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Thursday 16 January 2025
Five Members of the Hoover Criminal Gang Sentenced for Racketeering and Firearms CrimesRead the Press Release
Jackson, TN - A leader in the Hoover Criminal Gang was sentenced to 15 years in prison today for ordering fellow gang members to murder a suspected rival gang member.
Markell Young, 33, was the last of five defendants, all from Gibson County, to be sentenced in this case. Young, Octavius Ferguson, 27, and Jordan Powell, 25, were convicted after trial, while Bakari Lenon, 25, and Monterio Ross, 29, pleaded guilty.
According to court documents and evidence presented at trial, all defendants were members of the Hoover Criminal Gang subset known as the 83rd or Eight Tray. The gang was engaged in racketeering activities including murder, robberies, and trafficking of marijuana, cocaine, and cocaine base.
“These defendants were members of the violent Hoover Criminal Gang who were responsible for murdering a suspected rival gang member to further the aims of the gang,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Gang violence traumatizes communities and makes our streets less safe. The Criminal Division is committed to vigorously prosecuting those who engage in gun violence and other violent criminal activity.”
“This case serves as notice to all that engage in organized criminal activity that we will use every available resource to bring you to justice,” said Acting U.S. Attorney Reagan Fondren for the Western District of Tennessee. “The citizens of this district deserve a safe and secure community, one not riddled with gun violence, and this is a great example of the diligent and collaborative work of law enforcement to protect those rights to safety.”
“This case is an outstanding example of what federal, state, and local law enforcement can accomplish when we dismantle gang networks that spread violence and fear,” said Special Agent in Charge Joe Carrico of the FBI Nashville Field Office. “The sentences imposed demonstrate the commitment of the FBI and our partners to thwarting gang violence and reinforcing the severe consequences awaiting those who threaten the safety of our communities.”
“The individuals who wreak havoc in the communities that we serve are a huge concern,” said Special Agent in Charge Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division. “The ATF works collaboratively with our law enforcement partners, day and night, to swiftly remove individuals who traffic narcotics, participate in organized crime and show total disregard for human life from the streets. The ATF’s primary mission is to combat violent crime in our communities, and we will work tirelessly to keep the communities that we serve, safe.”
The evidence showed that, on Jan. 31, 2017, the defendants murdered a suspected member of the rival Gangster Disciples gang in Humboldt. On that date, Young ordered Ferguson, Powell, Lenon, and Ross to commit the murder, which they carried out by going to the victim’s home and indiscriminately shooting several firearms through the open front door, killing the victim. Based on their participation on this killing, all of the shooters were promoted to higher ranks within the Hoover Criminal Gang.
In addition to Young’s conviction at trial for aiding and abetting the use of a firearm during and in relation to murder in aid of racketeering, Ferguson and Powell were convicted at trial of murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, use of a firearm during and in relation to murder, and causing death by use of a firearm during and in relation to a crime of violence. Both Ferguson and Powell were sentenced to life in prison. Lenon and Ross pleaded guilty to causing death by use of a firearm during and in relation to murder in aid of racketeering and were both sentenced to 30 years in prison.
The FBI and ATF investigated the case, with valuable assistance provided by state and local law enforcement partners.
Trial Attorney César S. Rivera-Giraud of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Hillary Parham for the Western District of Tennessee prosecuted the case.
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Topic
VIOLENT CRIME
Components
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
Criminal Division
Criminal - Violent Crime and Racketeering Section
Federal Bureau of Investigation (FBI)
USAO - Tennessee, Western
Five Members of the Hoover Criminal Gang Sentenced for Racketeering and Firearms CrimesRead the Press Release
A leader in the Hoover Criminal Gang was sentenced to 15 years in prison today for ordering fellow gang members to murder a suspected rival gang member.
Markell Young, 33, was the last of five defendants, all from Gibson County, to be sentenced in this case. Young, Octavius Ferguson, 27, and Jordan Powell, 25, were convicted after trial, while Bakari Lenon, 25, and Monterio Ross, 29, pleaded guilty.
According to court documents and evidence presented at trial, all defendants were members of the Hoover Criminal Gang subset known as the 83rd or Eight Tray. The gang was engaged in racketeering activities including murder, robberies, and trafficking of marijuana, cocaine, and cocaine base.
“These defendants were members of the violent Hoover Criminal Gang who were responsible for murdering a suspected rival gang member to further the aims of the gang,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Gang violence traumatizes communities and makes our streets less safe. The Criminal Division is committed to vigorously prosecuting those who engage in gun violence and other violent criminal activity.”
“This case serves as notice to all that engage in organized criminal activity that we will use every available resource to bring you to justice,” said Acting U.S. Attorney Reagan Fondren for the Western District of Tennessee. “The citizens of this district deserve a safe and secure community, one not riddled with gun violence, and this is a great example of the diligent and collaborative work of law enforcement to protect those rights to safety.”
“This case is an outstanding example of what federal, state, and local law enforcement can accomplish when we dismantle gang networks that spread violence and fear,” said Special Agent in Charge Joe Carrico of the FBI Nashville Field Office. “The sentences imposed demonstrate the commitment of the FBI and our partners to thwarting gang violence and reinforcing the severe consequences awaiting those who threaten the safety of our communities.”
“The individuals who wreak havoc in the communities that we serve are a huge concern,” said Special Agent in Charge Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division. “The ATF works collaboratively with our law enforcement partners, day and night, to swiftly remove individuals who traffic narcotics, participate in organized crime and show total disregard for human life from the streets. The ATF’s primary mission is to combat violent crime in our communities, and we will work tirelessly to keep the communities that we serve, safe.”
The evidence showed that, on Jan. 31, 2017, the defendants murdered a suspected member of the rival Gangster Disciples gang in Humboldt. On that date, Young ordered Ferguson, Powell, Lenon, and Ross to commit the murder, which they carried out by going to the victim’s home and indiscriminately shooting several firearms through the open front door, killing the victim. Based on their participation on this killing, all of the shooters were promoted to higher ranks within the Hoover Criminal Gang.
In addition to Young’s conviction at trial for aiding and abetting the use of a firearm during and in relation to murder in aid of racketeering, Ferguson and Powell were convicted at trial of murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, use of a firearm during and in relation to murder, and causing death by use of a firearm during and in relation to a crime of violence. Both Ferguson and Powell were sentenced to life in prison. Lenon and Ross pleaded guilty to causing death by use of a firearm during and in relation to murder in aid of racketeering and were both sentenced to 30 years in prison.
The FBI and ATF investigated the case, with valuable assistance provided by state and local law enforcement partners.
Trial Attorney César S. Rivera-Giraud of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Hillary Parham for the Western District of Tennessee prosecuted the case.
Federal Jury Convicts Georgia Man of Transporting A Minor with Intent to Engage in Sexual Activity and Possessing A Firearm After A Felony ConvictionRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Vincent Joseph Robusto (41, Georgia) guilty of transporting a minor with intent to engage in sexual activity and possessing a firearm after a felony conviction. Robusto faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for May 5, 2025. Robusto was indicted on December 1, 2021.
According to evidence presented at trial, beginning in at least February 2021 Robusto discussed sexual activity with a minor via chat on a social media application. In July 2021, Robusto purchased an airline ticket for the minor. He provided the airline with the minor’s name and date of birth, confirming that Robusto knew the child’s age. On July 17, 2021, Robusto caused the minor to travel from Texas to the Southwest Florida International Airport in Fort Myers. Surveillance video from the airport captured Robusto picking up the minor.
Within a few days, the parent of the minor contacted the Dilley (Texas) Police Department to report the minor missing and shared the locations of the minor’s cellphone using a locator application. The Dilley Police Department reached out to the Charlotte County Sheriff’s Office for assistance in locating the minor and provided the residential address of a home in Port Charlotte that the locator application indicated.
On July 23, 2021, at approximately 3:00 a.m., deputies from the Charlotte County Sheriff’s Office arrived at the Port Charlotte residence and found Robusto at the residence with the minor. During the execution of a search warrant at the residence, law enforcement located a firearm and ammunition contained in Robusto’s backpack located on a kitchen table. Robusto, a previously convicted felon, is prohibited from possessing a firearm or ammunition under federal law.
Subsequently, the Florida Department of Law Enforcement conducted DNA analysis on evidence obtained in this case. The Crime Laboratory Analyst from the Biology Section found Robusto’s DNA on the rough surfaces of the firearm and in the analysis of the sexual assault kit that had been collected from the minor.
This case was investigated by the Federal Bureau of Investigation, Fort Myers Child Exploitation and Human Trafficking Task Force, with the Charlotte County Sheriff’s Office. Additional assistance was provided by the Dilley Police Department, the Florida Department of Law Enforcement, and the Lee County Port Authority. It is being prosecuted by Assistant United States Attorneys Yolande G. Viacava and Benjamin S. Winter.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fayat Group to Pay $11M for Violations of the Clean Air Act for Sale of Nonroad Equipment Containing Noncompliant Diesel EnginesRead the Press Release
The Justice Department and the Environmental Protection Agency (EPA) today announced a settlement agreement with Fayat S.A.S. and nine of its subsidiaries — BOMAG GmbH, Bomag Americas Inc., BOMAG (China) Construction Machinery Co. Ltd., MARINI S.p.A., RAVO B.V., Charlatte of America Inc., PTC S.A.S., Secmair S.A.S. and MATHIEU S.A. — for alleged violations of the Clean Air Act’s mobile source emission standards regulations.
The complaint alleges that, between 2014 and 2018, Fayat and its subsidiaries illegally imported and sold hundreds of pavers, rollers and other nonroad equipment containing diesel engines that failed to meet Clean Air Act emission requirements. The complaint also alleges that Fayat failed to comply with Clean Air Act labeling and reporting requirements. The agreement requires Fayat to pay a civil penalty of $11 million and requires the company to complete a project to reduce the harm caused by excess nitrogen oxides and particulate matter emissions.
