensive homes in Clyde Hill, Mercer Island, and Newcastle, Washington, as well as in Beverly Hills and San Diego, California. GRACEY also used falsified bank statements to make it appear he had hundreds of millions of dollars of cash on hand. The investigation revealed that GRACEY is Canadian, not British, and rented expensive homes and cars to make it appear he was wealthy.
GRACEY told potential investors he had special access to millions of shares of “pre IPO” stock that would produce returns of as much as 60 times the initial investment. Some investors gave GRACEY as much as $745,000, believing that they were purchasing stock. In fact, GRACEY did not own any of the stock he was pretending to sell and simply stole the victims’ money. In all, GRACEY collected $5,894,676 from dozens of investors.
The Securities and Exchange Commission filed a civil suit against GRACEY in May 2018 and obtained a temporary restraining order barring him from selling securities. In September 2018, the order was made permanent, and GRACEY was ordered to disgorge $4.4 million in cash and wire transfers that he had fraudulently obtained from investors. However, even after the SEC order, GRACEY continued to try to defraud investors by claiming he owned shares in a gene editing company. Between June 2018 and December 2018, GRACEY collected $2.2 million for shares of stock he did not own.
GRACEY’s fraud ended when he was arrested by the FBI on December 20, 2018. A federal grand jury charged him with wire fraud on January 3, 2019. On July 25, 2019, the grand jury returned a superseding indictment asserting additional charges, including money laundering charges.
On March 29, 2019, the United States seized $603,840 of fraud proceeds that GRACEY had paid to rent a luxury mansion in Beverly Hills, California. According to court pleadings, the government intends to forfeit this money and request it be used to compensate GRACEY’s victims.
Money Laundering and Wire Fraud are each punishable by up to 20 years in prison.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson, Lyndsie Schmalz, and Michelle Jensen.
Former University Professor Sentenced for Traveling to Missouri for Sex with a MinorRead the Press Release
KANSAS CITY, Mo. – A former Ohio university professor was sentenced in federal court today for traveling to Kansas City, Missouri, to engage in sexual activity with a person whom he believed to be a 14-year-old runaway.
Kevin Connor Armitage, 54, was sentenced by U.S. District Judge Brian C. Wimes to two years and nine months in federal prison without parole.
On May 1, 2019, Armitage pleaded guilty to traveling across state lines to engage in illicit sexual conduct with a minor. Armitage was a professor of American studies at Miami University in Oxford, Ohio.
Armitage maintained a profile on a website that allows registered members to exchange information regarding commercial sex activity. The website’s public posts contain detailed accounts of sexual encounters between members and commercial sex workers, including prices and specific locations for sexual encounters. Links to well-known sex trafficking websites were posted with reviews of sexual encounters. Members of the website are able to contact the posters by private message to obtain contact information for the commercial sex workers described in the posts.
Armitage was a senior member of the website, with 576 postings that detail his prior experiences with prostitutes in Ohio, Arizona, Kansas, Colorado, and Tijuana.
On May 22, 2018, an undercover federal agent responded to a discussion thread posted by another user. Armitage contacted the undercover agent through a private message and indicated that he would be visiting the Kansas City area and was interested in recommendations. Armitage was provided a phone number for a female FBI agent, who was posing as a 14-year-old female runaway.
After several conversations, Armitage agreed to meet the 14-year-old’s cousin at a restaurant on the Country Club Plaza in Kansas City on May 30, 2018, in order to discuss payment. Once he arrived at the restaurant, Armitage was told, he would be given the address where he could meet the 14-year-old. An FBI undercover employee, posing as the cousin, met Armitage at the restaurant and he was arrested.
This case was prosecuted by First Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Department of Health and Human Services, Office of Inspector General and the FBI.
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."Former Tax Return Preparer Sentenced to 21 MonthsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Kimberly Harrison, 47, Beloit, Wisconsin, was sentenced yesterday by U.S. District Chief Judge James D. Peterson to 21 months in federal prison, to be followed by one year of supervised release, for aiding and abetting the preparation and filing of a false income tax return. The court will determine the amount of restitution Harrison will be ordered to pay in 30 days.
On May 24, 2019, Harrison pleaded guilty to aiding and abetting in the preparation and filing of a false income tax return with the Internal Revenue Service. Harrison had been charged on August 1, 2018, by a grand jury in Madison, Wisconsin with a 29-count indictment alleging that she prepared false and fraudulent income tax returns for various taxpayers for tax years 2013 through 2016.
At her plea hearing, Harrison admitted that the government could prove that she filed tax returns from her home in Beloit using various IP addresses that came back to her, even though she failed to sign the tax returns as the paid return preparer, and instead made it look as if the taxpayers themselves were signing and filing their own tax returns.
At yesterday’s sentencing, Judge Peterson found that Harrison had prepared and filed 374 false tax returns for tax years 2013 through 2016, which caused a tax loss of $583,298. Judge Peterson also found that Harrison earned about $9,350 a year in fees that she charged her clients and that she did not report on her own tax returns, or to other governmental authorities who were providing her with public benefits.
In imposing the 21-month prison term, Judge Peterson explained, “People need to know that our tax laws will be enforced and if you cheat on your taxes, it is going to be taken seriously.” According to the judge, Harrison’s crime was a serious offense because it involved a large tax loss to the United States government. Judge Peterson also noted there is a certain outrage to the community by Harrison’s cheating of the very government that supplies her with public benefits, and this cheating hurts other recipients who need those benefits like veterans and the disabled. In addressing Harrison, the judge told her that “claiming poverty is no excuse” because her crime was “done for pocket money, which is greed” and arrogance, not ignorance.
Judge Peterson ordered Harrison to report to the Federal Bureau of Prisons to begin her prison sentence on September 16, 2019.
The charges against Harrison are the result of an investigation conducted by the Madison office of IRS Criminal Investigation. The prosecution of this case was handled by Assistant U.S. Attorney Daniel Graber.
Former Lake Charles police officer pleads guilty to using excessive forceRead the Press Release
LAKE CHARLES, La. – Robert Hammac, 45, a former officer of the Lake Charles Police Department, pleaded guilty today before U.S. District Judge James D. Cain Jr. for using excessive force against an arrestee, announced U.S. Attorney David C. Joseph for the Western District of Louisiana, Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division and FBI’s New Orleans Field Office Acting Special Agent in Charge Andrew Anderson.
Hammac pleaded guilty to a single count of deprivation of rights under color of law, in violation of 18 U.S.C. § 242. According to documents filed today, Hammac was involved in a vehicle pursuit of G.T. on May 8, 2017, for several miles. The car was brought to a stop, and G.T. raised his hands in the air in a manner indicating surrender. Other officers then ordered G.T. out of the car and began pulling him out of the car. Hammac ran to the front passenger side door, opened it, grabbed G.T. before he could exit, pulled him back into the car, and repeatedly punched G.T.’s head with a closed fist. The victim was not resisting in any way or posing a threat.
“Law enforcement officers put their lives on the line every day to keep our communities safe,” said U.S. Attorney David C. Joseph. “The vast majority of law enforcement officers perform their difficult and dangerous duties with integrity and courage. However, law enforcement officers who betray the badge and the public’s trust, as the defendant did here, also dishonor their profession and their fellow officers. This behavior is unacceptable and will not be tolerated in the Western District of Louisiana.”
“Law enforcement officers must uphold and defend the constitution,” said Assistant Attorney General Eric Dreiband. “When an officer abuses their power, the public’s trust in law enforcement is compromised. The Department of Justice will continue to hold such officers accountable under the law.”
“Police officers respond to challenging and dynamic situations every day,” stated FBI Acting Special Agent in Charge Andrew Anderson. “They are trained to maintain professionalism and adhere to standards of conduct in any situation. In this instance, the officer did not apply his training and violated the constitutional rights of the victim. Instances such as this are unacceptable and will continue to be high priority investigations of the FBI.
Hammac faces a maximum term of imprisonment of 10 years and a $250,000 fine. The court set sentencing for Nov. 14.
