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Tuesday 21 January 2025
Lebanon, Virginia Town Councilman, Sister, Automotive Companies Settle with Federal GovernmentRead the Press Release
ABINGDON, Va. – The United States Attorney’s Office for the Western District of Virginia announced today it has entered into a non-prosecution agreement with Michael Elijah Leonard, a member of the Town Council in Lebanon, Virginia and his sister Amber Musick. The pair have interests in several automotive groups and previously made money winning bids to do work for the Town of Lebanon.
According to court documents, Michael Elijah Leonard serves on Town Council in Lebanon, Virginia and has done so since 2020. He also is a director and owner of Leonard Automotive. In or about December 2022, Leonard’s sister, Amber Musick, submitted bids for work with the Town of Lebanon under the name Appalachian Collision & Auto Parts, Inc. Appalachian Collision & Auto Parts, Inc. was solely owned by Musick and had no assets. Leonard Automotive provided all of the services for any contracts secured by Appalachian Collision.
Leonard abstained from the Town Council votes on the bids submitted by Appalachian Collision & Auto Parts, Inc. However, he knew that the work was to be done by Leonard Automotive. The Town of Lebanon paid Appalachian Collision over $10,000 for the work done by Leonard’s company.
In December of last year, the United States Attorney’s Office of the Western District of Virginia, Leonard Automotive, Appalachian Collision & Auto Parts, Inc., Michael Elijah Leonard, and Amber Musick agreed, among other things, that Appalachian Collision & Auto Parts, Inc. would disgorge the monies it received from the Town of Lebanon for work it billed but was actually performed by Leonard Automotive. The parties also agreed that Appalachian Collision & Auto Parts, Inc. should be dissolved and that the subjects would submit all bids made to public entities only in the name of Leonard Automotive.
Acting United States Attorney Zachary T. Lee and Special Agent in Charge Stanley M. Meador of the FBI’s Richmond Division made the announcement today.
The Federal Bureau of Investigation, along with the United States Attorney’s Office for the Western District of Virginia investigated the case.
Assistant U.S. Attorney Carrie Macon is prosecuting the case.
Leaders and Members of ABG Gang Sentenced for Murder, Attempted Murder, Assault, Racketeering, and Firearms OffensesRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced the sentencing of DAIVON MORGAN, a/k/a “Leeky,” the last of 10 defendants to be sentenced in a case involving members of a street gang known as “ABG” in the Bronx, New York. MORGAN was sentenced to 292 months in prison for crimes relating to his membership in ABG, including the murder of 19-year-old Darren Scruggs in February 2019 and a slashing of a rival gang member in February 2021. MORGAN previously pled guilty to conspiracy to commit racketeering and conspiracy to commit a violent crime in aid of racketeering on December 15, 2023, before U.S. District Judge Mary Kay Vyskocil, who imposed today’s sentence. MORGAN was the last of the 10 defendants in the ABG case before Judge Vyskocil to have been convicted and sentenced.
U.S. Attorney Danielle R. Sassoon said: “ABG terrorized communities in the Bronx with violence and drug-dealing. Among ABG’s many victims was Darren Scruggs, who was gunned down at the age of 19 by members of ABG. The 10 ABG leaders and members charged in this case have now been convicted and sentenced for their crimes. We will continue to protect the public from gangs and the senseless violence they bring.”
According to the Superseding Indictments, public court filings, and statements made in court:
From at least in or about 2017 to in or about the present, ABG was a criminal enterprise centered in the Bronx, New York. ABG primarily operated in the vicinity of the Mitchel Houses in the vicinity of 135th and 138th Streets and Lincoln and Willis Avenues. In addition to their local affiliation, many ABG members also affiliated with the national Crips gang. In order to make money for the gang, protect the gang’s territory, and promote the gang’s standing, members of ABG engaged in, among other things, narcotics trafficking and violence, including murder. To that end, ABG members sold crack cocaine, promoted their gang affiliation on social media, possessed firearms, and engaged in shootings and slashings as part of their gang membership and narcotics trafficking. Among other crimes committed by the gang, ABG was responsible for the following acts of violence:
On February 18, 2019, ROBERTO ESPINOSA, assisted by HENRY JONES and MORGAN, shot and killed Scruggs.
On October 30, 2018, ELIJAH PERKINS shot at rival gang members. On August 21, 2021, PERKINS and AMIER WILSON participated in a shooting of rival gang members.
On March 25, 2022, WILSON carried out a shooting, which resulted in a victim being shot and injured.
On November 7, 2021, JONES, assisted by JUAN REYES, committed a shooting in rival gang territory.
On May 8, 2020, REYES, PERKINS, and XAVIER ARAU beat and slashed a victim in rival gang territory.
On February 20, 2021, MORGAN slashed a victim across the face at the direction of DAVID TRUSTY in rival gang territory.
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A chart containing the names of the defendants, the charges they were convicted of, and the sentences they received is set forth below.
Ms. Sassoon praised the outstanding work of the New York City Police Department, Homeland Security Investigations, and the New York City Department of Corrections.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Courtney Heavey, Christopher Brumwell, and James Ligtenberg are in charge of the prosecution.
DefendantAgeConvictionSentenceJONES, a/k/a “Dew Man”28Racketeering Conspiracy and Attempt to Commit Murder in Aid of Racketeering30 yearsMORGAN, a/k/a “Leeky”25Racketeering Conspiracy and Conspiracy to Commit a Violent Crime in Aid of Racketeering292 monthsESPINOSA, a/k/a “Taco”23Racketeering Conspiracy and Receipt of a Firearm Intended to be Used in a Felony;28 yearsWILSON, a/k/a “Smula”26Racketeering Conspiracy13 yearsTRUSTY, a/k/a “Saint”25Conspiracy to Distribute Crack Cocaine and Assault with a Dangerous Weapon in Aid of Racketeering12 yearsPERKINS, a/k/a “Eli”24Use of a Firearm in Furtherance of a Crime of Violence; and Use and Brandishing of a Firearm in Furtherance of a Crime of Violence162 monthsJAMIE WILKINS, a/k/a “OJ”26Use of a Firearm During and in Relation to a Drug Trafficking Crime78 monthsXAVIER ARAU, a/k/a “X”23Use and Brandishing of a Firearm During and in Relation to a Drug Trafficking Crime7 yearsREYES, a/k/a “Gunplay”27Conspiracy to Possess a Firearm Following a Felony Conviction and Conspiracy to Assault with Dangerous Weapon in Aid of Racketeering9 yearsCASSIUS MILLER, a/k/a “Cash”24Conspiracy to Distribute Crack Cocaine5 yearsLabelle Man Sentenced to 19 Years in Federal Prison for Methamphetamine Trafficking and Firearms OffensesRead the Press Release
Fort Myers, Florida – United States District Judge Sheri P. Chappell has sentenced Joshua Leon Tyree (39, Labelle) to 19 years in federal prison for possession with the intent to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime. Tyree entered a guilty plea on September 23, 2024.
According to court documents, deputies from the Hendry County Sheriff’s Office executed a search warrant at Tyree’s residence and located nearly one pound of methamphetamine for distribution, and 24 assorted rifles and handguns. Tyree told deputies that the items located in his residence belonged to him.
This case was investigated by the Hendry County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Patrick L. Darcey.
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 gun violence, and to make out neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in first place, setting focused and strategic enforcement priorities, and measuring the results.
KC Man Pleads Guilty to Armed Robbery SpreeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to commit a series of armed robberies across the state over a four-day period.
Kentrail M. Collins, 26, pleaded guilty before U.S. District Judge Greg Kays to one count of conspiracy to commit robbery, five counts of robbery, one count of brandishing a firearm in furtherance of a violent crime, and one count of being a felon in possession of a firearm.
By pleading guilty today, Collins admitted that he participated in a conspiracy to commit a series of armed robberies from Jan. 5 to Jan. 8, 2023. Collins pleaded guilty to the armed robberies of three businesses on Jan. 5, 2023 – the Petromart at 1004 N. Stadium in Columbia, Mo., the Breaktime at 2241 Pioneer St. in Boonville, Mo., and the Casey’s at 807 S. Broadway in Oak Grove, Mo. Collins also pleaded guilty to the Jan. 8, 2023, armed robberies of Casey’s at 5869 N. Main in Joplin, Mo., and Lamarti’s Truck Stop at 71 US 160 in Lamar, Mo.
Collins also admitted that he was in possession of a loaded Taurus 9mm luger pistol with an extended magazine. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Collins has felony convictions for burglary, robbery and resisting arrest.
On Jan. 9, 2023, a Missouri State Highway Patrol trooper pulled over a black Honda Accord being driven by Collins. Collins initially pulled over but then fled when the trooper began walking up to his vehicle. The trooper pursued Collins and the chase reached speeds up to 120 miles per hour. Collins lost control of his vehicle, crashed, then fled on foot. The trooper continued to pursue Collins on foot and eventually found him hiding behind some bushes. After Collins was arrested, officers found the Taurus pistol on the front passenger seat of the Honda he had been driving.
Under federal statutes, Collins is subject to a mandatory minimum sentence of seven years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Megan A. Baker. It was investigated by the FBI, the Columbia, Mo., Police Department, the Boonville, Mo., Police Department, the Oak Grove, Mo., Police Department, the Jasper County, Mo., Sheriff’s Department, the Barton County, Mo., Sheriff’s Department, and the Missouri State Highway Patrol.
Jury Convicts KC Man of Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who led police officers on two high-speed chases a month apart, causing a serious collision during one pursuit and driving the wrong way on Interstate 70 during another, has been convicted at trial of drug trafficking and illegally possessing firearms.
Davon R. Williams, 31, was found guilty on Thursday, Jan. 16, of one count of conspiracy to distribute methamphetamine, fentanyl, heroin, cocaine, and marijuana.
Williams also was found guilty of one count of possessing methamphetamine with the intent to distribute, one count of possessing fentanyl with the intent to distribute, one count of possessing marijuana with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime, and one count of being a felon in possession of a firearm, all in relation to his arrest on Feb. 23, 2022.
Williams was also was found guilty of one count of possessing methamphetamine with the intent to distribute, one count of possessing cocaine with the intent to distribute, one count of possessing marijuana with the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and one count of being a felon in possession of a firearm, all in relation to his arrest on March 26, 2022.
Nine co-defendants already have pleaded guilty in this case.
On Feb. 23, 2022, Kansas City police officers attempted to stop Williams, who was driving a black Kia K5 rental car. Williams, who had fled from officers the day before, again fled from officers at a high rate of speed. Williams sped through an intersection while failing to stop for a red light and collided with another vehicle, seriously injuring the other motorist. Williams, who was arrested and searched by officers, was in possession of cocaine, crack cocaine, 177 pills, and $1,900 in cash. Officers later searched the Kia and found a Glock .40-caliber semi-automatic handgun with an extended magazine, $2,030 in cash, and a backpack that contained methamphetamine, marijuana, mushrooms, tar (methamphetamine, heroin, and fentanyl) and pills.
On March 26, 2022, Independence, Mo., police officers saw an orange Hyundai that had been reported as stolen parked on the west side of Hometown Studios hotel in Independence. An officer placed a portable tire deflation device underneath the front passenger tire of the Hyundai to deflate the tire if someone attempted to leave in the vehicle. Officers kept the vehicle under surveillance until Williams got into the driver’s seat and a woman (who is not charged in this case) got into the front passenger’s seat. Williams was carrying a black zip bag and a white trash bag in one hand while shouldering a black backpack. Police officers attempted to box in the Hyundai with their patrol cars, but Williams was able to flee from officers and circle around the parking lot, maneuvering through multiple parked vehicles as well as the police vehicles attempting to block him in. Williams made it to 42nd Street, where he began accelerating as police officers pursued him. Williams traveled to Noland Road before going onto the ramp to I-70, traveling westbound in the eastbound lanes of I-70.
Due to the substantial public safety risk by Williams entering into oncoming traffic, officers terminated their pursuit. An officer saw the Hyundai farther down the interstate, in the grass, with Williams and the woman running from the vehicle. Williams was carrying a black backpack. The woman was caught and taken into custody.
Williams was found walking westbound next to U.S. 40 Highway and began running from officers. An Independence police sergeant deployed his Taser, which struck Williams in the left elbow, and Williams continued to run and jumped the guard rail under the Blue Ridge Boulevard bridge on the south side of U.S. 40 Highway. The police sergeant jumped the guard rail and grabbed Williams, who was trying to jump back on the highway. They struggled and Williams was taken into custody.
Officers searched Williams, who had $7,581 and .9 grams of crack cocaine in his pants pockets. The backpack, which was located nearby, contained an SAR Arms 9mm firearm, 314 grams of marijuana, 92.4 grams of cocaine, 4.6 grams of powder cocaine, a plastic sandwich bag with five pills, and a sandwich bag that contained multiple sandwich bags with various pills. On the ground next to the backpack was a loaded FNH 9mm handgun.