“Fayat failed to ensure that the equipment it introduced into the United States market complied with Clean Air Act requirements designed to protect the public’s health from harmful emissions,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “We will not tolerate violations of Clean Air Act standards. The settlement requires both a substantial civil penalty and a project that will reduce emissions in the Mobile, Alabama, area and contribute to improved public health.”
“Fayat’s import of nonroad vehicles with outdated diesel engines violates the Clean Air Act standards for emissions from mobile sources and threatened exposure to harmful diesel air emissions,” said Acting Assistant Administrator Cecil Rodrigues for EPA’s Office of Enforcement and Compliance Assurance. “Today’s announcement demonstrates that EPA will hold accountable companies that put outdated equipment into commerce that pollutes the air and risks exposing communities to toxic air pollutants.”
In addition to paying a civil penalty, Fayat will, as part of the agreement, undertake a project to reduce the harm from the emissions. The company will retrofit a tugboat currently in service in Mobile, Alabama. Retrofitting the tugboat includes removing and destroying two engines and two auxiliary generators and replacing them with two new engines and two new generators that meet current emission controls.
More information regarding this settlement is available from the Fayat Clean Air Act Violations Settlement Summary.
The proposed consent decree, lodged in the U.S. District Court for the District of Columbia, is subject to a public comment period and final court approval. Information on submitting comment and access to the settlement agreement is available at www.justice.gov/enrd/consent-decrees.
EPA investigated the case.
Attorneys with the ENRD’s Environmental Enforcement Section are handling the case.
Falmouth Woman Sentenced to Two Years in Prison for Embezzling more than $1.3 MillionRead the Press Release
BOSTON – The former bookkeeper for a Falmouth flooring company was sentenced yesterday in federal court in Boston for embezzling more than $1.3 million from her employer.
Susan Figuerido, 73, of Falmouth, was sentenced by U.S. District Court Judge Leo T. Sorokin to two years in prison, to be followed by two years of supervised release. Figuerido was also ordered to pay $1,714,921.01 in restitution. In October 2025, Figuerido pleaded guilty to wire fraud and filing a false tax return.
Between June 2015 and February 2023, Figuerido embezzled more than $1.3 million from her employer by writing checks to herself drawn on her employer’s bank account. To conceal her scheme, Figuerido did not record the checks that she wrote to herself in her employer’s accounting system. Figuerido did not report or include the funds that she embezzled on her federal income tax filings, resulting in a tax loss of approximately $353,000.
U.S. Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The Falmouth Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Eleven Time Felon Found Guilty of Possessing a FirearmRead the Press Release
An eleven‑time felon who fired a pistol during an argument was convicted by a jury on January 15, 2025, after a three-day trial in federal court in Cedar Rapids.
Kenneth Moore, age 50, from Dubuque, Iowa, was convicted of one count of possession of a firearm by a felon. The verdict was returned following less than three hours of jury deliberations.
The evidence at trial showed that on August 4, 2023, around 4:00 a.m., Moore got into an argument with an individual on the porch of a residence in Dubuque. During the argument, two individuals attempted to push Moore away from the argument and de‑escalate the situation. As they were pushing Moore away, Moore fired a pistol towards the residence. The bullet nearly hit two people, went through the front wall of the residence, and lodged in the back living room wall. Moore then fled the scene. Twelve days later, on August 16, 2023, officers arrested Moore and searched the car he was driving, where they recovered the pistol Moore fired on August 4. Moore was prohibited from possessing firearms because he had previously been convicted of eleven felony convictions.
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.
Sentencing before United States District Court Chief Judge C.J. Williams will be set after a presentence report is prepared. Moore remains in custody of the United States Marshal pending sentencing. Moore faces a possible maximum sentence of 15 years’ imprisonment without the possibility of parole, a $250,000 fine, and not more than 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Dillan Edwards and Special Assistant United States Attorney Jared Manternach, and it was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24‑CR‑01009‑CJW.
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El Departamento de Justicia llega a un acuerdo con el Condado de Sangamon, Illinois y agencias del condado para resolver una investigación de discriminación por motivos de discapacidad y razaRead the Press Release
Nota: El titular original fue actualizado para cumplir con el limite de caracteres
El Departamento de Justicia anunció hoy un acuerdo con la Oficina del Sheriff del Condado de Sangamon (SCSO), el Sistema Central de Despacho del Condado de Sangamon (SCCDS) y el Condado de Sangamon, Illinois, para resolver una investigación de discriminación por motivos de raza y discapacidad en la prestación de servicios de policía y despacho.
El Departamento inició su investigación con base en quejas e informes sobre un incidente en el que Sonya Massey, una mujer negra que estaba experimentando una crisis de salud mental, fue disparada mortalmente por un adjunto de la SCSO mientras respondía a la llamada de 911 de auxilio de la Sra. Massey. La División de Derechos Civiles del Departamento de Justicia investigó el cumplimiento por parte de las entidades con el Título VI de la ley de Derechos Civiles de 1964 (Título VI), las disposiciones antidiscriminatorias de la ley General de Control de Delitos y Calles Seguras (ley de Calles Seguras) y el Título II de la ley de Estadounidenses con Discapacidades (ADA, por sus siglas en inglés). El Título VI y la ley de Calles Seguras prohíben, en su conjunto, la discriminación por motivos de raza, color de piel, origen nacional, sexo o religión por parte de entidades que reciben apoyo financiero federal, tal como la SCSO. El Título II de la ADA prohíbe que las entidades públicas discriminen por motivos de discapacidad.
«La muerte de Sonya Massey fue una terrible tragedia para una mujer que estaba en medio de una crisis de salud mental, para su familia y para toda la comunidad del Condado de Sangamon», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Este acuerdo refleja el compromiso del Condado de Sangamon de instituir reformas y tomar medidas que ayudarán a mejorar la seguridad pública y restaurar la confianza de la comunidad en el camino futuro».
En respuesta a la investigación, la Oficina del Fiscal Estatal para el Condado de Sangamon trabajó en cooperación con el Departamento para alcanzar un acuerdo conciliatorio para garantizar que la SCSO tenga las herramientas y la formación para llevar a cabo sus actividades de vigilancia policial de forma no discriminatoria y que el Condado y el SCCDS proporcionen servicios de despacho de forma no discriminatoria.
En virtud del acuerdo, las entidades revisarán y actualizarán los procedimientos, políticas y reglas y proporcionarán capacitaciones sobre una variedad de temas, incluida la vigilancia policial no discriminatoria y las interacciones con personas con discapacidades de salud del comportamiento. El acuerdo requiere el desarrollo y la implementación de un programa de equipo de crisis móvil, que incluirá personal capacitado en la salud del comportamiento que responda oportunamente a las personas que necesitan asistencia urgente en lo que se refiere a su salud del comportamiento. El acuerdo también prevé el desarrollo de un plan de compromiso con la comunidad para garantizar la resolución colaborativa de problemas y la ausencia de discriminación en la vigilancia policial, así como para aumentar la transparencia y la confianza de la comunidad. El acuerdo establece un marco para la recopilación de datos y la presentación de informes durante un período de dos años de supervisión departamental, entre otras disposiciones. El acuerdo no constituye ninguna admisión de responsabilidad por parte de las entidades, y el Departamento no ha llegado a un hallazgo de discriminación.
La no discriminación en virtud del Título VI, la ley de Calles Seguras y la ADA es una de las principales prioridades de la División de Derechos Civiles. Hay más información disponible sobre la División de Derechos Civiles en www.justice.gov/crt.
Los miembros del público pueden denunciar posibles infracciones de los derechos civiles en civilrights.justice.gov/report/.
Dubuque Man Who Distributed Fentanyl Resulting in an Overdose Sentenced to Federal PrisonRead the Press Release
A man who possessed and sold fentanyl pills was sentenced today to more than seven years in federal prison.
Anthony Frank Ernst, age 39, from Dubuque, Iowa, received the prison term after a July 9, 2024, guilty plea to one count of possession with intent to distribute a controlled substance.
Evidence at the plea and sentencing hearings showed that, in April 2023, Ernst distributed pills that contained fentanyl to an individual who, in turn, distributed pills to another person. That person took the pills, which caused the person to suffer an overdose. A few days later, officers stopped a car that Ernst was a passenger in. Ernst was in possession of more than 240 fentanyl pills. On June 7, 2023, Ernst sold marijuana and fentanyl to a confidential informant who was working with law enforcement, and, in the early morning on June 9, 2023, officers again stopped a car that Ernst was a passenger in. Ernst was in possession of controlled substances, including fentanyl.
Ernst was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Ernst was sentenced to 94 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Ernst is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Adam J. Vander Stoep and was also investigated as part of the Northern Iowa Heroin Initiative and the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, the Lacrosse, Wisconsin, Drug Task Force, and the Dubuque Drug Task Force, comprised of the Dubuque Police Department and the Dubuque Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-1019.
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Dublin Man Sentenced to 18 Months in Federal Prison for Damaging Former Employer’s ComputersRead the Press Release
OAKLAND – Dublin resident Vamsikrishna Naganathanahalli was sentenced today to 18 months in federal prison for damaging computers belonging to his former employer. The Honorable Yvonne Gonzalez Rogers, U.S. District Judge, handed down the sentence.
Naganathanahalli, 49, pleaded guilty on Aug. 15, 2024, to three counts of knowingly causing the transmission of a program, information, code, or command, and as a result of such conduct, intentionally causing damage without authorization, to a protected computer. According to his plea agreement, defendant worked for MedAmerica, Inc., part of the Vituity group of companies, from October 2018 to June 2022. Vituity, based in Emeryville, Calif., included physician partners and other healthcare professional employees who worked as contractors in hospital emergency rooms, outpatient clinics, telehealth providers, and other clinical settings. The company also employed non-clinical healthcare personnel who worked with healthcare providers in various facilities. Vituity used the Oracle Human Capital Management (“HCM”) platform to organize core human resources data for its approximately 7,000 employees. The HCM platform contained records for current and past Vituity employees, including their Social Security numbers, salaries, and addresses. Naganathanahalli worked for Vituity as a Senior HCM Architect.