The FBI conducted the investigation. Assistant U.S. Attorney Jamilla Bynog of the Western District of Louisiana and Trial Attorney Mary J. Hahn of the Civil Rights Division are prosecuting the case.
Former Lake Charles Police Officer Pleads Guilty to Using Excessive ForceRead the Press Release
Robert Hammac, 45, a former officer of the Lake Charles Police Department, pleaded guilty today before U.S. District Judge James D. Cain, Jr., for using excessive force against an arrestee, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney David C. Joseph for the Western District of Louisiana, and FBI’s New Orleans Field Office Acting Special Agent in Charge Andrew Anderson.
Hammac pleaded guilty to a single count of deprivation of rights under color of law, in violation of 18 U.S.C. § 242. According to documents filed today, Hammac was involved in a vehicle pursuit of G.T. on May 8, 2017, for several miles. The car was brought to a stop, and G.T. raised his hands in the air in a manner indicating surrender. Other officers then ordered G.T. out of the car and began pulling him out of the car. Hammac ran to the front passenger side door, opened it, grabbed G.T. before he could exit, pulled him back into the car, and repeatedly punched G.T.’s head with a closed fist. The victim was not resisting in any way or posing a threat.
“Law enforcement officers must uphold and defend the constitution,” said Assistant Attorney General Eric Dreiband. “When an officer abuses their power, the public’s trust in law enforcement is compromised. The Department of Justice will continue to hold such officers accountable under the law.”
“Law enforcement officers put their lives on the line every day to keep our communities safe,” said U.S. Attorney David C. Joseph. “The vast majority of law enforcement officers perform their difficult and dangerous duties with integrity and courage. However, law enforcement officers who betray the badge and the public’s trust, as the defendant did here, also dishonor their profession and their fellow officers. This behavior is unacceptable and will not be tolerated in the Western District of Louisiana.”
“Police officers respond to challenging and dynamic situations every day,” stated FBI Acting Special Agent in Charge Andrew Anderson. “They are trained to maintain professionalism and adhere to standards of conduct in any situation. In this instance, the officer did not apply his training and violated the constitutional rights of the victim. Instances such as this are unacceptable and will continue to be high priority investigations of the FBI."
Hammac faces a maximum term of imprisonment of 10 years and a $250,000 fine. The court set sentencing for Nov. 14.
The FBI conducted the investigation. Assistant U.S. Attorney Jamilla Bynog of the Western District of Louisiana and Trial Attorney Mary J. Hahn of the Civil Rights Division are prosecuting the case.
Former Correctional Officers Sentenced for Assault of Handcuffed Inmate at Elayn Hunt Correctional CenterRead the Press Release
Two former correctional officers at Elayn Hunt Correctional Center in St. Gabriel, Louisiana, were sentenced today for their roles in assaults on a handcuffed inmate in January 2017. Adrian Almodovar III and Charles Philson III previously pleaded guilty to depriving the inmate of his constitutional rights while acting under color of law.
“The Justice Department is committed to holding correctional officers who deprive inmates of their right to be free from cruel and unusual punishment accountable to the public,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to obtain justice for victims of these atrocious crimes.”
“The vast majority of law enforcement officers maintain a high standard of conduct and perform their duties with honesty, integrity, and bravery. Law enforcement officers at every level should be held to a high standard and those who deprive citizens of their civil rights and undermine the public trust should be held accountable. I want to thank the United States Department of Justice Civil Rights Division, the FBI, and Louisiana Office of the State Inspector General, and our staff for their efforts in this case.”
"Along with our partners, the FBI will aggressively pursue allegations wherein correctional officers abuse their position of power and authority to deny persons their constitutional right to be free from cruel and unusual punishment,” stated Acting Special Agent in Charge Andrew Anderson. “The FBI is appreciative of its partnership with the LA Department of Corrections to root out correctional officers who choose to break the law and physically abuse defenseless inmates.”
“Corrections Officers are given great authority and trust, and when they abuse that trust, it undermines the entire system,” said Louisiana Inspector General Stephen Street. “Physically abusing a handcuffed inmate can never be tolerated. It was entirely appropriate that these individuals be prosecuted and punished. The Louisiana OIG will continue working these criminal cases with our law enforcement partners for as long as necessary to protect the integrity of our system. I want to thank U.S. Attorney Brandon Fremin and the Civil Rights Division of the Department of Justice for all their efforts on this case.”
During his previous plea hearing, Almodovar admitted to unlawfully striking inmate J.H. on multiple occasions while J.H. was handcuffed. He also admitted to failing to intervene to stop his fellow correctional officers from using unlawful force on J.H. Almodovar further admitted to unlawfully striking a second inmate, L.B., in the head while L.B. was handcuffed. Almodovar was sentenced to 18 months in prison.
Philson previously pleaded guilty to witnessing other correctional officers using unlawful force on J.H. and failing to intervene to stop them. He was sentenced to 12 months probation.
This case was investigated by the FBI’s Baton Rouge Resident Agency Office and the Louisiana Office of the State Inspector General. Trial Attorney Christopher J. Perras and Assistant United States Attorney Cal Leipold also assisted in the investigation. The case was prosecuted by Trial Attorney Zachary Dembo of the Criminal Section of the Civil Rights Division.
Former Correctional Officers Sentenced for Assault of Handcuffed Inmate at Elayn Hunt Correctional CenterRead the Press Release
Two former correctional officers at Elayn Hunt Correctional Center in St. Gabriel, Louisiana, were sentenced today for their roles in assaults on a handcuffed inmate in January 2017. Adrian Almodovar III and Charles Philson III previously pleaded guilty to depriving the inmate of his constitutional rights while acting under color of law.
“The Justice Department is committed to holding correctional officers who deprive inmates of their right to be free from cruel and unusual punishment accountable to the public,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to obtain justice for victims of these atrocious crimes.”
“The vast majority of law enforcement officers maintain a high standard of conduct and perform their duties with honesty, integrity, and bravery. Law enforcement officers at every level should be held to a high standard and those who deprive citizens of their civil rights and undermine the public trust should be held accountable. I want to thank the United States Department of Justice Civil Rights Division, the FBI, and Louisiana Office of the State Inspector General, and our staff for their efforts in this case.”
"Along with our partners, the FBI will aggressively pursue allegations wherein correctional officers abuse their position of power and authority to deny persons their constitutional right to be free from cruel and unusual punishment,” stated Acting Special Agent in Charge Andrew Anderson. “The FBI is appreciative of its partnership with the LA Department of Corrections to root out correctional officers who choose to break the law and physically abuse defenseless inmates.”
“Corrections Officers are given great authority and trust, and when they abuse that trust, it undermines the entire system,” said Louisiana Inspector General Stephen Street. “Physically abusing a handcuffed inmate can never be tolerated. It was entirely appropriate that these individuals be prosecuted and punished. The Louisiana OIG will continue working these criminal cases with our law enforcement partners for as long as necessary to protect the integrity of our system. I want to thank U.S. Attorney Brandon Fremin and the Civil Rights Division of the Department of Justice for all their efforts on this case.”
During his previous plea hearing, Almodovar admitted to unlawfully striking inmate J.H. on multiple occasions while J.H. was handcuffed. He also admitted to failing to intervene to stop his fellow correctional officers from using unlawful force on J.H. Almodovar further admitted to unlawfully striking a second inmate, L.B., in the head while L.B. was handcuffed. Almodovar was sentenced to 18 months in prison.
Philson previously pleaded guilty to witnessing other correctional officers using unlawful force on J.H. and failing to intervene to stop them. He was sentenced to 12 months probation.
This case was investigated by the FBI’s Baton Rouge Resident Agency Office and the Louisiana Office of the State Inspector General. Trial Attorney Christopher J. Perras and Assistant United States Attorney Cal Leipold also assisted in the investigation. The case was prosecuted by Trial Attorney Zachary Dembo of the Criminal Section of the Civil Rights Division.