Officers searched the stolen Hyundai, which had severe damage, including airbag deployment. Officers found an AR-15 style rifle with no serial number in the back seat, loaded with 27 rounds of 5.56 ammunition and an additional round chambered. A black duffle bag, also in the back seat, contained a freezer bag with 1.022 kilograms of methamphetamine, a freezer bag with 1.027 kilograms of methamphetamine, a freezer bag with 111 grams of methamphetamine, a freezer bag with 170 grams of methamphetamine, and six sandwich bags that each contained between 26 and 29 grams of marijuana. A large white trash bag that contained three bags with a total of 1.238 kilograms of marijuana was also in the back seat.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Williams has a prior felony conviction for possessing methamphetamine and marijuana with the intent to distribute and a prior felony conviction for possessing marijuana with the intent to distribute.
Under federal statutes, Williams is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately two hours before returning guilty verdicts to U.S. District Judge Greg Kays, ending a trial that began Monday, Jan. 13.
This case is being prosecuted by Assistant U.S. Attorneys Ashleigh A. Ragner and Jessica L. Jennings. It was investigated by the Kansas City, Mo., Police Department, the Independence, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Kansas City, Kan., Violent Crime Task Force, and the Missouri State Highway Patrol.
Project Safe Neighborhoods
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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
John J. Durham Appointed Interim United States Attorney for the Eastern District of New YorkRead the Press Release
John J. Durham has begun serving as Interim United States Attorney for the Eastern District of New York as per the authority of Acting United States Attorney General James R. McHenry III. Mr. Durham was sworn in on Tuesday, January 21, 2025 by United States District Judge Joanna Seybert. He will serve as Interim United States Attorney for a period of 120 days or until a Presidential nominee has been confirmed by the Senate. Mr. Durham has served as Chief of the Long Island Division and Chief of the Criminal Section of the Long Island Division since June 2024 to the present.
“As someone who has served this Office for nearly 20 years, it is truly an honor to be appointed as Interim United States Attorney for the Eastern District of New York,” stated John J. Durham. “Our mission remains steadfast and vital: to combat the greatest threats to this district – from violent crime, terrorism and drug trafficking to cybercrime, corruption, white-collar fraud and civil litigation – uphold the rule of law and pursue justice. I, along with my team of dedicated public servants in this great Office will never waver in our mission to protect the over eight million residents of this district, and the nation at large.”
Mr. Durham joined the Office in October 2005 and has served in the General Crimes and Long Island Criminal Sections. He has been appointed to several leadership positions in the Office and the Department of Justice, including Deputy Chief for the Long Island Criminal Section, the Office’s Capital Case Coordinator, the Attorney General’s Review Committee on Capital Cases and Chair of the MS-13 Subcommittee of the Attorney General’s Transnational Organized Crime Task Force. In August 2019, Mr. Durham was appointed to serve as the Director of Joint Task Force Vulcan (JTFV), a Department of Justice initiative to combat La Mara Salvatrucha (MS-13), where he spearheaded indictments against MS-13’s highest-ranking international leaders.
During his time in the Office, Mr. Durham has investigated, prosecuted, and supervised a broad range of federal offenses, including racketeering, murders, terrorism, civil rights, obstruction of justice, armed robberies, narcotics trafficking, money laundering, firearms and public corruption. Most significantly, he has directed the Office’s efforts to dismantle the operations of MS-13 in the EDNY, as well as nationally and internationally. In a series of EDNY indictments, he has led teams of AUSAs and investigators that have arrested and convicted hundreds of MS-13 leaders, members and associates on charges related to more than 70 murders committed in this district between January 2008 and the present.
As the Director of JTFV, Mr. Durham led a team of prosecutors and law enforcement officers from across the country and secured significant indictments against MS-13’s command and control structure across the United States, Central America and Mexico, including the first use of national security charges against MS-13 leaders. In addition to his work combatting MS-13, Mr. Durham has prosecuted defendants who attempted to travel to Yemen for the purpose of joining al-Qaeda in the Arabian Peninsula and fighting jihad against United States allies, and members of numerous other violent criminal organizations, including the Bloods, 18th Street gang, Crips, Salvadorans With Pride and violent narcotics trafficking and robbery crews. In addition to his violent crime work, Mr. Durham has prosecuted several significant and sensitive public corruption and civil rights matters, including cases brought against the former Chief of Department for the Suffolk County Police Department, the former Suffolk County District Attorney and former Chief of Investigations and Chief of the Government Corruption Bureau for the Suffolk County District Attorney’s Office, a then-sitting Nassau County Legislator, a New York City Police Department sergeant and a Food and Drug Administration official.
Among other awards, John is the recipient of the Charles E. Rose Award; Henry L. Stimson Medal; EOUSA Director’s Award for Superior Performance; National Association of Former United States Attorneys Exceptional Service Award; and several Federal Law Enforcement Foundation Awards.
John graduated from the College of the Holy Cross in 1998 and from the University of Connecticut School of Law in 2001. He clerked for U.S. District Judge Stephen C. Robinson in the Southern District of New York.
Inmate Sentenced to Prison for Possessing Weapon at FCI McDowellRead the Press Release
BECKLEY, W.Va. – Demoreal Killebrew, 26, an inmate at the Federal Correctional Institution (FCI) McDowell, was sentenced today to one year and three months in prison, to be followed by three years of supervised release, for possession of a weapon by an inmate at a federal prison.
According to court documents and statements made in court, on January 29, 2023, an FCI McDowell staff member conducted a search of Killebrew and found a handcrafted weapon commonly known as a “shank” in his left shoe. The shank was a metal rod approximately five and one-half inches long, with a sharpened point on one end and a plastic cap on the other end as a handle. Killebrew admitted to possessing the shank, and further admitted that it was designed and intended to be used as a weapon.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons.
Senior United States District Judge David A. Faber imposed the sentence. Today’s prison sentence will follow Killebrew’s current term of incarceration, with the term of supervised release to commence upon Killebrew’s release from prison. Assistant United States Attorneys Timothy D. Boggess and Brian D. Parsons prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:24-cr-108.
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Inmate Sentenced to Prison for Possessing Weapon at FCI McDowellRead the Press Release
BLUEFIELD, W.Va. – Savion Garcia, 24, an inmate at the Federal Correctional Institution (FCI) McDowell, was sentenced today to one year in prison, to be followed by three years of supervised release, for possession of a weapon by an inmate at a federal prison.
According to court documents and statements made in court, on October 19, 2023, an FCI McDowell staff member conducted a random search of Garcia’s prison cell. During the search, the staff member found two handcrafted weapons commonly known as “shanks” on Garcia’s person. One was a six-inch-long flat metal bar with a cloth wrapped around one end as a handle. The other shank was a piece of metal approximately six and three-fourth inches long, with one end sharpened to a point and a cloth wrapped around the other end as a handle. Garcia admitted to possessing the shanks, and further admitted that they were designed and intended to be used as weapons.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons.
Senior United States District Judge David A. Faber imposed the sentence. Today’s prison sentence will follow Garcia’s current term of incarceration, with the term of supervised release to commence upon Garcia’s release from prison. Assistant United States Attorney Timothy D. Boggess prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:24-cr-91.
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Huntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Tairon Jordan Bradley, 25, of Huntington, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on November 7, 2023, a law enforcement officer conducted a traffic stop of a vehicle driven by Bradley in Kenova. As the officer was collecting information, Bradley fled the traffic stop in his vehicle. Bradley drove onto Interstate 64 during the resulting pursuit and struck another vehicle as he entered Cabell County. Bradley’s vehicle came to a stop in the middle of I-64, and Bradley fled the vehicle on foot across the interstate and into a nearby wooded area where he was found and arrested. Officers found a loaded Weihrauch Hermann Model EA/R .38 Special/.357 magnum revolver in Bradley’s vehicle.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Bradley knew he was prohibited from possessing a firearm because of his prior felony convictions for first-degree robbery and conspiracy in Cabell County Circuit Court on January 17, 2019.
Bradley is scheduled to be sentenced on May 12, 2025, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kenova Police Department, and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie Taylor is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-83.
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Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Curtis Lavall Capers, 35, of Huntington, pleaded guilty today to distribution of quantities of fentanyl and a mixture and substance containing a detectable amount of methamphetamine.
According to court documents and statements made in court, on December 15, 2022, Capers sold quantities of fentanyl and methamphetamine to a confidential informant at a 7th Avenue residence in Huntington. Capers admitted to the transaction and to arranging it with the confidential informant beforehand.
Capers is scheduled to be sentenced on May 12, 2025, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1,000,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-87.
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Honduran National Sentenced in $14 Million Payroll Scheme to Defraud the IRS and Workers’ Compensation Insurance CompanyRead the Press Release
Jacksonville, Florida – Senior U.S. District Judge Brian J. Davis today sentenced Jose Molina-Herrera (27, Honduras) to 27 months in federal prison for conspiracy to commit wire fraud and conspiracy to defraud the United States for the purpose of impeding the lawful functions of the Internal Revenue Service (IRS). The court also ordered Molina-Herrera to forfeit $867,005, which are proceeds of the wire fraud offense. In addition, Molina-Herrera was ordered to pay $3,558,579.42 in restitution to the IRS. Molina-Herrera entered a guilty plea on November 1, 2024.
According to court documents, between 2019 and 2020, Molina-Herrera conspired with others to facilitate the payment of construction workers “off the books” to avoid paying premiums for workers’ compensation insurance and payroll taxes. Construction contractors and subcontractors entered arrangements with the conspirators, through which All National Remodeling LLC – a shell company formed by Molina-Herrera – facilitated both the distribution of proof of insurance and the payment of workers with cash. In exchange for 6% to 8% of the contractors’ and subcontractors’ payroll, Molina-Herrera and others caused the distribution of certificates of liability insurance in the name of All National Remodeling, which contractors and subcontractors then used as nominal proof that workers were supposedly insured. In reality, All National Remodeling’s insurance policy was issued based on a fraudulent application that never disclosed that contractors and subcontractors would be employing workers who were ostensibly insured under the shell company’s barebones insurance policy. As a result of contractors and subcontractors using All National Remodeling’s proof of insurance, but never paying any insurance premiums, the insurance company was defrauded more than $2.2 million.
Molina-Herrera and others also facilitated the deposit of checks into the shell company’s bank accounts, as well as the withdrawal of cash to be paid to workers – all without withholding, or paying over, payroll taxes to the IRS. Through these arrangements with the conspirators, the construction contractors and subcontractors could disclaim responsibility for withholding and paying payroll taxes to the IRS or ensuring that the workers were legally authorized to work in the United States. By facilitating payments to workers of over $14 million without payroll taxes being withheld, Molina-Herrera and his co-conspirators caused the U.S. Treasury to lose more than $3.5 million in tax receipts.
One of Molina-Herrera’s co-conspirators, Oscar Molina-Avila, was previously sentenced to 52 months’ imprisonment for his role in the scheme.
“Using shell companies to pay workers under the table is not only illegal, it gives an unfair competitive advantage that businesses who do things the right way can’t match,” said Ron Loecker, Special Agent in Charge of IRS-Criminal Investigation’s Tampa Field Office. “We will continue to investigate these schemes to ensure compliance with the law and return competitive balance to the industry.”
“Wire fraud and the facilitation of “off the books” payments not only undermine the integrity of our legal and economic systems but also supports unlawful employment activities.” said Homeland Security Investigations (HSI) Jacksonville Assistant Special Agent in Charge Tim Hemker. “Homeland Security Investigations, alongside our partners at the Internal revenue Service – Criminal Investigations and the Florida Department of Financial Services – Bureau of Insurance Fraud, is committed to holding those who facilitate these complex fraud schemes accountable for their actions.”
This case was investigated by the Internal Revenue Service—Criminal Investigation, Homeland Security Investigations, and the Florida Department of Financial Services – Bureau of Insurance Fraud. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Hartford, Connecticut Man Charged with Violations of the Controlled Substances ActRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that on January 16, 2025, a federal grand jury returned an indictment charging Christopher Stephens, 38, of Hartford, Connecticut with distribution of fentanyl and possession with intent to distribute fentanyl.
Stephens entered a plea of not guilty to the charges during an arraignment on January 16, 2025 before United States Magistrate Judge Kevin J. Doyle. On January 17, 2025, Judge Doyle ordered that Stephens be detained during the pendency of this matter.