Defendant admitted that, on May 28, 2022, the day after being told that his employment at Vituity was being terminated, he used his access to a privileged HCM service account to change the password for another employee’s privileged Vituity HCM account without authorization. On or about Sept. 6, 2022, after his employment had ended, he used that privileged HCM account to change the HCM password for a Vituity contractor. That same day, he used the contractor’s account to load files containing “dummy” or “masked” data, which replaced real data, to the Vituity HCM live production environment. As Naganathanahalli admitted, the generic masked data overwrote the real data for approximately 90 percent of Vituity employees, current and former. Defendant’s conduct caused a loss to Vituity of at least $400,930.
In addition to the term of imprisonment, Judge Gonzalez Rogers also ordered Naganathanahalli to pay $400,930 in restitution and a $300 special assessment and sentenced him to a three-year period of supervised release. The defendant will begin serving his sentence on July 20, 2025.
United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Acting Special Agent in Charge Dan Costin made the announcement.
Assistant U.S. Attorneys Michelle J. Kane and Nikhil Bhagat are prosecuting the case with the assistance of Kathy Tat. The prosecution is the result of an investigation by the FBI.
Drug Dealer Receives 235 Months After Picking up a Package with 4 Pounds of Methamphetamine InsideRead the Press Release
United States Attorney Susan Lehr announced that Mitchell Bostic, age 41, of Lincoln, Nebraska, was sentenced on January 15, 2025, in federal court in Omaha, Nebraska for possession with intent to distribute methamphetamine. United States District Court Brian C. Buescher sentenced Bostic to 235 months’ imprisonment. There is no parole in the federal system. After Bostic’s release from prison, he will begin a 5-year term of supervised release.
On December 5, 2023, law enforcement intercepted a package that contained nearly 4 pounds of meth in Nebraska. On December 6, 2023, law enforcement conducted a controlled delivery of the package whereby Bostic and Stephanie Cummings picked up the package at a residence in Omaha and law enforcement surveilled Bostic and Cummings as they drove away in Bostic’s vehicle. Believing law enforcement was following them, Bostic instructed Cummings to throw the package containing meth out of the car window. Law enforcement located the package and subsequently conducted a traffic stop of Bostic’s vehicle and both Bostic and Cummings were arrested. Cummings is awaiting sentencing in federal court.
This case was investigated by the Drug Enforcement Administration.
Doctor Jailed for HIPAA ViolationsRead the Press Release
An Iowa emergency room doctor and medical resident, who violated the Health Insurance Portability and Accountability Act (“HIPAA”) by viewing the medical records of multiple women who were not his patients, was sentenced today to a month in jail. Dr. Gabriel Alejandro Hernandez-Roman, age 31, from Isla Verde, Puerto Rico, received the term of incarceration after a June 28, 2024, guilty plea to one count of wrongfully obtaining individually identifiable health information relating to an individual under false pretenses.
At his plea and sentencing hearings, Dr. Hernandez-Roman admitted that, between 2020 and 2022, he knowingly and without authorization obtained the protected health information of multiple women at hospitals in Cedar Rapids and Iowa City. Dr. Hernandez-Roman was working as a resident doctor in Iowa emergency rooms at the time, including at “Hospital-1” in Cedar Rapids and “Hospital-2” in Iowa City.
In January 2022, Dr. Hernandez-Roman viewed the medical records of “K.F.” at Hospital-1 in Cedar Rapids without her knowledge or consent. K.F. was never Dr. Hernandez Roman’s patient and was not a patient in Hospital-1’s emergency department at the time. When K.F. discovered what Dr. Hernandez-Roman had done, Dr. Hernandez-Roman asked K.F. to tell Hospital-1, falsely, that K.F. had given Dr. Hernandez-Roman permission to look at her medical records.
Dr. Hernandez Roman also admitted to accessing K.F.’s medical records at Hospital-2 in March 2021, as well as the medical records of “M.C.” at Hospital-2 in October 2020. After receiving an anonymous complaint about Dr. Hernandez-Roman being romantically involved with patients, accessing their medical records, and threatening them, Hospital-2 discovered that Dr. Hernandez-Roman had illegally accessed K.F. and M.C.’s records. The records included M.C.’s health records when she was a minor and her adult psychological records.
Dr. Hernandez Roman also admitted that, in January 2022, he sent a photograph of one of Hospital-1’s patients in Cedar Rapids to another individual via SnapChat. The photograph showed the patient in a hospital setting, wearing a gown, with the patient’s rectum clearly hanging out of the body. Dr. Hernandez Roman had no legitimate medical purpose for taking this photograph or, further, for sending it via SnapChat to the individual.
Finally, Dr. Hernandez Roman admitted that, in June 2023, he mailed a letter to the Iowa Board of Medicine in which he admitted accessing the confidential medical records of K.F. and M.C. and also to sharing the photograph of the prolapsed rectum. In his plea agreement, Dr. Hernandez Roman admitted he falsely wrote in the letter that he had sent the photograph of the prolapsed rectum to his mother to remind her of the importance of fiber intake.
Dr. Hernandez-Roman was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Dr. Hernandez Roman was sentenced to a month of imprisonment and fined $1,000. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Dr. Hernandez-Roman is being held in the United States Marshal’s custody. The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Iowa Medicaid Fraud Control Unit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-34.
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Des Moines Man Sentenced to 17 Years in Federal Prison for Distribution of Fentanyl Resulting in DeathRead the Press Release
DES MOINES, Iowa – A Des Moines man was sentenced today to 17 years in federal prison for distributing fentanyl that led to the overdose death of a one-year child.
According to public court documents, Kenneth Leroy Quinn, 23, also known as “Coach K,” distributed several pills containing fentanyl on April 29, 2023. Quinn’s customer used some of the pills and brought the remaining pills home. The customer’s one-year-old son ingested the fentanyl mixture and died of acute fentanyl toxicity. Law enforcement began an investigation into Quinn and purchased marijuana from Quinn six times. In November 2023, law enforcement executed a search warrant at Quinn’s Des Moines residence and located four firearms, more than five pounds of marijuana, nearly an ounce of methamphetamine, and three-quarters of an ounce of cocaine.
After completing his term of imprisonment, Quinn will be required to serve a five-year term of supervised release. There is no parole in the federal system. Quinn was also ordered to pay $1847 in restitution.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Mid-Iowa Narcotics Enforcement Task Force, the Polk County Sheriff’s Office, and the West Des Moines Police Department.
Fentanyl has become the leading cause of drug overdose deaths in the United States. Fentanyl deaths for youth ages 15 to 24 more than doubled between 2018 and 2022. Counterfeit, fentanyl-laced pills often resemble pharmaceutical pills, but contain potentially lethal doses of fentanyl. Visit the Drug Enforcement Administration’s website to learn more about the dangers of fentanyl and the One Pill Can Kill program.
Council Bluffs Man Sentenced to 120 Months in Federal Prison for Methamphetamine ChargeRead the Press Release
COUNCIL BLUFFS, Iowa – A Council Bluffs was sentenced today to 120 months in federal prison for possessing a distribution quantity of methamphetamine.
According to public court documents, Richard Dean Putnam, 62, was found in possession of more than 85 grams of methamphetamine and 200 grams of marijuana at his Council Bluffs residence in March 2024. Putnam also possessed nearly $10,000, two pellet guns, and two rounds of ammunition. Putnam had previously been convicted of felony drug offenses and domestic abuse assault charges in the Iowa District Court for Pottawattamie County, both which prohibit him from possessing firearms and ammunition.
After completing his term of imprisonment, Putnam 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 Council Bluffs Police Department and the Southwest Iowa Narcotics Enforcement Task Force.
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.
Conway Man and Woman Sentenced to More Than 30 Years Combined for Online Enticement of MinorsRead the Press Release
FAYETTEVILLE - On January 15, 2025, Benjamin Coney, age 30, and Emily Grace Brinley, age 26, both of Conway, Arkansas, were sentenced to a combined 378 months in prison without the possibility of parole after being found guilty of Online Enticement of a Minor in violation of federal law. The Honorable Timothy L. Brooks presided over the sentencing hearing, which was held in the U.S. District Court in Fayetteville.
According to court documents, in November of 2023, the Federal Bureau of Investigation, along with the Benton County Sheriff’s Office, began an undercover investigation targeting online predators seeking minors for sexual activity. Between November 19, 2023, to November 27, 2023, a male and female couple, later identified as Coney and Brinley, messaged an undercover FBI officer posing as the mother of two young girls. In messages sent by the couple, they detailed their intended abuse of the two young girls and arranged to drive from Conway to Bentonville to engage in the sexual acts. When the couple arrived at the pre-arranged meeting location, they were met by law enforcement officers and immediately taken into custody. Among the items located in their vehicle were sexual aides and lubricant.
Coney and Brinley were indicted by a Grand Jury in the Western District of Arkansas in May of 2024. Benjamin Coney entered a plea of guilty in September of 2023 and was sentenced to 210 months imprisonment to be followed by 25 years of supervision. Emily Grace Brinley entered a plea of guilty in July of 2023 and was sentenced to 168 months to be followed by 15 years of supervision.
U.S. Attorney Clay Fowlkes of the Western District of Arkansas made the announcement.
The Federal Bureau of Investigation and Benton County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Tyler Williams prosecuted the case on behalf of the United States.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.
Columbus Woman Convicted of Trafficking in Counterfeit GoodsRead the Press Release
United States Attorney Susan Lehr announced that Christine L. Parry, age 62, of Columbus, Nebraska, was sentenced on January 16, 2025, in federal court in Lincoln, Nebraska for trafficking in counterfeit goods. United States District Court Judge Susan M. Bazis sentenced Parry to time already served and a $12,000 fine. Parry was also ordered to pay an additional $1,935 in restitution to two victims.