Former City of New Orleans Building Inspector Charged with Use of an Interstate Facility with Intent to Carry on Unlawful ActivityRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced today that KEVIN RICHARDSON age 56, of New Orleans, LA was charged on Thursday, August 15, 2019, by a Grand Jury sitting in the Eastern District of Louisiana in a one-count indictment with violating Title 18, United States Code, Sections 1952(a)(3) and 2, use of an interstate facility with intent to carry on unlawful activity.
According to the Indictment, between January 2011 and February 2019, RICHARDSON was employed as a building inspector for the City of New Orleans and utilized the internet to facilitate the crime of bribery. He solicited and accepted bribe money from individuals seeking favorable inspection reports and certificates of completion for properties that did not comply with the city and state building codes and for properties that had not been inspected. He also paid bribe money to a City of New Orleans permit analyst for the issuance of permits without proper documentation and plan review.
If convicted, RICHARDSON faces a maximum term of imprisonment of five (5) years, a fine of not more than $250,000, three years supervised release following any term of imprisonment, and a $100 special assessment fee.
United States Attorney Strasser reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This matter was handled by the City of New Orleans Office of Inspector General, Housing and Urban Development, Office of Inspector General, and the Department of Homeland Security, Office of Inspector General. Assistant United States Attorney Tracey N. Knight is prosecuting the matter.
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Former Chief Financial Officer of 1 Global Capital LLC Charged with Conspiracy to Commit Securities Fraud in Relation to $330 Million SchemeRead the Press Release
A former Chief Financial Officer of 1 Global Capital, LLC has been charged in connection with a $330 million securities fraud scheme, related to a commercial payday loan business that operated from early 2014 through July 2018, that impacted more than 3,600 investors in 42 different states.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
Alan G. Heide, 61, of Lake Worth, Florida, was charged today by information with one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371, in Case No. 19-60231. The case is assigned to U.S. District Judge Roy Altman in Fort Lauderdale. If convicted, Heide faces a maximum statutory sentence of up to five years in prison and a fine up to $250,000 or double the gross proceeds of the offense.
According to the information, 1 Global Capital LLC (1 Global) was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates. To fund these merchant cash advance loans (“MCAs”), 1 Global obtained funds from investors nationwide, offering short-term investment contracts. The investors would supposedly receive a proportionate share of the principal and interest payments as the loans were repaid. 1 Global raised money using investment advisors and other intermediaries, with promises of significant commissions. In many cases, the commissions were not fully disclosed to investors.
Heide was the Chief Financial Officer of 1 Global from 2014 through 2016, when he became the Executive Vice President and Director of Syndicate Partner Relations. In order to attract investments, Heide and his co-conspirators allegedly made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements. 1 Global promised investors that all or nearly all of that money would be applied to various MCA loan agreements with the investor supposedly receiving a portion of the proceeds paid back by the merchants. The information alleges that the 1 Global business lost money, and used new investor funds to pay back earlier investors who sought to cash out in a manner consistent with a Ponzi scheme. Furthermore, the conspirators are alleged to have misappropriated large amounts of cash for their personal benefit. In addition, the information alleges that 1 Global paid substantial commissions and other expenses with investor funds without disclosing the extent of these payments.
According to the allegations in the information, Heide and others at 1 Global also made false statements to investors that gave the impression that 1 Global had an independent auditor. These misrepresentations were allegedly made in monthly-mailed statements that falsely showed profitable investments. As 1 Global continued to lose money over time, the cash shortfall continued to increase and 1 Global was only able to continue operations by raising ever-increasing amounts of new investor funds, before its eventual collapse in July 2018.
According to court records, 1 Global operated from early 2014 through approximately July 27, 2018, when it filed for bankruptcy. As of that time, 1 Global had more than 3,600 investors and had raised more than $330 million, and its own internal documents showed a $50 million cash deficit. The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending.
In connection with a parallel civil enforcement action, the SEC today announced the filing of civil fraud charges against Heide. In a related case, the SEC previously filed a civil fraud action, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (S.D. Fla.).
An information is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office. She also thanked the SEC’s Miami Regional Office, IRS Criminal Investigation’s Miami Field Office, the Federal Housing Finance Authority, Office of Inspector General, and Florida’s Office of Financial Regulation for their assistance. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy and Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture related to this matter.
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.
Former Bank Manager Sentenced to Five-Year Term of Probation for Bank TheftRead the Press Release
NEW ORLEANS, LOUISIANA – SCOTT BREAUX (“BREAUX”), age 39, of Marrero, Louisiana, was sentenced on August 14, 2019 by U.S. District Court Judge Ivan L.R. Lemelle to 60 months probation and was ordered to pay restitution in the amount of $ 35,000.00 to ASI Federal Credit Union and its insurer, Cuna Mutual Group, announced United States Attorney Peter G. Strasser.
According to court documents, from about November 2016 to July 2017, while employed as a Branch Manager at ASI Federal Credit Union, BREAUX stole approximately $35,000.00. BREAUX was employed with ASI since in or about 2011, and during his tenure with ASI, BREAUX worked at the Harahan, Westwego, and uptown branches. In 2014, BREAUX was named Branch Manager of ASI’s Westwego branch. In February 2017, BREAUX was transferred to ASI’s uptown branch where he continued to work as Branch Manager until his termination in July 2017. ASI is a federally insured financial institution and its deposits are insured by the National Credit Union Association.
United States Attorney Peter G. Strasser praised the work of the Federal Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Florida Man Arrested for Child-Exploitation CrimesRead the Press Release
A Florida man was arrested today following the return of an indictment by a federal grand jury charging him with two counts of travel with intent to engage in illicit sexual activity and two counts of attempted enticement of a minor to engage in unlawful sexual activity.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida and Special Agent in Charge James C. Spero of U.S. Immigration and Customs Enforcements’ Homeland Security Investigations (HSI) Tampa made the announcement.
According to the indictment, on March 9, 2015, and again on Feb. 23, 2016, Christopher Edwin Day, 49, of St. Petersburg, Florida, allegedly traveled in interstate and foreign commerce for the purpose of engaging in illicit sexual conduct. In addition, starting in at least in or around December 2014, he allegedly attempted to use electronic devices to persuade two minors to engage in criminal sexual conduct.
The case is being investigated by HSI. Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Candace G. Rich of the Middle District of Florida are prosecuting the case.
The charges in the indictment are only allegations. The defendant is presumed innocent until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Florida Man Arrested for Child-Exploitation CrimesRead the Press Release
Tampa, FL - A Florida man was arrested today following the return of an indictment by a federal grand jury charging him with two counts of travel with intent to engage in illicit sexual activity and two counts of attempted enticement of a minor to engage in unlawful sexual activity.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida and Special Agent in Charge James C. Spero of U.S. Immigration and Customs Enforcements’ Homeland Security Investigations (HSI) Tampa made the announcement.
According to the
indictment , on March 9, 2015, and again on Feb. 23, 2016, Christopher Edwin Day, 49, of St. Petersburg, Florida, allegedly traveled in interstate and foreign commerce for the purpose of engaging in illicit sexual conduct. In addition, starting in at least in or around December 2014, he allegedly attempted to use electronic devices to persuade two minors to engage in criminal sexual conduct.The case is being investigated by HSI. Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Candace G. Rich of the Middle District of Florida are prosecuting the case.
The charges in the indictment are only allegations. The defendant is presumed innocent until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Five Charged Federally for Dealing Fentanyl, Heroin, and Cocaine in Prince George’s and Charles CountiesRead the Press Release
Greenbelt, Maryland – Five individuals have been charged by a federal criminal complaint with conspiracy to distribute controlled substances and possession with intent to distribute and distribution of controlled substances, in connection with an alleged drug distribution organization operating in Prince George’s and Charles Counties in Maryland, that sold heroin, fentanyl, and cocaine. The criminal complaint was filed on August 14, 2019, and was unsealed today upon the arrests of the defendants. The following defendants are charged in the complaint:
Anthony Kenneth Dotson, Jr., a/k/a Streetz, Ghost, and Rico, age 33, of Clinton, Maryland; Marvin Windell Gray, a/k/a Marv, age 44, of Waldorf, Maryland; James Anthony Harvey, Jr., a/k/a Fat Bread, and Patches, age 47, of King George, Virginia; Marcellus Jerome Woodland, a/k/a Cellus, age 29, of Waldorf; and
Tiara Mackall, a/k/a Tee, age 26, of Waldorf.In addition to today’s arrests, law enforcement executed search warrants at eight locations believed to be used by the conspirators to prepare, store, and/or sell drugs and recovered six firearms, heroin, and fentanyl.
The criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; St. Mary’s County Sheriff Tim Cameron; Charles County Sheriff Troy Berry; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
U.S. Attorney Robert K. Hur stated, “Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution. We’re also targeting drug dealers who use guns and increase the risk of gun violence in Maryland. Working together with our local, state, and federal partners, we are determined to reduce the number of opioid overdose deaths in Maryland.”
According to the affidavit filed in support of the criminal complaint, law enforcement began investigating Dotson, who was allegedly supervising a drug distribution conspiracy operating primarily in Prince George’s and Charles Counties that sold heroin, fentanyl, and cocaine. According to the affidavit, the drug trafficking organization utilizes multiple cell phones (or “burner phones”) to conduct its drug trafficking activities and employs runners who sell fentanyl and heroin on Dotson’s behalf. The indictment alleges that Gray is a lieutenant in the organization and that Harvey, Woodland, and Mackall are runners.
The affidavit details numerous alleged drug transactions between Dotson and his suppliers, runners, and customers, using coded language, including controlled purchases of drugs made at the direction of law enforcement. According to the affidavit, on January 7, 2018, a victim died after ingesting drugs allegedly supplied by Dotson. The Office of the Chief Medical Examiner for Maryland determined that the victim died from fentanyl intoxication. Further, the affidavit includes conversations between Dotson and others discussing the possession and/or purchase of firearms and ammunition. Dotson is prohibited from possessing firearms or ammunition.
If convicted, the defendants face a maximum sentence of 40 years for the conspiracy and a maximum of 20 years in prison for possession with intent to distribute controlled substances. At today’s initial appearance in U.S. District Court in Greenbelt, U.S. Magistrate Judge Charles B. Day ordered that all the defendants, except for Mackall, be detained pending detention hearings scheduled for Monday, August 19, 2019. Mackall was ordered to be released under the supervision of U.S. Pretrial Services.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the DEA, the St. Mary’s County Sheriff’s Office, the Prince George’s County Police Department, and the Charles County Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Erin Pulice, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Federal Inmate Sentenced to 16 More Months in Prison for Illegally Possessing Suboxone in PrisonRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa. pleaded guilty in federal court in Johnstown to a charge of possession of a prohibited object in prison, and immediately following, was sentenced to 16 months followed by 3 years of supervised release, United States Attorney Scott W. Brady announced today.
Ramon Santiago-Sandoval, 28, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, Santiago-Sandoval possessed a quantity of Buprenorphine on October 23, 2017.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, for the investigation leading to the successful prosecution of Santiago-Sandoval.
Federal Indictment Charges Man for Making Threatening Calls Against a Maryland SynagogueRead the Press Release
Baltimore, Maryland – A federal grand jury today indicted Stephen Lyle Orback, age 64, on the federal charge of making threatening communications, specifically multiple telephone calls threatening a synagogue.
The indictment 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.
According to the indictment, between May 12 and May 13, 2019, Orback made multiple telephone calls to an employee of a synagogue in Owings Mills, Maryland, threatening to kill many members of that Jewish congregation.
If convicted, Orback faces a maximum sentence of five years in federal prison. No initial appearance has been scheduled. Orback is currently detained in Colorado on unrelated state charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys P. Michael Cunningham and Mary W. Setzer, who are prosecuting the case.
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Fayetteville Sex Offender Sentenced to 12 Years in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Anthony Rhoden, age 42, was sentenced today to 120 months imprisonment without the possibility of parole followed by 25 years of supervised release on one count of Accessing the Internet with Intent to View Child Pornography. Rhoden received an additional 30 months imprisonment for committing the offense while on Federal Supervised Release. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in February 2018, Rhoden was on Federal Supervised Release following a conviction for receiving child pornography. United States Probation Officers conducted a search of Rhoden’s motel room and located a cellular phone. Rhoden stated he had been utilizing it to search the internet for child pornography. A forensic review of the phone revealed numerous images of child pornography.
Rhoden was indicted in February 2019 on federal charges and entered his guilty plea in March 2019.
This case was investigated by the Department of Homeland Security, the Internet Crimes Against Children (ICAC) Task Force, and the Fayetteville Police Department. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
Father and Son Sentenced in Multi-Million Dollar Hearing Aid Healthcare FraudRead the Press Release
A father/son duo who submitted more than $27 million in fraudulent hearing aid claims to insurer Blue Cross and Blue Shield of Texas was sentenced yesterday to eight and seven years in federal prison, respectively, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Terry Lynn Anderson, 69, and Rocky Freeland Anderson, 38, of Dallas, were convicted on multiple counts of health care fraud and aggravated identity theft in March 2018 following a 10-day jury trial before U.S. Chief District Judge Barbara M.G. Lynn.
The elder Mr. Anderson was sentenced Wednesday to eight years in federal prison and ordered to pay nearly $13.7 million in restitution to Blue Cross and Blue Shield of Texas; he was also ordered to forfeit a 300-acre ranch in Valley Mills, Texas, three vehicles, and more than $3.1 million seized from nine financial accounts. His son was sentenced to seven years in federal prison and ordered to pay more than $8.4 million in restitution to Blue Cross.
“In flagrant disregard for the law, these defendants submitted claims for equipment they knew patients neither needed nor wanted, just to line their own pockets,” said U.S. Attorney Nealy Cox. “This sort of fraud impacts healthcare costs for patients who actually need coverage and we will continue to prioritize these cases.”
According to evidence presented at trial, the defendants defrauded Blue Cross by submitting claims on behalf of American Airlines employees for hearing aids that were not needed and, in many cases, never dispensed to the patient. The fraudulent claims were submitted through Anderson Optical & Hearing Aids Center, the defendants’ family-owned business with locations in Arlington and Bedford.
To increase the number of claims they could submit to Blue Cross, the defendants engaged in marketing practices, promising patients a free pair of high-end sunglasses or a free pair of prescription eyeglasses in exchange for taking a free hearing test. At the conclusion of these hearing tests, the defendants told patients that they had slight to mild hearing loss and required them to sign an order for hearing aids in order to receive the free glasses. The defendants promised patients that the hearing aids would be provided to them at no cost, and that Anderson Optical & Hearing would waive any applicable copayments, coinsurance, or deductibles. The defendants also offered patients $100 gift cards in exchange for referring family members and coworkers for free hearing tests.
In 2012, the pair brought their fraud scheme into American Airlines’ airport facilities and started offering free hearing tests to aircraft mechanics and fleet services clerks in maintenance hangars and employee breakrooms. Attracted by the offer of free sunglasses, the pair often had long lines of employees waiting to be tested. However, an expert witness who testified for the government explained that the cursory screening tests the defendants performed, which witnesses described as lasting 3-5 minutes, were incapable of producing results upon which one could make a legitimate decision to dispense hearing aids. Witnesses from Blue Cross testified that these cursory screening tests also failed to comply with Blue Cross’s medical policies related to the evaluation of hearing impairment.
The evidence showed that, in November 2013, Blue Cross conducted an audit of Anderson Optical & Hearing and requested copies of patient records for certain American Airlines employees and their dependents. On January 6, 2014, the Texas Department of State Health Services-Professional Licensing Unit began investigating a complaint it had received concerning the Andersons. In February 2014, when given the opportunity to respond to the complaint, the defendants submitted several patient records to the Professional Licensing Unit, including some of the same patient records that had been collected by Blue Cross. The patient records submitted to the Professional Licensing Unit had altered test scores and additional notations that were not present when the same records were submitted to Blue Cross in November 2013.
During the period of the fraud scheme, Anderson Optical & Hearing submitted claims to Blue Cross for hearing aids on behalf of American Airlines employees totaling more than $27 million. As a result of these claims, Blue Cross paid Anderson Optical & Hearing more than $16.7 million.
