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30 July 2019
Lisbon man sentenced to more than 15 years in prison for having child pornography and soliciting people to rape and sexually assault childrenRead the Press Release
A Lisbon man was sentenced to more than 15 years in prison for having child pornography and soliciting people to rape and sexually assault children.
David Grunden, 34, previously pleaded guilty to one count of receipt of child pornography and one count of advertising child pornography.
Grunden solicited adults to be recorded having sex with children. Grunden posted at least 13 solicitations on adult bulletin boards between January and June 2018, including messages such as: “I love beating the life out of children. Gives me such a sexual rush. Even better when their parents are watching in horror,” according to court documents.
Grunden also received numerous images of minors engaged in sexually explicit conduct between 2014 and 2017. A search warrant was executed at Grunden’s residence on October 26, 2018. Investigators located more than 7,500 images of child pornography during the search, including images of children under the age of five years old being raped, according to court documents.
“Young children were raped to in order to produce the images this defendant downloaded and consumed,” U.S. Attorney Justin Herdman said. “Real children had their lives destroyed, and this defendant was actively soliciting people to subject more children to torture. The community is safer with this man behind bars.”
“Possessing, producing and sharing child pornography is despicable,” said FBI Special Agent in Charge Eric B. Smith. “To add in the desire to sexually torture children goes beyond comprehension. For his heinous acts, David Grunden will now spend a significant amount of time behind bars where he will no longer be a threat to kids."
This case is being prosecuted by Assistant U.S. Attorney Brian Deckert following an investigation by the FBI, the Mahoning Valley Violent Crimes Task Force and the Ohio Bureau of Criminal Investigation.
Lakeland Man Sentenced to More Than 41 Years on Child Pornography ChargesRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Honeywell today sentenced Edwin Santiago (43, Lakeland) to 41 years and 8 months in federal prison for attempted production and possession of child pornography.
Santiago had pleaded guilty on April 22, 2019.
According to court documents, Santiago attempted to produce at least two sex abuse videos of an 8-year-old child. Santiago also distributed videos to individuals on the internet with whom he was discussing an interest in child exploitation. During online chats, Santiago expressed a desire to watch others sexually abuse the child and asked for volunteers to give the child sex lessons. Santiago also discussed and negotiated prices for the child’s virginity.
Santiago used internet-based platforms to distribute sex abuse material that included young children, toddlers, and sadomasochistic conduct. He also possessed over 100 images and over 100 videos of child pornography on his phone.
“The vile crimes committed by this child predator are beyond comprehension,” said Homeland Security Investigations Tampa Assistant Special Agent in Charge Micah McCombs. “We hope today’s sentencing is another step in the recovery for his victim.”
This case was investigated by the Department of Homeland Security, Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Frank Murray.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Kickapoo Woman Pleads Guilty to Felony Murder of Grandson in Casino Parking LotRead the Press Release
OKLAHOMA CITY – ALANNA JEAN ORR, 50, of Oklahoma City, has pleaded guilty to felony murder in the second degree by child neglect in Indian Country, announced U.S. Attorney Timothy J. Downing.
According to an affidavit in support of a search warrant signed in Oklahoma County District Court on July 17, 2018, Orr was caring for her five-year-old grandson on June 21, 2018, when she went to the Kickapoo Casino in Harrah. The affidavit explained that, according to surveillance video, Orr arrived at the casino at 1:23 p.m. and left at 7:28 p.m. It was alleged that during this time, her grandson remained in the car. The high temperature in Harrah that day was allegedly ninety degrees.
Approximately fifteen minutes after she left the casino, according to the affidavit, Orr called 911 and reported her grandson had choked and was not breathing. The affidavit stated Harrah police officers met Orr at the Harrah Police Department and attempted to resuscitate the child but found that rigor mortis had already begun.
On April 17, 2019, a federal grand jury returned an indictment that charged Orr with second degree felony murder by child neglect in Indian Country. In particular, it alleged Orr, who is a member of the Kickapoo Tribe, caused the death of a child by willfully failing to provide adequate shelter and supervision while she was responsible for the child’s health, safety, and welfare. This crime is subject to federal jurisdiction because the defendant and victim are Indians and the offense took place on tribal trust land.
Today Orr pleaded guilty to the indictment. During a hearing before U.S. District Judge Scott L. Palk, she admitted she caused her grandson’s death by leaving him unattended on a hot summer afternoon in the back seat of her car with no air conditioning.
Orr faces a maximum potential penalty of life in prison and a fine of $250,000. She could also face up to five years of supervised release after any prison sentence.
This case is a result of an investigation by the Harrah Police Department, the Kickapoo Tribal Police Department, the Oklahoma District 23 Drug Task Force, the District Attorney’s Offices for Cleveland, Lincoln, and Pottawatomie Counties, and the FBI Oklahoma City Division. Assistant U.S. Attorneys Mark R. Stoneman and Mary E. Walters are prosecuting the case, with assistance from Cleveland County Assistant District Attorney Pattye High.
Reference is made to public filings for more information.
Kanawha County Woman Pleads Guilty to Meth DistributionRead the Press Release
CHARLESTON, W.Va. – Stephanie Barnett, 36, of Kanawha County, entered a guilty plea in court today to possession with intent to distribute methamphetamine, announced United States Attorney Mike Stuart. The investigation was conducted by the Drug Enforcement Administration.
“Barnett brought over six pounds of meth from Cleveland back to Charleston for distribution – SIX POUNDS,” said United States Attorney Mike Stuart. “When we shut down significant drug pipelines like this from out-of-state we protect our children and reduce the availability of these dangerous drugs in our communities.”
On February 6, 2019, Barnett’s vehicle was pulled over in Cross Lanes, West Virginia, by a Kanawha County Sheriff’s deputy. Barnett initially lied to the deputy about her name and age, and the deputy also smelled burnt marijuana inside the car. The deputy retrieved his K-9 partner, who also indicated that there were narcotics inside the car. Inside the console of the car, officers found a small baggie of methamphetamine. When the officers opened the trunk, they found a large, plastic bag that contained three large bricks of methamphetamine. Each brick weighed approximately two pounds. The methamphetamine was sent to the DEA Mid-Atlantic Lab where it tested as being over 93% pure methamphetamine. Barnett had traveled to Cleveland, Ohio, where she received over six pounds of methamphetamine. She had intended to deliver the methamphetamine to local dealers in Charleston.
Barnett faces a mandatory minimum of 10 years in prison and a maximum of life in prison. Assistant United States Attorney L. Alexander Hamner handled the prosecution. Senior United States District Judge John T. Copenhaver, Jr. will impose sentencing on October 30, 2019.
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Justice Department Settles Immigration-Related Discrimination Claim Against Arizona Baked Goods SupplierRead the Press Release
The Department of Justice today announced that it reached a settlement agreement with United General Bakery Inc., or Upper Crust Bakery (UCB), a baked goods supplier located in Phoenix, Arizona. The settlement resolves the Department of Justice’s investigation into whether the company discriminated against authorized workers based on their citizenship status in violation of the Immigration and Nationality Act (INA) when verifying their authorization to work.
“Employers must not request additional, unnecessary work authorization documents from employees based on their citizenship status,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We look forward to working with Upper Crust Bakery to ensure its compliance in the future.”
The investigation concluded that UCB discriminated against non-U.S. citizen workers by requiring them to present unnecessary and specific immigration documents to prove their work authorization at both initial hire and reverification, even when the workers had other valid, legally acceptable documents proving that they were authorized to work in the United States. The antidiscrimination provision of the INA prohibits employers from making unnecessary requests for documentation to prove work authorization based on a worker’s citizenship status or national origin.
Under the settlement, UCB will pay $45,000 in civil penalties to the United States, train its human resources personnel on the requirements of the INA’s antidiscrimination provision, and be subject to compliance monitoring by the Department of Justice over a two-year period.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination against work-authorized individuals based on citizenship status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
Employers can find information on how to avoid unlawful discrimination based on citizenship status or national origin here. Workers can find information about their rights under the antidiscrimination provision of the INA here. For more information about protections against employment discrimination under the INA, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Justice Department Resolves Claims that California Loan Modification Service Providers Discriminated Against Hispanic Homeowners Based on Their National OriginRead the Press Release
The Department of Justice today announced a series of settlements to resolve allegations that several California-based mortgage loan modification service providers engaged in national origin discrimination in violation of the federal Fair Housing Act when they targeted Hispanic homeowners for predatory mortgage loan modification services and interfered with those individuals’ ability to keep their homes.
The Settlement Agreements resolve a lawsuit that the Department filed in the U.S. District Court for the Northern District of California. Among other relief, the agreements establish a restitution fund of more than $148,000 to reimburse the discrimination victims for fees collected by defendants as part of the predatory scheme. The lawsuit arose from complaints filed with the U.S. Department of Housing and Urban Development (HUD) by two of the defendants’ former clients, Eberardo Perez and Roberto Hernandez, who intervened in the lawsuit along with their attorney, Housing & Economic Rights Advocates (HERA), and members of Hernandez’s family.
“The defendants in this case violated federal law and harmed working families when they exploited Hispanic homeowners and targeted them with predatory mortgage services,” said Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division. “These settlements reflect the Department’s unwavering commitment to stop such schemes and to ensure that all homeowners can access mortgage services free from discrimination.”
“Hispanic families struggling to stay in the homes they worked hard to purchase need real help, not phony loan services that make a bad situation worse,” said Anna María Farías, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue working with the Justice Department to take action when individuals and companies take advantage of homeowners because of where they come from or because they speak Spanish or other languages.”
The Department of Justice alleged in its Amended Complaint that in 2009 and 2010 three companies based in Modesto, California – The Home Loan Auditors LLC (THLA), Century Law Center LLC (CLC), and SOE Assistance Center Inc. (SOE) – along with the principals of these entities and a law firm, convinced as many as 400 Hispanic homeowners to pay approximately $5,000 for unnecessary loan audits. The defendants told homeowners that audits were essential for loan modifications, but in fact the audits had no impact on the loan modification process and provided no financial benefit. The Department of Justice also alleged that the defendants, as part of their advertised loan modification service, encouraged their clients to stop making mortgage payments and instructed them to cease contact with their lenders. This advice resulted in many homeowners defaulting on their mortgage payments and ultimately losing their homes.
The three companies named in the lawsuit – THLA, CLC, and SOE – ceased operations several years ago. As of today, the Justice Department resolved its lawsuit against individuals who owned and operated those companies: Raul Luna, Omar Alcaraz, Hortencia Leon, Oralia Gutierrez, Elena Ramirez, and Araceli Castro. It also resolved its lawsuit against David Spieker, an attorney who worked for the companies on aspects of their scheme. As part of their settlements, the defendants agreed to refrain from engaging in discriminatory conduct. Collectively, the defendants also agreed to contribute more than $148,000 into a restitution fund that will be used to reimburse former clients for fees paid to THLA, CLC, or SOE, with five defendants agreeing to an additional $405,699 in suspended judgments, which would be collected only if they have misrepresented their current financial situations.
In addition to the restitution fund established in connection with the United States’ claims, HERA, Perez, and Hernandez have reached separate settlement agreements with defendants, which include additional compensation totaling $91,650.
Fighting illegal housing discrimination is a top priority of the Justice Department. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
Jury Verdict: Lawrence Developer Violated Asbestos Disposal LawsRead the Press Release
TOPEKA, KAN. – A jury today found a Lawrence developer guilty on charges of disposing of asbestos in violation of the Clean Air Act.
Thomas S. Fritzel, 53, Lawrence, Kan., was convicted on the following counts:
- Failing to notify authorities before removing asbestos (count two).
- Failing to keep asbestos wet during demolition to prevent air contamination (count three).
- Failing to dispose of asbestos in leak-tight containers (count four).
During trial, the government presented evidence that Fritzel violated federal laws for handling asbestos during demolition and renovations at the Alvamar Country Club in Lawrence. The government presented evidence to show that Fritzel knew that the roof of the country club contained 75 percent chrysotile asbestos. The previous owners, who sold the club to Fritzel in January 2016, had decided not to replace the roof because of the cost of abating the asbestos.