On July 26, 2021, Customs and Border Protection (“CBP”) agents at a FedEx facility in Anchorage, Alaska, inspected goods arriving from China. The CBP agents discovered a package addressed to Parry in Columbus. The package contained counterfeit goods, including imitation Birkenstock sandals, Ray Ban sunglasses, Chanel earrings, Louis Vuitton bags, and Louis Vuitton shoes. Records obtained from shipping companies, such as FedEx and DHL, showed numerous deliveries of packages from China and Taiwan to Parry.
Information obtained from Facebook revealed that Parry had been operating an online store named “Bugaboo Boutique,” at least since April 2019, and continuing to August 2022, which sold numerous counterfeit goods just like the counterfeit goods seized by CBP on July 26, 2021.
HSI agents obtained search warrants for Facebook accounts associated with Parry and the Bugaboo Boutique online store. The records revealed that Parry knowingly sold counterfeit goods through their online store. The counterfeit goods were described using words such as “inspired by” name brand goods. The counterfeit goods were described as virtually identical to the name brand goods but sold at a more affordable price because they were sourced through a different manufacturer. The counterfeit goods included items such as clothing, footwear, purses, bags, wallets, tumblers, headphones, and sports apparel which had counterfeit marks identical to, or substantially indistinguishable from, marks used by many name brand companies which were in use and registered for goods on the principal register of the United States Patent and Trademark Office.
A search warrant was obtained for the Parry’s residence and executed on August 10, 2022. HSI agents seized counterfeit goods, various records associated the purchase and sale of such counterfeit goods, and electronic devices which were used to help facilitate the sale of counterfeit goods through the online store “Bugaboo Boutique.”
At Parry’s sentencing hearing, Judge Bazis remarked about how businesses who work hard to develop a reputation for making quality products are substantially harmed when counterfeit goods are sold. The counterfeit goods are far inferior in quality. And even when the initial purchaser of the counterfeit goods are told that the goods are counterfeit, often times those purchasers turn around and sell them to other unsuspecting customers who do not realize they are being sold counterfeit goods.
This case was investigated by the Department of Homeland Security.
City of Española Agrees to Pay $3.9M to Resolve Allegations It Trespassed on Santa Clara Pueblo Land for DecadesRead the Press Release
ALBUQUERQUE – The United States of America, the City of Española and the Pueblo of Santa Clara have entered into a comprehensive Settlement Agreement to resolve longstanding disputes regarding Española water and sewer lines, streets, and other utility facilities in trespass on Pueblo lands. The City of Española has agreed to pay $3.9 million to resolve claims related to water and sewer lines, streets, and other utility facilities maintained on Pueblo lands without proper easements.
The settlement resolves a lawsuit filed by the United States in 2016, alleging that Española’s water and sewer lines were trespassing on Santa Clara's lands following the expiration of previously granted rights-of-way. Santa Clara intervened in the lawsuit, asserting additional claims for trespassing streets and utility facilities.
Under the terms of the agreement, Española will pay $2.5 million to Santa Clara as compensation for new 25-year easements, subject to certain credits. Additionally, Española will pay $1.4 million over 20 years as compensation for past use of Santa Clara lands through July 1, 2022.
“The Department of Justice is committed to protecting the sovereignty of tribal communities as well as building the partnerships between neighbors that are necessary to navigate our complex and interconnected world,” said U.S. Attorney Alexander M.M. Uballez. “This settlement not only rights historic intrusions, but commits the parties to future accord, beginning with a public apology. This is a meaningful first step towards reconciliation between the City of Española and the Pueblo of Santa Clara, allowing us to unite for a future built on mutual respect and cooperation.”
The agreement requires Española to obtain the new easements for its facilities on Santa Clara lands, subject to approval by the Secretary of the Interior. The Bureau of Indian Affairs will provide technical assistance in developing the right-of-way applications.
As part of the settlement, Española agreed to publish a public apology for the delay in resolving the dispute. That apology appeared in the Legal Notices section of the Rio Grande SUN in its Thursday, January 9, 2025, edition. Española will also work cooperatively with the Pueblo and the Bureau of Indian Affairs to complete the necessary right-of-way applications and environmental reviews.
U.S. Attorney Alexander M.M. Uballez and Santa Clara Pueblo Governor James Naranjo made the announcement today.
The government’s investigations were led by DOJ ENRD Trial Attorney Samuel D. Gollis, Assistant United States Attorney Cassandra C. Currie, and DOI Senior Indian Law Attorney Stephanie P. Kiger.
Settlement Agreement - Executed.pdfThe claims resolved by the settlements are allegations only, and there has been no determination of liability.
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Chicago Man Convicted of Kidnapping, Carjacking, and Firearm OffensesRead the Press Release
CHICAGO — A federal jury has convicted a Chicago man on multiple criminal charges for kidnapping two drivers and sexually assaulting one of them at gunpoint.
ANDREW ANANIA, 29, was convicted Monday on all counts against him, including two counts of kidnapping, one count of carjacking, and one count of using a firearm in relation to a crime of violence. The guilty verdicts were returned after a two-week trial in federal court in Chicago. Anania faces a mandatory minimum sentence of seven years in federal prison and a maximum of life. U.S. District Judge Edmond E. Chang set sentencing for May 13, 2025, at 10:30 a.m.
Evidence at trial revealed that Anania kidnapped an Uber driver on March 8, 2021, in Darien, Ill. Anania showed the driver a gun and forced her to drive to Chicago and park in alleys, where he sexually assaulted her before fleeing on foot. On March 10, 2021, Anania and another man, WALTER MORAN, kidnapped a woman who was on her way to work in Cicero, Ill. Anania pointed a gun at the driver and drove himself, Moran, and the victim to Chicago, where Moran exchanged gunfire with others on the street. The pair eventually released the victim and took her car.
Anania pleaded guilty prior to trial to another kidnapping and carjacking. That incident occurred on Feb. 27, 2021, in Chicago, when Anania got in a vehicle with the driver, claimed he had a gun, and sexually assaulted her. The woman escaped when the car stopped at an intersection. Anania fled in the vehicle and crashed it a short time later.
Anania committed all of the offenses while awaiting trial in a separate federal firearm case. Anania had been released on bond in that case after a court hearing at which the government had moved for detention.
Moran, 31, of Cicero, Ill., pleaded guilty last year to kidnapping and carjacking charges. He is scheduled to be sentenced by Judge Chang on March 18, 2025, at 10:00 a.m.
The jury convictions were 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. Substantial assistance was provided by the Cicero, Ill. Police Department, Summit, Ill. Police Department, Stickney, Ill. Police Department, Chicago Police Department, Darien, Ill. Police Department, U.S. Marshals Service, and the Cook County Sheriff’s Office. The government is represented by Assistant U.S. Attorneys Cornelius Vandenberg, Megan Donohue, and Hayley Altabef.
Chicago Businessman Sentenced to More Than 17 Years in Prison for Bilking Elderly Homeowners in Reverse Mortgage SchemeRead the Press Release
CHICAGO — A Chicago businessman was sentenced today to more than 17 years in federal prison for bilking elderly homeowners in a reverse mortgage and home repair scheme.
MARK STEVEN DIAMOND schemed with others to induce homeowners to unwittingly obtain reverse mortgage loans to pay for purported home repairs that Diamond offered to perform. Diamond and the co-schemers targeted elderly victims in the Chicago area based on the amount of equity in their homes and their relative lack of financial sophistication. In some instances, Diamond concealed from the homeowners that they were applying for reverse mortgage loans by falsely representing that they needed to sign certain documents to start the repair work, when, in fact, the documents that Diamond caused them to sign were related to applying for the loan. After the loans were approved and originated by co-schemers, Diamond fraudulently pocketed the loan proceeds and often failed to perform any repairs.
Diamond, 68, of Chicago, pleaded guilty last year to a federal charge of wire fraud affecting a financial institution. In addition to the 205-month prison sentence, U.S. District Judge Franklin U. Valderrama ordered Diamond to pay $2.7 million in restitution.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Rae Oliver Davis, Inspector General for the U.S. Department of Housing and Urban Development Office of the Inspector General, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Kwame Raoul, Illinois Attorney General. The government was represented by Special Assistant U.S. Attorney Brian P. Netols and Assistant U.S. Attorney Erin Kelly.
“Mark Diamond repeatedly preyed on the elderly for years,” said Acting U.S. Attorney Pasqual. “He damaged the most vulnerable in our community, both financially and personally. We will continue to work with our law enforcement partners to hold accountable anyone who seeks to deceive elderly homeowners through fraud.”
“Diamond’s scheme defrauded more than 100 elderly and vulnerable homeowners, preying upon their trust and devastating them financially,” said HUD-OIG Inspector General Davis. “His sentencing today is a sobering reminder of the unique harm caused by predatory reverse mortgage schemes. These egregious criminal acts will not be tolerated, and my agency will continue to work with our law enforcement partners to hold other individuals like Diamond accountable for their actions.”
“The reverse mortgage fraud scheme perpetrated by the defendant preyed on some of the most vulnerable Chicagoans,” said FBI Chicago SAC DePodesta. “Combatting white-collar crime stands as a foremost priority for the FBI. With the assistance of our law enforcement partners, we will continue to investigate and dismantle financial fraud schemes aimed at harming members of our community.”
“Many of these victims were older homeowners who worked and saved their entire their lives, and their only mistake was trusting an individual who specifically targeted them to be victims of his scam,” said Attorney General Raoul. “My office is proud to partner with the U.S. Attorney for the Northern District of Illinois, the Department of Housing and Urban Development’s Office of Inspector General in Chicago, and the Chicago Field Office of the FBI to obtain a degree of justice for the victims who were defrauded. This sentence underscores the importance of the state-federal law enforcement collaborations that support my office’s work to hold accountable individuals who prey upon our most vulnerable residents.”