According to court records, on three occasions between June 11, 2024 and July 23, 2024, Stephens sold fentanyl to an individual who was working on behalf of law enforcement. Those drug sales occurred in Burlington, Vermont. On June 23, 2024, law enforcement executed a search warrant at a hotel where Stephens was staying in Shelburne, Vermont. Inside of that hotel, law enforcement found fentanyl packaged for street level distribution. Stephens was arrested on January 16, 2025, inside of a residence in Burlington, Vermont. From the room where law enforcement found Stephens, law enforcement also recovered a Walther .380 caliber firearm with a loaded magazine.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Stephens is presumed innocent until and unless proven guilty. Stephens faces up to 20 years’ imprisonment on each count if convicted. The actual sentence, however, would be determined by the District Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.
Acting United States Attorney Michael P. Drescher commended the investigatory efforts of the Drug Enforcement Administration, the Burlington Police Department, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Vermont State Police.
The prosecutor is Assistant United States Attorney Zachary Stendig. Stephens is represented by Barclay Johnson, Esq.
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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Harrison County Man Admits to Methamphetamine ChargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Frederick Blaine Rinehart, Jr., age 54, of Clarksburg West Virginia, has admitted to conspiring to possess with the intent to distribute and distribute methamphetamine.
According to court documents, Rinehart was selling methamphetamine in Harrison County. Investigators linked more than 100 grams of methamphetamine to Rinehart, some distributed and some found in his home.
Rinehart is facing up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Brandon Flower is prosecuting the case on behalf of the government.
The Greater Harrison Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Georgia Man Sentenced to 300 Months in Federal Prison for Drug and Firearm ChargesRead the Press Release
COUNCIL BLUFFS, Iowa – A Georgia man was sentenced today to 300 months in federal prison for possessing distribution quantities of meth, fentanyl, and heroin, and a firearm.
According to public court documents, Taft Cornelius Burtton, 32, fled from law enforcement who were attempting to traffic stop his car on April 20, 2023 within Adair County. Burtton drove over 112 miles per hour on I-80, exited and re-entered the interstate, and made a U-turn in the median. Law enforcement disabled Burtton’s vehicle and he fled on foot and was not apprehended. Inside Burtton’s vehicle was 884 grams of methamphetamine and more than $42,000 in drug proceeds.
On December 7, 2023, law enforcement searched Burtton’s Des Moines residence and found him in possession of more than 50 grams of fentanyl, 150 grams of heroin, 150 grams of cocaine, 50 grams of crack, 300 grams of marijuana, and a loaded Ruger pistol. Burtton is prohibited from possessing firearms because he is a felon, including a 2016 conviction in the Illinois Circuit Court for Cook County for delivery of cocaine at a public high school.
After completing his term of imprisonment, Burtton will be required to serve a five-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Adair Police Department, Des Moines Police Department, Dallas County Sheriff’s Office, and the Drug Enforcement Administration.
Fresno Man Sentenced to over 6 Years in Prison for Distributing Fentanyl That Caused Overdose DeathRead the Press Release
FRESNO, Calif. — Christian Gonzalez, 25, of Fresno, was sentenced today to six years and eight months in prison for distributing fentanyl, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, on July 20, 2020, Gonzalez knowingly distributed 10 fentanyl pills to a person in Fresno, who then distributed one of those pills to a victim who took the pill, overdosed, and died. About a month later, an undercover law enforcement officer, posing as a drug-buying customer, ordered fentanyl pills from Gonzalez and met him in a parking lot for the purchase. Gonzalez brought fentanyl pills to the meeting and was arrested. On July 29, 2024, Gonzalez pleaded guilty to distribution of fentanyl.
This case was the result of an investigation by the Fentanyl Overdose Resolution Team, a multi‑agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Fort Myers Felon Pleads Guilty to Possessing FirearmRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Stephon Jamal Dale (38, Fort Myers) to two years in federal prison for possessing a firearm and ammunition as a convicted felon. Dale entered a guilty plea on June 11, 2024.
According to court documents, on July 5, 2022, Dale sold a loaded Taurus revolver for $400. As a convicted felon, Dale is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Mark Morgan.
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 gun violence, and to make out neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in first place, setting focused and strategic enforcement priorities, and measuring the results.
Former Gilman Teacher Sentenced to 35 Years in Federal Prison for Child Sexual AbuseRead the Press Release
Baltimore, Maryland – Today, U.S. District Judge James K. Bredar sentenced Christopher Kenji Bendann, 40, of Baltimore, Maryland, to 35 years in federal prison, followed by lifetime supervised release.
After a three-day trial, on August 28, 2024, a federal jury found the defendant guilty of five counts of sexual exploitation of a child, three counts of possession of child-sexual-abuse material, and one count of cyberstalking.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno, of the Federal Bureau of Investigation, Baltimore Field Office; Chief Robert McCullough, Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to the evidence presented at trial, from approximately September 16, 2017, to February 9, 2019, the defendant — a former teacher at The Gilman School in Baltimore — produced multiple videos of a minor male. Additionally, Bendann engaged in sexually explicit conduct with the minor male who was one of his students. The victim was 16 and 17 years old at this time.
Law enforcement found these same videos stored on the defendant’s iCloud, resulting in a possession of child-sexual-abuse-material charge. In addition, as detailed at trial, between May and December 2022, the defendant cyberstalked the same victim by sending him electronic cellphone messages. Bendann demanded that the victim remain in contact and send him explicit images of himself. The defendant threatened to make sexually explicit images of the victim public if he did not comply. Evidence at trial also established that on February 3, 2023, the date of the defendant’s arrest, he possessed multiple depictions of child-sexual-abuse material on multiple electronic devices.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States 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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended the FBI, the Baltimore County Police Department, and the Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron also thanked Assistant U.S. Attorneys Colleen Elizabeth McGuinn and Kim Y. Hagan, who prosecuted the federal case. He also recognized Paralegal Specialist Julie Jarman for her assistance.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Former Communications Professor at Virginia Tech Sentenced to Prison Time for Possession of Child PornographyRead the Press Release
ROANOKE, Va. – A former professor of communications at Virginia Tech, who used peer-to-peer filesharing software to download child pornography, was sentenced last week to 60 months in federal prison.
In September 2024, Michael Horning, 51, of Christiansburg, Va., pled guilty to a one-count Information charging him with knowingly possessing one or more visual depictions of minors engaging in sexually explicit conduct, including prepubescent minors and minors who have not yet attained 12 years of age.
According to court documents, Horning downloaded child pornography between 2009 and 2021, sometimes through use of the peer-to-peer filesharing program, Freenet. At the time his electronic devices were seized in December 2021, Horning was in possession of 663 images and fourteen videos depicting child pornography, as well as additional child sex abuse material.
Of this child sex abuse material, thirty-eight images and one video depicted infants or toddlers and one video depicted sadomasochism.
Acting U.S. Attorney Zachary T. Lee and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division made the announcement.
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Jason Scheff prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
First Assistant U.S. Attorney Richard S. Moultrie, Jr. Named Acting U.S. Attorney for the Northern District of GeorgiaRead the Press Release
ATLANTA – First Assistant U.S. Attorney Richard S. Moultrie, Jr. has succeeded U.S. Attorney Ryan K. Buchanan as the Acting U.S. Attorney for the Northern District of Georgia, effective January 20, 2024, at 12:00 a.m., pursuant to the Federal Vacancies Reform Act, 5 U.S.C § 3345.
“Richard S. Moultrie, Jr. is an accomplished trial lawyer and a career prosecutor who lives the mission of the Department of Justice,” said Mr. Ryan K. Buchanan. “Additionally, he is a capable and experienced leader who has the trust and faith of the public servants of the United States Attorney’s Office, our law enforcement partners, and our community stakeholders. He is a worthy steward of the leadership of this office, and he will work tirelessly to keep the people of the district safe, to uphold the rule of law, and to protect civil rights. As a resident of the Northern District of Georgia, I look forward to his service as Acting United States Attorney.”
“It has been an incredible privilege to work side-by-side with U.S. Attorney Buchanan as the District’s First Assistant U.S. Attorney,” said Mr. Moultrie. “Along with the dedicated and talented attorney, administrative, and legal support staff of our office, I will steadfastly continue our District’s mission to prosecute federal crimes, seek justice on behalf of victims and their families, represent the interests of the United States and its agencies in civil litigation, and maintain our robust relationships with law enforcement partners and community stakeholders.”
Mr. Moultrie has extensive experience in handling complex, high-profile matters in federal court. He formerly served as Chief of the Office’s Violent Crime & National Security Section. A member of the American College of Trial Lawyers, he is also the previous recipient of the U.S. Attorney General’s Distinguished Service Award and the Executive Office of U.S. Attorneys Director’s Award for Superior Performance.
Mr. Moultrie received his Juris Doctor from the University of Texas at the Austin School of Law and a Bachelor of Arts from Morehouse College.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Felon Who Hid Loaded, Fully Automatic Handgun in 6-Year-Old Nephew’s Pants Found Guilty of Unlawful Firearm PossessionRead the Press Release
SAN FRANCISCO – Darneko Yates, 30, of Richmond, Calif., was found guilty of being a felon in possession of a firearm, following a one-day bench trial on Jan. 17, 2025, before the Honorable Araceli Martínez-Olguín, U.S. District Judge.
The evidence at trial established that on Aug. 27, 2023, San Pablo Police Officers attempted to stop Yates for a vehicle infraction. Yates drove for several blocks before pulling up partially onto the sidewalk in front of a relative’s house. Yates had his young nephew and niece in the backseat of his car. At the time, Yates was on parole following three felony convictions for carjacking, solicitation to commit murder, and possessing a loaded firearm.
Upon learning that Yates was on parole with a search condition, officers searched his person but did not find anything. When Yates’s six-year-old nephew got out of the car, Yates urged the child to go inside the house. The child moved slowly and kept his back to the officers. When officers looked at the front of the child, they saw an object tucked into the front of his pants. Upon further inspection, officers located a Glock firearm loaded with 11 rounds of ammunition inside the six-year-old’s pants. The gun had a “Glock switch” or “machinegun conversion device,” which allows a shooter to fire an endless stream of bullets with one pull of the trigger. During the traffic stop, Yates sent text messages telling an individual to come get the child out of the car before the police searched the vehicle, and admitting that the child had Yates’s gun on him.
“Defendant’s actions inexcusably endangered a young child. Thanks to the careful work of the officers on the scene, this did not turn into a tragedy,” said U.S. Attorney Ismail J. Ramsey. “My office will continue to use all resources available to reduce violent crime and gun violence in our communities.”
“Using a child to conceal a loaded, fully automatic firearm shows an alarming disregard for their safety and well-being,” said FBI Acting Special Agent in Charge Dan Costin. “The FBI, alongside our law enforcement partners, remains steadfast in our commitment to holding dangerous offenders accountable and removing illegal firearms from our streets.”
Yates was convicted of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g). He faces a maximum statutory sentence of 15 years in prison. Defendant’s sentencing is scheduled for April 28, 2025.
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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Assistant U.S. Attorneys Leif Dautch and Richard Ewenstein are prosecuting this case, with the assistance of Madeline Wachs. The prosecution is the result of an investigation by the FBI, the Contra Costa County Sheriff’s Office, and the San Pablo Police Department.
Federal Indictment Charges Former Cannabis Executive and Three Friends with Insider TradingRead the Press Release
CHICAGO — A former cannabis executive used insider information obtained from his employment to purchase shares of a rival cannabis company that was privately the target of an acquisition, according to an indictment returned in federal court in Chicago.
The indictment accuses ANTHONY MARSICO of obtaining material, non-public information about his company’s agreement to purchase the rival company. Prior to the public announcement of the agreement, and while the two companies were privately negotiating the proposed acquisition, Marsico used the information to purchase more than 900,000 shares in the rival company’s stock, resulting in illegal profits of approximately $607,338, the indictment states. Marsico later sold all of the stock before it was publicly announced that the potential acquisition was canceled, the indictment states.
While the proposed acquisition was still pending, Marsico tipped off a friend, ARTHUR PIZZELLO, about the potential acquisition. The information allowed Pizzello to also buy shares in the rival company, the indictment states. Pizzello, in turn, passed on Marsico’s information to two others, ROBERT QUATTROCCHI and TIMOTHY CAREY, allowing them to purchase the rival company’s stock as well, the indictment alleges. The four defendants were social friends and played golf together at a private country club, the indictment states.
The indictment was returned Thursday in U.S. District Court in Chicago. It charges Marsico, 39, of Bartlett, Ill., Pizzello, 61, of Wayne, Ill., Quattrocchi, 63, of Schaumburg, Ill., and Carey, 57, of Hanover Park, Ill., with conspiracy to commit securities fraud. Marsico is also charged with six individual counts of securities fraud. Arraignments in federal court in Chicago have not yet been scheduled.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Securities and Exchange Commission, which filed a civil enforcement action against the four defendants, provided valuable assistance. Assistant U.S. Attorneys Bradley Tucker and Jared Hasten represent the government.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
0001_-_0000_-_indictment_as_to_anthony_marsico_1_counts_1-6.pdfErik Siebert appointed Interim U.S. Attorney for the Eastern District of VirginiaRead the Press Release
ALEXANDRIA, Va. – Erik S. Siebert was sworn in today as the Interim United States Attorney for the Eastern District of Virginia (EDVA).