On October 19, 2016, the Kansas Department of Health and Environment told Fritzel to get a licensed asbestos contractor to remove asbestos from the site and dispose of it properly. On Oct. 25, 2016, KDHE inspected the site and determined asbestos debris had been removed and hauled to Hamm Landfill in Perry, Kan., which is not approved for asbestos disposal.
Sentencing will be set for a later date. He faces a penalty of up to two years in federal prison and a fine up to $250,000 on count two and up to five years and a fine up to $250,000 on counts three and four. First Assistant U.S. Attorney Duston Slinkard commended the Environmental Protection Agency – Criminal Investigation Division and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Iowa Woman Indicted on Meth Trafficking ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Sioux City, Iowa, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Veronica Arciniega, age 42, was indicted on July 16, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 26, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 5 years, up to 40 years in prison and/or a $5,000,000 fine, at least 4 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 1, 2019, and July 16, 2019, Arciniega did knowingly and intentionally, combine, conspire, confederate, and agree with persons known and unknown, to knowingly and intentionally distribute and possess with intent to distribute 50 grams or more methamphetamine.
The charge is merely an accusation and Arciniega is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Arciniega was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Humboldt County Resident Sentenced to 36 Months in Prison for Being A Felon in Possession of an Assault RifleRead the Press Release
SAN FRANCISCO – Shayne Gregory Maupin was sentenced today to 36 months in prison for being a felon in possession of a firearm, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
Maupin, 27, of Humboldt County, Calif., pleaded guilty on May 14, 2019, to one count of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1). According to his plea agreement, on January 2, 2019, Maupin possessed a Romarm WASR-10 assault rifle, with a 30-round magazine, loaded with 7.62 x 39 mm ammunition, inserted into it. Maupin further admitted he possessed additional equipment including a 10-round magazine loaded with 7.62 x 39 mm ammunition, additional rounds of ammunition, and a camouflage body vest. Maupin admitted that at the time he possessed these items, he already had been convicted of a felony punishable by a term of imprisonment exceeding one year and therefore he was not eligible to possess a firearm.
On February 7, 2019, a federal grand jury indicted Maupin charging him with one count of being a felon in possession of a firearm and one count of being a felon in possession of ammunition, both in violation 18 U.S.C. § 922(g)(1). Pursuant to his plea agreement, Maupin pleaded guilty to the firearm charge. The ammunition charge was dismissed at sentencing.
The sentence was handed down by the Honorable Richard Seeborg, U.S. District Judge. Judge Seeborg also sentenced the defendant to a three-year period of supervised release. The defendant will begin serving the sentence immediately.
Assistant U.S. Attorney Lina Peng is prosecuting the case with the assistance of Margoth Turcios. The prosecution is the result of an investigation by the FBI with assistance from the Arcata Police Department.
Houston Man Sentenced in Methamphetamine-Trafficking ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JAMES HATCH, age 50, of Houston, Texas, was sentenced today after pleading guilty to one count of conspiring to traffic 500 grams of a mixture containing methamphetamine and one count of possessing a firearm in furtherance of drug trafficking. United States District Judge Susie Morgan sentenced HATCH to a term of imprisonment of 160 months, followed by five years of supervised release.
HATCH is one of eleven defendants charged in a 23-count federal indictment. Specifically, the indictment alleges that HATCH conspired to sell large quantities of methamphetamine with codefendants Stefen Daigle, Jeffrey Clines, Peter Giandalone, Paul Melancon, Julien Polk, James Hatch, Angel Renee Vidaure, Eulalio Torres-Cadenas, Delio Alfredo Lopez-Lopez, Lindsey Lopez, and Jacob Higginbotham. The indictment also alleges a number of individual acts of distributing and possessing with intent to distribute methamphetamine, as well as firearm offenses for codefendants HATCH, Vidaure, and Lopez-Lopez. Law enforcement developed evidence against this group of defendants using controlled purchases of methamphetamine, traffic stops and seizures, consensually recorded text messages and phone calls, search warrants, cooperator information, and self-incriminating statements.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, Louisiana State Police, Jefferson Parish Sheriff’s Office, Texas Department of Public Safety, Texas Highway Patrol, Montgomery County (Texas) Sheriff’s Office, Immigration and Customs Enforcement, AMTRAK Police, and the Orleans Parish District Attorney’s Office. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
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Grayson County Woman Sentenced for Health Care FraudRead the Press Release
Abingdon, VIRGINIA – Crystal Smith, a Troutdale, Va. woman who worked as a Consumer Directed Services Facilitator (CDSF) to assist elderly and disabled Virginia Medicaid recipients, was sentenced today to four months in prison and ordered to pay $113,877 in restitution. United States Attorney Thomas T. Cullen and Virginia Attorney General Mark R. Herring made the announcement today following Smith’s sentencing hearing in U.S. District Court in Abingdon.
“Medicaid providers, including those that provide home-based, education, and training services to disabled populations, are obligated to follow the letter of the law in billing for their work,” U.S. Attorney Cullen stated today. “We will continue to prosecute those who engage in fraudulent billing schemes and hold them accountable.”
“Anyone attempting to steal from Virginia’s Medicaid program needs to know we are watching, and we will hold you accountable,” said Attorney General Herring. “We cannot abide fraud that weakens this important program for those who truly need assistance.”
Smith, 51, pleaded in March 2019 to one count of health care fraud. According to court documents, Smith entered into a provider agreement with the Department of Medical Assistance Services (DMAS) and received payments from 2011 to 2018. The payments were for services provided to Medicaid recipients through Virginia Medicaid’s Commonwealth Coordinated Care Plus Waiver Program, formerly known as the Elderly or Disabled with Consumer Direction Waiver Program.
However, a review of Smith’s case files and Medicaid Billing reels, show Smith billed DMAS for 1,732 reassessments, routine visits, and trainings that did not have the required supporting documentation or did not occur at all. Smith admitted to making copies of recipient’s signatures on DMAS forms, which she then re-used to create subsequent forms.
From August 2011 to March 2018, Smith fraudulently billed DMAS $121,435 and was paid $113,877.
The investigation of the case was conducted by the Virginia Attorney General’s Office Medicaid Fraud Control Unit. Special Assistant United States Attorney and Assistant Attorney General Janine M. Myatt is prosecuting the case for the United States.
Former Union Official Admits Receiving Unlawful Cash Payments from Chicago BusinessRead the Press Release
CHICAGO — A former high-ranking official in a labor union admitted in federal court today that he accepted $325,000 in unlawful cash payments from a Chicago business and failed to report the payments on his federal tax returns.
JOHN T. COLI SR., 59, of Chicago, pleaded guilty to one count of receiving a prohibited payment as a union officer, and one count of making a false income tax return. The charges are punishable by a combined maximum sentence of eight years in federal prison. U.S. District Chief Judge Rebecca R. Pallmeyer did not immediately schedule a sentencing date. A status hearing was set for Oct. 31, 2019, at 9:30 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago; and Tara Sullivan, Acting Special Agent-in-Charge of the Chicago office of the Internal Revenue Service Criminal Investigation Division. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu and Abigail Peluso.
Coli served from 2000 to 2017 as the Secretary-Treasurer of Teamsters Local Union 727. Coli admitted in a plea agreement that from 2014 to 2017, he received quarterly payments of $25,000 from a Chicago business that employed workers represented by Local 727. The money was paid to Coli in cash in order to conceal Coli’s receipt of the payments, the plea agreement states. Coli acknowledged in the plea agreement that had law enforcement not intervened, he expected to receive four more quarterly payments from the company and then retire from the union.
The tax count pertains to Coli’s knowing and willful failure to report the secret cash payments as income for the calendar years 2014 through 2016. This conduct resulted in a federal tax loss of approximately $105,000, and a State of Illinois tax loss of approximately $12,500. In addition, Coli acknowledged in the plea agreement that he received income and other benefits from representatives of businesses that dealt with Local 727 that were not properly disclosed to the U.S. Department of Labor. According to the plea agreement, the benefits included meals in Las Vegas and other cities, free box seat tickets to National Football League and Major League Baseball games, use of a yacht in the U.S. and Italy, and periodic cash payments.
Former Director of East St. Louis Library SentencedRead the Press Release
The former director of the East St. Louis public library has been sentenced for embezzling thousands of dollars from the library for years. Marlon P. Bush, 48, of East St. Louis, Illinois, was ordered to serve 12 months in prison, followed by six months of home detention and two years of supervised release. From 2014 through 2016, while serving as the library’s director, Bush took excess salary for himself, stole from the salary of another library employee, and charged numerous personal purchases to the library’s credit cards. Bush pleaded guilty earlier this year to a federal indictment charging him with wire fraud and embezzlement from the library, a unit of city government that receives federal funds.
Steven D. Weinhoeft, U.S. Attorney for the Southern District of Illinois, said: “Investigating and prosecuting public corruption remains among the highest priorities for the Department of Justice.
Citizens need to be able to trust the people who work in all levels of government. Serious harm is done when public employees abuse that trust and put their own interests above the people they serve. For that reason, we will continue to vigorously prosecute all forms of public corruption in this district.”As part of his sentence, Bush was ordered to pay $48,102.86 in restitution to the library.
The investigation was conducted by the Southern Illinois Public Corruption Task Force which consists of agents with the FBI, IRS Criminal Investigation, and the Illinois State Police. The prosecution was handled by Assistant U.S. Attorney Norman R. Smith. Citizens are encouraged to report suspicions of public corruption to the Southern Illinois Public Corruption
Task Force Tip Line at (618) 589-7373.Felon Pleads Guilty to Firearm and Counterfeit Currency ChargesRead the Press Release
NORFOLK, Va. – A Portsmouth man pleaded guilty today to being a felon in possession of a firearm and uttering counterfeit money.
According to information before the court, Amaud Brown, aka “Moe Gunz”, 24, is a convicted felon and self-admitted member of the Gangster Disciples who obtained, or tried to obtain, at least seven firearms with the help of several straw-purchasers. Brown actually called one of the licensed gun stores he frequented to inquire about purchasing more guns while police officers were at that gun store investigating his previous straw-purchases.
Police executed a search warrant on Brown’s residence and recovered two loaded handguns, shotgun parts, dozens of rounds of ammunition, marijuana, cut and uncut counterfeit money printed on resume paper, and materials used to manufacture counterfeit money. Investigators later discovered that Brown had used fake $100 bills to rip off at least four victims, including a Navy serviceman, who had exchanged their electronic devices to him in return for what they believed was real cash.
Brown faces a maximum of 30 years in prison when sentenced on October 18. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Matthew S. Miller, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, and Angela Greene, Chief of Portsmouth Police, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney William B. Jackson is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-85.
Ex-Miles City high school athletic trainer sentenced to 12 years for coercion in molestation of boysRead the Press Release
BILLINGS—Former Miles City high school athletic trainer James E. “Doc” Jensen, Jr., who admitted to sexually abusing numerous boys under the pretense of a program he claimed would improve their physical performance, was sentenced on Tuesday to 12 years in prison and to three years of supervised release, U.S. Attorney Kurt Alme said.
Jensen, 79, pleaded guilty in March to coercion and enticement. There was no plea agreement.
Chief U.S. District Judge Dana Christensen of Missoula presided.
Jensen, the prosecution said in court records, was an athletic trainer at the Custer County District High School in Miles City from the 1970s to about 1998. Jensen used the Internet to develop a so-called “Program” he employed to coerce minor male student-athletes into sexual activity saying it would increase their physical performance.
“For years, James Jensen manipulated and committed horrible abuse against many boys, causing emotional and physical harm that his victims still suffer today. Our sincere hope is that this prosecution of Jensen, holding him accountable for his abuse, will help close a chapter in the lives of his many victims and allow them, their families and friends along with the Miles City community to begin to heal,” U.S. Attorney Alme said. “We recognize that coming forward to report abuse is difficult, but if you or someone you know is being physically or sexually abused, please report it,” he said.
Victim interviews confirmed that Jensen engaged in this conduct until at least 1999 and after his association with Custer County District High School. In a September 2018 interview with law enforcement, Jensen admitted the basic tenants of “The Program,” saying he got information for its administration from the Internet and had applied it to numerous minor children.