All four co-schemers charged in the investigation – loan originators GARY BOHN, of Hoffman Estates, Ill., and MATTHEW FEFFERMAN, of Munster, Ind., Diamond’s employee CYNTHIA WALLACE, of Sauk Village, Ill., and title agency owner FORREST C. FAWCETT, of Fort Lauderdale, Fla. – previously pleaded guilty and admitted their roles in the fraud. They are awaiting sentencing.
Cherokee County Resident Pleads Guilty to Felony Arson ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Sheena Grasshopper, age 41, of Cherokee County, Oklahoma, entered a guilty plea to one count of Attempted Arson of a Dwelling in Indian Country.
The Indictment alleged that on July 31, 2023, Grasshopper willfully and maliciously attempted to set fire to and burn a building and place the life of a person in jeopardy. The crime occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The charge arose from an investigation by the Cherokee County Sheriff’s Department, the Cherokee Nation Marshal Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Grasshopper will remain in the custody of the United States Marshals Service pending sentencing.
Assistant U.S. Attorneys Patrick Flanigan and Edith Singer represented the United States.
Canadian Gun Smuggler SentencedRead the Press Release
Austin, Texas – A Canadian national was sentenced today to 82 months in prison and given a $30,000.00 fine for illegally purchasing handguns with the intent to smuggle them into Canada.
According to court documents, Harsimran Dhaliwal, 31, a Canadian citizen, was operating a gun smuggling operation to smuggle handguns, which are illegal in Canada, across the border and distribute them to criminals. In 2022, Dhaliwal made arrangements with a straw purchaser to obtain numerous handguns in and around the Austin area. Dhaliwal then smuggled the handguns back to Canada. At least two of those weapons have been recovered in Canada and linked to crimes committed there.
“The international smuggling of firearms is dangerous and harmful and our office will vigorously prosecute persons who illegally obtain, transport, and distribute guns” said U.S. Attorney Jaime Esparza.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Keith Henneke prosecuted the case.
Burlington Man Sentenced for Drug and Firearm OffensesRead the Press Release
GREENSBORO – A Burlington, North Carolina man was sentenced today in Winston-Salem to 9 years in prison after pleading guilty to a drug charge and a related firearm charge, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
FREDRICK DONTAE SLADE, age 50, was sentenced to 108 months imprisonment plus 3 years supervised release by the Honorable Loretta C. Biggs, Senior United States District Judge in the United States District Court for the MDNC. In addition to prison and supervision, SLADE was ordered to forfeit a Glock-type privately made pistol and 9mm ammunition.
According to court records, on March 23, 2022, Alamance County Sheriff’s Office deputies approached SLADE while he was parked at a local business after noting SLADE was driving on a suspended license and had completed a suspected drug delivery. SLADE refused officer commands to get out of the vehicle. As one of the officers opened his driver door, SLADE placed the car in reverse and stepped on the gas. SLADE dragged the officer approximately 35 feet before stopping. Upon searching SLADE and his vehicle, officers discovered over 8 grams of cocaine base and a tan polymer “ghost gun,” similar in design to a Glock pistol, which is more difficult for law enforcement to trace. The gun was loaded and attached to a 50-round drum magazine with thirteen rounds of ammunition in it. Attached to the weapon was a “Glock switch,” which functions as a machine gun and allowed the Glock-type ghost gun to shoot automatically more than one shot, without manual reloading, by a single function of the trigger.
SLADE pleaded guilty on June 5, 2024, to one count of possession with intent to distribute cocaine base, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C), and one count of felon in possession of ammunition, in violation of 18 U.S.C. § 922(g)(1) and 924(a)(2).
The case was investigated by Alamance County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by MDNC Assistant United States Attorney Lindsey A. Freeman and former Assistant United States Attorney Jack M. Alsup.
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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Brentwood Couple Sentenced for Making False Statements on Residential Loan ApplicationRead the Press Release
PITTSBURGH, Pa. - Two residents of Brentwood, Pennsylvania, pleaded guilty and were sentenced in federal court on January 15, 2025, on charges of making false statements on a loan application, United States Attorney Eric G. Olshan announced today.
Husband and wife Brennan and Angela McNally each pleaded guilty before Senior United States District Judge Nora Barry Fischer to one count of making a false statement on a loan application. In separate sentencing hearings, Judge Fischer ordered each defendant to spend a day in the custody of the United States Marshals Service, to be followed by three years of federal supervised release. Additionally, both defendants were ordered to pay restitution to the United States Department of Housing and Urban Development in the amount of $26,251.
In connection with the guilty pleas and sentencings, the Court was advised that Brennan, 43, and Angela, 43, each made false statements and representations pertaining to Angela’s residential loan application, specifically, regarding Angela’s employment status and income. Both defendants made these false statements knowingly and for the purpose of influencing the mortgage lending business’s action on the loan application.
In sentencing each defendant, Judge Fischer noted the serious nature of the federal felony offense and the harm that such criminal conduct has on the lender and mortgage industry.
“When the McNallys lied so that they could get a federally funded loan, they put themselves above the worthy and qualified applicants for whom the funds were intended,” said U.S. Attorney Olshan. “We appreciate the work of the Department of Housing and Urban Development Office of Inspector General in this case and will continue to work with our federal, state, and local law enforcement partners to stamp out financial fraud wherever we find it.”
“The defendants engaged in an egregious scheme to misrepresent the spouse’s employment, falsely claiming she was a federal employee to take advantage of a HUD-insured mortgage program designed to assist hard-working individuals realize the American dream of homeownership,” said Special Agent-in-Charge Shawn Rice with the U.S. Department of Housing and Urban Development Office of Inspector General. “No one is above the law and our office will continue to work with the U.S. Attorney’s Office and our law enforcement partners to investigate individuals who jeopardize the integrity of FHA mortgage programs.”
Assistant United States Attorney Nicole A. Stockey prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Department of Housing and Urban Development Office of Inspector General for the investigation leading to the successful prosecution of Brennan and Angela McNally.
Boyfriend Sentenced to 40 Years for Murdering Romantic Rival in Southeast in September 2021Read the Press Release
WASHINGTON – Vernon Parrish, 41, of Washington, D.C., was sentenced today to 40 years in prison for first-degree murder while armed and related charges for the September 26, 2021 murder of his romantic rival, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
A jury returned guilty verdicts on July 9, 2024, following a trial in the Superior Court of the District of Columbia, for first-degree murder while armed, possession of a firearm during a crime of violence, and unlawful possession of a firearm.
According to the evidence, Parrish drove to the home of Ronald Bailey, in the 5200 block of E Street Southeast, Washington D.C., armed with a firearm. Parrish intended to kill Bailey because they were both involved in a romantic relationship with the same woman. Parrish sped down E Street, got out of his car in front of Mr. Bailey’s home, screamed for Mr. Bailey, and then fired multiple shots into Mr. Bailey’s house before fleeing the scene. Mr. Bailey was killed in the gunfire.
Parrish was arrested on October 6, 2021. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the FBI Washington Field Office Cellular Analysis Survey Team. Finally, they commended the work of Assistant U.S. Attorney Daniel Bromwich, and former Assistant U.S. Attorneys Gregory Kimak and Alec Levy, who investigated and tried the case.
Boone County Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Billy Ray Castle Jr., 40, of Bim, was sentenced today to two years and six months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on July 24, 2023, Castle fired three rounds from a Beretta Pietro SPA Model APX 9mm pistol into the ceiling of a Bim-area residence in Boone County and a fourth round out the open door of the residence. Responding law enforcement seized the Beretta, a Sig Sauer model P250 .40-caliber pistol and a Marlin Firearms Co. model X7 .308-caliber rifle at the residence. Castle possessed all three firearms.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Castle knew he was prohibited from possessing a firearm because of his prior felony conviction for robbery in Boone County Circuit Court on November 18, 2003. In that offense, Castle and others violently robbed a 65-year-old person who uses a wheelchair in the person’s home in 2002.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Boone County Sheriff's Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe and former Assistant United States Attorney Troy D. Adams prosecuted 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. 2:24-cr-71.
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Bollinger Shipyard LLC Agrees to Pay $1,025,000 to Settle False Claims Act Allegations Involving Billing the Coast Guard for Employees Ineligible to Work in the United StatesRead the Press Release
Bollinger Shipyard LLC (Bollinger), a Lockport, Louisiana, based company, has agreed to pay $1,025,000 to resolve allegations that it violated the False Claims Act by knowingly billing the U.S. Coast Guard for labor provided by workers who were not eligible to work in the United States.
Bollinger manufactures ships for the United States, including the Coast Guard’s Fast Response Cutter (FRC). The United States alleged that, from 2015-2020, Bollinger knowingly billed the Coast Guard for labor prohibited under the FRC contracts. Specifically, the United States alleged that Bollinger was contractually required to confirm that its employees were eligible to work in the United States. The United States further alleges that Bollinger failed to comply with this requirement and, as a result, several ineligible employees worked on the contract. Further, the United States alleged that Bollinger billed the Coast Guard for the labor provided by the ineligible employees and received payment for those bills.
“It is essential to the safety and operational readiness of our fleet that contractors comply with all contractual requirements,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to hold accountable those who knowingly disregard their contractual obligations.”
“Companies that conduct business with the United States are required to do so in a legitimate manner,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “The favorable resolution of these False Claims Act allegations illustrates the collaboration and commitment by our federal partners to use all available remedies to address signs of fraud, waste and abuse.”
“Today’s settlement sends a clear message that contractors providing services to DHS programs will be held accountable for breaking the law,” said Inspector General Joseph V. Cuffari Ph.D. of the Department of Homeland Security (DHS). “DHS’ Office of Inspector General (DHS OIG) and our law enforcement partners will continue to prioritize protecting our national security from these kinds of schemes.”
“The Coast Guard Investigative Service (CGIS) is committed to continually working with all our law enforcement partners to protect and secure taxpayer funds and aggressively act to fully investigate allegations of false claims involving the Coast Guard,” said Assistant Director William Hicks of CGIS.