At trial, Terry Anderson took the stand in his own defense. In an attempt to shift the blame on to patients who were more interested in his offer of free sunglasses than they were in hearing aids, he testified, “Well, unfortunately among us are people that will take advantage of perhaps any program, if they have an opportunity to.”
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Douglas Brasher and Rachael Jones prosecuted the case with the assistance of Andrew Wirmani, Marcus Busch, Mark Tindall, and Dimitri Rocha.
Federal Grand Jury Indicts Navajo Man from Crownpoint on Federal Assault and Firearm Charges Arising from Drive-By Shooting That Injured Two Navajo ChildrenRead the Press Release
ALBUQUERQUE – A federal grand jury sitting in Albuquerque, N.M., returned an indictment yesterday charging Eli Frank Woody, 25, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., with federal assault and firearm charges arising out of a July 18, 2019 drive-by shooting that injured two Navajo children.
The three-count indictment charges Woody with two counts of assault resulting in serious bodily injury to a child, and discharging a firearm during a crime of violence. According to the indictment, Woody assaulted and seriously injured two minor children on July 18, 2019, in Indian County in McKinley County, N.M. The indictment also alleges that Woody used and discharged a firearm to assault the two minor victims, causing them to suffer serious bodily injury. Woody is scheduled to be arraigned on the indictment on Aug. 21, 2019, in federal court in Albuquerque.
Woody was arrested on July 24, 2019, on federal charges arising out of the July 18, 2019 incident which were set forth in a criminal complaint that was filed on July 19, 2019. According to the criminal complaint, on July 18, 2019, Woody allegedly fired a shotgun from a vehicle, in which he was a passenger, into a residence, injuring two Navajo children who were inside the residence. The residence was located in Crownpoint, which is located within the Navajo Indian Reservation. The complaint stated that the children were transported to a hospital for medical care and survived the shooting.
Woody has been released to a halfway house under pretrial supervision pending trial, which has yet to be scheduled.
If convicted on the charges in the indictment, Woody faces up to ten years on each of the assault charges, and a mandatory minimum of ten years and a maximum of life imprisonment on the firearms charge that must be served consecutive to any sentence imposed on the assault charges.
Charges in criminal complaints and indictment are only allegations. Defendants are presumed innocent unless and until proven guilty.
The Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety investigated the case, which is being prosecuted by Assistant U.S. Attorney David P. Cowen.
Elk Grove and Las Vegas Residents Indicted for Violating the United States’ Trade Embargo on IranRead the Press Release
SACRAMENTO, Calif. — A three-count indictment by a federal grand jury was unsealed today charging Dariush Niknia, 56, of Elk Grove, and Richard Lant, 74, of Las Vegas, Nevada, with a conspiracy to violate the United States’ embargo on Iran and engaging in prohibited trade-related transactions with Iran, U.S. Attorney McGregor W. Scott announced.
According to the indictment, between May and October 2015, Niknia and Lant conspired to unlawfully sell and supply 500 Russian-made tank helmets to Niknia’s contact in Tehran, Iran. The indictment alleges that in May 2015, Niknia contacted Lant, who operated R&L Ltd., a company that sold Russian items, and requested to purchase 500 tank helmets and to have the helmets shipped to Tehran. Niknia initially paid R&L monies to purchase two sample tank helmets and to have the helmets sent from Russia to Iran. Once Ninkia’s customer approved the second sample tank helmet, Niknia paid Lant additional money in an attempt to purchase an additional 50 tank helmets for shipment to Iran.
The embargo on Iran, which is enforced through the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations, prohibits the export, sale, and supply of goods to Iran by United States persons with very limited exceptions. It also prohibits, with very limited exceptions, United States persons from engaging in any transaction or dealing related to the sale or supply of goods to Iran.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
If convicted, Niknia and Lant face a maximum statutory penalty of 20 years in prison and a $1 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.
Dyersburg Apartment Group Settles Race Discrimination CaseRead the Press Release
Memphis, TN – Lee Clark, 42, of Dyersburg, Tennessee and the United States have entered into a civil settlement with Dyersburg Apartments, Ltd. and MACO Management Company, a Missouri limited liability company. U.S. Attorney D. Michael Dunavant announced the settlement today.
According to information presented in the consent order, in January 2012, Lee Clark (who is African American), sought to move into the Meadow Lane Apartments in Dyersburg, TN with his ex-wife and their two children. Approximately one week later, MACO rejected his application – allegedly because Clark had a prior felony conviction. Mr. Clark was later banished from the property. However, an investigation by the United States revealed that the defendants had not rejected or banished two comparable white applicants with criminal records.
The defendants agreed to a settlement wherein they will pay Mr. Clark $42,250. They have also reaffirmed their commitment to non-discrimination and agreed to make public postings on-site regarding anti-discrimination rules and include anti-discrimination language in their advertisements, rental applications, and rental agreements. Defendants' employees will receive non-discrimination training, and, for a period of three years, they will submit regular reports to the Department of Justice. Among other things, defendants will be required to report any oral or written complaint of race discrimination, any application denied due to criminal history or criminal record, and any Letter of Banishment issued.
U.S. Attorney D. Michael Dunavant said: "Racial discrimination in housing is illegal, immoral, and unacceptable. This office will uphold the rule of law by enforcing all of the requirements of the Fair Housing Act to adequately address and deter racial discrimination in housing, and we are satisfied that this settlement achieves justice for the victim and the community at large."
On August 13, 2019, U.S. District Court Judge J. Daniel Breen ordered Dyersburg Apartments, Ltd., and MACO Management Company to resolve this civil claim judgment of $42,250 payable to Lee Clark.
Assistant U.S. Attorney David Brackstone prosecuted this case on behalf of the government.
Durham Woman Sentenced to 18 Months for Elder Fraud AbuseRead the Press Release
WINSTON-SALEM, N.C. B A Durham resident was sentenced today in federal court in Winston-Salem on bank fraud and wire fraud charges, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
TERESA DENISE SCHNEIDER, age 52, of Durham, North Carolina, was sentenced to an 18 month term of imprisonment by United States District Judge Loretta Copeland Biggs. In addition, SCHNEIDER was ordered to serve five years of supervised release after completing her sentence, to make restitution in the amount of $336,173.89, and is subject to a forfeiture money judgment in the amount of $336,173.89. SCHNEIDER pleaded guilty to one count of bank fraud and one count of mail fraud in February 2019.
In 2010, SCHNEIDER was hired to help a retired doctor with meals, household cleaning, personal care, and shopping. SCHNEIDER also began to help her client pay his bills. In order to provide accountability, the client asked SCHNEIDER to provide copies of the monthly bank and credit card statements for all accounts held in his name to one of his sons. SCHNEIDER complied and emailed the monthly statements to her client’s son for his review. At no time did SCHNEIDER have signature authority on or any access to funds kept in any accounts, nor did she have her client’s power of attorney.
The client died in October 2013. While working on the father’s estate, his sons discovered that the statements provided by SCHNEIDER had been altered to remove and conceal transfers of funds to SCHNEIDER. Further investigation by the family and law enforcement revealed that SCHNEIDER had embezzled approximately $336,000.00 prior to the client’s death.
“Instead of honoring the elder she was hired to assist in his time of need, Ms. Schneider took advantage of her trusted position to defraud him. Thank you to the SBI and the US Postal Inspection Service for excellent work on this case. Financial fraud and exploitation of seniors in our communities is despicable. It violates federal law and all standards of decency,” said U.S. Attorney Martin. “It is a growing problem. That’s why the Department of Justice has made addressing elder fraud a priority, and why our office will aggressively investigate and prosecute these crimes.”
Locally, the United States Attorney’s Office works with the Federal Bureau of Investigation and the AARP to educate and inform senior Americans, their caregivers, and the public about fraud schemes targeting the elderly. The next program will take place at The Shepherd’s Center, 1700 Ebert Street, Winston-Salem, NC, on Monday, August 19, 2019 from 1:00 to 3:00 p.m.