One of Jensen’s relatives told law enforcement of seeing apparent computer print-outs of “The Program” among Jensen’s possessions. Another witness told investigators about seeing Jensen online and deceptively attempting to contact minor children, particularly boys, by creating a false identity. Internet searches on Jensen’s computer were consistent with sexual interest in children.
Assistant U.S. Attorneys Zeno Baucus, Bryan Dake and Tim Tatarka prosecuted the case, which was investigated in 2018 by the FBI and the Montana Department of Justice’s Division of Criminal Investigation.
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Eleven Arraigned in Wide-Ranging Cape Cod Heroin ConspiracyRead the Press Release
BOSTON – Eleven Cape Cod and Rhode Island residents were arraigned yesterday in federal court in Boston on a multi-count indictment charging them with participating in a wide-ranging heroin trafficking conspiracy.
- Edwin Otero, 29, of Hyannis, was charged with conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin and discharging a firearm in connection with a drug trafficking crime;
- Justin Joseph, 32, of Pawtucket, R.I., was charged with conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin and discharging a firearm in connection with a drug trafficking crime;
- Krymeii Fray, 23, of Hyannis, was charged with conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin;
- Tony Johnson, 35, of Hyannis, was charged with conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin;
- Anthony Basilici, 35, of Pawtucket, R.I., was charged with conspiracy to distribute and possession with intent to distribute heroin and discharging a firearm in connection with a drug trafficking crime;
- Vinicius Zangrande, 35, of Centerville, was charged with conspiracy to distribute and possession with intent to distribute heroin;
- Brooke Cotell, 25, of Hyannis, was charged with conspiracy to distribute and possession with intent to distribute heroin;
- Ronny Baams, 37, of South Yarmouth, was charged with conspiracy to distribute and possession with intent to distribute heroin;
- Eric Brando, 27, of Osterville, was charged with conspiracy to distribute and possession with intent to distribute heroin;
- Joshua Johnson, 31, of Mashpee, was charged with conspiracy to distribute and possession with intent to distribute heroin; and
- Kimberly Lopes, 49, of Hyannis, was charged with conspiracy to distribute and possession with intent to distribute heroin.
According to court documents, in 2018, federal, state and local law enforcement began an investigation focusing on Edwin Otero, the alleged leader of a Cape Cod-wide drug trafficking organization. It is alleged that Otero and his co-conspirators distributed large quantities of heroin throughout Cape Cod - including Hyannis, Mashpee, Centerville, and Osterville, and Pawtucket, R.I. Interceptions from Otero’s cellphones identified 10 other members of his drug trafficking organization, such as Joseph, who is alleged to be Otero’s top lieutenant; Lopes, Otero’s mother, who distributed heroin for Otero; and Basilici and Zangrande, other key members of the Otero drug cell. In addition, interceptions identified other drug traffickers supplied by Otero, including Fray, Cotell (who is still on federal supervised release from a 2017 heroin conviction), Baams, Tony Johnson, Joshua Johnson, and Brando.
On May 8, 2019, Otero, Joseph and Basilici were allegedly involved in a shooting at Fray’s residence related to a drug debt Fray allegedly owed Otero. After the shooting, agents intercepted Otero discussing the fact that he had shot at Fray. Otero, Joseph and Basilici were also allegedly speaking in code about finding and hiding guns used in the shooting.
Each of the 11 defendants were initially charged by criminal complaint on May 20, 2019. As a result of multiple searches, agents seized heroin, oxycodone, packaging materials, scales, a finger press, cash, and three firearms, including a 9 millimeter assault-type weapon, at Otero’s grandmother’s residence that fit an ammunition clip recovered from Fray’s home on the night of the May 8 shooting.
The charge of conspiracy to distribute 100 grams or more of heroin carries a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years of supervised release and a fine of $5 million. Joseph and Tony Johnson face enhanced 10-year mandatory minimum sentences and the possibility of life in prison due to prior drug convictions for which they served more than one year in prison. The charge of conspiracy to distribute heroin carries a sentence of no greater than 20 years in prison, at least three years of supervised release and a fine of $1 million. Cotell and Brando face an enhanced maximum penalty of 30 years in prison and at least six years of supervised release due to prior drug convictions. The charge of discharging a firearm in connection with a drug trafficking crime carries a mandatory minimum sentence of 10 years and up to life in prison, to be served consecutive to any other sentence imposed on the drug trafficking counts, at least five years 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Barnstable Police Chief Paul MacDonald made the announcement. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
El Departamento de Justicia Resuelve una Denuncia de Discriminación Relacionada con la Inmigración contra un Proveedor de Productos de Panadería en ArizonaRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con United General Bakery Inc., o Upper Crust Bakery (UCB), un proveedor de productos de panadería ubicado en Phoenix, Arizona. El acuerdo resuelve la investigación del Departamento de Justicia, cuya meta era determinar si la empresa había discriminado a trabajadores autorizados con base en su estatus de ciudadanía, en contra de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés), a la hora de verificar su autorización para trabajar.
«Los empleadores no deben pedir que sus empelados entreguen documentos adicionales e innecesarias de autorización para trabajar por motivos del estatus de ciudadanía de ellos», afirma Eric Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles. «Esperamos colaborar con Upper Crust Bakery para garantizar su cumplimiento en el futuro».
La investigación concluyó que UCB había discriminado a trabajadores que no eran ciudadanos de los EE. UU. al requerir que presentasen documentos migratorios específicos e innecesarios para demostrar su autorización para trabajar, tanto para la contratación inicial como para la reverificación, incluso cuando aquellos trabajadores disponían de otros documentos válidos y legalmente aceptables que probaban que estaban autorizados para trabajar en los Estados Unidos. La disposición antidiscriminatoria de la INA prohíbe que los empleadores realicen solicitudes innecesarias de documentos basadas en el estatus de ciudadanía o la nacionalidad de origen de un trabajador para demostrar su autorización para trabajar.
Conforme al acuerdo, UCB pagará $45,000 en sanciones civiles a los Estados Unidos, capacitará a su personal de recursos humanos en cuanto a los requisitos de la disposición antidiscriminatoria de la INA y se someterá a la supervisión del cumplimiento por el Departamento de Justicia durante un período de dos años.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés), de la División de Derechos Civiles, es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe que se discrimine a individuos con autorización para trabajar por motivos de su estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; las prácticas documentales injustas; las represalias o la intimidación.
Los empleadores pueden buscar más información aquí sobre cómo evitar la discriminación ilícita por motivos del estatus de ciudadanía o la nacionalidad de origen. Los trabajadores pueden buscar más información aquí sobre sus derechos en virtud de la disposición antidiscriminatoria de la INA. Para más información sobre protecciones al amparo de la INA contra la discriminación en el empleo, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase a un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite las páginas web de la IER en inglés y español. Inscríbase a GovDelivery para recibir información actualizada de la IER.
Aquellos postulantes o empleados que creen haber sido sometidos a la discriminación por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen; o represalias pueden presentar una denuncia o llamar a la línea directa de la IER para trabajadores para pedir ayuda.
El Departamento de Justicia Resuelve Alegaciones que Declaran que Proveedores de Servicios de Modificación de Préstamos en California Discriminaron a Propietarios de Viviendas Hispanos con Base en Su Origen NacionalRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy una serie de acuerdos cuyo objetivo es resolver las alegaciones de que varios proveedores de servicios de modificación de préstamos hipotecarios con sede en California discriminaron a ciertos individuos con base en su origen nacional, en contra de la ley federal de Vivienda Justa, al tener como público objetivo para sus servicios depredadores de modificación de préstamos hipotecarios a propietarios de viviendas hispanos y al interferir en la posibilidad de estos individuos conservar sus viviendas.
El Acuerdo resuelve un pleito que el Departamento presentó ante el Tribunal de Distrito de los EE. UU. para el Distrito Norte de California. Entre otros tipos de compensación, los acuerdos establecen un fondo de restitución de más de 148.000 $ para reembolsar a las víctimas de discriminación por los honorarios cobrados por los demandados como parte del plan depredador. El Pleito es el resultado de las denuncias presentadas ante el Departamento de la Vivienda y Desarrollo Urbano de los EE. UU. (HUD) por dos ex clientes de los demandados, Eberardo Pérez y Roberto Hernández, quienes se intervinieron en el pleito junto con su abogado, Housing & Economic Rights Advocates (HERA) y algunos miembros de la familia de Hernández.
«Los demandados en este caso vulneraron la ley federal y perjudicaron a las familias trabajadoras al explotar a propietarios de viviendas hispanos y tenerlos como público objetivo para sus servicios hipotecarios depredadores», indicó Eric Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Estos acuerdos reflejan el compromiso inquebrantable del Departamento a poner fin a tales esquemas y a asegurar que todo propietario pueda acceder a servicios hipotecarios libres de discriminación».
«Las familias hispanas que están luchando por permanecer en las viviendas que trabajaron duro por comprar necesitan una ayuda real y no unos servicios hipotecarios falsos que empeoran una situación que ya de por sí está mal», declaró Anna María Farías, la Secretaria Auxiliar del HUD para la Vivienda Justa y la Igualdad de Oportunidades. «HUD seguirá colaborando con el Departamento de Justicia para tomar medidas contra aquellas personas y empresas que se aprovechen de propietarios de viviendas debido a su lugar de origen o porque hablen español u otros idiomas».
En su Denuncia Enmendada, el Departamento de Justicia alegó que del 2009 al 2010 tres compañías con sede en Modesto, California —The Home Loan Auditors LLC (THLA), Century Law Center LLC (CLC) y SOE Assistance Center Inc. (SOE)— junto con los directores de estas entidades y un bufete de abogados, convencieron a hasta 400 propietarios de viviendas hispanos que pagaran aproximadamente 5.000 $ para auditorías de préstamo innecesarias. Los demandados les dijeron a los propietarios de viviendas que las auditorías eran necesarias para las modificaciones de préstamo, pero en realidad las auditorías no tuvieron ningún impacto sobre el proceso de modificación de préstamo y no ofrecieron ningún beneficio financiero. Asimismo, el Departamento de Justicia alegó que como parte del servicio de modificación de préstamo que anunciaron, los demandados animaron a sus clientes a dejar de realizar pagos hipotecarios y les indicaron que dejaran de comunicarse con sus prestamistas. Estos consejos llevaron a que muchos propietarios de viviendas no pagaran sus hipotecas y que finalmente perdieran sus viviendas.
Las tres compañías nombradas en el pleito —THLA, CLC y SOE— cesaron sus actividades hace varios años. Hasta la fecha, el Departamento de Justicia ha resuelto su pleito contra los individuos que eran dueños y operadores de dichas compañías: Raúl Luna, Omar Alcarez, Hortencia León, Oralia Gutierrez, Elena Ramírez y Araceli Castro. También ha resuelto su pleito contra David Spieker, un abogado que trabajó para las compañías en ciertos aspectos de su esquema. Como parte de los acuerdos, los demandados acordaron abstenerse de conductas discriminatorias. Colectivamente, los demandados también acordaron contribuir más de 148.000 $ a un fondo de restitución que se utilizará para reembolsar a ex clientes por los honorarios pagados a THLA, CLC o SOE, y cinco de los demandados acordaron contribuir otros 405.699 $ por concepto de fallos suspendidos, lo cual solamente se podría cobrar si han hecho representaciones falsas en cuanto a su situación financiera actual.
Además del fondo de restitución establecido en conexión con las alegaciones de los Estados Unidos, HERA, Peréz y Hernández han llegado a acuerdos por aparte con los demandados, los que incluyen una indemnización adicional de 91.650 $.
La lucha contra la discriminación ilícita en la vivienda es de máxima prioridad para el Departamento de Justicia. La ley de Vivienda Justa prohíbe la discriminación en la vivienda por motivos de raza, color de piel, religión, género, estatus familiar, origen nacional y discapacidad. Para más información sobre la División de Derechos Civiles y las leyes que hace cumplir, consulte www.justice.gov/crt-espanol. Aquellos individuos que creen haber sido víctimas de la discriminación en la vivienda pueden llamar al Departamento de Justicia al 1-800-896-7743, enviar un correo electrónico al Departamento de Justicia a [email protected] o comunicarse con HUD al 1-800-669-9777.