As Interim United States Attorney, Mr. Siebert supervises the prosecution of all federal crimes and the litigation of all civil matters in EDVA in which the United States has an interest. He leads a staff of approximately 300 prosecutors, civil litigators, and support personnel across four divisions in Alexandria, Richmond, Norfolk, and Newport News. The District serves over six million residents.
Mr. Siebert began his service to EDVA in 2010 as an Assistant U.S. Attorney, handling a variety of cases related to violent crime, international and domestic drug trafficking, illegal possession and trafficking of firearms, fraud, child sexual exploitation, illegal immigration, and public corruption offenses. Mr. Siebert also served as the Lead Task Force Attorney for the Organized Crime Drug Enforcement Task Force (OCDETF) for EDVA. From 2019 to 2024, he served as the Deputy Criminal Supervisor for the Richmond Division of EDVA.
Mr. Siebert has received numerous awards related to his prosecutions, including the 2018 OCDETF, Mid-Atlantic Region, Case of the Year Award; and the 2024 Washington/Baltimore High Intensity Drug Trafficking AREA (HIDTA) Award for “Outstanding Community Impact Investigation.”
Prior to joining the Department of Justice, Mr. Siebert served as a police officer with the Metropolitan Police Department, Washington, D.C., from 2002 to 2006. He served as a law clerk for Judge Henry E. Hudson on the United States District Court for the Eastern District of Virginia from 2009 to 2010.
Mr. Siebert received his J.D., with cum laude honors, from the University of Richmond Law School in 2009 and his B.A., with distinction, from the Virginia Military Institute in 2001.
Ecuadorian Man Sentenced for Introducing Misbranded Prescription Drugs Without a License in the United StatesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Mauricio Sarmiento, 35, of Ecuador, was sentenced today to one year of non-reporting probation, a $500 fine, and a $100 special assessment by United States District Court Judge John M. Gallagher for introducing misbranded drugs into interstate commerce.
On November 20, 2024, Sarmiento pleaded guilty to a one-count information charging him with that offense.
Since in or about 2022, Sarmiento, an Ecuadorian physician, made regular trips to the United States to provide medical care and prescription drugs in return for payment. Sarmiento did so even though he was not licensed to practice medicine or prescribe drugs in the United States. He also caused some of the drugs he dispensed while in the United States to be shipped from Ecuador.
On September 10, 2024, law enforcement encountered Sarmiento and seized misbranded drugs and medical equipment, including intravenous medications and a centrifuge used to provide plasma therapy.
“Medical care and treatments are tightly regulated in this country, to keep people healthy and safe,” said U.S. Attorney Romero. “Sarmiento was well aware that he wasn’t licensed to practice here and that the drugs he dispensed were misbranded. This office and the FBI will continue to work on the public’s behalf to prosecute such medical malfeasance.”
"Protecting the safety of our community is our highest priority," said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. "The FBI is steadfast in its commitment to investigating fraud, safeguarding the integrity of our healthcare systems, and ensuring those who exploit them are held accountable."
The case was investigated by FBI Philadelphia’s Allentown Resident Agency and is being prosecuted by Assistant United States Attorney John J. Boscia.
Cryptocurrency Financial Services Firm Agrees to Plead Guilty to Charges Related to Cryptocurrency “Wash Trading”Read the Press Release
BOSTON – CLS Global FZC LLC, a financial services firm known in the cryptocurrency industry as a “market maker,” has agreed to resolve criminal charges relating to its fraudulent manipulation of cryptocurrency trading volume.
As part of the criminal resolution, CLS Global will plead guilty to the charges in a September 2024 indictment returned by a federal grand jury in Boston, including one count of conspiracy to commit market manipulation and wire fraud and one count of wire fraud. If its plea is approved by the court, CLS Global will also pay a total of $428,059 to the government, representing both seized cryptocurrency and a fine and will be prohibited from participating in U.S. cryptocurrency markets.
As alleged in the Indictment, CLS Global provided “market making” and other services for cryptocurrency companies through its public website and other promotional materials. CLS Global was a company registered in the United Arab Emirates that employed over 50 individuals, all located outside the United States, but offered services to related to cryptocurrencies available to investors inside the United States.
The charges against CLS Global followed an undercover law enforcement operation targeting cryptocurrency “wash trading,” sham trading activity intended to attract investors. The investigation included the creation of NexFundAI, a purported cryptocurrency company that had a website (https://nexfundai.com) and an Ethereum-based token that traded on the Uniswap cryptocurrency exchange before being disabled by law enforcement.
CLS Global has admitted that it agreed to provide market making services for the NexFundAI token that included “wash trading” to fraudulently attract investors to purchase the token. During several videoconferences between July and August 2024, a CLS Global employee explained that the company could “help with volume generation” so that NexFundAI could meet cryptocurrency exchange listing requirements and attract purchasers of the NexFundAI token. The employee explained that CLS Global used an algorithm that “basically does self-trades, buying and selling . . . from multiple wallets so it’s not visible” and so “it looks like organic buying and selling that is happening.” The employee further explained, “It’s very hard to track. . . . We’ve been doing that for many clients.” The employee also acknowledged, “I know that it’s wash trading and I know people might not be happy about it.”
CLS Global’s employee provided a “Market Making proposal” which, in a section titled “Volume Support,” contained an illustration of the CLS Global “dashboard” that reflected “total volume,” “CLS volume,” and “external volume.” Traders employed by CLS Global subsequently bought and sold the NexFundAI token on the Uniswap cryptocurrency exchange using CLS Global’s trading wallets and provided reports on the trading activity created by the “volume generation algorithm.”
As part of the criminal resolution, CLS Global will be prohibited from participating in cryptocurrency transactions on trading platforms available to investors located in the United States or providing services to cryptocurrency clients based in the United States, as set forth in the plea agreement. CLS Global has also committed to make annual certifications that its business practices conform to these prohibitions.
The Securities & Exchange Commission brought a related civil enforcement action alleging violations of the securities laws and has entered into a separate resolution with CLS Global. Moneys seized from or paid by CLS Global will be credited in the SEC resolution, and vice versa.
United States Attorney Leah B. Foley and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorneys Christopher J. Markham and David M. Holcomb of the Securities, Financial & Cyber Fraud Unit are prosecuting the case.
The details contained in the indictment are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Convicted Felon Sentenced for Possession of a Firearm During Altercation with Bar EmployeesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that TRAVIS JORDAN (“JORDAN”), age 39, a resident of Orleans Parish, was sentenced on January 17, 2025 for being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
Specifically, JORDAN was sentenced to 21 months’ imprisonment, followed by a three-year term of supervised release, and a mandatory special assessment fee of $100.00.
According to court documents, on February 18, 2024, JORDAN was denied entry into the Saint Bar in Orleans Parish due to his intoxication. In response, JORDAN instigated an altercation with an employee and a firearm fell from his waistband. As JORDAN reached for the firearm, other employees, who witnessed the altercation, seized and secured the firearm. They then restrained JORDAN until the police arrived.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. The case was prosecuted by AssistantUnited States Attorney Troy Bell of the Violent Crime Unit .
Chinese National Sentenced for Bankruptcy Fraud and Violations of Federal Controlled Substances and Federal Gun Control ActsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that SHI GANG ZHENG (“ZHENG”), age 55, a Chinese national residing in New Orleans, was sentenced on January 16, 2025, by United States District Judge Barry W. Ashe.
According to court documents, ZHENG was sentenced to 27 months of imprisonment, three (3) years of supervised release, and payment of a $300 mandatory special assessment fee, after previously pleading guilty, to making false statements under oath in a bankruptcy proceeding (18 U.S.C. § 152(2), possession with intent to distribute marijuana (21 U.S.C. §§ 841(a)(1) and (b)(1)(C), and being an illegal alien in possession of a firearm (18 U.S.C. §§ 922(g)(5)(A) and 924(a)(8)).
ZHENG is a Chinese national who illegally entered the United States in 1991. Although he was ordered removed, the government of China declined to facilitate his removal, causing him to remain in the United States illegally. In July 2018, ZHENG filed a petition for Chapter 7 bankruptcy in which he falsely stated that he did not own any firearms, significant jewelry, or other assets. Thereafter, the United States Trustee determined that numerous Chapter 7 bankruptcy documents submitted by ZHENG were fraudulent. Further, the Trustee located unreported assets, including numerous firearms. ZHENG admitted ownership of those firearms and learned he was prohibited to possess firearms due to his immigration status. In September 2023, members of the Jefferson Parish Sheriff’s Office saw ZHENG conduct a drug transaction. Subsequent searches of ZHENG’s vehicle, residence and his arrest yielded, in combination, approximately 51 kilograms of marijuana as well as a firearm, which was prohibited due to his immigration status.
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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Department of Homeland Security/Homeland Security Investigations and prosecuted by Assistant United States Attorney Tracey N. Knight, Chief of the Criminal Division.
Beckley Man and Woman Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Today, Michael Dwayne Kelly II, 35, of Beckley, was sentenced to four years and 10 months in prison, to be followed by three years of supervised release, and Savannah Elizabeth Todd, 32, of Beckley, was sentenced to three years and 10 months in prison, to be followed by three years of supervised release, each for possession with intent to distribute fentanyl, cocaine and heroin.
According to court documents and statements made in court, on January 27, 2022, Kelly sold approximately 6.9 grams of fentanyl to a confidential informant for $700 at a residence in Beckley. Kelly admitted to the transaction and further admitted to selling approximately 28 grams of fentanyl to the confidential informant for $500 at the Beckley residence on February 10, 2022.
On February 8, 2022, Todd sold approximately 3.5 grams of fentanyl for $550 to a confidential informant at the Beckley residence. On February 17, 2022, law enforcement officers executed a search warrant at the Beckley residence, where they found Kelly and Todd. Officers seized 189 grams of fentanyl, 56 grams of cocaine, 27 grams of heroin, a Ruger LCP .380-caliber handgun, a Taurus model 22LR handgun, a Sig Sauer model 1911 .45-caliber handgun, a Glock model 42 .380-caliber handgun and $13,046. Kelly and Todd admitted that each intended to distribute the seized drugs in and around the Southern District of West Virginia.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit, which consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
Chief United States District Judge Frank W. Volk imposed the sentences. Assistant United States Attorney Brian D. Parsons prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-163.
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8 defendants in Puerto Rican cocaine trafficking organization sentenced in federal courtRead the Press Release
COLUMBUS, Ohio – The final three of eight defendants in related cocaine conspiracy cases were sentenced in U.S. District Court throughout the last two weeks, including lead defendant Herminio Gonzalez-Quintana, who was sentenced to 10 years in prison. The drug trafficking organization shipped tens of kilograms of cocaine into Ohio from Puerto Rico.
Gonzalez-Quintana and several coconspirators were indicted in November 2023 and charged with conspiring to distribute and possess with intent to distribute bulk amounts of cocaine.
According to court documents, in 2021, the DEA began investigating the drug trafficking organization that was transporting large volumes of cocaine into the Southern District of Ohio. The defendants sourced cocaine in and through Puerto Rico and shipped the drugs in 2-to-3-kilogram increments through the United States Postal Service to the Columbus area, often to the addresses of friends and family members, using fictitious recipient names. Conspirators then received and redistributed the cocaine from central Ohio.
The drug trafficking organization was responsible for a steady stream of illicit drugs into Ohio and elsewhere. In total, law enforcement seized nearly 20 kilograms of cocaine that were tied to this drug trafficking organization.
The defendants and sentences imposed include:
NameSentence imposedHerminio Gonzalez-Quintana120 months in prisonAbdel Padilla-Montero108 months in prisonJosaias Vazquez-Pinero60 months in prisonJonathan Vega-Iglesias66 months in prisonJesus Maldonado-Ortiz60 months in prisonRafael Alicea-Ruiz60 months in prisonAnthony Miranda-Gonzalez12 months and one day in prisonPablo Joel Velazquez-TorruellaTime servedKenneth L. Parker, United States Attorney for the Southern District of Ohio, and Andrew Lawton, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Detroit Division, announced the sentence imposed by U.S. District Court Judge Algenon L. Marbley. Assistant United States Attorneys S. Courter Shimeall and Jennifer M. Rausch represented the United States in this case.
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Monday 20 January 2025
Tara M. Lyons named Acting U.S. Attorney for Southern District of GeorgiaRead the Press Release
SAVANNAH, GA: As of January 18, 2025, and by virtue of the Vacancies Reform Act, First Assistant U.S. Attorney Tara M. Lyons is officially Acting U.S. Attorney for the Southern District of Georgia. She is the first Black woman to serve in the role as the chief federal law enforcement officer for the Southern District of Georgia.