Senior Trial Counsel Art J. Coulter of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Sandra Lee Sears for the Eastern District of Louisiana handled the matter.
DHS OIG and CGIS assisted in the investigation.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
Bvi Man Sentenced in Illegal Alien Smuggling CaseRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Danny Dennevil, alias Danny Dorcine-Turnbull, 34, of Tortola, BVI, was sentenced by Chief District Judge Robert A. Molloy to 92 days of imprisonment following his plea of guilty to the charge of illegally bringing aliens to the United States.
According to court documents, on September 25, 2024, at approximately 7:00 p.m., Customs and Border Protection Air and Marine Operations agents were patrolling United States waters in the area of Leinster Bay, St. John, when they observed a small vessel traveling from the British Virgin Islands towards Leinster Bay without navigational lights, as required by law. Agents observed the vessel, operated by Dennevil, arrive at Leinster Bay and two individuals disembarked. Agents intercepted Dennevil’s vessel as he attempted to flee, while agents at Leinster Bay apprehended two Dominican Republic nationals who disembarked the vessel. Neither individual had legal status to be present in the United States. When questioned by the agents, Dennevil, himself a Dominican Republic national with Belonger status in the British Virgin Islands, admitted that he knew that Leinster Bay was not a legal port of entry and that his two passengers were citizens of the Dominican Republic.
The case was investigated by Homeland Security Investigations, Customs and Border Protection Air and Marine Operations and the United States Coast Guard and was prosecuted by Assistant United States Attorney Kyle Payne.
Attempted Attack on the White House with a Rented Box Truck Results in 8-Year Sentence for Missouri ManRead the Press Release
WASHINGTON – Sai Varshith Kandula, 20, of St. Louis, Missouri, was sentenced today in U.S. District Court to 96 months in federal prison for an attempted attack on the White House with a rented truck on May 22, 2023, an attack that aimed to overthrow the democratically elected government of the United States in order to replace it with a dictatorship fueled by Nazi ideology.
The sentence was announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge William McCool of the U.S. Secret Service Washington Field Office, FBI Special Agent in Charge Sanjay Virmani of the FBI Washington Field Office’s Counterterrorism Division, Chief Jessica M. Taylor of the U.S. Park Police, and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Kandula pleaded guilty on May 13, 2024, to a charge of willful injury or depredation of property of the United States before U.S. District Court Judge Dabney L. Friedrich. Kandula is an Indian national who was born in Chandanagar, India. At the time of the incident, he was a lawful permanent resident of the U.S. with a green card. In addition to the prison term, Judge Friedrich ordered Kandula to serve three years of supervised release.
According to court documents, Kandula flew on a commercial flight from St. Louis, Missouri, to Washington D.C. on the afternoon of May 22, 2023, connecting through another airport on a one-way airline ticket. Kandula arrived at Dulles International Airport about 5:20 p.m., and rented a truck at 6:30 p.m. He stopped for food and gas, and then drove to Washington, D.C., where he crashed into the barriers protecting White House and President’s Park at 9:35 p.m. at the intersection of H Street, Northwest and 16th Street, Northwest. Kandula drove onto the sidewalk, sending pedestrians running from the scene. After striking the barriers, the truck backed up in reverse, then lurched forward, striking the metal barriers a second time. The second impact disabled the truck which began smoking from the engine compartment and leaking fluids.
Kandula next exited the vehicle and went to the back of the truck. From a backpack he removed a flag, a three-by-five foot red-and-white banner with a Nazi Swastika in the center, and brandished it. U.S. Park Police and the U.S. Secret Service officers arrested Kandula at the scene and took him into custody.
According to the plea agreement, at the time Kandula crashed the truck into the White House perimeter, he was attempting to gain access to the White House to seize political power. Kandula’s intent was to replace the democratically elected government with a dictatorship fueled by ideology of Nazi Germany and for himself to be put in charge of the United States. Kandula admitted to investigators that he would have arranged for the killing of the U.S. President and others if necessary to achieve his objective. His actions were calculated to influence or affect the conduct of government by intimidation or coercion.
Kandula’s actions caused $4,322 in damage to the National Park Service. This amount included costs for repairing the metal bollard barriers to their original condition and ensuring structural soundness, oil and chemical removal, spill cleanup, and disposal of fluids from the crashed U-Haul. The damaged property was property of a department or agency of the United States, specifically the National Park Service, an agency of the United States federal government, within the U.S. Department of the Interior.
Kandula planned the attack for several weeks. Prior to renting the truck and crashing it on White House grounds, he made several attempts to gain access to vehicles or armed security guards. For example, on April 22, 2023, Kandula requested 25 armed guards and an armored convoy from a security company located in Virginia. On May 4, 2023, Kandula attempted to contact several other companies in an attempt to rent a large commercial tractor-trailer truck, a dump truck, or another large truck. Kandula was unsuccessful in arraigning for security guards or a tractor-trailer truck or dump truck. Kandula had attempted to arrange for the services of these security guards and the use of large vehicles in order to carry out his offense against the U.S. Government.
This case was investigated by the U.S. Secret Service, the FBI’s Washington Field Office, the U.S. Park Police, and the MPD. It was prosecuted by Special Assistant U.S. Attorney Alex Schneider and Assistant U.S. Attorney Shehzad Akhtar.
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As Carjackings Decline in D.C., Defendants Face 57-Count Indictment for Spree of Armed Carjackings and ShootingsRead the Press Release
WASHINGTON – Deangelo Wooten, 27, Jaleel Fowler, 26, and other co-conspirators were indicted today on a 57-count indictment filed in Superior Court, charging them as members of a conspiracy that have robbed, carjacked, and shot numerous individuals in the District of Columbia between December 2023 and March 2024, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD).
The indictment returned today charges Wooten and Fowler with conspiracy, multiple carjackings and armed robberies, multiple assaults with intent to kill, obstruction of justice, and other related charges stemming from a course of violent conduct committed throughout the city in late 2023 and early 2024. The indictment details how the Defendants would use firearms to steal cars and rob individuals of their belongings during the commission of numerous offenses. The indictment charges three separate carjackings committed upon rideshare driver victims in December 2023 and January 2024, in addition to four separate shootings committed in the District from December 2023 through February 2024.
In December 2024, the District of Columbia had 28 carjackings. The last month that had fewer carjackings was May of 2021. The District has had 10 carjackings as of January 16, 2025.
“Despite the massive reduction in carjacking incidents, this Office remains vigilant in aggressively pursuing and prosecuting those committing these crimes because one carjacking is too many,” said U.S. Attorney Graves. “As this indictment reflects, we will hold accountable those committing these crimes by thoroughly investigating and prosecuting these carjacking incidents.”
This case is being investigated by the Metropolitan Police Department (MPD). It is being prosecuted by Assistant U.S. Attorneys Mark Levy and Sara Matar of the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Antlers Resident Sentenced for Sexual Exploitation of A ChildRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Clyde Park Crews III, age 34, of Antlers, Oklahoma, was sentenced to 300 months in prison for one count of Sexual Exploitation of a Child/Use of a Child to Produce a Visual Depiction.
The charge arose from an investigation by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
On September 4, 2024, Crews pleaded guilty to the charge. According to investigators, between December 2022 and May 2023, Crews induced a minor to engage in sexually explicit conduct in order to produce and transmit images of that conduct on the internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
We encourage anyone who suspects or has information regarding child sexual exploitation, trafficking of minors, sextortion, child pornography, or any other means of child exploitation to immediately contact law enforcement. You can file a report through the National Center for Missing & Exploited Children (NCMEC) at 1-800-843-5678 or online at www.cybertipline.com, through the FBI at 1-800-CALL-FBI (1-800-225-5324), or through Homeland Security Investigations at 1-877-4-HSI TIP.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Crews will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Morgan Muzljakovich represented the United States.
Aneth Man Sentenced to Life in Prison for Murdering Navajo WomanRead the Press Release
SALT LAKE CITY, Utah – Randy Lansing, 41, of Aneth, Utah, was sentenced today to a term of life in prison for murdering a woman he was dating in front of her two young daughters.
The sentence, imposed by Senior U.S. District Court Judge David Nuffer, comes after Lansing was found guilty by a federal jury for murder in the second degree while within Indian Country.
According to court documents, evidence presented at trial, and statements made at Lansing’s sentencing hearing, Lansing murdered Tammy Clark, on April 23, 2022. Clark was a 30-year-old mother of three, who Lansing severely beat and drowned in front of her two young daughters. During trial, the evidence established that on the day of the murder, Lansing drove Ms. Clark, her two young daughters and a second woman to McElmo Creek. At the creek, Lansing violently beat and forcibly drowned Ms. Clark, causing her grievous injuries that included a broken nose, extensive facial swelling, many brain hemorrhages, lacerations to her right cheek, left ear, and inside her mouth, a fractured hyoid (neck) bone, four broken ribs, and extensive blunt force trauma to her torso and extremities.
According to statements and evidence presented at trial, Lansing also threatened Ms. Clark’s young daughter. He later drove Ms. Clark’s beaten body to Aneth in the back of his SUV, where he left the vehicle as his mother contacted neighbors for help. Several neighbors, including an EMT, called San Juan County Dispatch for an ambulance and attempted life saving measures until the ambulance arrived and transported Ms. Clark to the hospital where she was pronounced dead.
“Mr. Lansing subjected Ms. Clark to an unthinkable level of brutality before her death, all witnessed by her young daughters,” said U.S. Attorney Trina A. Higgins of the District of Utah. “He has a history of violence against women, which escalated to the heinous murder of this young mother. While no prison sentence can ever make up for the life stolen from Ms. Clark’s family, it is our hope her children can continue to heal and move forward after being profoundly impacted by the gravity of Lansing’s crime.”