Eight Individuals Indicted for Social Security FraudRead the Press Release
SAN JUAN, P.R. – On July 24 and 26, 2019, a Federal Grand Jury in the District of Puerto Rico returned six separate indictments charging eight (8) individuals with fraud against the Social Security Administration (SSA) in Puerto Rico, announced U.S. Attorney Rosa Emilia Rodríguez Vélez for the District of Puerto Rico. These cases were investigated by the Social Security Office of Inspector General (SSA-OIG) with the collaboration of the Department of Homeland Security, Office of Inspector General (DHS-OIG); Health and Human Services, Office of Inspector General (HHS-OIG); the Food and Drug Administration, Office of Criminal Investigations (FDA); Department of Veterans Affairs, Office of the Inspector General (VA-OIG); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); and the Police of Puerto Rico.
The SSA is responsible for the implementation of the Disability Insurance Benefits Program. The SSA provides monetary benefits to workers with severe, long-term disabilities, who have worked in SSA-covered employment for a required length of time. Spouses and dependent children of disabled workers may also be eligible to receive benefits. Pursuant to SSA regulations, a claimant must prove to SSA that he or she is disabled by furnishing medical and other evidence with the application. The application and supporting evidence is evaluated by SSA to determine the individual’s medical impairments and the effect of the impairment on the claimant’s ability to work on a sustained basis.
Three indictments charged four individuals with theft of government property, health care fraud, concealment, or failure to disclose work activity to SSA, and false statements or representations to the SSA. These defendants knowingly and willfully embezzled, stole, and converted to their own use the Social Security Disability Insurance Benefit payments to which the defendants knew that they were not entitled.
The defendants charged with accepting by fraud the Social Security Disability Insurance Benefit payments, knowing that they were not entitled to the same, are: Brunilda Rodríguez-Reyes and her son, Gerardo O. Navedo-Rodríguez, who received $156,616.50 from SSA, and fraudulently caused Medicare to pay approximately $55,151.51; Lalin Mercado-Vargas who received $168,854.90 from SSA and fraudulently caused Medicare to pay him approximately $77,780.78; and Ramón Julbe-Rosa (Julbe-Rosa), who received $79,369.00 from SSA and fraudulently caused Medicare to pay him $47,002.10.
Defendant Julbe-Rosa is also facing one count of fraud against the Department of Veterans Affairs for fraudulently receiving unemployability benefits, and one count of Fraud in Connection with Major Disaster or Emergency Benefits related to Hurricane María. Julbe-Rosa applied for an SBA Disaster Loan by falsely representing that on September 20, 2017, his primary residence, damaged by Hurricane Maria was located in Morovis, Puerto Rico when he well knew that this was not his primary residence. As a result, the defendant fraudulently received $50,000.00 from SBA. Julbe-Rosa was also charged with his wife Ena I. Octaviani with Introduction into Interstate Commerce of Unapproved New Drugs. Defendant Julbe-Rosa established and operated the website www.acietedeguanabana.com through which he promoted and sold various products intended as treatments for serious medical conditions without FDA approval. Defendant Julbe-Rosa sold at least $341,242.26 worth of unapproved new drugs. Defendant Ena I. Octaviani-Santana was charged in this same indictment with aiding and abetting Julbe-Rosa to submit false information to SSA.
Defendant Carlos Del Valle-Figueroa was charged with distribution of controlled substances, theft of government property, concealment, or failure to disclose work activity to SSA, and false statements or representations to the SSA. Del Valle-Figueroa fraudulently received $33,222.00 from SSA.
Defendant Johana Torres-Figueroa was charged with making false statements to SSA, aggravated identity theft, and fraud in connection with major disaster or emergency benefits. Between October 11, 2017, and continuing through January 2, 2018, Torres-Figueroa falsely and fraudulently applied for FEMA benefits on behalf of an elderly victim (M.G.O.), although the defendant knew that she was not the caregiver with authorization to request assistance on behalf of the elderly victim. As a result of this fraudulent scheme, Johana Torres-Figueroa received $500.00 for Critical Needs Assistance; $869.65 for Home Repair Assistance; $3,807.66 for Personal Property Assistance; and $748.00 for Rental Assistance, for a total of $5,925.31.
In another indictment, David Arocho-Castro (son of C.C.R) was charged with theft of government property. After C.C.R died on December 21, 2011, David Arocho-Castro failed to notify SSA about her death and used the money that his mother received from the SSA, benefits to which he knew he was not entitled. As a result of this scheme, between January 3, 2012, and continuing through December 3, 2018, David Arocho-Castro stole from SSA approximately $31,392.00.
“The U.S. Attorney’s Office and Federal Law Enforcement partners remain vigilant in our quest to identify those corrupt individuals who by deceit and fraud attempt to illegally benefit from federal funds depriving other law abiding citizens from much needed health benefits, disability and emergency assistance. We remain steadfast in our commitment to bring to justice unscrupulous individuals who illegally seek personal financial gain,” said United States Attorney Rosa Emilia Rodríguez-Vélez.”
“Today’s arrests are the latest in our continued and ongoing effort to bring to justice all individuals who commit Social Security Fraud, said SSA-OIG, Special Agent in Charge John F. Grasso. “I am very grateful for the efforts of our law enforcement partners involved in these investigations, and for the continued commitment from the United States Attorney’s Office for the Commonwealth of Puerto Rico to aggressively pursue these important cases. I strongly encourage the public to report suspected instances of Social Security fraud to our dedicated Fraud Hotline at 1-855-278-5982 or https://oig.ssa.gov/report.”
“The FBI appreciates the outstanding work of the U.S. Attorney’s Office, the Office of Inspector General for the Social Security Administration, Health & Human Services, and the Drug Enforcement Administration, and remains confident the we and our partners have the capacity to address any fraud scheme that threatens those who are in real need of these benefits, especially the elderly and the children,” said Judith Priegues-Lopez, Assistant Special Agent in Charge of the FBI-San Juan Field Office. “As always, we encourage anyone who has information on this fraud and any other fraud schemes to come forward. We are available 24 hours a day at 787-754-6000 and https://www.fbi.gov/tips”.
“The FDA’s drug approval process ensures that patients receive safe and effective products. Evading the FDA’s authority and selling unapproved drugs to vulnerable consumers will not be tolerated,” said Justin C. Fielder, Acting Special Agent in Charge, FDA Office of Criminal Investigations, Miami Field Office. “The FDA remains fully committed to aggressively pursuing those who place profits above the health and safety of American consumers.”
Special Assistant U.S. Attorney Vanessa D. Bonano-Rodríguez is in charge of the prosecution of these cases. If convicted, the defendants charged with SSA fraud could face a maximum penalty of 10 years in prison; the defendant charged with Fraud in Connection with Major Disaster (Hurricane María) or Emergency Benefits faces a maximum penalty of up to 30 years in prison; and the defendant charged with health care fraud faces a maximum penalty of up to 10 years in prison. All defendants are subject to a fine of up to $250,000.00. The indictments contain only charges and are not evidence of guilt. The defendants are presumed to be innocent unless and until proven guilty.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 20 federal, state, and local agencies participate in the NCDF, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims, and to be especially cautious of anyone who contacts you seeking personal identifying information or financial information. Members of the public who suspect fraud involving disaster relief efforts, or who believe that they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here.
Dover Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
CONCORD – Alfonz Vei, 45, of Dover, pleaded guilty in federal court to distributing methamphetamine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, beginning in September of, 2018, an undercover law enforcement officer (UC) purchased methamphetamine from Kristen Hodgkins. On October 9, 2018, in Dover, Vei and Hodgkins distributed 43.6 grams of methamphetamine to a UC. Agents observed Vei weighing out the methamphetamine on a scale just before Hodgkins took the drugs and delivered them to the UC.
On January 11, 2019, postal inspectors intercepted a package from a fictitious address and addressed to a residence in Dover, where Vei had a prior affiliation. Investigators observed Vei arrive at the address at approximately the time the package was due to be delivered. The package was searched pursuant to a warrant and was determined to contain 444.4 grams of methamphetamine.
On January 16, 2019, Vei was stopped driving a car in Exeter. He had an unloaded Glock 9 mm firearm in the vehicle, as well as approximately one ounce of methamphetamine and 115 ecstasy pills.
Hodgkins previously pleaded guilty on June 19, 2019 and will be sentenced on September 25, 2019. Vei is scheduled to be sentenced on November 14, 2019.
“Methamphetamine presents a grave threat to the health and safety of the residents of New Hampshire,” said U.S. Attorney Murray. “In order to protect the public, we will continue to be aggressive in our efforts to identify and prosecute those who distribute this dangerous drug in the Granite State.”
This matter was investigated by the Drug Enforcement Administration and the United States Postal Inspection Service with assistance from the New Hampshire State Police and the Rochester Police Department. The case is being prosecuted by Assistant U.S. Attorney John Davis.
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Detroit Man Pleads Guilty to Federal Drug CrimesRead the Press Release
CHARLESTON, W.VA.– United States Attorney Mike Stuart announced that a Detroit, Michigan man pled guilty to an indictment charging him with federal drug crimes. Edward King, 29, pled guilty to conspiracy to distribute and possession with intent to distribute oxycodone. The case was investigated by the Kanawha County Sheriff’s Department.
“Since the opioid epidemic began, Detroit drug dealers have wreaked havoc and destruction in West Virginia,” said United States Attorney Mike Stuart. “The target that’s been on the backs of our citizens is now on the backs of the drug dealers. We’re focused in. Taking them down. And holding them accountable.”
During the plea hearing, King admitted that in April 2015 he conspired with another person to distribute oxycodone. He further admitted that he traveled to Charleston from Detroit on April 7, 2015 and that he possessed 115 30 milligram oxycodone pills which he intended to distribute in the Charleston area.
King faces up to 40 years in prison when he is sentenced on October 31, 2019.
Assistant United States Attorney Ryan A. Saunders handled the prosecution. Senior United States District Judge John T. Copenhaver, Jr. presided over the plea hearing.
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Delaware County Man Pleads Guilty on the Eve of Trial to Violent 2018 CarjackingRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that John Leroy Gordon, 27, of Chester, Pennsylvania, entered a plea of guilty to carjacking before the Honorable Gerald J. Pappert yesterday, just before trial was set to commence.
The charge arose from the defendant’s June 26, 2018 armed carjacking of a Chester woman in front of her home. During the incident, the defendant robbed the victim of her car, which he then drove directly to Interstate 95, where he crashed it several minutes later. The defendant then fled on foot. The defendant’s flight was thwarted when he was swiftly apprehended approximately 15 minutes after crashing the stolen car, less than a half mile from the crash site, by officers from the Chester Police Department and the Pennsylvania State Police – Media Barracks.
“The defendant’s actions here both terrorized the victim and jeopardized the safety of other innocent drivers. A conviction in a high-profile, violent crime case such as this one serves justice and also brings relief to the entire community,” said U.S. Attorney McSwain. “I want to thank our investigating partners at the federal and local level who did such tremendous work bringing this defendant into custody.”
“Carjackings are terrifying for their victims, particularly when, as in this case, the perpetrator is armed,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Each and every day, the FBI and our law enforcement partners are working together to get violent criminals off the street and make our community safer all around.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation, Chester Police Department, and Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Sarah Damiani.
Defendant Sentenced in T&A Crips Gang CaseRead the Press Release
COLUMBUS, Ohio – One of 19 defendants charged in a gang-related racketeering conspiracy was sentenced in U.S. District Court today to 120 months in prison.
Dominique Bryant, also known as “Doggy,” 27, of Columbus, pleaded guilty in the racketeering conspiracy in January.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Interim Columbus Police Chief Thomas Quinlan, United States Marshal Pete Tobin and Franklin County Prosecutor Ron O’Brien, announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, Bryant and the other defendants are members and associates of the Trevitt and Atcheson Crips gang known as T&A.
The gang derived its name from Trevitt and Atcheson streets in the King-Lincoln District of Columbus, where its members predominantly reside.
Beginning in June 2010, T&A members and associates conspired in a racketeering enterprise and engaged in murders, attempted murders, drug trafficking, firearms trafficking, witness tampering, robbery, assault and other crimes.