A resident of Evans, Georgia, Acting USA Lyons has served as a law clerk for the Honorable Henry F. Floyd; as a Public Defender in Richland County, South Carolina; an attorney advisor for the Executive Office for United States Attorneys; as an Assistant U.S. Attorney in the Criminal Division, District of South Carolina; and Deputy Chief in the Criminal Division, Southern District of Georgia. She served as the First Assistant U.S. Attorney since April 2023.
During Acting USA Lyons’ 20-year career with the Department of Justice she has handled a wide range of federal cases related to violent crimes, human trafficking, child pornography and civil rights violations. In the District of South Carolina she served as the Project Sentry Coordinator, related to the prevention of gun violence; and in Southern District of Georgia, she served as the Project Safe Childhood Coordinator, responsible for the prosecution of childhood exploitation cases, and as the Civil Rights Coordinator, responsible for the prosecution of color of law and civil right violations.
As Acting U.S. Attorney, Lyons serves as the chief federal law enforcement officer for the Southern District of Georgia, which covers 43 of Georgia’s 159 counties with a population of more than 1.6 million people and includes the cities of Savannah, Augusta, and Brunswick. She leads a team of more than 70 attorneys and staff in prosecuting federal crimes in the District and defending the United States in civil cases and collecting debts owed to the United States.
Sunday 19 January 2025
Justice Department Secures Settlement to Resolve Discrimination Claims in Student Loans Against SouthEast BankRead the Press Release
Note: View the complaint here and the consent order here.
The Justice Department announced today that SouthEast Bank agreed to pay $1.5 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by disproportionately discouraging and denying Black and American Indian/Alaska Native (AI/AN) graduates seeking to refinance their student loans.
“Everyone in our country should have a fair chance and equal opportunity to refinance a school loan. By rejecting graduates based on where they obtained their degree, SouthEast Bank’s policy denied and discouraged Black, American Indian and Alaska Native graduates seeking to refinance student loans for reasons that were wholly unrelated to their personal merit or ability to repay their loans,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This is a reminder of how historic inequities in lending and refinance opportunities for Black and American Indian/Alaska Native students persist today, and why combating these inequities is an essential part of the Justice Department’s work.”
The complaint, which was filed on Jan. 18, in the Eastern District of Tennessee, alleges that, between December 2015 and April 2021, the refinance program’s eligibility criteria automatically denied graduates of schools with school-based default rates above thresholds SouthEast established. Under this policy, for example, Black bachelor’s degree recipients were as much as 4.3 times more likely to be excluded than bachelor’s degree recipients who were not Black. Similarly, AI/AN Bachelor’s degree recipients were as much as 3 times more likely to be excluded than bachelor’s degree recipients who were not AI/AN. The department’s complaint further alleges that SouthEast’s policy disproportionately excluded graduates of as many as 84.4% of majority-Black schools, including Historically Black Colleges and Universities, but no more than 21.1% of colleges and universities whose student bodies were not majority-Black.
The consent order, which is subject to court approval, requires SouthEast Bank to spend a total of $1.5 million to:
- Compensate applicants who were denied the ability to refinance their student loans by the policy;
- Increase access to student loan refinancing for qualified graduates of schools that were previously excluded under the policy; and
- Provide consumer financial education to students and graduates of those previously excluded schools.
The department’s investigation into SouthEast’s student loan refinancing program originated from a referral by the Federal Deposit Insurance Corporation. SouthEast cooperated with the investigation and worked with the Justice Department to resolve the allegations.
Additional information about the Civil Rights Division’s work to uphold and protect civil and constitutional rights is available at justice.gov/crt. Complaints about discriminatory practices may be reported to the Civil Rights Division through its internet reporting portal at civilrights.justice.gov.
Saturday 18 January 2025
Utica Man Sentenced to 96 Months on Drug and Money Laundering ConvictionsRead the Press Release
SYRACUSE, NEW YORK – Willie Alvarado, Jr., 34, of Utica, New York, was sentenced last week to serve 8 years in federal prison for attempted possession with intent to distribute over 500 grams of cocaine and money laundering.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA) New York Division, made the announcement.
As part of his guilty plea, Alvarado admitted that, as early as October 2022, he began using the United States Postal Service to receive drug parcels from Puerto Rico. In May of 2023, law enforcement intercepted a package shipped from Puerto Rico, intended for Alvarado, which contained two kilograms of cocaine. Alvarado admitted that he intended to distribute the cocaine in the package. Alvarado further admitted that, in September of 2023, he used another individual to launder at least $9,940 of his drug proceeds.
Senior United States District Court Judge David N. Hurd also imposed a four-year term of supervised release to begin after Alvarado is released from prison.
The DEA, Internal Revenue Service Criminal Investigation (IRS-CI), and United States Postal Inspection Service investigated the case with assistance from the New York State Police, Utica Police Department, Oneida County Sheriff’s Office, Onondaga County Sheriff’s Office, Syracuse Police Department, U.S. Immigration and Customs and Enforcement, and Onondaga County District Attorney’s Office. Assistant U.S. Attorney Jessica N. Carbone prosecuted the case.
Indianapolis Drug Dealer Sentenced to Thirteen Years in Federal Prison for Drug and Gun Crimes, Including Possession of a Murder WeaponRead the Press Release
INDIANAPOLIS— Marvin T. Golden Jr., 26, of Indianapolis, has been sentenced to thirteen years in federal prison, followed by five years of supervised release after pleading guilty to two counts of possession of a firearm by a convicted felon and one count of distribution of methamphetamine.
According to court documents and evidence presented at the sentencing hearing, on October 26, 2022, Shelby County Sheriff’s Deputies observed Marvin Golden, Jr. sell 55 grams of methamphetamine while his children were sitting in the back seat of his car. On November 3, 2022, Golden sold another 20 grams of methamphetamine and a gram of fentanyl in Shelby County.
In the early hours of March 25, 2023, Anthony Shelman was shot to death in Marion County. At approximately 3:25 a.m., Shelman was driving east on I-70 with a passenger in his car. As they approached the Emerson Avenue exit, multiple rounds were fired at their vehicle. Shelman was shot in the chest, his passenger was shot in the hand, and the vehicle crashed into a light pole at the intersection after the Emerson Avenue exit, and two other nearby vehicles fled the scene at high speed. Shelman was pronounced dead shortly after arriving at a local hospital, and his passenger survived. Police later identified multiple gunshot holes in the windshield and passenger side of the vehicle.
The Indiana State Police began an extensive investigation of the killing, including extensive review of video evidence from traffic and surveillance cameras. Troopers discovered that Shelman, his passenger, Marvin Golden, and another individual were all at the Sunset Strip Club in Indianapolis, immediately prior to the shooting. Golden and the other individual were waiting outside the club when Shelman and his passenger drove away. Golden and the other individual each followed Shelman in their own vehicles. The two vehicles followed Shelman for more than ten minutes and over seven miles before exiting I-70 at Emerson Avenue at the same time the shots were apparently fired, and fled at high speed after the shooting. At approximately 7:00 that same morning, Golden is seen on video extensively cleaning his car for ten minutes in the pouring rain, including moving the seats and shining a light in an apparent effort to locate objects in the car.
On May 3, 2023, Troopers conducted a court-authorized search of Golden’s home and seized a .40 caliber Glock 27 handgun. The gun was previously possessed by a relative of Golden’s, and forensic testing found that it was the gun used to kill Shelman. DNA testing identified Golden’s DNA on multiple parts of the gun. At Golden’s federal sentencing hearing, the judge enhanced his advisory sentencing range after finding that Golden possessed the murder weapon in connection with a felony offense related to Shelman’s murder.
On August 28, 2023, Indiana State Police Troopers and two Shelby County Sheriff’s Deputies arrested Golden and seized a loaded Glock 9mm handgun from his person.
Unsealed court records demonstrate that Golden was previously a member of a street gang referred to as the Mob. He was charged as a juvenile in federal court for his role in a series of armed robberies of pharmacies committed when he was 17 years old. Golden and his co-conspirators stole drugs from the pharmacies at gunpoint and then sold the stolen drugs. Golden brandished firearms and pointed them at victims’ heads during multiple robberies. At one of the robberies Golden participated in, two members of the conspiracy got into a dispute, and one shot the other in the head, killing him. The following day, Golden robbed another pharmacy at gunpoint.
In 2019, Golden was sentenced as a juvenile to time served, the maximum penalty available under the law, and given one year of juvenile probation. His co-conspirators were charged and convicted in federal court under the Racketeer Influenced and Corrupt Organizations (RICO) Act.
He was later convicted of additional drug and gun offenses as an adult and was a felon when he conducted both drug deals and possessed both firearms, including the murder weapon. As a previously convicted felon, Golden was prohibited from possessing firearms under federal law.
“Anthony Shelman should be alive today, and we extend our deepest sympathies to his family and all who loved him,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Marvin Goldman has repeatedly demonstrated that he is a violent, vicious criminal who has an utter disregard for the law. As we work to urgently reduce gun violence, investigation and federal prosecution of the most dangerous armed criminals is a top priority. We are grateful to our partners at ATF, ISP, and in Shelby County Sheriff’s Department, as well as our federal prosecutor, for ensuring that this measure of justice is done and this menace to our community will be off of our streets for years to come.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Indiana State Police, and Shelby County Sheriff’s Department investigated this case. The sentence was imposed by U.S. District Judge James P. Hanlon.
U.S. Attorney Myers thanked Assistant U.S. Attorney Pamela S. Domash, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Friday 17 January 2025
Winona Man Sentenced to Prison for Drug TraffickingRead the Press Release
Oxford, Mississippi – A Winona man was sentenced today to seven years in prison for drug trafficking.
According to court documents, Michael Fleming, 37, previously pled guilty to possession with intent to distribute 50 grams or more of a mixture and substance containing methamphetamine, a Schedule II controlled substance. This charge carries a mandatory minimum sentence of five years of incarceration. U.S. District Court Judge Glen Davidson sentenced Fleming today to 84 months of incarceration followed by four years of supervised release. Fleming was remanded to the custody of the U.S. Marshals following sentencing.
“This office will continue to work alongside our local, state and federal partners to hold accountable those individuals who seek to profit from selling dangerous drugs in our communities,” said U.S. Attorney Clay Joyner. “If you choose to make money by selling poison to others, find a new profession or face prison.”
“This sentencing is a testament to the outstanding collaboration between all levels of law enforcement with the North Mississippi U.S. Attorney’s Office, Mississippi Bureau of Narcotics, and Montgomery County Sheriff’s Office,” said Mississippi Department of Public Safety Commissioner Sean Tindell. “Through dedication and teamwork, we are making our communities safer and sending a clear message that drug trafficking will not be tolerated in our state.”
This case was investigated by the Montgomery County Sheriff’s Office and the Mississippi Bureau of Narcotics. The case was prosecuted by Assistant U.S. Attorney Robert Mims.
Windermere Woman Charged with COVID Relief FraudRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the filing of a criminal complaint charging Carolina Amesty (30, Windermere) with two counts of theft of government property related to COVID relief fraud. Each count carries a maximum penalty of 10 years in federal prison.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the U.S. Small Business Administration–Office of Inspector General and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Megan Testerman and Diane Hu.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by contacting the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Wausau Man Sentenced to More Than 8 Years for Cocaine Trafficking and Firearms PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Craig C. Gates, 46, Wausau, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 106 months in federal prison for possessing cocaine intended for distribution and possessing a loaded firearm in furtherance of a drug trafficking crime. The prison term will be followed by 5 years of supervised release. Gates pleaded guilty these charges on October 28, 2024.
In February 2022, Central Wisconsin Narcotics Task Force officers began investigating a methamphetamine and cocaine trafficking organization operating in Wausau, Wisconsin, led by Tommie Haney and Quo Vadis Lewis. The multi-year investigation involved the seizure of drug-laden packages from the mail, controlled purchases of narcotics, and seizures of firearms and large quantities of drugs from residence searches. From the investigation, officers believe the drug trafficking organization was distributing kilograms quantities of methamphetamine and cocaine.
Craig Gates was identified as a frequent source of cocaine for Lewis and on June 28, 2023, officers with the Central Wisconsin Narcotics Task Force executed a search warrant at Gates’s residence. Agents recovered a loaded Ruger 9mm handgun, over 420 grams of cocaine, over $11,000 in cash, and drug trafficking paraphernalia. Gates is prohibited from legally possessing firearms and ammunition because of multiple prior felony convictions.