“Randy Lansing’s horrific actions will forever have a profound impact on the victim’s family, especially her two young children,” said Acting Special Agent in Charge Albert Kelly of the Salt Lake City FBI. “The FBI will continue to work alongside our tribal and other law enforcement partners to seek justice and support victims of such heinous crimes.”
The case was investigated jointly by the FBI Salt Lake City Field Office’s Monticello Resident Agency and Navajo Nation Police Department, Criminal Investigations.
United States Attorney Trina A. Higgins of the District of Utah and Assistant U.S. Attorneys Tad May and Tanner Zumwalt prosecuted the case.
American Express Agrees to Pay More Than $138 Million to Resolve Wire Fraud Investigation in Connection with the Sales and Marketing of Wire ProductsRead the Press Release
Judy Philips, Acting Attorney for the United States for the Eastern District of New York and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced today that American Express Company (AMEX) has entered into a non-prosecution agreement (NPA) with the U.S. Attorney’s Office for the Eastern District of New York (the Office), and has agreed to pay more than $138 million for engaging in sales practices that provided inaccurate tax advice to customers and potential customers of AMEX for two wire products, Payroll Rewards and Premium Wire (PR/PW).
Under the terms of the NPA, AMEX agreed to pay a criminal fine of $77,696,000 and forfeit a total of $60,700,000. The NPA requires AMEX to continue to cooperate with and provide information to the Office for at least the 36-month term of the agreement. In the event that AMEX violates the NPA, the Office may prosecute AMEX for any of the conduct that gave rise to the NPA and any newly discovered criminal activity.
Separately, AMEX has entered a civil settlement with the Department of Justice’s Civil Division Fraud Section (Civil Frauds) related to the tax-avoidance scheme, for which AMEX has agreed to pay a $60,700,000 civil penalty. The Office and Civil Frauds have each agreed to credit approximately $30,350,000 of the forfeiture amount and civil fine to their respective resolutions.
“Financial institutions like American Express have no business pitching inaccurate tax avoidance schemes to sell products and turn a quick profit,” stated Acting Attorney for the United States Philips. “This resolution ensures that American Express will be held financially accountable for the unacceptable conduct of its sales employees in misrepresenting the tax benefits of these products.”
Ms. Philips expressed her appreciation to Civil Frauds and the Federal Reserve Board of Governors for their work on the case.
“American Express misled their customers by touting tax breaks that simply didn’t exist. This deceitful marketing campaign that involved hundreds of employees defrauding their customers and the government, resulted in AMEX paying more than $138 million to cover their deceit. Regardless of a company’s size, every business is required to comply with the laws of this nation, including all tax laws,” stated IRS-CI New York Special Agent in Charge Chavis.
The Improper Sales and Marketing of PR/PW
In approximately April 2018, AMEX launched “Payroll Rewards,” a wire product that allowed business customers to pay their payroll via a direct payment from an AMEX account. AMEX charged a percentage-based fee—ranging from 1.77% to 3.5%—based on the size of the wire, even though, at the time, competitors offered wiring services for nominal fees of $0 to $50, irrespective of the size of the wire. In exchange for AMEX’s fee, customers earned one Membership Reward (MR) point for each $1 of the wire, which could be deposited into any personal or business account at AMEX. In May 2019, Payroll Rewards was expanded to include Premium Wire, thereby allowing customers to use the products for wire payments beyond payroll. Whereas Payroll Rewards underwent a compliance and legal review process at AMEX, Premium Wire was determined to be a spin-off product, and only underwent a limited review process.
PR/PW were sold within the AMEX divisions Global Commercial Services, which offered corporate credit cards and financial services, and FX International Payments, which offered foreign and domestic wire transfer services. AMEX’s official marketing material for PR/PW listed benefits of the products as being, chiefly, the ability to earn MR and utilize AMEX’s “white glove service” in connection with customer wiring needs. The official marketing materials also contained the disclaimer: “The value of the [MR] may be taxable income to the Card Member and the Card Member is responsible for any federal or state taxes resulting from the [MR].”
In practice, however, the products were marketed as a means to generate tax savings. The products were primarily marketed to small and mid-size businesses that valued a reduced tax burden over increased profitability. Customers were advised: first, that the fees were tax-deductible as a business expense, and thereby had the effect of lowering their overall profit and taxable income; second, that they otherwise would have paid taxes on the fees, so the true cost of the fees had to be evaluated in the context of their effective tax rate; and, third, that the MR received in exchange for the transaction was earned tax-free (the Pitch). As a result, the value of the MR outweighed the true cost of the fees adjusted to account for the tax savings they generated.
The Pitch relied on incorrect tax advice, namely, that the wiring fee was deductible in its entirety as a business expense. Business expenses must be “ordinary” and “necessary.” Incurring a wiring fee—far in excess of that offered by competitors in the marketplace—for the purpose of generating a personal benefit is not an “ordinary” and “necessary” business expense. AMEX did not consult with tax professionals to verify the tax advice being offered.
In early 2021, as concerns grew regarding the way PR/PW was marketed, an internal investigation commenced, which ultimately resulted in the termination of approximately 200 employees. In the summer of 2021, AMEX stopped enrolling new customers in the products. In September 2021, a cap was instituted of $280,000 per wire sent. In November 2021, the products were discontinued entirely.
The Non-Prosecution Agreement
AMEX has agreed to pay a fine of $77,696,000 and forfeit $60,700,000, which represents the net revenue that could reasonably be attributed to the sale of PR/PW.
The Office reached this resolution with AMEX after carefully weighing all the factors relevant to the appropriate corporate resolution, including the nature and seriousness of the offense. The NPA recognizes that AMEX voluntarily took substantial remedial measures beginning in 2021 to mitigate and correct the sales and marketing practices described above and improving compliance measures, including terminating employees involved in the misconduct, discontinuing PR/PW, and making significant improvements to AMEX’s product approval and internal audit processes. AMEX also has no prior criminal history in the past 18 years. Furthermore, AMEX has cooperated with the Office in its investigation and has agreed to continue to cooperate fully with the Office.
The agreement announced today is the result of an investigation conducted by IRS-CI. The government’s case is being handled by the Office’s Business and Securities Fraud Section in coordination with the Office’s Bank Integrity Task Force, which is charged with investigating and charging corporate and individual actors who launder criminal proceeds using the U.S. banking system and enforcing anti-money laundering controls under the Bank Secrecy Act. Assistant United States Attorneys Hiral D. Mehta, Gillian Kassner and Tara McGrath, and former Assistant U.S. Attorney Brian D. Morris prosecuted the case, with assistance from Paralegal Specialist Timothy Migliaro.
The Defendant:
amex_npa_agreement_print.pdfAMERICAN EXPRESS COMPANY
American Express Agrees to Pay $108.7M to Settle Allegations of Deceptive Marketing and “Dummy” Account InformationRead the Press Release
The American Express Company (American Express), based in New York, New York, has agreed to pay a $108.7 million civil penalty to resolve allegations that it violated the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by deceptively marketing credit card and wire transfer products and by entering “dummy” Employer Identification Numbers in the credit card accounts of its affiliate bank.
“When financial companies engage in deceptive sales tactics or falsify information to cover up a failure to follow applicable regulations, they threaten the integrity of our financial system,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement makes clear that the department will hold accountable those who violate the trust placed in them to follow the rules governing our financial institutions and to be truthful about their business practices.”
The United States alleged that, from 2014 through 2017, American Express deceptively marketed credit cards through the conduct of an affiliated entity that initiated sales calls to small businesses. The alleged deceptive practices included misrepresenting the card rewards or fees and whether credit checks would be done without a customer’s consent and submitting falsified financial information for prospective customers, such as overstating a business’s income.
The United States also alleged that American Express engaged in practices to deceive its federally insured financial institution into allowing certain small business customers to acquire American Express credit cards without the required employer identification numbers (EINs). EINs are required by law if the card recipient is a business entity such as a corporation or partnership; the requirement does not apply to sole proprietors. The United States alleged that American Express employees used “dummy” EINs such as “123456788” in opening small business credit cards in 2015 and the first half of 2016. These cards were sold to replace an American Express co-branded credit card that was being discontinued during that time period. American Express allegedly allowed these “dummy” EINs to remain on the credit card accounts for up to two years before remediating the problem. American Express allegedly knew that many of the small business applicants had previously acquired American Express-issued co-brand cards where the card application stated that EINs were required for corporations or partnerships, but if the applicants left the EIN line blank, American Express would assume they are sole proprietors. That practice exacerbated the effects of American Express’s failure to enter proper EINs when it sold these customers replacement cards.
Finally, the United States further contended that American Express employees deceptively marketed wire transfer products known as Payroll Rewards and Premium Wire to its small business customers from 2018 through 2021, making false assertions regarding these products’ tax benefits. As to both products, American Express allegedly would wire money for an above-market fee that was far in excess of that offered by competitors in the marketplace and award the businesses or the business owners credit card membership reward points. American Express sales employees allegedly told customers that the wire transfer fees were tax deductible as business expenses, while the reward points earned on the transaction were not taxable, and thereby afforded the customer tax-free benefits. The United States contended, however, that the above-market wiring fee was not deductible as an ordinary or necessary business expense insofar as it was incurred by a customer solely for the purpose of generating a personal benefit.
Contemporaneous with the civil resolution, American Express will enter into a Non-Prosecution Agreement with the U.S. Attorney’s Office for the Eastern District of New York and pay a criminal fine and forfeiture. That agreement deals exclusively with the Payroll Rewards and Premium Wire programs referenced above. Under the terms of the civil settlement, American Express will receive a credit toward the satisfaction of the civil penalty in the amount of $30.35 million if it makes a full payment of the forfeiture and fine amounts due under the criminal resolution.
“This multi-million-dollar settlement holds American Express accountable for violating FIRREA through unlawful sales tactics and recordkeeping requirements, and deceiving small business customers who placed their trust in the Company,” said Special Agent in Charge Jeffrey D. Pittano of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Mid-Atlantic Region. “The FDIC-OIG will continue to work with our law enforcement partners to investigate financial crimes that harm customers and undermine the integrity of our Nation’s financial institutions.”