The gang controlled the neighborhood through intimidation, fear and violence. Gang members were expected to retaliate with acts of violence when their members and associates were disrespected, threatened, intimidated or subjected to acts of violence.
Specifically, co-conspirators are charged with five murders:
the murder of Franky Tention on July 1, 2012, in the area of 431 Ellison Street;
the murder of William Moore on March 15, 2013;
the murder of Marvin Ector on December 23, 2013, on East 5th Avenue;
the murder of Quincy Story on January 24, 2015; and
the murder of Deaonte Fisher on March 4, 2016.
As part of Bryant’s plea agreement, he accepted responsibility for firing a gun and striking two members of the rival gang Poindexter Thug Life (PTL) at Beatty Park Recreation Center in June 2014.
Again, in 2014, Bryant retaliated against members of a second rival gang, the Milo Bloods, by shooting his firearm at a vehicle containing Milo Bloods members.
U.S. Attorney Glassman commended the investigation of this case by ATF, FBI and Columbus Police, as well as Assistant United States Attorneys David M. DeVillers, Kevin W. Kelley and Noah R. Litton, who are prosecuting the case.
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Covington Man Sentenced for Possessing and Making SilencersRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ROBERT LYONS, age 34, of Covington, was sentenced on Thursday, July 25, 2019 for federal firearms violations.
According to court documents, on March 3, 2017, LYONS possessed firearm silencers that were not registered to him in the National Firearms Registration and Transfer Record (“NFRTR). LYONS also made firearm silencers without obtaining prior approval from the federal government or paying the requisite tax.
U.S. District Judge Jane Triche Milazzo sentenced LYONS to 12 months and 1 day in prison, followed by 2 years of supervised release. A mandatory assessment fee of $200 will also be assessed.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN 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.
U. S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. The case is being prosecuted by Assistant United States Attorney Maria M. Carboni.
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Couple Charged in Marriage Fraud SchemeRead the Press Release
PITTSBURGH, PA -A Nigerian citizen residing in the Pittsburgh area and a resident of Newark, NJ have been indicted by a federal grand jury in Pittsburgh on a charge of conspiracy to defraud the United States, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on July 11 and unsealed yesterday, named:
• Monsuru Ogunbiyi, age 36, of Pittsburgh, PA 15227 (Whitehall); and
• Ajia Strauss, age 28, of Newark, NJ 07017.
According to the indictment presented to the court, from June 2016, to March 2019, Monsuru Ogunbiyi and Ajia Strauss conspired with one another to defraud the United States. Ogunbiyi, a native and citizen of Nigeria, and Strauss, a native and citizen of the United States, agreed to enter into a sham marriage so that Ogunbiyi could obtain lawful permanent residency in the United States. As part of the conspiracy, Ogunbiyi agreed to pay money to Strauss, including $1,500 on the day of their June 3, 2016, marriage in New Jersey. Also as a part of the conspiracy, Ogunbiyi and Strauss submitted false and fraudulent statements and documents to the United States.
The law provides for a maximum total sentence of not more than five years in prison, a fine of not more than $250,000, or both, for the charge of conspiracy to defraud the United States. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Convicted Money Launderer Indicted for Fraudulent SchemeRead the Press Release
BOSTON – A Hingham man who was convicted earlier this year of money laundering has been indicted by a federal grand jury on new charges of wire fraud, unlawful monetary transactions and money laundering conspiracy.
Yannick A. Minang, 26, was arrested on July 1, 2019, and charged by criminal complaint with one count of international money laundering conspiracy. Today, Minang was indicted on five counts of wire fraud, one count of unlawful monetary transactions and one count of money laundering conspiracy.
Earlier this year, Minang pleaded guilty to a five-count indictment for his role in a similar business email compromise (BEC) scheme in 2017. Minang is scheduled to be sentenced on those charges on Sept. 24, 2019, before U.S. District Court Judge F. Dennis Saylor.
As alleged in today’s indictment, Minang conspired with others to open numerous bank accounts in Massachusetts in the name of sham companies, as part of an apparent BEC scheme, which is a sophisticated scam often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques to cause employees of the victim company (or other individuals involved in legitimate business transactions) to transfer funds to accounts controlled by the scammers.
Through the use of fraudulent invoices and spoofed email accounts, Minang allegedly conspired to trick the victims of the scheme into wiring hundreds of thousands of dollars to bank accounts under his control. Minang and his co-conspirators then transferred funds from the accounts to others located overseas.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of the greater of either $250,000 or twice the gross gain or loss. The charge of unlawful monetary transactions provides for a sentence of up to10 years in prison, three years of supervised release and a fine of the greater of either $250,000 or twice the value of the criminally derived property. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000 or twice the amount involved in the transaction, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorneys William B. Brady, of Lelling’s Criminal Division, and Jordi de Llano, Deputy Chief of Lelling’s Securities & Financial Fraud Unit, are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Connecticut Landlord Sentenced to Prison for Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTHONY A. VALENTINO, 76, of Palm City, Florida, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to nine months of imprisonment, followed by one year of supervised release, for tax evasion. Judge Dooley also ordered Valentino to pay a $10,000 fine.
According to court documents and statements made in court, Valentino is a real estate investor who owns property in Connecticut and New York, including a 100-unit apartment complex in Naugatuck, Connecticut. From 2011 to 2013, Valentino deposited more than $1.1 million of rental real estate receipts, paid in cash or checks, into his personal bank accounts in Connecticut and New York, and failed to report the receipts on his personal and partnership federal tax returns.
For the 2011 through 2013 tax years, Valentino failed to report $1,008,125 in taxable income on his tax returns, and only reported $42,815 in taxable income. As a result, he evaded payment of $302,449 in income taxes.
The investigation also revealed that, in 2013, Valentino made or caused to be made 27 cash deposits totaling $247,100 into his savings account in Connecticut. Many of the cash deposits, which ranged in amounts from $7,000 to $9,900, were made on the same day at different times, or on consecutive days.
Federal law requires all financial institutions to file a Currency Transaction Report (“CTR”) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000.
Valentino has paid restitution to the U.S. Treasury of $302,339, but still owes approximately $333,000 in tax penalties and interest. He also has forfeited $100,000 related to his structuring of cash deposits.
On March 25, 2019, Valentino pleaded guilty to one count of tax evasion.
Valentino, who is released on a $50,000 bond, is required to report to prison on October 28, 2019.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Hartford and Stamford Police Departments. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Civil Settlement Reached with New Jersey CompanyRead the Press Release
NEWARK, N.J. – A New Jersey company and its principal will pay $2.4 million to resolve allegations that it improperly obtained contracts set aside for companies owned and controlled by service-disabled veterans, U.S. Attorney Craig Carpenito announced
The settlement resolves allegations that Regiment Construction Corp. and its principal, Daniel Hernandez, made false claims in conjunction with contracts awarded to Regiment by the United States. The government contends that Regiment and Hernandez improperly represented that Regiment was eligible to bid on contract set aside for companies owned and controlled by service-disabled veterans when, in fact, a veteran did not own and control Regiment. The United States contends that Regiment was owned by Hernandez, and not the veteran to whom ownership and control was attributed in Regiment’s certification to the United States.
U.S. Attorney Carpenito credited Special Agent Rafael Valverde of the United States Department of Veteran’s Affair’s Office of Inspector General, and Special Agent Michael Moffa of the U.S. Small Business Administration’s Office of Inspector General, with the investigation.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division and David E. Dauenheimer, Deputy Chief of the U.S. Attorney’s Civil Division, in Newark.
Chinese National Sentenced to over Three Years in Prison for Trafficking Counterfeit Apple Goods into the United StatesRead the Press Release
A Chinese national living in the United States on a student visa was sentenced today to 37 months in prison followed by one year of supervised release for his role in a scheme to traffic and smuggle counterfeit Apple products, including phony iPhones and iPads, from China into the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Special Agent in Charge Brian Michael of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Newark and Bergen County Prosecutor Mark Musella made the announcement.
Jianhua “Jeff” Li, 44, previously pleaded guilty before U.S. District Judge Kevin McNulty of the District of New Jersey, to one count of conspiracy to traffic in counterfeit goods and labels and smuggle goods into the United States and one count of trafficking in counterfeit goods. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court, from July 2009 through February 2014, Li, working through his company Dream Digitals, conspired with Andreina Becerra, Roberto Volpe, Rosario LaMarca and others to smuggle and traffic into the United States from China more than 40,000 electronic devices and accessories, including iPads and iPhones, along with labels and packaging bearing counterfeit Apple trademarks.
Li shipped the devices separately from the labels to avoid detection by U.S. Customs and Border Protection officials. The devices were then shipped to conspirators all over the United States. Proceeds were funneled back to conspirator accounts in Florida and New Jersey via structured cash deposits and then a portion was transferred to conspirators in Italy, further disguising the source of the funds. Over $1.1 million in sales proceeds were wired from U.S. accounts into accounts Li controlled overseas.
LaMarca, Becerra, and Volpe previously pleaded guilty to their respective roles in the scheme. LaMarca was sentenced July 21, 2017, to serve 37 months in prison. Becerra and Volpe were sentenced Oct. 15, 2018, to serve three years’ probation and 22 months in prison, respectively.
The HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Financial Crimes Unit investigated the case with significant assistance from HSI Attaché Rome, Europol and Italy’s Guardia di Finanza.
Senior Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Leslie Schwartz of the District of New Jersey prosecuted the case.
Chinese National Sentenced to 37 Months in Prison for Trafficking Counterfeit Apple Goods into United StatesRead the Press Release
NEWARK, N.J. – A Chinese national living in the United States on a student visa was sentenced today to 37 months in prison for his role in a scheme to traffic and smuggle counterfeit Apple products, including phony iPhones and iPads, from China into the United States.
U.S. Attorney Craig Carpenito of the District of New Jersey; Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division; Special Agent in Charge Brian Michael of Homeland Security Investigations (HSI) in Newark, and Bergen County Prosecutor Mark Musella made the announcement.
Jianhua “Jeff” Li, 44, previously pleaded guilty before U.S. District Judge Kevin McNulty to one count of conspiracy to traffic in counterfeit goods and labels and smuggle goods into the United States and one count of trafficking in counterfeit goods. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From July 2009 through February 2014, Li, working through his company Dream Digitals, conspired with Andreina Becerra, Roberto Volpe, Rosario LaMarca, and others to smuggle and traffic into the United States from China more than 40,000 electronic devices and accessories, including iPads and iPhones, along with labels and packaging bearing counterfeit Apple trademarks.
Li shipped the devices separately from the labels to avoid detection by U.S. Customs and Border Protection officials. The devices were then shipped to conspirators all over the United States. Proceeds were funneled back to conspirator accounts in Florida and New Jersey via structured cash deposits and then a portion was transferred to conspirators in Italy, further disguising the source of the funds. Over $1.1 million in sales proceeds were wired from U.S. accounts into accounts Li controlled overseas.
In addition to the prison term, Judge McNulty sentenced Li to one year of supervised release.
LaMarca, Becerra, and Volpe previously pleaded guilty to their respective roles in the scheme. LaMarca was sentenced July 21, 2017, to 37 months in prison. Becerra and Volpe were sentenced Oct. 15, 2018, to three years’ probation and 22 months in prison, respectively.
The HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Financial Crimes Unit investigated the case with significant assistance from Europol and Italy’s Guardia di Finanza.
The government is represented by Assistant U.S. Attorney Leslie Schwartz of the District of New Jersey and Senior Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section.
Billings man convicted of meth distribution at bench trialRead the Press Release
BILLINGS – A federal judge today convicted Billings resident Darrell Franklin Holliday on methamphetamine distribution charges after a two-day bench trial, U.S. Attorney Kurt Alme said.
U.S. District Judge Susan P. Watters presided and found Holliday, 48, guilty of all three counts in an indictment. Holliday was charged with possession with intent to distribute meth and two counts of distribution of meth. The trial began on Monday.
Holliday faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least four years of supervised release. He remains in custody pending sentencing.
Judge Watters will set a sentencing date.
Prosecutors presented evidence, including three witnesses, that Holliday was distributing meth in the Billings area and Montana beginning in August 2017. Investigators worked with a confidential informant, who obtained gram quantities of meth from Holliday in two controlled buys. In April 2018, Holliday provided officers a recorded statement in which he admitted to using meth daily when he had the chance. After his arrest, Holliday made statements during recorded jail calls implicating himself.