The SCHNEIDER case was investigated by the North Carolina State Bureau of Investigation and the United States Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Frank J. Chut, Jr.
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Dunsmuir Man Convicted of Threatening and Intimidating a Forest Officer and Threatening to Shoot Down Fire-Fighting HelicoptersRead the Press Release
REDDING, Calif. — U.S. Magistrate Judge Dennis M. Cota found Jason A. Tobey, 46, of Dunsmuir, guilty today of one count threatening, intimidating, and interfering with a forest officer, U.S. Attorney McGregor W. Scott announced.
Immediately following the verdict, Judge Cota sentenced Tobey to two years of probation and a $500 fine. Federal law prohibits threatening to damage, destroy, or disable any aircraft in the special aircraft jurisdiction of the United States with the apparent will and determination to carry out the threat.
On May 9, 2019, a one-day bench trial was held in the District Courthouse in Redding. According to evidence presented at trial, in Sept. 2018, Tobey confronted a U.S. Forest Service employee multiple times threatening to shoot down helicopters that were assisting with efforts to fight the Delta Fire while it burned in the Shasta-Trinity National Forest. The Forest Service was using Mott Airport in Dunsmuir as a helibase in accordance with an agreement with the city and Siskiyou County. The helicopters were performing tasks such as infrared mapping to assist firefighters on the ground. Tobey lived adjacent to the airport and was angry about the helicopters’ flight path. He told a Forest Service employee and a flight crew member that he was going to “shoot those [expletive referring to helicopters] out of the sky if I have to.” The following day Tobey returned to the airport gate after a helicopter landed and told the same Forest Service employee, “Did I not [expletive] make myself clear yesterday, or am I out of my [expletive] mind?”
Evidence at trial showed that pilots altered their preferred flight paths as a direct result of Tobey’s multiple threats. Judge Cota rejected Tobey’s contention that his threats were protected by the First Amendment because threats to commit an unlawful act of violence like those made by Tobey are designed to intimidate and are not protected by the First Amendment.
This case was the product of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Christopher S. Hales prosecuted the case with assistance from U.S. Forest Service Patrol Captain Carson R. Harris.
Dominican National Pleads Guilty to Identity TheftRead the Press Release
BOSTON – A Dominican national formerly residing in Lawrence pleaded guilty yesterday in federal court in Boston to Social Security fraud and aggravated identity theft.
Freddy Tejada-Diaz, 50, a Dominican national formerly residing in Lawrence, pleaded guilty to one count of false representation of Social Security number and one count of aggravated identity theft. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Nov. 13, 2019. Tejada-Diaz will be subject to deportation proceedings upon completion of his sentence.
On Aug, 1, 2016, Tejada-Diaz applied for a Massachusetts identification card using the name, date of birth and Social Security number of a Puerto Rican born United States citizen. At the time of his arrest in April 2019, Tejada-Diaz had an arrest warrant out of Plymouth Superior Court for drug charges and a warrant of removal issued out of a New York immigration court. Tejada-Diaz was identified, among other things, from a fingerprint match to his immigration file bearing his photo, which showed that he was previously ordered removed on Sept. 5, 1996, but did not report to his scheduled immigration hearing. Instead, on Sept. 30, 1996, Tejada-Diaz obtained a Massachusetts identification card in the name of the United States citizen and, until his recent arrest, had been using that identity ever since.
The charge of false representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory two year prison sentence, to be served consecutive to any other sentence imposed, one year of supervised release and a fine of $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; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
District Man Pleads Guilty to Trafficking Crack Cocaine and Maintaining a Northeast, D.C. Stash Residence and ArsenalRead the Press Release
WASHINGTON – Michael Tobias, 37 of Southeast D.C., pled guilty today to trafficking crack cocaine and maintaining a stash residence and arsenal, announced U.S. Attorney Jessie K. Liu, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Tobias pled guilty before the Honorable Beryl A. Howell in the U.S. District Court for the District of Columbia to one count of possession with intent to distribute 28 grams or more of cocaine base. Tobias faces a mandatory minimum of five years of incarceration and up to 40 years of incarceration. Chief Judge Howell scheduled Tobias’ sentencing for October 25, 2019.
According to the government’s evidence, in June 2018, ATF agents and MPD officers began investigating the trafficking of narcotics from the 5200 block of Sheriff Road, Northeast, by narcotics traffickers that included Tobias. That block intersects the 900 block of 52nd Street, Northeast. During the investigation, law enforcement purchased 75 grams of crack cocaine from Tobias.
During certain of the drug purchases, Tobias would utilize a laundry room in the basement of 927 52nd Street, Northeast, in which to conduct his drug transactions. Video from the controlled purchases showed Tobias laying crack cocaine on the washer/dryer while counting the money provided by law enforcement for the drug purchases. As part of his plea, Tobias also acknowledged to using an apartment inside of 927 52nd Street, Northeast, to store, prepare, and package narcotics.
On May 21, 2019, during a search of the apartment pursuant to a warrant, ATF and MPD officers recovered eight digital scales, approximately $4,000 in U.S. currency, numerous forms of packaging material consistent with drug trafficking, such as, sandwich bags and unused ziplocs, three BB guns (two in pistol format, one in rifle format), and extensive quantities of marijuana and marijuana edibles for distribution. Tobias used the apartment to traffic narcotics with the assistance of another occupant, who was present at the residence during the search warrant. The occupant also had keys that led to an electrical closet in the basement laundry room, where a firearm and a small arsenal was recovered. In a ceiling crawl space, ATF and MPD officers recovered: (i) a Smith & Wesson .40 caliber pistol; (ii) eleven magazines, with a number of extended magazines, some of which were loaded; (iii) 862 rounds of ammunition in eight different calibers; (iv) a digital scale; (v) empty ziplocs for the packaging of narcotics; and (vi) firearm and ammunition boxes. The occupant, who assisted Tobias in the trafficking of narcotics from the stash residence, was murdered on July 9, 2019 while sitting in a vehicle two blocks away from the stash residence.
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
In announcing the plea, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case, and acknowledged the assistance of the Uniform Division of the United States Secret Service and the Federal Bureau of Investigation’s laboratory, who assisted with the recovery of evidence and the fingerprint and DNA analysis of that evidence. They also cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialist Candace Battle, Legal Assistant Peter Gaboton, and Assistant U.S. Attorneys Christopher Macchiaroli and Laura Crane of the Violent Crime and Narcotics Section, who conducted the underlying investigation, indicted the case, and prosecuted Tobias.
District Clergy Member Found Guilty of Multiple Counts of Child Sexual AbuseRead the Press Release
WASHINGTON – Urbano Vazquez, 47 of Washington, D.C., was found guilty by a jury today of committing four counts of child sexual abuse against to two children in his parish from 2015 to 2017, in Northwest Washington, announced U.S. Attorney Jessie K. Liu.
The guilty verdicts were returned Thursday, August 15, 2019, following a nine-day trial in the Superior Court of the District of Columbia. The Honorable Juliet McKenna scheduled sentencing for November 22, 2019.
The government’s evidence established that between on or about April 1, 2015 and May 31, 2015, Vazquez molested a 13-year-old girl while speaking with her in a parish office. In addition, between June 2016 and August 2017, Vazquez kissed and molested a separate 9-to-10-year-old girl in various places on church grounds, including near the church confessionals, in the church basement, and in the church sacristy. The jury also heard testimony from an additional teenage girl who Vazquez kissed in a church conference room.
In announcing the verdict, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department and the Department of Forensic Sciences Leica Team. She also acknowledged the efforts of the FBI's Washington Field Office, and those who worked on the case from the U.S. Attorney’s Office, including Supervisory Litigation Technology Specialist Leif Hickling, Victim/Witness Program Specialist Juanita Harris Tracy Owusu, Supervisory Victim/Witness Services Coordinator Katina Adams-Washington, Supervisory Paralegal Specialist Lynda Randolph, Paralegal Tiffany Jones, Appellate Assistant U.S. Attorneys Elizabeth Trosman, Chrisellen Kolb, and Elizabeth Danello, Deputy Chief Mark O’Brien, Assistant U.S. Attorney Ryan Creighton, and interns Aquila Maliyekkal and Rustin Armknecht. In addition, she appreciated the assistance of Elizabeth Dewar, Assistant Chief Counsel, Department of Homeland Security. She also acknowledged the efforts of Assistant U.S. Attorneys J. Matt Williams and Sharon Marcus-Kurn, who investigated and prosecuted the case. Finally, she expressed appreciation for the support of members of the Order of Friars Minor Capuchin and the Archdiocese of Washington.