During a later interview with law enforcement, Gates admitted that he had been selling cocaine for a long time. Gates said that he considered Lewis a friend, knew him a long time, and was Lewis’s source of cocaine. Further, Gates admitted to supplying 3 additional distributors, and receiving one or more kilograms at a time from his own source. Gates thought the cocaine came from cartels in Mexico because it came wrapped and stamped.
Gates was on state supervision for five different state cases while trafficking cocaine. His state supervision has since been revoked and he was ordered to serve one year in county jail.
At sentencing, Judge Conley noted that Gates was identified as a primary source of cocaine for Quo Vadis Lewis and other distributors. Judge Conley highlighted the many aggravating factors in the case, including the large amount of cocaine recovered, the loaded firearm, Gates’s lengthy criminal history including violence, and his being on supervision for five cases while trafficking cocaine.
Eight others were also charged in connection with this drug trafficking organization. Teala L. Kumbera was convicted of conspiracy to distribute cocaine and methamphetamine and sentenced on November 14, 2024, to 54 months in federal prison. Shandel L. Mohr was convicted of conspiracy to distribute cocaine and methamphetamine and sentenced on December 3, 2024, to 12 months and 1 day in federal prison. Quo Vadis Lewis was convicted of conspiracy to distribute 500 grams or more of methamphetamine and 500 grams or more of cocaine and possessing firearms as a felon and was sentenced on January 3, 2025, to 12 ½ years in federal prison. Shelby Gutch pleaded guilty to conspiracy to distribute methamphetamine and cocaine on January 7, 2025, and entered into a 24-month diversion agreement. Troy C. Olsen was convicted of conspiracy to distribute methamphetamine and cocaine and was sentenced on January 8, 2025, to 45 months in federal prison. Tommie Haney, Edwin Lewis, and Samuel A. Teague have all pleaded guilty and are scheduled to be sentenced in the coming months.
The charges against Gates were the result of an investigation conducted by the Federal Bureau of Investigation’s Central Wisconsin Narcotics Task Force comprised of investigators from the FBI, Wisconsin State Patrol, Wisconsin Department of Criminal Investigation, Lincoln County Sheriff’s Office, Marathon County Sheriff’s Office, Portage County Sheriff’s Office, Mountain Bay Police Department, Wausau Police Department and Wisconsin National Guard Counter Drug Program. The Marathon County District Attorney’s Office also assisted with the investigation. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Warehouse Supervisor Sentenced to 15 Months in Federal Prison for Stealing $2 Million Worth of Fitbits from Amazon and Selling Them on eBayRead the Press Release
INDIANAPOLIS— Dwight Oliver, 40, of Grand Prairie, Texas, has been sentenced to 15 months in federal prison, followed by one year of supervised release after pleading guilty to mail fraud. Oliver has also been ordered to pay $1,435,954.62 in restitution.
According to court documents, from May 2021 to August 2022, Dwight Oliver worked as a facility supervisor for a company that operated a warehouse in Plainfield, Indiana.
Between June 2021 and September 2021, approximately $2 million worth of Fitbit devices went missing in transit to multiple Amazon fulfillment centers across the United States. Through an internal investigation, Amazon discovered that the missing devices were associated with bulk purchase orders that had transited at one time through the warehouse where Oliver worked.
In June of 2021, Oliver began stealing Fitbits devices from the warehouse. He disabled the GPS tracker of his employer’s sprinter van, allowing him to transport the stolen merchandise from the warehouse without detection by his employer. Oliver posted the stolen devices for sale on eBay, representing himself as a legitimate third-party seller.
Oliver used the United States Post Office to mail one hundred stolen Fitbit devices to buyers across the country. In total, Oliver received approximately $687,540.53 for the sale of the stolen Fitbits.
“Modern eCommerce depends modern logistics and supply chains, including many businesses in the Southern District of Indiana. Criminals who abuse their positions of trust to steal from customers and their employers cause harm to our economy and raise prices for everyone,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “I commend our partners at the FBI and our federal prosecutor for their commitment to this case and ensuring that the individual responsible was held accountable. The federal prison sentence imposed here demonstrates that financial crimes can cause serious harm and can result in serious consequences.”
“Today’s sentence should serve as a strong reminder that the exploitation of online platforms won’t be tolerated. Theft of merchandise not only disrupts the digital marketplace but undermines the trust consumers place in e-commerce platforms,” said FBI Indianapolis Acting Special Agent in Charge Danny Youmara. “The FBI remains committed to working with our law enforcement partners to ensure those participating in such schemes are held accountable.”
FBI investigated this case. The sentence was imposed by U.S. District Judge Matthew P. Brookman.
U.S. Attorney Myers thanked Assistant U.S. Attorney Corbin Houston, who prosecuted this case.
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Virginia Man Pleads Guilty to Real Estate and Tax FraudRead the Press Release
A Virginia man pleaded guilty yesterday to real estate and tax fraud related to his scheme to obtain title to a $1.3 million home in Roanoke County. Specifically, he pleaded guilty to conspiring to commit wire fraud, wire fraud, mail fraud, bank fraud and filing false claims against the United States.
According to court documents and statements made in court, Herman Estes filed a false amended income tax return for 2021 claiming he was entitled to a tax refund of $18.3 million. In March 2023, Estes made a $1.3 million cash offer for a property on Old Mill Plantation Road in Roanoke County. To legitimize this offer, Estes provided the parties to the transaction with a proof of funds letter that Estes created using an online form. Estes also provided the real estate agent with a number for his co-conspirator who he claimed was his trust manager with authority to approve the offer. The co-conspirator purported to approve Estes’ use of his trust funds for the real estate transaction.
As payment for the property, Estes tendered a fraudulent cashier’s check that he had signed in the amount of $1,307,199.43 purportedly drawn on the Federal Reserve Bank of Richmond. Funds in that amount were debited to the settlement company’s trust account before the check was identified as fraudulent.
In March 2023, Estes filed another false tax return claiming he was entitled to a $2.9 million refund.
Estes will be sentenced at a later date. He faces a maximum penalty of 20 years in prison for the wire fraud conspiracy, wire fraud and mail fraud counts, a maximum penalty of 30 years in prison for bank fraud and a maximum penalty of five years in prison for the false claims counts, plus additional potential penalties related to the commission of these offenses while released on bond. Estes also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division and Acting U.S. Attorney Zachary T. Lee for the Western District of Virginia made the announcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and IRS Criminal Investigation are investigating the case.
Trial Attorney Andrew Ascencio of the Tax Division and Assistant U.S. Attorney Lee Brett for the Western District of Virginia are prosecuting the case. Former Assistant U.S. Attorney Kristin Johnson for the Western District of Virginia assisted in the investigation and prosecution.
United States Files Fair Housing Act Lawsuit Against Lettire Construction Corp. and Related Entities for Failure to Construct Apartments with Features Accessible to Persons with DisabilitiesRead the Press Release
Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the U.S. has filed a federal Fair Housing Act (“FHA”) lawsuit against LETTIRE CONSTRUCTION CORP. (“LETTIRE”) relating to its failure to design and construct new apartment buildings to be accessible to persons with physical disabilities. The lawsuit also names other entities related to LETTIRE that participated in the design or construction of these residential complexes. Upon filing suit, the U.S. also submitted to the Court proposed consent decrees with LETTIRE, EAST 124TH STREET LLC, and other entities related to LETTIRE which participated in the design and construction of such buildings. These settlements are subject to the review and approval of the U.S. District Judge assigned to the case.
Acting U.S. Attorney Edward Y. Kim said: “Today’s filing is the 20th suit that this Office has brought to remedy the failure of real estate developers to comply with the Fair Housing Act. We appreciate Lettire’s and East 124th Street LLC’s cooperation in taking responsibility for their actions so that more properties are rendered accessible to more people. This Office will remain vigilant in ensuring that developers, construction managers, and architects comply with the FHA and remedy inaccessible housing in this District.”
The FHA’s accessible design and construction provisions require multifamily housing complexes constructed after January 1991 to have basic features accessible to persons with disabilities.
According to the allegations in the Complaint:
The inaccessible conditions at buildings that LETTIRE constructed include excessively high thresholds at building entrances and entrances to common use areas, and bathrooms in individual apartments that lack sufficient clear floor space for people who use wheelchairs. These features in the common use areas of buildings that LETTIRE constructed, as well as in the buildings’ apartment interiors, did not meet the standards set forth in the Fair Housing Act.
The Complaint identifies inaccessible conditions at the following three properties:
- The Tapestry, at 245 East 124th Street in Manhattan. In addition to LETTIRE, the Complaint names as defendants LETTIRE 124th STREET LLC as a co-developer of the Tapestry, and EAST 124th STREET LLC (with whom, as noted above, the Government has reached an agreement subject to Court approval) as the owner and managing member of the Tapestry.
- Chestnut Commons, at 3269 Atlantic Avenue in Brooklyn. In addition to LETTIRE, the Complaint names as defendants UBC CHESTNUT COMMONS LLC as a co-developer of Chestnut Commons, CHESTNUT COMMONS HOUSING DEVELOPMENT FUND CORP. as the owner of Chestnut Commons, and MHANY MANAGEMENT INC. as the managing member of Chestnut Commons. The Government’s claims relating to Chestnut Commons have not yet been resolved.
- The Atrium, at 57 Marcus Garvey Boulevard in Brooklyn. However, by the time that the Atrium opened in 2024, LETTIRE had retained an accessibility consultant, and the identified inaccessible conditions were in the process of being substantially remediated in consultation with the Government. The Atrium has been included in the lawsuit in order to ensure that remaining retrofits are completed.
Due to the inaccessible conditions at the buildings LETTIRE designed and constructed, LETTIRE engaged in a pattern or practice of resistance to the full enjoyment of rights protected by the FHA and denied such rights to people with disabilities. The Complaint seeks a court order directing LETTIRE to retrofit individual apartments as well as the public and common use areas of the buildings so that they are accessible, to adopt policies and procedures to ensure FHA compliance in future constructions, and to compensate individuals who suffered discrimination due to the inaccessible conditions.
Under the settlement with LETTIRE and other related entities, LETTIRE agreed to complete necessary retrofits at the Atrium, establish procedures to ensure FHA compliance at future development projects, and to institute policies and training to ensure that its employees and agents will comply with the FHA’s accessibility requirements. LETTIRE agreed to pay a civil penalty of $20,000, and the related entities agreed to pay a civil penalty of $10,000 each, commensurate with their role in designing and/or constructing the Tapestry and Chestnut Commons.
Under the settlement with EAST 124TH STREET LLC, EAST 124TH STREET LLC agreed to complete necessary retrofits at the Tapestry, establish procedures to ensure FHA compliance at future development projects, and to institute policies and training to ensure that its employees and agents will comply with the FHA’s accessibility requirements. EAST 124TH STREET LLC also agreed to pay a civil penalty of $10,000, commensurate with its role in designing and/or constructing the Tapestry.
Further, the settlement requires EAST 124th STREET LLC to provide $20,000 to compensate aggrieved persons with respect to the Tapestry. Aggrieved individuals may include those who:
- Were discouraged from living at the Tapestry because of the lack of accessible features;
- Have been hurt in any way by the lack of accessible features at the Tapestry;
- Paid to have an apartment at the Tapestry made more accessible to persons with disabilities; or
- Otherwise were discriminated against on the basis of disability at the Tapestry as a result of inaccessible design and construction.
People who believe they may have experienced discrimination due to the inaccessible conditions at the above-named buildings developed by LETTIRE may contact the Civil Rights Complaint account at [email protected], use the Civil Rights Complaint Form available on the U.S. Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, or send a written report to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York 10007
Attention: Chief, Civil Rights Unit
* * *
Mr. Kim thanked HUD for its assistance on the investigation.
The case is being handled by the Office’s Civil Rights Unit in the Civil Division. Assistant U.S. Attorneys Amanda Lee and Danielle J. Marryshow are in charge of the case.
United States Attorney’s Office Issues 2024 Annual ReportRead the Press Release
DETROIT - The United States Attorney’s Office made significant strides in 2024 in rebuilding community trust, reinvigorating our protection of civil rights, and restructuring our approach to violent crime, United States Attorney Dawn N. Ison announced today. The details of the office’s work in 2024 are set forth in a 62-page annual report highlighting prosecutions, community outreach, trials, convictions, systemic change, and community impact.
United States Attorney Dawn N. Ison stated, “Our office is immensely proud of the work we did in 2024, reducing crime, protecting civil rights, defending our borders, and protecting the federal treasury. This work could not have been accomplished without partnerships across the Eastern District of Michigan. Our dedicated team of lawyers and support staff worked with local, state, and federal law enforcement and community partners to improve the lives of the residents of the Eastern Michigan. This annual report represents the highlights of this work because it would be impossible to detail everything that this incredible team accomplished in 2024.”