Assistant U.S. Attorneys Zeno Baucus and Karla Painter prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force and the FBI.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Anchorage Man Sentenced to Federal Prison for Making Threatening Statements against Family Members, Police Officers, OthersRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Tyler Chance Bateman, 29, of Anchorage, was sentenced today by Chief U.S. District Judge Timothy M. Burgess to serve four years in federal prison, followed by three years of supervised release, for using the internet to threaten Bateman’s parents, two Anchorage Police Department officers and their families, and shoppers at a local business. After a three-day trial in October 2018, a federal jury convicted Bateman on all eight counts of threatening interstate communications.
According to evidence presented at trial, on Feb. 4, 2018, Bateman left his home in Anchorage on a one-way airline ticket to New York City. On Feb. 26, 2018, while in New York, Bateman created a text message thread to three people – two family members and a former employer, writing about why he left Alaska, his plans for making a living in New York, how those plans failed, and asked that someone buy him a ticket back to Alaska. After none of the text message recipients offered to buy him a ticket, Bateman responded with a series of messages threatening to shoot, poison, and cut the victims. One of the threats suggested that Bateman would commit a mass shooting.
Later that same day, Bateman threatened, via social media, to shoot and poison an Anchorage Police Officer and “several other people.” Bateman also sent threats to the Police Officer’s personal social media account. Further, Bateman sent threats to APD’s public Facebook page saying, among other things, “I am going to walk into a building with an AR15. I am going to hurt a lot of people.” Approximately seven minutes later, Bateman sent a message to the same APD account alleging that a specific address is where the Chief of Police lived.
At the sentencing hearing, Judge Burgess remarked that “words matter,” noting that the defendant’s threats had a “profound impact” on the victims.
The Federal Bureau of Investigation (FBI), with assistance from the Anchorage Police Department (APD), conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jonas M. Walker.
Akron Man Pleads Guilty to Stealing FEMA Grant Funding Intended for Education ExpensesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Richard A. Lobur, 55, of Akron, NY, pleaded before U.S. District Judge Elizabeth A. Wolford to theft of government money. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that on January 12, 2015, the defendant deposited into his account at the Bank of Akron, $18,000 of grant funds intended to be used for educational expenses for his children. The funds were administered as part of a Federal Emergency Management Agency (FEMA) Staffing for Adequate Fire and Emergency Response (SAFER) grant.
Between January 12 and June 9, 2015, Lobur provided $15,000 of the grant funds to his children, but also converted more than $1,000 of the remaining $3,000 to his personal use. The defendant knew that he was not entitled to convert the grant funds to his own personal use and he knew that the intended and lawful use of the funds was for educational expenses for his children.
As part of his plea agreement, Lobur will pay restitution totaling $39,182.92. The money was used for, among other things: payments on a Yard Card, Discover Card, and FIA Card, which were used to buy a truck, lawnmower and camper, and a payment to Akron Mobile Home Park.
“It’s a sad day when a defendant chooses to line his own pockets with federal funding intended for the educational expenses of his own children,” stated U.S. Attorney Kennedy. “The SAFER grant is designed to allow individuals to serve the public as firefighters and first responders without the added burden and stress of having to figure out how to pay for their children’s education. Any misuse of such funding will not be tolerated and anyone who does attempt to abuse the program will be brought to justice.”
“The Department of Homeland Security (DHS), Office of Inspector General (OIG), is pleased by the assistance of the New York State Comptroller’s Office’s with the joint investigation to pursue criminal charges against Rick Lobur, a former firefighter in Akron, New York, for committing FEMA grant fraud,” stated John Tiano, Special Agent-in- Charge, Detroit Field Office. “The DHS-OIG will always relentlessly pursue those who selfishly use their position to betray the public trust.”
“Mr. Lobur took nearly $40,000 in federal grant money meant to further the education of firefighters and their families and instead used it for personal expenses including paying off his credit card debt and making loan payments,” said State Comptroller Thomas P. DiNapoli. “Thanks to my investigators and auditors working with the Federal Department of Homeland Security, Office of Inspector General, and the United States Attorney's Office for the Western District of New York, this shameless abuse of the public’s money was exposed. I thank United States Attorney James P. Kennedy and Acting Homeland Security Inspector General Jennifer L. Costello for their continued partnership.”
The plea is the result of an investigation by the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent-in-Charge John Tiano, Detroit Field Office, and the New York State Comptroller’s Office, under the direction of New York State Comptroller Thomas DiNapoli.
Sentencing is scheduled for October 30, 2019, before Judge Wolford.
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29 July 2019
Wichita Man Pleads Guilty to Threatening Operation Rescue workerRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty today to threatening an employee of the pro-life organization Operation Rescue, U.S. Attorney Stephen McAllister said.
Christopher M. Thompson, 22, Wichita, Kan., pleaded guilty of one count of making a threat. In his plea, he admitted making three phone calls to Operation Rescue in one day containing threats against the group’s employees.
Sentencing is set for Oct. 15. He faces a penalty of up to 20 years in federal prison and a fine up to $250,000. McAllister commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Ryan McCarty for their work on the case.
Virginia Man Pleads Guilty to Producing Child PornographyRead the Press Release
HUNTINGTON, W.Va. – A Virginia man pled guilty today to a child pornography offense, announced United States Attorney Mike Stuart. Conner Ray Blevins, of Vinton, Virginia, entered his guilty plea to two counts of production of child pornography.
“Heinous crime,” said United States Attorney Mike Stuart. “There are far too many individuals like Blevins on social media with the intent of sexually exploiting children. We will prosecute every one we find and lock them up for as long as possible.”
Blevins admitted that on October 5, 2018, he traveled from his residence in Virginia to West Virginia, where he picked up two minors under the age of 12 with whom he had been communicating with over Facebook. Blevins took the minors to a hotel in Putnam County where he proceeded to record a video depicting himself engaging in sexually explicit conduct with one of the minors. Blevins also admitted to engaging in sexually explicit conduct with the other minor as well.
Blevins faces at least 15 and up to 30 years in federal prison when he is sentenced on October 28, 2019. Upon his release from prison, he will be required to serve a term of supervised release of at least five years and up to life. He will also be required to register as a sex offender.
The investigation was conducted by the Putnam County Sheriff’s Department, the Mason County Sheriff’s Department, the West Virginia State Police, and the Department of Homeland—Security Homeland Security Investigations. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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U.S. Attorney's Office Continues to Promote Elder Justice Initiative by Partnering with Meals on WheelsRead the Press Release
The U.S. Attorney’s Office for the Eastern District of North Carolina continues to promote the Department of Justice’s (DOJ) Elder Justice Initiative (EJI) throughout the Wake County area. On July 22, 2019, the Eastern District partnered with Meals on Wheels in Wake County to conduct Phase II of its outreach to approximately 1,300 seniors in the area to raise awareness about DOJ’s Elder Justice Initiative and provide facts about financial exploitation and how seniors can protect themselves from falling victim.
Below are some facts shared with the community about financial exploitation:
- Examples of financial exploitation include:
- Using ATM cards without permission
- Forging a signature on a check or property title (wills, deeds)
- Using a power of attorney to benefit oneself rather than the older adult
- Unauthorized sales, such as a family ring or the family farm
- Threats to harm precious property if money is not handed over
- How to protect yourself from financial exploitation
- Check your financial statements each month
- Store financial materials in a locked drawer or out of sight
- Talk to your bank about age-friendly banking options
- Contact a civil legal attorney before signing documents
- Visit ftc.gov every year to get your free credit reports
The mission of the Elder Justice Initiative is to support and coordinate DOJ’s enforcement and programmatic efforts to prevent and combat elder abuse, neglect, financial exploitation and scams that target our nation’s seniors by promoting justice for older adults; helping older victims and their families; enhancing state and local efforts through training and resources; and supporting research to improve elder abuse policy and practice.
For more information about DOJ’s efforts to prevent and combat elder abuse, please visit the Elder Justice Website at https://www.justice.gov/elderjustice. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. You can also contact the Victim Connect Hotline between 9am-6pm, Monday through Friday, at: 1- 855-4VICTIM (1-855-4842846), or contact the Elder Justice Coordinator at the U.S. Attorney’s Office for the Eastern District of North Carolina at (919) 856-4530.
- Examples of financial exploitation include:
Two Men Arrested for Conspiring to Provide Material Support to ISISRead the Press Release
TUCSON – John Demers, Assistant Attorney General for National Security, Michael Bailey, the United States Attorney for the District of Arizona, Michael McGarrity, Assistant Director of the FBI's Counterterrorism Division, and Sean Kaul, Special Agent in Charge of the FBI Phoenix Field Office, announced that on July 26, Ahmed Mahad Mohamed and Abdi Yemani Hussein, were arrested for conspiring to provide material support and resources to ISIS, a designated foreign terrorist organization.
According to the criminal complaint, the defendants had been in communication with an FBI undercover employee whom they believed was a supporter of ISIS ideology. These communications revealed the defendants’ desire to travel overseas in order to fight on behalf of ISIS or to conduct an attack within the United States if they were unable to travel. Ultimately, the defendants purchased airline tickets to travel to Egypt, with the intention to travel on to Sinai and join ISIS. FBI agents arrested Mohamed and Hussein after they checked in for their flight at the Tucson International Airport in Arizona.
According to court documents, both defendants came to the United States as refugees from Somalia. At the time of their arrest, Mohamed had obtained lawful permanent resident status and Hussein remained a refugee.
The prosecution is being handled by Kevin C. Hakala and Beverly Anderson, Assistant United States Attorneys in the District of Arizona, and Alicia Cook, Trial Attorney with the National Security Division’s Counterterrorism Section.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Men Arrested for Conspiring to Provide Material Support to ISISRead the Press Release
John Demers, Assistant Attorney General for National Security, Michael Bailey, the United States Attorney for the District of Arizona, Michael McGarrity, Assistant Director of the FBI's Counterterrorism Division, and Sean Kaul, Special Agent in Charge of the FBI Phoenix Field Office, announced that on July 26, Ahmed Mahad Mohamed and Abdi Yemani Hussein, were arrested for conspiring to provide material support and resources to ISIS, a designated foreign terrorist organization.
According to the criminal complaint, the defendants had been in communication with an FBI undercover employee whom they believed was a supporter of ISIS ideology. These communications revealed the defendants’ desire to travel overseas in order to fight on behalf of ISIS or to conduct an attack within the United States if they were unable to travel. Ultimately, the defendants purchased airline tickets to travel to Egypt, with the intention to travel on to Sinai and join ISIS. FBI agents arrested Mohamed and Hussein after they checked in for their flight at the Tucson International Airport in Arizona.
According to court documents, both defendants came to the United States as refugees from Somalia. At the time of their arrest, Mohamed had obtained lawful permanent resident status and Hussein remained a refugee.
The prosecution is being handled by Kevin C. Hakala and Beverly Anderson, Assistant United States Attorneys in the District of Arizona, and Alicia Cook, Trial Attorney with the National Security Division’s Counterterrorism Section.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Local Men Sentenced for Federal Drug CrimesRead the Press Release
HUNTINGTON, W.Va. – Three local men were sentenced today on federal drug crimes in United States District Court in Huntington, announced United States Attorney Mike Stuart.
“We’re working with our law enforcement partners 24/7 to identify and prosecute drug dealers like Pittman and Pardue who are poisoning our communities with meth and opioids,” said United States Attorney Mike Stuart.
Michael Pittman, 38, of Charleston, was sentenced to 30 months in prison for possessing with the intent to distribute methamphetamine and heroin. On October 9, 2018, officers with the Huntington Police Department were dispatched to the intersection of 18th Street West and Jefferson Avenue for a report of a man down. When they arrived on scene, they found Pittman laying in the middle of the road with no shirt or shoes on. Pittman told officers he had just injected heroin. Officers found approximately 53 grams of methamphetamine and approximately 9 grams of heroin in Pittman’s truck. Pittman admitted he intended to sell the methamphetamine and heroin. The Huntington Police Department conducted the investigation.