Ms. Liu also notes that on October 22, 2018, the Superior Court Division’s Sex Offense and Domestic Violence Section and the Victim Witness Assistance Unit of the U.S. Attorney’s Office for the District of Columbia launched a hotline and e-mail address for survivors to report child sexual abuse by clergy. She continues to encourage survivors of child sexual abuse by clergy who wish to share their experiences and/or those who have knowledge of such abuse are encouraged to report these incidents to the U.S. Attorney’s Office for potential criminal investigation and prosecution, as a part of the Office’s Superior Court Division intake process.
Survivors of child sexual abuse by a clergy member that took place in a house of worship, school, or other location in the District of Columbia can call the Clergy Abuse Reporting Line at 202-252-7008 or send an e-mail to [email protected]. Survivors can access further information by visiting the following website: https://www.justice.gov/usao-dc/victim-witness-assistance/report-clergy-abuse
All reports will be reviewed and a team of experienced criminal investigators, prosecutors, and victim advocates from the Superior Court Division of the U.S. Attorney’s Office will determine whether any criminal charges can be brought or victim services provided. The victim advocates, who are part of the Victim Witness Assistance Unit, are available to offer support and guidance to survivors who wish to report.
Depending on the nature of the report, some information may be referred to law enforcement or the Office of the Attorney General for the District of Columbia.
Individuals in need of police assistance or wishing to report any other criminal activity or sexual assault or abuse should call 911.
Detroit Man Sentenced to 292 Months for Conspiracy to Distribute Heroin and CarfentanylRead the Press Release
LEXINGTON, Ky. — Lamar Thornton, aka “Juice”, 26, of Detroit, was sentenced today, to 292 months in federal prison, by United States District Judge Karen K. Caldwell, for conspiracy to distribute heroin and carfentanyl.
In February 2019, a jury found Thornton guilty of participating in the conspiracy. The evidence at trial established that from July 2016 to January 2017, Thornton was a source of supply of heroin and carfentanyl and the Court ultimately found that, during the conspiracy, Thornton was responsible for 1.872 kilograms of heroin and 315 grams of carfentanyl. Thornton, who resided in Detroit, arranged for the heroin and carfentanyl to be distributed in Central Kentucky. The scope of this drug trafficking included an overdose in Central Kentucky. Thornton’s co-defendants, Jerrod Doolin, Jeffrey Ruggiero, Darmon Shaw, and Thomas Lehmann were previously sentenced for their participation in the conspiracy. Thornton has a prior conviction for trafficking in heroin and had absconded from parole.
“A critical component of our drug enforcement effort is the prosecution of out-of-state sources of supply and drug dealers who cause overdoses,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “We remain committed to prosecuting these important cases. The defendant’s distribution of heroin and carfentanyl endangered many lives and contributed to addiction in Central Kentucky, for the sake of profits. His callous conduct certainly warrants the lengthy sentence he received.”
Under federal law, Thornton must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for eight years.
United States Attorney Duncan and Christopher Evans, Special Agent in Charge of the DEA, jointly made the announcement.
The investigation was conducted by the DEA. The United States was represented by Assistant United States Attorneys Cynthia T. Rieker and Todd Bradbury.
Delaware County Man and Schoharie County Woman Sentenced for Sexual Exploitation of a ChildRead the Press Release
ALBANY, NEW YORK – Joshua Carey, age 38, of Stamford, New York, and Ariel Machia, age 28, of Middleburgh, New York, were sentenced today to 40 years and 30 years in prison, respectively, for their sexual exploitation of an infant.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Carey and Machia both pled guilty to sexual exploitation of a child in February 2019, admitting that in 2016, they photographed one another engaged in sexually explicit conduct with a 1-year-old child. The couple was arrested for the offense in February 2018, when the images they produced were recovered by law enforcement in an unrelated investigation. They have been detained in federal custody since that time.
Today, Senior United States District Judge Thomas A. McAvoy sentenced Machia to serve 30 years in prison, followed by 20 years of supervised release. Carey, who is a registered sex offender with two prior convictions for rape in the second degree, was sentenced to serve a total of 40 years in prison, to be followed by lifetime supervised release. Both defendants will be required to register with the sex offender registry upon release.
This case was investigated by the FBI and its Child Exploitation Task Force, as well as the Schoharie County Sheriff’s Office, the Delaware County Sheriff’s Office, and the New York State Police. The case was prosecuted by Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Defendant Pleads Guilty to Conspiring to Provide Material Support to ISISRead the Press Release
Azizjon Rakhmatov, a citizen of Uzbekistan and resident of New Haven, Connecticut, pleaded guilty today to conspiring to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS). Today’s plea took place before United States District Court Judge William F. Kuntz, II. When sentenced, Rakhmatov faces up to 15 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; John C. Demers, Assistant Attorney General for National Security; William F. Sweeney, Jr., Assistant Director-in-Charge, (FBI), New York Field Office; and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
According to court filings, Rakhmatov’s co-defendants Abdurasul Juraboev and Akhror Saidakhmetov planned to travel to Syria to fight on behalf of ISIS. Rakhmatov and co-defendant Abror Habibov discussed providing their own money to cover Saidakhmetov’s travel expenses and to purchase a firearm for Saidakhmetov once he arrived in Syria. Rakhmatov also agreed to collect money from others to fund Saidakhmetov’s travel. On the day before Saidakhmetov’s scheduled departure, Rakhmatov transferred $400 into co-defendant Akmal Zakirov’s personal bank account to facilitate Saidakhmetov’s travel to and expenses in Syria.
Juraboev, Saidakahmetov, Habibov and Zakirov have previously pleaded guilty. Juraboev and Saidakahmetov each were sentenced to 15 years’ imprisonment. Habibov and Zakirov are awaiting sentencing.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Douglas M. Pravda, David K. Kessler, and J. Matthew Haggans are in charge of the prosecution, with assistance provided by Trial Attorney Steven Ward of the National Security Division’s Counterterrorism Section.
The Defendant:
AZIZJON RAKHMATOV
Age: 32
New Haven, ConnecticutE.D.N.Y. Docket No. 15-CR-95 (S-3)
Defendant Pleads Guilty to Conspiring to Provide Material Support to ISISRead the Press Release
Azizjon Rakhmatov, 32, a citizen of Uzbekistan and resident of New Haven, Connecticut, pleaded guilty today to conspiring to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS). Today’s plea took place before U.S. District Court Judge William F. Kuntz II.
John C. Demers, Assistant Attorney General for National Security; Richard P. Donoghue, U.S. Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, FBI, New York Field Office; and James P. O’Neill, Commissioner, New York City Police Department (NYPD), made the announcement.
According to court filings, Rakhmatov’s co-defendants Abdurasul Juraboev and Akhror Saidakhmetov planned to travel to Syria to fight on behalf of ISIS. Rakhmatov and co-defendant Abror Habibov discussed providing their own money to cover Saidakhmetov’s travel expenses and to purchase a firearm for Saidakhmetov once he arrived in Syria. Rakhmatov also agreed to collect money from others to fund Saidakhmetov’s travel. On the day before Saidakhmetov’s scheduled departure, Rakhmatov transferred $400 into co-defendant Akmal Zakirov’s personal bank account to facilitate Saidakhmetov’s travel to and expenses in Syria.
Juraboev, Saidakahmetov, Habibov and Zakirov have previously pleaded guilty. Juraboev and Saidakahmetov each were sentenced to 15 years’ imprisonment. Habibov and Zakirov are awaiting sentencing. When sentenced, Rakhmatov faces up to 15 years’ imprisonment.