The document is available here for review by the public. The report sets forth the work done in service of the richly diverse Eastern District of Michigan. The lawyers and support professionals in our Detroit, Flint, and Bay City offices, along with our partner agencies, had significant accomplishments this year. Among them:
• In fiscal year 2024, our office collected $45,395,510.25 in criminal and civil actions. Of this amount, $32,629,919.83 was collected in criminal actions and $12,765,590.42 was collected in civil actions. These funds are being returned to victims and taxpayers.
• Our efforts to target the most violent offenders who are harming public safety resulted in numerous federal convictions. We obtained a life sentence for the leader of the Seven Mile Bloods Gang who terrorized Detroit’s east side for many years. We also obtained Racketeer Influenced and Corrupt Organizations (“RICO”) convictions for three senior members of the Almighty Vice Lords Nation, a criminal enterprise that operates across the country, including in Detroit. One of the three defendants was sentenced to 70 years in prison while the other two each received 60-year sentences.
• We reached a landmark settlement agreement with the Wayne County Jail resolving allegations that the Wayne County Jail routinely failed to provide crucial services to inmates with disabilities, including access to appropriate prescription medications, mental health services and medical equipment, and failed to conduct medical and mental health assessments.
• We obtained a guilty plea from the former Chief Financial Officer of the Detroit Riverfront Conservancy who had embezzled more than 40 million dollars from the nonprofit. We also obtained a restitution agreement requiring him to pay no less than $44.3 million in restitution as a result of his conduct.
• We remained committed to rooting out public corruption in our community as 2024 saw the Mayor of Inkster plead guilty to bribery charges and the Mayor of Taylor sentenced to nearly 6 years in prison on charges of conspiracy to receive bribes and wire fraud.
• We charged five Chinese nationals, who were students at the University of Michigan, with conspiracy, false statements, and destruction of records in a federal investigation after they were caught photographing military equipment during a joint training exercise involving the Michigan National Guard and the Taiwanese military at Camp Grayling, a U.S. military installation.
• We obtained a 33-year sentence for an incident that took place on the Isabella Reservation in Indian Country where the defendant shot and killed his domestic partner and caused life-threatening injuries to a six-month-old child.
• We convicted seven individuals for violating the Freedom of Access to Clinic Entrances (FACE) Act by using physical obstruction to intimidate and interfere with employees and patients of a reproductive health clinic.
Although we are encouraged by the results of our efforts in 2024, we recognize that we still have more work to do. The work detailed in the 2024 Annual Report details our ongoing efforts to keep our community safe, protect civil rights, and ensure fairness and opportunity for everyone in our community. Each day, the 210 men and women of the U.S. Attorney’s Office will continue to work diligently to further these goals and to advance the interests of our nation.
Unified Care Services LLC Agrees to Pay $18M to Settle False Claims Act Allegations Relating to Paycheck Protection Program LoansRead the Press Release
Note: View the executed settlement agreement here.
Torrance, California-based chain of skilled nursing facilities Unified Care Services LLC (Unified Care), its affiliates and its owner, Emmanual David, have agreed to pay $18 million to resolve allegations that they violated the False Claims Act (FCA) by knowingly providing false information in support of Paycheck Protection Program (PPP) loan applications and loan forgiveness applications submitted by Unified Care and its affiliates.
The PPP, an emergency loan program established by Congress in March 2020 under the Coronavirus Aid, Relief and Economic Security (CARES) Act and administered by the Small Business Administration (SBA), was intended to support small businesses struggling to pay employees and other business expenses during the COVID-19 pandemic. Borrowers were eligible to seek forgiveness of the loans if they spent the loan proceeds on employee payroll and other eligible expenses. Only small businesses were eligible for PPP loans. Whether an applicant qualified as a small business was determined by assessing the employees, revenues, or net worth of the applicant along with all corporate affiliates that shared common operational control. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications, including their size and number of employees.
The settlement resolves allegations that Unified Care and its affiliates falsely certified they were small business with fewer than 500 employees when they submitted their PPP loan and loan forgiveness applications in 2020. These applications allegedly failed to disclose that the entities applying were part of a larger chain of facilities that all shared common ownership and control that rendered Unified Care and its affiliates ineligible for PPP loans. The Unified Care affiliates covered by the settlement include: Unified Care Services LLC; Casa Montana LLC; Geri-Care Inc.; Geri Care V LLC; Pacific Palms Healthcare LLC; Foothill Care Center Inc.; Mount Megiddo LLC; Canyon Properties III LLC; Cloverleaf Enterprises Inc.; Foothill Care Center LLC; Foothill Care Center II LLC; David Kleis III LLC; David Kleis II LLC; Miramonte Enterprises LLC; and Washington Enterprises III LLC.
“PPP loans were intended to assist eligible small businesses during the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible businesses improperly obtained loans, they harmed both the taxpayers who funded the program and the eligible businesses who were denied relief.”
“COVID-relief programs were designed to help people and businesses during the worst public health crisis this nation had seen in one century,” said U.S. Attorney Martin Estrada for the Central District of California. “My office will continue to pursue those who knowingly cheat taxpayers by violating PPP and other pandemic-related programs.”
“This resolution demonstrates the department’s commitment to ensuring that those who improperly obtain federally guaranteed PPP loans are held accountable and funds repaid to the American taxpayer” said Director of COVID-19 Fraud Enforcement Mandy Riedel of the Justice Department.
“The SBA Office of Inspector General is committed to ensuring the integrity of CARES Act programs,” said Special Agent in Charge Weston King of the SBA Office of Inspector General, Western Region. “Through partnerships with federal agencies, we continue to identify fraud schemes and protect relief funds from misuse.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned United States ex rel. Ashwani Chawla v. Unified Care Services et al., CV 21-5935-GW (CDCA). The whistleblower will receive $2,070,000 in connection with the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California, with assistance from the SBA’s Office of General Counsel (SBA-OGC) and the SBA Office of Inspector General (SBA-OIG).
Senior Trial Counsel Benjamin C. Wei of the Justice Department’s Civil Division and Assistant U.S. Attorney Jack Ross for the Central District of California handled the matter, with assistance from Mary Cvengros of SBA-OGC and Christopher H. Stephens of SBA-OIG.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across the federal government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
U.S. Government Reaches Settlement in Class Action Relating to Discharge Paperwork of Military Veterans Discharged Under “Don’t Ask, Don’t Tell” and Predecessor PoliciesRead the Press Release
On Jan. 3, the United States reached a settlement in Farrell v. Department of Defense, a class action lawsuit filed in 2023 in the U.S. District Court for the Northern District of California. The plaintiffs in Farrell alleged that the Department of Defense’s files for military veterans discharged under “Don’t Ask, Don’t Tell” and earlier policies barring lesbian, gay and bisexual people from serving openly in the military violate the Constitution’s guarantees of equal protection and due process.
Under the proposed settlement, veterans will have the opportunity to request changes to aspects of their discharge paperwork relating to sexual orientation under more streamlined procedures than currently available.
The proposed settlement agreement is subject to final approval by the district court after notice to the class and an opportunity to object.
Additional information for class members about the proposed settlement is available here:
www.defense.gov/Spotlights/Dont-Ask-Dont-Tell-Resources/
www.milreviewbds.mil/Portals/149/Class%20Notice__Farrell%20et%20al__1.pdf
U.S. Attorney’s Office Honors Law Enforcement Personnel for Exceptional Public ServiceRead the Press Release
FAIRVIEW HEIGHTS, Ill. – U.S. Attorney Rachelle Aud Crowe announced the recipients of the 2024 Law Enforcement Public Service Awards on Wednesday. Honorees were selected based on their contributions to successful prosecutions in the Southern District of Illinois.
“In 2024, the U.S. Attorney’s Office charged 248 criminal cases, which is nearly a 23% increase from 2023. We couldn’t prosecute cases without successful investigations, and we were proud to recognize this group of our trusted law enforcement partners with awards for their public service,” said U.S. Attorney Rachelle Aud Crowe.
Awardees include: IRS Agents Jason Bamvakais and Bradley Roessler, DEA Task Force Officer Timothy Birckhead, ATF Agents Duane Clauer and Zachary Green, FBI Agent Raymond Hart, HSI Task Force Officer Robert Wallace, Illinois State Police Sergeant Zachary Heard, Veterans Affairs Office of Inspector General Agent Raymond Vasil and U.S. Marshals Service Deputy William Clay Weier.
The USMS Great Lakes Regional Fugitive Task Force was selected as the group awardee.
“We are elated and grateful to the United States Attorney’s Office for recognizing the outstanding work of the Great Lakes Regional Fugitive Task Force, Southern District of Illinois, and Supervisory Deputy U.S. Marshal Clay Weier with the 2024 Law Enforcement Public Service Award. SDUSM Weier has been an outstanding leader directing the daily activities of the task force. Their recent performance during Operation North Star, a national USMS fugitive operation, reinforced my belief that they are the best task force in the county,” said U.S. Marshal David Davis.
Agent Bamvakais leads exceptional financial investigations and contributes to the office’s Organized Crime Drug Enforcement Task Force caseload, and retired Agent Roessler was recognized for his talent at developing confidential informants.
Agent Birckhead works diligently on fatal drug overdose investigations throughout the Metro East, including the prosecution of Tessa Webber who was sentenced to 15 years’ imprisonment for selling a fatal dose of fentanyl.
“Agent Birckhead is one of the best of the best. He continually investigates with tenacity and perseverance leaving no stone unturned. He also works with a zest for our victims and emulates every police officer’s sworn oath,” said Fairview Heights Police Chief Steve Johnson.
Agent Clauer received recognition for his outstanding work on arson cases and testifying at trials. Agent Green was highlighted for his efforts to educate the law enforcement community in southern Illinois on the prevalence of ghost guns.
“Every day our Special Agents work to make our communities safer, uphold the law, and protect civil rights, and we are happy that two of our Special Agents are being recognized for their outstanding work,” said ATF Assistant Special Agent in Charge Shannon Hamm.
Agent Hart and Officer Wallace received accolades for their tireless and excellent work on child exploitation investigations.
Sergeant Heard was honored for his contributions to investigate human trafficking cases in southern Illinois. In addition, he has led numerous trainings for more than 2,000 law enforcement officers to improve their education on trafficking indications during traffic stops.
Retired Agent Vasil led the financial investigations for four cases charged over the last year regarding disability and PPP loan fraud.
U.S. Attorney S. Lane Tucker Announces Alaska's Designation as Jurisdiction of Focus Under the Violence Against Women Act Reauthorization Act of 2022 (VAWA)Read the Press Release
ANCHORAGE, Alaska – United States Attorney S. Lane Tucker announced that Attorney General Merrick Garland has designated Alaska as a jurisdiction of focus under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022 (VAWA). U.S. Attorney Tucker stated, “Alaska’s inclusion in VAWA provides significant resources for the District of Alaska’s ongoing work to reduce violence against women and children and promote rural justice in Alaska. This work, along with our successful efforts to reduce the flow of illegal narcotics into our State, and to find and prosecute white collar criminals who exploit our most vulnerable, is a tribute to the hard-working women and men of this United States Attorney’s Office.”
U.S. Attorney Tucker continued, “Serving with them in our work to uphold the rule of law and pursue justice fairly and equitably has been the honor of a lifetime. Thank you to our law enforcement partners and to the community members who work with us in these efforts, and to my U.S. Attorney colleagues for their tireless efforts all across the country.”U.S. Attorney Mark Totten Warns of Jury Service ScamsRead the Press Release
Law enforcement will not demand money over the phone
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten today warned citizens in the Western District of Michigan of a prevalent scam. Citizens are being called and told they have warrants for failure to appear and contempt of court relating to failing to appear for jury service. Legitimate law enforcement will never ask for payment over the telephone to “post a bond” or “bond out” or for any other reason.
“Scammers will do anything to rip off their victims — even impersonating law enforcement and court officials,” said U.S. Attorney Mark Totten. “Be aware. Protect yourself. And don’t be afraid to end the call and contact the law enforcement agency directly to verify.”
The callers will claim to be law enforcement officers or court staff and may provide names of real people or badge numbers. This is often information they have found on the internet. They may demand you pay them, often with gift cards or using a QR code. If you think you are being targeted by a scammer:
- Document as much as possible about the call (the caller’s name, telephone number, and information they provide, such as badge number, court or agency with which they claim to be affiliated, and so forth). These details will help you confirm the legitimacy of the claim and help with reporting scams to law enforcement.
- Ask questions. Scammers subjected to ongoing interrogation may hang up and move on to an easier target. Do not worry if they hang up—it is a sign this was a scam.
- Remain calm. Call the court or law enforcement agency directly and see if you missed a summons or court date. Independently locate numbers for courts and law enforcement—do not call numbers the caller provides to you.
- Never give out sensitive information over the phone.