In a separate proceeding, Richard Pardue, 34, of Huntington, was sentenced to 21 months in prison for selling heroin. Pardue previously admitted that on January 18, 2017, he met a confidential informant in Ona, West Virginia. He gave the informant ½ gram of heroin in exchange for $60. The Violent Drug and Crime Task Force West conducted the investigation.
United States District Judge Robert C. Chambers imposed all of the sentences. Assistant United States Attorney Stephanie S. Taylor prosecuted the cases.
Both cases were prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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Two Former Vernon County Ambulance District Employees Sentenced for $270,000 EmbezzlementRead the Press Release
SPRINGFIELD, Mo. – The former director and the former bookkeeper of the Vernon County Ambulance District have been sentenced in federal court for embezzling more than $270,000 from the district.
Tina L. Werner, 53, and James D. McKenzie, 54, both of Nevada, Mo., were sentenced on Friday, July 26, by U.S. District Judge Roseann Ketchmark. Werner was sentenced to three years and 10 months in federal prison without parole. McKenzie was sentenced to 15 months in federal prison without parole. The court also ordered Werner and McKenzie to pay $260,000 in restitution to the ambulance district, for which they are jointly and severally liable.
In January 2019, Werner pleaded guilty to wire fraud and McKenzie pleaded guilty to misprision of a felony. McKenzie and Werner embezzled a total of $270,902 from the ambulance district from January 2013 to October 2015.
Although Werner pleaded guilty to only one count of wire fraud as a part of her plea agreement, according to court records, she committed numerous fraudulent transactions over a period of nearly three years. McKenzie willingly turned a blind eye to and concealed the actions of Werner, his employee with whom he was engaged in an adulterous relationship. The ambulance district suffered substantially as a result, to the point of having a lien filed against it for $213,158 for unpaid payroll taxes and taking out two substantial loans after the discovery of the fraud just to maintain its daily caretaking operations and pay outstanding debts.
McKenzie and Werner were employed with the ambulance district until October 2015, McKenzie as the director and Werner as a bookkeeper. McKenzie’s duties as director included managing the daily operations of the district, including the personnel and financial management of the district. McKenzie began his employment with the ambulance district in 1987. Werner’s duties as bookkeeper included managing payroll, conducting financial transactions and managing the accounts receivable. Werner began her employment in 2000.
Werner, utilizing her position as bookkeeper, began electronically transferring money from the ambulance district’s bank accounts into personal bank accounts held by herself and McKenzie in January 2013. Additionally, Werner initiated electronic bill payments from ambulance district bank accounts to pay the personal credit cards held by herself and McKenzie. Werner and McKenzie did not have authorization to conduct such payments and their actions caused the ambulance district to suffer financial loss.
Additionally, from January 2013 until October 2015, Werner and McKenzie issued payments from an ambulance district credit card account for the purpose of paying McKenzie’s personal utility bills and those of a McKenzie family member, resulting in the ambulance district suffering additional financial loss. Werner and McKenzie did not have authorization to conduct such payments.
Werner also falsified electronic payroll records and recorded additional overtime hours worked for herself and McKenzie. As a result, the ambulance district issued electronic payments to Werner and McKenzie for overtime hours that were not actually worked, resulting in the district falsely overpaying Werner and McKenzie, thereby suffering additional financial loss.
The ambulance district office provided opportunities for its employees to save money for the Christmas shopping season and to donate money for an annual toy drive. In addition to stealing money from the district’s operating account and utilizing district credit cards for personal benefit, Werner also embezzled over $95,000 from the employee Christmas account and over $111,000 from the charity toy drive account.
Werner attempted to conceal the embezzlement by entering a false deposit of $130,000 in a QuickBooks application, and by obtaining a $20,000 line of credit from OnDeck without the knowledge or authorization of the ambulance district’s board of directors. McKenzie and Werner destroyed financial and business documents belonging to the ambulance district while they were in the district’s office on Oct. 23, 2015, in an effort to conceal their embezzlement.
This case was prosecuted by Assistant U.S. Attorneys Steven M. Mohlhenrich and Casey Clark. It was investigated by the FBI and the Missouri State Highway Patrol.
Trucking School Owner and President Pleads Guilty in $4.2 Million Fraud for Collecting Tuition for Veterans Who Didn’t Attend ClassesRead the Press Release
LOS ANGELES – The owner and president of a San Fernando Valley trucking school pleaded guilty today to federal criminal charges for bilking the United States Department of Veterans Affairs out of more than $4 million in tuition and other payments after falsely certifying that veterans had attended classes that they never took.
Emmit Marshall, 52, of Woodland Hills, pleaded guilty to five felony counts of wire fraud. United States District Judge Stephen V. Wilson scheduled a November 18 sentencing hearing, where Marshall will face a statutory maximum sentence of 100 years in federal prison.
Marshall, the owner and president of Chatsworth-based Alliance School of Trucking (AST), admitted in his plea agreement that, from July 2011 until April 2015, he and co-defendant Robert Waggoner, 56, of Canyon Country, who was a director at AST, schemed to defraud the VA. Marshall and Waggoner recruited eligible veterans to take trucking classes paid under the Post-9/11 GI Bill. AST was certified to offer classes under the Post-9/11 GI Bill that included a 160-hour Tractor Trailer & Safety class and a 600-hour Select Driver Development Program.
Pursuant to the Post-9/11 GI Bill, the VA paid tuition and fees directly to the school at which the veteran was enrolled. The VA also paid a housing allowance to the veteran enrolled full-time in an approved program, and, in some cases, the VA paid a books and supplies benefit directly to the veteran. Marshall admitted that Waggoner and another individual recruited eligible veterans to enroll at AST by telling the veterans they could collect housing and other fees from the VA without attending the programs. Knowing that the vast majority of veterans enrolling at AST did not intend to attend any portion of those programs, Marshall and Waggoner created and submitted fraudulent enrollment certifications, according to Marshall’s plea agreement. They also created student files that contained bogus documents.
When they became aware of the investigation into their conduct, Marshall, Waggoner and others at AST removed fraudulent documents from student files, and Marshall later ordered that these files be destroyed, the plea agreement states.
From the end of 2011 through April 2015, as a result of the fraudulent scheme, the VA paid AST approximately $2.3 million in tuition and fee payments for veterans who purportedly attended approved programs at AST, according to the plea agreement. During that same period, the VA also paid approximately $1.9 million in education benefits directly to veterans who purportedly attended approved programs at AST, the plea agreement states. Investigators are continuing to finalize the exact loss figure, but the total loss to the VA is estimated to be approximately $4.2 million
Waggoner is scheduled to go to trial in this case on February 25, 2020.
This matter was investigated by the U.S. Department of Veterans Affairs’ Office of Inspector General, the U.S. Department of Justice Office of the Inspector General, and the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Kimberly D. Jaimez of the Major Frauds Section.
Third Portland-Area Man Sentenced in Methamphetamine Trafficking ConspiracyRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a third Portland-area man was sentenced to federal prison for his role in a conspiracy to traffic large quantities of methamphetamine into the Portland Metropolitan Area.
Ulises Mayares Jr., 26, of Portland, was sentenced today to 48 months in prison and five years’ supervised release for conspiracy to possess with the intent to distribute methamphetamine.
Mayares’ sentence follows two sentences previously imposed for related conduct. On June 3, 2019, Francisco Alvarez, 49, also of Portland, was sentenced to 188 months in prison and five years’ supervised release. On May 1, 2019, Carlos Ortega-Estrella, 35, of Beaverton, Oregon, was sentenced to 140 months in prison and five years’ supervised release.
According to court documents, over a period of years, Alvarez, a convicted felon, supervised a drug trafficking organization responsible for obtaining hundreds of pounds of methamphetamine from a supplier for distribution in and around Portland. He was typically the only person in the trafficking organization who had direct contact with Ortega-Estrella, his supplier.
Alvarez supervised multiple runners, including Mayares, who stored methamphetamine, firearms and large amounts of cash in locations throughout Multnomah County. Mayares was Alvarez’s closest associate and supervising runner. He was responsible for obtaining methamphetamine from Alvarez, storing it, giving it to other runners to distribute and collecting money from other runners for their services. Mayares admitted to making some deliveries himself and, at times, dealing directly with Ortega-Estrella.
Ortega-Estrella would transport large quantities of drugs from California and deliver them to Oregon. He maintained two separate residences in Beaverton, Oregon to store and repackage methamphetamine, heroin and cocaine. Upon searching these properties, investigators found several pounds of these drugs along with two assault-style weapons, four semiautomatic pistols and approximately $90,000 in cash.
In a search of Mayares’ residence, investigators seized an additional 28 pounds of methamphetamine, $90,000 in cash, and two handguns.
Ortega-Estrella pleaded guilty to possession with intent to distribute methamphetamine on June 20, 2018. Alvarez and Mayares each pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine on March 11 and 21, 2019, respectively.
This case was investigated by the U.S. Drug Enforcement Administration (DEA), the Gresham Police Department and the Multnomah County Sheriff’s Office. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Texas Man Pleads Guilty to Possession of Credit Card Counterfeiting DeviceRead the Press Release
CHARLESTON, W.VA.– United States Attorney Mike Stuart announced that an Austin, Texas man pled guilty today to being in possession of a device to counterfeit credit cards. Tofyk Ali Oro entered his guilty plea to illegal possession, production, or trafficking of device-making equipment. The case was investigated by the United States Secret Service and United States Postal Inspection Service.
“Great work by federal law enforcement to thwart Oro’s plan,” said United States Attorney Mike Stuart. “Their work has prevented the victimization of many West Virginians.”
Oro admitted that on November 30, 2018 that he shipped 55 credit cards and the device equipment from Austin, Texas to Charleston, West Virginia. Oro also admitted the intent with the 55 cards was to defraud individuals whose accounts were linked to those cards.
Oro faces up to 15 years imprisonment when he is sentenced on October 21, 2019.
Assistant United States Attorney Chris Arthur handled the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
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Texas Man Convicted of Conspiracy to Commit Theft of Trade SecretsRead the Press Release
WASHINGTON – A Texas man was convicted today by a federal jury in Washington D.C. of conspiracy to commit theft of trade secrets.
Following a nine-day trial, Shan Shi, 54, of Houston, Texas, was convicted of one count of conspiracy to commit theft of trade secrets. Shi was originally indicted in June 2017 for conspiracy to commit theft of trade secrets, and a superseding indictment containing one count of conspiracy to commit economic espionage and one count of conspiracy to commit money laundering charges issued in April 2018. Shi was acquitted on the other charges.
“Shan Shi and his coconspirators went to great lengths to cash in on the Chinese government’s desire to obtain syntactic foam technology,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As this case demonstrates, the Department of Justice is and will remain on the front lines of defending U.S. companies against the theft of their trade secrets.”
“The jury’s verdict makes clear that Shan Shi conspired to steal trade secrets by poaching employees from a U.S. company and enticing them to bring technical data to his company,” said Assistant Attorney General for National Security John C. Demers. “He did this against the backdrop of China’s strategic plan to close the gap between China and United States in buoyancy technology and with the benefit of millions of dollars of funding from China. Like our many other prosecutions implicating China’s economic aggression, this case exemplifies both the threat to American companies and our commitment to confront it.”
“We take very seriously the theft of intellectual property that was developed in the United States through long years of research, development, and innovation,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “Shi chose to steal the secrets of a U.S. company rather than do the hard work necessary to succeed honestly in the free market. He is now being held accountable for that choice.”
“Shan Shi attempted to obtain sophisticated U.S. technology with both military and civilian uses for the ultimate benefit of China,” said Assistant Director John Brown of the FBI’s Counterintelligence Division. “It is no secret that China is determined to achieve superiority in virtually all high-tech areas, and the FBI is equally determined to stop individuals who commit illegal acts to help China achieve its goals. The stakes are high both for U.S. national security and for American companies who invest so much money and time on research and development.”
“FBI Houston’s elite counterintelligence investigators worked for years to dismantle Mr. Shi’s prolific network and bring him to justice,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “Our highly trained agents and intelligence analysts work every day to protect American businesses from unscrupulous foreign adversaries. We are pleased by today’s verdict, and we will continue to aggressively protect America's economic security and intellectual property from those who would do us harm.”