Assistant United States Attorneys Douglas M. Pravda, David K. Kessler, and J. Matthew Haggans are in charge of the prosecution, with assistance provided by Trial Attorney Steven Ward of the National Security Division’s Counterterrorism Section.
Defendant Extradited to the United States from Mexico to Face Sex Trafficking ChargesRead the Press Release
Jose Miguel Melendez-Rojas was extradited to the United States yesterday, and is scheduled to be arraigned today before United States Magistrate Judge Vera M. Scanlon at the federal courthouse in Brooklyn on an 18-count indictment charging him with sex trafficking conspiracy, sex trafficking of minors, interstate prostitution, alien smuggling and money laundering conspiracy. Melendez-Rojas was arrested in February 2019 in Mexico following a joint investigation by U.S. Immigration and Customs Enforcement, Homeland Security Investigations, Mexico City and New York Offices, and the Mexican Federal Police. Melendez-Rojas is charged with five co-defendants: two were extradited from Mexico to the United States in October 2018, and three were previously arrested in the United States.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations (HSI), New York, announced the extradition and charges.
“With this extradition, the defendant Jose Miguel Melendez-Rojas will be held accountable in a United States court for sex trafficking women and girls and related crimes,” stated United States Attorney Donoghue. “The Department of Justice is committed to prosecuting to the fullest extent of the law those who profit from forcing vulnerable victims into sexual servitude.”
“Melendez-Rojas was flown thousands of miles to face charges for his role in trafficking and victimizing young women purely for profit. It’s alleged that he, with others in this ‘family business,’ used intimidation and abuse to force their victims to participate in sexual acts against their will,” stated HSI Special Agent-in-Charge Fitzhugh. “The safety and well-being of the victim comes first and we will continue to work with our law enforcement partners in ensuring these criminal organizations cease to victimize for revenue.”
As alleged in the second superseding indictment and other court filings, between 2006 and July 2017, Melendez-Rojas, and his co-defendant relatives, smuggled young women and girls from Mexico into the United States, where they were forced to work as prostitutes in New York City and elsewhere. The defendants conspired to launder the proceeds of their sex-trafficking and prostitution activities to conceal the illicit nature of the proceeds.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the sex-trafficking-related charges, each defendant faces a mandatory minimum sentence of 15 years’ and a maximum of life imprisonment.
Mr. Donoghue commended HSI New York’s Trafficking in Persons Unit for leading the investigation, and thanked the HSI Mexico City Attaché Office, the Department of Justice’s Office of International Affairs, the State Department, Interpol and the New York City Police Department for their assistance. He also extended his grateful appreciation to the government of Mexico for its role in advancing bilateral anti-trafficking enforcement efforts, and acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families.
The investigation, prosecution, bilateral enforcement action and extradition of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative. Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in the bilateral initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims and reunite victims with their children. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of more than 170 defendants in multiple cases in Georgia, New York, Florida and Texas, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers. The extraditions in this case are the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 80 defendants for sex trafficking; assisted more than 150 victims, including over 40 minors; reunited 19 victims’ children with their mothers; and secured restitution orders of over $4 million on behalf of trafficking victims.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Erin E. Argo and Monica K. Castro are in charge of the prosecution.
The New Defendant:
JOSE MIGUEL MELENDEZ-ROJAS
Age: 45
MexicoDefendants Previously Arrested:
FRANCISCO MELENDEZ-PEREZ (also known as “Paco” and “el Mojarra”)
Age: 25
Queens, New YorkFABIAN REYES-ROJAS
Age: 39
Queens, New YorkABEL ROMERO-MELENDEZ (also known as “La Borrega” and “Borrego”)
Age: 33
Queens, New YorkJOSE OSVALDO MELENDEZ-ROJAS
Age: 45
MexicoROSALIO MELENDEZ-ROJAS (also known as “Leonel, “Wacho” and “El Guacho”)
Age: 37
MexicoE.D.N.Y. Docket No. 17-CR-434 (ARR)
Convicted Drug Dealer Sentenced to Life in Prison for First Degree Murder of Drug SupplierRead the Press Release
LAS VEGAS, Nev. – A convicted drug dealer with a lengthy criminal history was sentenced to life in federal prison today in connection with the killing of a drug supplier at point-blank range during a drug deal gone bad in November 2013, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
Following a seven-day jury trial in May 2019, Louis Matthews, 37, was found guilty of conspiracy to possess marijuana with intent to distribute and using a firearm during and in relation to a drug trafficking crime resulting in death. United States District Judge Andrew P. Gordon presided over the trial.
The evidence at trial showed that Matthews, less than a month after being released from prison, having just served a lengthy sentence for possessing cocaine with the intent to distribute, planned the drug deal. On November 20, 2013, Matthews and his cousin, co-conspirator John Thomas, met in a North Las Vegas apartment to buy 20 pounds of marijuana from three suppliers: Angel Juarez, Julio Nunez, and Luciano Madrigal-Herrera. During the deal, Matthews and Thomas drew handguns and shot Madrigal-Herrera seven times at point-blank range in the chest, killing him. Matthews and Thomas then grabbed the marijuana and ran. Nunez chased after them with a shotgun, shooting Thomas in the back shoulder and causing him to drop the marijuana they stole.
Thomas, Nunez, and Juarez have all been sentenced to prison on charges related to the homicide.
Matthews has prior felony convictions for Possession of a Controlled Substance in 2001, Bribing or Intimidating Witness to Influence Testimony in 2004, Possession of a Controlled Substance in 2005, Possession with Intent to Distribute Cocaine Base in 2005 and Battery with Substantial Bodily Harm in 2015.
The investigation was conducted jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives and North Las Vegas Police Department. The case was prosecuted by Assistant United States Attorneys Alexandra Michael, Phillip Smith, and Steven Myhre.
This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Chester County Man Sentenced to Two Years of Imprisonment for Fleeing from Federal Park RangersRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 14, 2019, Jeffrey J. Steigelmann III, age 27, of Chester County, Pennsylvania, was sentenced to 24 months’ imprisonment, by United States District Court Judge James M. Munley, for fleeing from a law enforcement official.
According to United States Attorney David J. Freed, Steigelmann fled from National Park Service Rangers in the Delaware Valley Water Gap Recreation Area on October 21, 2018, in an automobile. After a lengthy high-speed chase, he was ultimately apprehended in Port Jervis, New York, after attempting to drive through a police barricade and puncturing his tires. Law enforcement recovered heroin and marijuana from Steigelmann’s vehicle.
Another individual involved in the incident, Saul Rivkin, age 55, of Chester County, pleaded guilty on July 2, 2019, to fleeing from National Park Service Rangers. Rivkin is awaiting sentencing.
The investigation was conducted by the National Park Service Rangers and other state and local law enforcement officials. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
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Cheryl Broussard Pleads Guilty to Wire FraudRead the Press Release
KNOXVILLE, Tenn. – Cheryl D. Broussard, 63, of Miami, Florida, entered a plea of guilty on August 14, 2019, in the United States District Court for the Eastern District of Tennessee at Knoxville, to a federal indictment charging her with wire fraud. Sentencing has been set for January 16, 2020, at 2:00 p.m., in United States District Court in Knoxville. Broussard faces a term of up to 20 years in prison.
In a written plea agreement, Broussard admitted to entering into an investment agreement with Iota Phi Lambda Sorority, Inc., a national business and professional women’s sorority, through which she would manage $100,000 of the sorority’s funds in securities. She told the sorority that she was employed at Contenta Capital Group, and falsely claimed that she was a registered investment advisor. Broussard sent periodic reports, containing fabricated information, to the sorority concerning the status of their investments. Rather than investing the funds, however, Broussard converted the money to her own use.
This prosecution was the result of an investigation by the Federal Bureau of Investigation. Trial Attorneys Tracee Plowell and Michelle Pascucci, of the U.S. Department of Justice, Fraud Section, and Assistant United States Attorney Frank M. Dale, Jr., represented the United States.
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