Attempted jury scams can be reported to the Federal Bureau of Investigations and the Federal Trade Commission. For more information about these scams, please see: https://www.miwd.uscourts.gov/jury-scams.
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U.S. Attorney Jessica D. Aber announces resignationRead the Press Release
ALEXANDRIA, Va. – Jessica D. Aber announced today that she is resigning as United States Attorney for the Eastern District of Virginia (EDVA), effective January 20, 2025, at 11:59 pm, after serving in the role for more than three years.
“I’ve had the privilege of spending my career as a prosecutor in the Eastern District of Virginia working alongside talented, hard-working public servants who manage matters affecting citizens here and across the world.” said U.S. Attorney Aber. “Concluding my service to the District as its U.S. Attorney has been an honor beyond measure. I am deeply grateful to Senators Mark Warner and Tim Kaine and to President Biden for the opportunity to lead this office, and to Attorney General Garland for his steadfast leadership. I am proud of the work we have done with our federal, state, and local law enforcement partners to enforce the law and build community trust.”
After working in private practice, U.S. Attorney Aber began her service in EDVA in 2009 as an Assistant U.S. Attorney, prosecuting financial fraud, public corruption, violent crime, and child exploitation cases. From 2015 to 2016, she served on a detail assignment as counsel to the Assistant Attorney General for the Criminal Division of the Department of Justice. From 2016 until becoming U.S. Attorney, Ms. Aber served as the Deputy Chief of the Criminal Division for EDVA.
Ms. Aber was nominated by President Biden on Aug. 10, 2021, and unanimously confirmed by the U.S. Senate on Oct. 5, 2021.
Maya D. Song, who currently serves as the First Assistant United States Attorney, will become the Acting United States Attorney upon U.S. Attorney Aber’s departure.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
U.S. Attorney Announces the Implementation of the EDNC Whistleblower Pilot ProgramRead the Press Release
RALEIGH, N.C. – Today, U.S. Attorney Michael F. Easley, Jr. announced that the United States Attorney’s Office for the Eastern District of North Carolina has implemented the EDNC Whistleblower Pilot Program.
“In this office, we are focused on enhancing the identification and prosecution of white-collar crime,” said U.S. Attorney Michael F. Easley, Jr. “The EDNC Whistleblower Pilot Program achieves that by incentivizing individuals to proactively come forward with information about crimes taking place within corporations. The benefit to the participant, if qualified, is avoiding prosecution. We encourage all who may have information on fraud, corruption, or corporate crime, to fill out the short form on our website.”
To encourage early voluntary self-disclosure of criminal conduct and to promote effective enforcement of criminal laws, this office has implemented the EDNC Whistleblower Pilot Program. The program applies to circumstances where an individual discloses information regarding certain covered subjects identified in the policy to this office. These covered subjects include criminal conduct undertaken by or through public or private entities or organizations, including corporations, partnerships, non-profits, exchanges, financial institutions, investment advisers, or investment funds involving fraud or corporate control failures; intellectual property theft and related violations; or offenses affecting market integrity. The policy also applies to disclosed criminal conduct involving state or local bribery or fraud relating to federal, state, or local funds. The policy does not apply to offenses involving violence. Provided all policy conditions are met, this office will enter into a deferred or non-prosecution agreement with the whistleblower.
By clarifying the requirements and benefits of such self-disclosure, this office seeks to incentivize individuals (and their counsel) to provide actionable and timely information. This will, in turn, help us expose more misconduct and better protect the communities we serve.
A full copy of the Policy, and the intake form for applicants, can be found on our website:
https://www.justice.gov/usao-ednc/ednc-whistleblower-pilot-program
Two Money Couriers for Colombian-Based Drug Money Laundering Organization Convicted by Federal JuryRead the Press Release
BOSTON – Two men from Jamaica were convicted yesterday following a four-day jury trial for their involvement in a sophisticated international money laundering organization that laundered more than $6 million in drug trafficking proceeds from Colombian cartels through the United States, Caribbean and European banking systems.
St. Devon Anthony Cover, 61, was convicted of one count of money laundering conspiracy and seven counts of laundering of monetary instruments. Dennis Raymond Rowe, 59, was convicted of one count of money laundering conspiracy, one count of money laundering and two counts of laundering of monetary instruments. U.S. District Court Judge Richard G. Stearns will schedule sentencing for a later date. The defendants were among 20 individuals from Colombia, Jamaica and Florida who were indicted by a federal grand jury in May 2022 in connection with the money laundering conspiracy.
Over the course of the investigation, $1 million was seized from corporate bank accounts and other investigative activity. Nearly 3,000 kilograms of cocaine – with a street value of over $90 million – was traced back to the money laundering organization. This includes approximately 1,193 kilograms of cocaine seized at sea, 60 miles south of Jamaica, in July 2019, as well as 1,555 kilograms of cocaine seized in nine scrap metal shipping containers at the Port of Buenaventura, Colombia, in March 2019.
“Today’s convictions reflect the relentless efforts of this office and our law enforcement partners to dismantle the sophisticated financial networks that fuel international drug cartels. These defendants were key players in a scheme that laundered millions in drug proceeds – enabling the flow of deadly narcotics onto our streets,” said United States Attorney Joshua S. Levy. “This case demonstrates that we will hold accountable all players in the illicit drug operations that have had a devastating impact on Massachusetts.”
“Those who choose to launder money from drug proceeds are endangering the general public in Massachusetts. Maintaining public safety requires that they be prosecuted aggressively,” said Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “We will continue to work closely each day with our law enforcement partners to target those who seek to profit from the sale of deadly substances.”
In or about October 2016, law enforcement began an investigation into a sophisticated money laundering organization located primarily in Barranquilla, Colombia. During an extensive five-year investigation, the organization laundered over $6 million in drug proceeds through intermediary banks in the United States, including banks in Massachusetts, as well as additional proceeds through banks in the Caribbean and Europe by use of the Colombian Black Market Peso Exchange (BMPE). By using the BMPE, the defendants and their co-conspirators sought to conceal drug trafficking activity and proceeds from law enforcement as well as evade currency exchange requirements in the United States and Colombia through the illegal currency exchange process. As part of the conspiracy, members of the organization held roles and responsibilities relative to the needs and opportunities of the scheme, such as drug suppliers, peso brokers, money couriers and business owners/dollar purchasers.
Through the BMPE, Colombian drug trafficking organizations with drug proceeds generated in the United States use third parties – generally referred to as “peso brokers” that are also based in Colombia – who agree to exchange Colombian pesos they control for the drug supplier’s dollar proceeds. Peso brokers then use money couriers in the United States and elsewhere to physically secure the drug proceeds, often in suitcases or bags on the street, and transfer the proceeds into the United States banking system. To avoid detection, peso brokers deposit the drug proceeds into bank accounts in company or individual names intended to appear as legitimate business activity, or through multiple small deposits into different bank accounts which are then consolidated into larger accounts. As a result, Colombian peso brokers control a pool of drug-derived proceeds in United States bank accounts. These dollar proceeds are then purchased by individuals or companies in Colombia seeking to exchange pesos for United States dollars at a favorable exchange rate and in a manner that avoids currency exchange and income reporting requirements. The dollar drug proceeds are transferred at the direction of the purchaser, and often end up in bank accounts of individuals or companies who appear to have no direct involvement in drug trafficking crimes.
During the course of the conspiracy, Cover laundered approximately $268,000 and Rowe laundered over $600,000 by delivering bulk cash drug proceeds to undercover law enforcement.
The charges of money laundering conspiracy and laundering of monetary instruments each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Levy; DEA Acting SAC Belleau; Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; Aura Liliana Trujillo Rojas, Delegate for Criminal Finance for the Colombian Attorney General’s Office; Ricardo Sánchez Silvestre, Brigadier General of the Colombian National Police Anti-Narcotics Directorate; Jervis Moore, Chief of the Narcotics Division for the Jamaica Constabulary Force; and Colonel Geoffrey Noble of the Massachusetts State Police made the announcement. The Justice Department’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché in Bogotá, Colombia provided significant assistance in securing the arrests and extraditions of Cover, Rowe, and other co-defendants from Colombia and Jamaica. Assistant U.S. Attorneys Jared C. Dolan and Alathea E. Porter of the Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Men Sentenced in Connection with Smuggling of Gun Parts to MexicoRead the Press Release
San Antonio, Texas – Two Mexican nationals have been sentenced to prison as part of a conspiracy to smuggle AR-15 parts out of the United States and into Mexico.
Jose Francisco Garcia-Cervantes was sentenced today to 57 months in prison. Ricardo Rodriguez-Sotelo was sentenced to 78 months in prison on October 24, 2024, as part of the same case.
According to court documents, both men participated in the illegal trafficking of firearm parts from the Western and Southern Districts of Texas to Mexico. Garcia-Cervantes acted as a smuggler for the operation and transported boxes of gun parts to Mexico. Rodriguez-Sotelo prepared gun parts to be smuggled across the border by repackaging them at a storage unit in Laredo, Texas, where they would be picked up for delivery by truck to Mexico.
Three co-defendants, Chandler Britain Bradford, Troy Vernon Erbe, and Jesus Guzman-Delgado are pending trial.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement: “Rodriguez-Sotelo and Garcia-Cervantes played significant roles in an operation that moved a vast number of gun parts from the United States to Mexico. We will continue to work diligently with law enforcement partners to combat weapons trafficking and the illegal flow of guns to Mexico.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with the Department of Homeland Security Investigations and Department of Commerce Export Enforcement Division investigated the case.
Assistant U.S. Attorney William F. Calve prosecuted the case.
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Two Indicted for Staged Credit Union RobberyRead the Press Release
BOSTON – Two men were indicted yesterday for the Sept. 24, 2024, robbery of the Energy Credit Union in West Roxbury, Mass. The defendants allegedly stole $197,146 from the Credit Union where one of them was employed as a teller.
Jenel Flounoury, 29, and Justin Flounoury, 33, both from Brockton, were each indicted on one count of conspiracy and one count of larceny from a credit union. The defendants were arrested and charged by criminal complaint in December 2024 following an arrest by state authorities on the night of the robbery.
According to the charging documents, Jenel Flounoury arranged for a large cash deposit to be stored in a section of the vault that he could access. Jenel Flounoury then allegedly arranged for his brother, Justin Flounoury, to stage a “robbery,” passing Jenel Flounoury a note demanding money. When Justin Flounoury passed Jenel Flounoury the note, Jenel Flounoury allegedly bypassed his teller cash drawer, went straight to the vault, and loaded nearly $200,000 into a bag he retrieved himself, before delivering it to the “robber.”
The night of the robbery a search was executed at the residence of Justin and Jenel Flounoury Over $160,000 in cash was recovered, including ten $100 bills whose serial numbers had been recorded by Energy Credit Union employees as being present in the vault prior to the robbery. According to court documents, cell site location information for Justin Flounoury’s phone places it within .25 miles of the credit union at the time the robbery occurred.
The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of larceny from a credit union provides for a maximum sentence of 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation; Massachusetts State Police Colonel Geoffrey Noble; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Suffolk County District Attorney’s Office. Assistant United States Attorney Mark Grady of the Major Crimes Unit is prosecuting the case.
Two Dane County Men in Federal Custody After Being Charged with Armed Robbery of Fitchburg BankRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced the unsealing of an indictment charging Parish Barbary-Wheatherby, 29, Madison, Wisconsin, and Daryle Shelton, 22, Windsor, Wisconsin, with armed bank robbery. The two men are also charged with brandishing a firearm during a crime of violence. The indictment alleges that they robbed a Fitchburg bank using a firearm on December 2, 2024. Barbary-Wheatherby is separately charged with possessing three firearms as a felon on December 19, 2024.
Shelton was arrested today in Windsor following a chase with police and made his initial appearance in federal court in Madison. When he was arrested, Shelton was found to be in possession of a loaded firearm. Barbary-Wheatherby was arrested in Fitchburg on December 19, 2024. Both men remain detained pending further proceedings.
If convicted of the armed bank robbery charge, Barbary-Wheatherby and Shelton each face maximum penalties of 25 years in prison. If convicted of the brandishing charge, the two men each face a mandatory minimum penalty of 7 years and a maximum penalty of life in prison. The felon in possession charge against Barbary-Wheatherby carries a maximum penalty of 15 years.
The charges against Barbary-Wheatherby and Shelton are the result of an investigation by the Fitchburg Police Department, Federal Bureau of Investigation, and the ATF Madison Crime Gun Task Force. The ATF Madison Crime Gun Task Force consists of federal agents from ATF and Task Force Officers (TFOs) from local agencies including the Dane County and Clark County Sheriff’s Offices and the Fitchburg, Madison, Sun Prairie, and La Crosse Police Departments. Assistant U.S. Attorney Julie Pfluger is handling the prosecution.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.