Evidence introduced at trial established that Shi conspired with others to steal trade secrets from a Houston-based company, Trelleborg Offshore, relating to syntactic foam, a strong, lightweight material with commercial and military uses that is essential for deep-sea oil and gas drilling. In public statements of its national priorities, China has made clear its desire to develop this technology. Shi sought to obtain information about syntactic foam for the benefit of CBM-Future New Material Science and Technology Co. Ltd. (CBMF), a Chinese company based in Taizhou, and for the ultimate benefit of the People’s Republic of China. Four of Shi’s codefendants—some of whom worked at Trelleborg—had pleaded guilty to conspiring to steal trade secrets, and two testified as cooperating witnesses at trial. From 2014 to 2017, CBMF sent Shi’s company in Houston approximately $3.1 million from China in order to promote Shi’s activity in the United States.
Sentencing has been set for Oct. 25, 2019.
The FBI’s Houston Field Office conducted the investigation. Senior Counsel Joss Nichols of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Jeffrey Pearlman and Luke Jones for the District of Columbia are prosecuting the case.
Texas Man Convicted of Conspiracy to Commit Theft of Trade SecretsRead the Press Release
A Texas man was convicted today by a federal jury in Washington D.C. of conspiracy to commit theft of trade secrets.
Following a nine-day trial, Shan Shi, 54, of Houston, Texas, was convicted of one count of conspiracy to commit theft of trade secrets. Shi was originally indicted in June 2017 for conspiracy to commit theft of trade secrets, and a superseding indictment containing one count of conspiracy to commit economic espionage and one count of conspiracy to commit money laundering charges issued in April 2018. Shi was acquitted on the other charges.
“Shan Shi and his coconspirators went to great lengths to cash in on the Chinese government’s desire to obtain syntactic foam technology,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As this case demonstrates, the Department of Justice is and will remain on the front lines of defending U.S. companies against the theft of their trade secrets.”
“The jury’s verdict makes clear that Shan Shi conspired to steal trade secrets by poaching employees from a U.S. company and enticing them to bring technical data to his company,” said Assistant Attorney General for National Security John C. Demers. “He did this against the backdrop of China’s strategic plan to close the gap between China and United States in buoyancy technology and with the benefit of millions of dollars of funding from China. Like our many other prosecutions implicating China’s economic aggression, this case exemplifies both the threat to American companies and our commitment to confront it.”
“We take very seriously the theft of intellectual property that was developed in the United States through long years of research, development, and innovation,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “Shi chose to steal the secrets of a U.S. company rather than do the hard work necessary to succeed honestly in the free market. He is now being held accountable for that choice.”
“Shan Shi attempted to obtain sophisticated U.S. technology with both military and civilian uses for the ultimate benefit of China,” said Assistant Director John Brown of the FBI’s Counterintelligence Division. “It is no secret that China is determined to achieve superiority in virtually all high-tech areas, and the FBI is equally determined to stop individuals who commit illegal acts to help China achieve its goals. The stakes are high both for U.S. national security and for American companies who invest so much money and time on research and development.”
“FBI Houston’s elite counterintelligence investigators worked for years to dismantle Mr. Shi’s prolific network and bring him to justice,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “Our highly trained agents and intelligence analysts work every day to protect American businesses from unscrupulous foreign adversaries. We are pleased by today’s verdict, and we will continue to aggressively protect America's economic security and intellectual property from those who would do us harm.”
Evidence introduced at trial established that Shi conspired with others to steal trade secrets from a Houston-based company, Trelleborg Offshore, relating to syntactic foam, a strong, lightweight material with commercial and military uses that is essential for deep-sea oil and gas drilling. In public statements of its national priorities, China has made clear its desire to develop this technology. Shi sought to obtain information about syntactic foam for the benefit of CBM-Future New Material Science and Technology Co. Ltd. (CBMF), a Chinese company based in Taizhou, and for the ultimate benefit of the People’s Republic of China. Four of Shi’s codefendants—some of whom worked at Trelleborg—had pleaded guilty to conspiring to steal trade secrets, and two testified as cooperating witnesses at trial. From 2014 to 2017, CBMF sent Shi’s company in Houston approximately $3.1 million from China in order to promote Shi’s activity in the United States.
Sentencing has been set for Oct. 25, 2019.
The FBI’s Houston Field Office conducted the investigation. Senior Counsel Joss Nichols of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Jeffrey Pearlman and Luke Jones for the District of Columbia are prosecuting the case.
South Point Man Sentenced for Federal Meth ChargeRead the Press Release
HUNTINGTON, W.Va. – A South Point, Ohio man who was caught selling methamphetamine in Huntington last year was sentenced to 62 months in federal prison, announced United States Attorney Mike Stuart. Jose Cisneros, 28, previously entered a guilty plea to distributing methamphetamine. Stuart commended the investigative efforts of the FBI Drug Task Force.
“We’re prosecuting record numbers of meth dealers and the convictions are resulting in significant prison sentences,” said United States Attorney Mike Stuart. “Meth dealers should take heed.”
On October 25, 2018, an informant working at the direction of the FBI contacted Cisneros to arrange a meth transaction. Cisneros subsequently met the informant at a location in Huntington where he sold the informant one and a half ounces of methamphetamine in exchange for $650. Cisneros was arrested on November 6, 2018, in the 2900 block of 5th Avenue in Huntington and agents seized additional meth that Cisneros intended to distribute.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
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September 11th Victim Compensation Fund to End Award Reductions and Restore Previously Reduced Awards Following the Permanent Authorization of the FundRead the Press Release
President Donald Trump today signed into law H.R. 1327, The Never Forget the Heroes: James Zadroga, Ray Pfeifer, and Luis Alvarez Permanent Authorization of the September 11th Victim Compensation Fund (VCF) (VCF Permanent Authorization Act). The Act extends the VCF’s claim filing deadline from Dec. 18, 2020, to Oct. 1, 2090, and appropriates such funds as may be necessary to pay all approved claims.
Attorney General William P. Barr noted the Department’s strong support for the VCF and its continuing commitment to providing compensation to those who have suffered as a result of the terrorist attacks of September 11, 2001. “The VCF is an extraordinarily successful program, having awarded over $5.2 billion in compensation on more than 23,000 claims from individuals who have suffered physical health conditions, or from families of those who have died, as a result of exposure at the sites in New York City, at the Pentagon, and in Shanksville. With 20,000 claims currently awaiting consideration, and more certain to be filed in the months and years ahead, today’s action ensures that the VCF can continue in its successful effort to compensate every deserving individual impacted by the tragic events of September 11,” said Attorney General Barr.
The VCF’s Special Master Rupa Bhattacharyya, who was appointed to her position by the Attorney General in July 2016, reflected on the significance of today’s signing: “This is a momentous day for the VCF and the 9/11 community, and we are extremely grateful for this show of confidence from Congress and the President. The entire VCF team is ready and eager to move forward into the next phase of this successful program with renewed energy and a reinvigorated clarity of purpose, and, as always, we remain dedicated to serving the needs of the 9/11 community.”
In February of this year, the Special Master announced that she had determined that the $7.375 billion of appropriated available funding was insufficient to compensate all pending claims and all claims anticipated to be filed by the previous claim filing deadline of Dec. 18, 2020. As a result, she implemented reductions to awards to ensure, as required by law, that the VCF did not expend funds beyond its appropriated limit. With the enactment of the VCF Permanent Authorization Act, the Special Master has determined that the VCF’s funding is now sufficient to pay all pending and projected claims without the need for any continued reductions in awards.
Under the Act, the VCF is required to issue payments to any claimants who were impacted by the reductions in order to make up the difference between the reduced award that was paid and the unreduced value that would have been awarded had the reductions not been necessary. The law requires that the VCF issue these payments in the first fiscal year beginning after enactment of the VCF Permanent Authorization Act, which is the government’s fiscal year 2020 beginning on Oct. 1, 2019. Recognizing the urgent needs of this community, the VCF is committed to beginning this process immediately, taking the steps necessary to notify each of the nearly 1,700 affected individuals of their unreduced award prior to Sept. 11, 2019. The VCF will begin processing the additional payment immediately following that notification, assuming the VCF has the documentation required to pay the claim.
“By this year’s anniversary of the September 11, 2001, terrorist attacks, we hope to have begun the payment process on unreduced awards for all previously-reduced claims,” said VCF Special Master Bhattacharyya. “We look forward to completing that process as quickly as possible so that we can continue the important work of providing needed compensation to those who are suffering.”
For additional information about the VCF and how to file a claim, and for detailed information about the implementation of the VCF Permanent Authorization Act, please visit the VCF’s website at www.vcf.gov. If you have any questions about the claim form, the website, or the VCF process, please contact the VCF’s toll-free Helpline at 1-855-885-1555.
Seattle Tech Worker Arrested for Data Theft Involving Large Financial Services CompanyRead the Press Release
A former Seattle technology company software engineer was arrested today on a criminal complaint charging computer fraud and abuse for an intrusion on the stored data of Capital One Financial Corporation, announced U.S. Attorney Brian T. Moran. PAIGE A. THOMPSON a/k/a erratic, 33, made her initial appearance in U.S. District Court in Seattle today and was ordered detained pending a hearing on August 1, 2019.
According to the criminal complaint, THOMPSON posted on the information sharing site GitHub about her theft of information from the servers storing Capital One data. The intrusion occurred through a misconfigured web application firewall that enabled access to the data. On July 17, 2019, a GitHub user who saw the post alerted Capital One to the possibility it had suffered a data theft. After determining on July 19, 2019, that there had been an intrusion into its data, Capital One contacted the FBI. Cyber investigators were able to identify THOMPSON as the person who was posting about the data theft. This morning agents executed a search warrant at THOMPSON’s residence and seized electronic storage devices containing a copy of the data.
“Capital One quickly alerted law enforcement to the data theft -- allowing the FBI to trace the intrusion,” said U.S. Attorney Moran. “I commend our law enforcement partners who are doing all they can to determine the status of the data and secure it.”
Computer fraud and abuse is punishable by up to five years in prison and a $250,000 fine.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorneys Steven Masada and Andrew Friedman.
thompson_complaint.pdfSeattle Felon Arrested with Cache of Firearms Including Assault Weapons and ‘Bump Stocks’Read the Press Release
A 66-year-old Seattle resident was arrested this morning for illegally possessing approximately 20 firearms following the serving of a search warrant at a home he owns, announced U.S. Attorney Brian T. Moran. PARK QUAN was arrested after FBI agents investigating a data theft served a search warrant on his home and discovered the cache of weapons. QUAN has two federal convictions for firearms violations and is prohibited from possessing firearms. QUAN made his initial appearance in U.S. District Court in Seattle today. He remains detained pending a hearing on August 1, 2019.
According to the criminal complaint, agents investigating the data theft were sweeping the residence for safety when they observed numerous firearms in a bedroom used by QUAN. Agents observed approximately twenty firearms in the bedroom, including what appeared to be an AR15-style assault rifle, an AK47-style assault rifle, and handguns; firearm accessories, including bump stocks, scopes, and grips; ammunition; and gun powder. Agents also encountered what appear to be fake grenades in the bedroom.
QUAN has a 1983 conviction in Washington for being a felon in possession of explosives and a 1991 conviction in Texas for possessing an unregistered machine gun. QUAN is prohibited from possessing firearms.
Being a felon in possession of a firearm is punishable by up to ten years in prison and a $250,000 fine.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case is being prosecuted by Assistant United States Attorneys Steven Masada and Andrew Friedman.
Registered Sex Offender Indicted for Child Pornography Production in WisconsinRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on July 23, 2019 a federal grand jury returned a two-count indictment against Timothy L. Tyler (age: 40) of Milwaukee, WI.
Tyler faces charges alleging he distributed and possessed child pornography contrary to Title 18, United States Code, Sections 2252A(a)(2)(A) and (a)(5)(B). If convicted of all of the charges, Tyler will serve a mandatory 15 years in federal prison.
This case was investigated by the Federal Bureau of Investigation and the High Technology Unit of The Milwaukee Police Department. It will be prosecuted by Assistant United States Attorney Megan J. Paulson.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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