“Today’s multi-million dollar settlement should make clear that financial companies who engage in fraudulent and deceptive practices will be held accountable for their actions,” said Special Agent in Charge John T. Perez of Headquarters Operations, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “We are proud to have worked alongside our federal law enforcement partners to achieve this result.”
Attorneys Daniel Spiro and Mary Beth Hickcox-Howard of the Civil Division’s Commercial Litigation Branch, Fraud Section handled the matter with assistance from the Legal Division of the Federal Reserve Board of Governors and the Office of Comptroller of the Currency’s Chief Counsel’s Office. Senior Special Agent Brittany Harding of the Office of the Inspector General for the Department of Treasury, Special Agent Will Burmeister of the Office of the Inspector General for the Federal Reserve Board and Senior Special Agent Mike Serra from the Office of the Inspector General for the Federal Insurance Deposit Corporation investigated the matter.
Except for the conduct admitted in connection with the criminal resolution, the claims resolved by the settlement are allegations only. There has been no determination of liability.
View the settlement here
Alien Smuggling Supervisor SentencedRead the Press Release
El Paso, Texas – An El Paso man was sentenced yesterday to 57 months in prison for conspiring with others from April 2021 through November 2023 to knowingly transport aliens who had illegally entered the United States.
According to court documents, since 2021 Mark Anthony Holguin, 28, supervised an alien smuggling organization that helped transport a significant number of aliens from the Republic of Mexico into the United States at El Paso, Texas, and Santa Teresa New Mexico.
U.S. Attorney Jaime Esparza stated: “Alien smuggling has become an epidemic in the El Paso community. We need to send a message to these criminals—at all levels of these organizations—that it will not be tolerated, and we will prosecute. Border Patrol and Homeland Security Investigations were a vital part of this investigation in helping to dismantle this alien smuggling organization.”
“The outcome of this criminal case should remind those involved in human smuggling that their criminal actions are neither going unnoticed nor undetected,” said Jason T. Stevens, special agent in charge for HSI El Paso. “HSI El Paso, jointly with our federal partners, is working tirelessly to secure our borders by identifying, arresting, and prosecuting transnational criminal organizations members responsible for illegally transporting people into and through our country.”
The United States Border Patrol and Department of Homeland Security Investigations investigated the case.
Special Assistant U.S. Attorney Shannon Holderfield prosecuted the case.
22 Defendants Charged with Federal Crimes Involving Child Sex Abuse Material Since October 2023 in Southern ArizonaRead the Press Release
TUCSON, Ariz. – The United States Attorney’s Office (USAO), with support from law enforcement partners from the Federal Bureau of Investigation (FBI) and Homeland Security Investigations (HSI) offices in Southern Arizona, charged 22 offenders with crimes involving child sex abuse material (CSAM) in Southern Arizona since October 2023.
The crimes include sexual exploitation of minors by way of production, distribution, transportation, and possession of child pornography, which is defined by federal statute as any depiction of a minor engaging in sexually explicit conduct. Each of the offenses is a felony under federal law and results in registration as a sex offender after release from prison.
Updates on recent cases follow:
United States v. David Garmarnik: David Berry Garmarnik was indicted on November 20, 2024, on 20 counts of Attempted Production of Child Pornography, 20 counts of Attempted Enticement and Coercion of a Minor, and five counts of Receipt of Child Pornography. The complaint alleged that in July 2024, law enforcement identified evidence that Garmarnik was using Skype to conduct live streaming shows of child sexual abuse being committed in the Philippines. On December 18, 2024, the District Court held a hearing on the government’s detention appeal, and ordered the defendant detained pending trial.
United States v. Nathan Hinte: Nathan Dean Hinte was indicted on October 2, 2024, on one count of Production of Child Pornography and one count of Distribution of Child Pornography after the investigation showed he reached out in August 2024 to an HSI Special Agent posing undercover as a mother looking to exploit her child. Hinte sent sexually explicit images of children to the undercover agent, and following his arrest, additional investigation revealed that Hinte had produced the explicit images himself. Hinte is detained pending trial.
In United States v. Baron Martin, 20-year-old Baron Martin, of Tucson, was arrested by agents from the FBI for production of child pornography and cyberstalking offenses carried out as part of his participation in online groups associated with domestic terror networks known as 764 and “CVLT.” Following a hearing on January 10, 2025, the Court detained Martin pending trial.
United States v. Eric Lavon Williams and Cori Williams – Eric Williams and his wife Cori Williams, of Pima, were identified by HSI-Douglas in April, 2022, after receiving Cybertips from the National Center for Missing and Exploited Children (NCMEC) about explicit images being uploaded online. Eric Williams was sentenced to 97 months in custody for Distribution of Child Pornography, to be followed by lifetime supervised release. Cori Williams was subsequently sentenced to 36 months in prison on April 17, 2024.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The above cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
CASE NUMBERS: CR-24-08214-TUC-RM (Garmarnik)
CR-24-06718-TUC-JGZ (Hinte)
CR-22-01660-TUC-RM-LCK (Williams)
CR-25-190-TUC-AMM (Martin)
RELEASE NUMBER: 2025-005_PSC Cases# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.
Wednesday 15 January 2025
Yakima Man Sentenced to Federal Prison for Possession of Child Sexual Abuse MaterialRead the Press Release
Yakima, Washington – U.S. Attorney Vanessa R. Waldref announced that on January 14, 2025, United States District Judge Mary K. Dimke sentenced Joshua David Harding, age 44, of Yakima, Washington, to 24 months in federal prison for Possession of Child Pornography. Judge Dimke also imposed 7 years of supervised release.
According to court documents and information presented at the sentencing hearing, in July 2023, Homeland Security Investigations (HSI) Tri-Cities and the Southeast Regional Internet Crimes Against Children Task Force learned that Harding may be sharing, and in possession of, child sexual abuse material through the use of a website known to host contraband material.
On August 17, 2023, investigators executed a search warrant at Harding’s residence. Investigators seized several electronic devices that contained images of children being sexually abused and CGI/animated depictions of children being sexually abused.
“The sentence imposed in this case recognizes the ongoing and lasting harm caused by child exploitation,” stated U.S. Attorney Waldref. “Our Office, law enforcement partners, and the Southeast Regional Internet Crimes Against Children Task Force work tirelessly to seek justice for victims and hold offenders accountable.”
“Exploitation of children, no matter the form, has detrimental effects on society and works to undermine the innocence of childhood," said Matthew Murphy, acting Special Agent in Charge, HSI Seattle. "The commitment of HSI and our Southeast Regional ICAC partners continue to safeguard our communities, and this sentence sends a clear message that we will continue to relentlessly pursue those who attempt to exploit and abuse the most defenseless members of our society."
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the Southeast Regional ICAC Task Force, consisting of Homeland Security Investigations and the Richland and Kennewick Police Departments. This case was prosecuted by Assistant United States Attorney Letitia A. Sikes.
1:24-cr-02014-MKD
Winnebago Man Sentenced for Voluntary Manslaughter in Indian CountryRead the Press Release
United States Attorney Susan Lehr announced that Tylan Joseph Walker, age 21, of Winnebago, Nebraska, was sentenced on January 15, 2025, in federal court in Omaha, Nebraska, for voluntary manslaughter in Indian Country. United States District Court Judge Brian C. Buescher sentenced Walker to 97 months’ imprisonment. There is no parole in the federal system. After Walker’s release from prison, he will begin a 3-year term of supervised release.
On March 30, 2024, Walker was drinking and socializing with friends. At one point, he and a female friend met up with a 19-year-old Winnebago man and spent time drinking and talking. After a minor disagreement between the two men, Walker started a fist fight and then stabbed the 19-year-old male in the upper thigh area. The victim bled profusely and was unresponsive by the time emergency services arrived on scene. Despite extensive efforts by emergency services and medical staff at two hospitals, the victim ultimately succumbed to his wounds and died on April 3, 2024. Before handing down Walker’s 97-month sentence, Judge Buescher heard testimony from several members of the victim’s family, who asked the court to consider the deep pain and trauma experienced by their family and the Winnebago community as a whole because of Walker’s actions.
This case was prosecuted in federal court because the offense was a felony and occurred on the Winnebago Indian Reservation in Nebraska.
This case was investigated by the Federal Bureau of Investigation.
Wilburton Resident Sentenced for Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Aniseto Bernal Lara, Jr., age 56, of Wilburton, Oklahoma, was sentenced to 18 months in prison for one count of Failure to Register as Sex Offender.
The charge arose from an investigation by the United States Marshals Service Violent Crime Fugitive Task Force.
On August 20, 2024, Lara pleaded guilty to the charge. On July 26, 1985, Lara was convicted of felony Sexual Assault in the State of Texas and required to register as a sex offender. Lara was advised of the requirements to register as a sex offender and to inform law enforcement of any change in residency. According to investigators, from September 1, 2023, and until October 23, 2023, Lara failed to register as a sex offender despite moving into and living at a residence in Latimer County, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Lara will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Jessica Bove represented the United States.
Volga Man Sentenced for Violation of Bald and Golden Eagle Protection ActRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Volga, South Dakota, man convicted of a violation of the Bald and Golden Eagle Protection Act. The sentencing took place on January 13, 2025.
Joe Hofer, age 52, was sentenced to one year of federal probation, a $1,200 fine, and ordered to pay a $25 special assessment to the Federal Crime Victims Fund.
Hofer was indicted for a violation of the Bald and Golden Eagle Protection Act by a federal grand jury in July 2024. He pleaded guilty on October 4, 2024.
Hofer is the Farm Boss for the Cambridge Hutterian Brethren (CHB) in Lake County, South Dakota. In November 2023, Hofer used CHB farm equipment to take down tress on property owned by CHB. One of the trees Hofer took down contained an active eagle nest, destroying the nest. Hofer did not have a permit to take down the eagle’s nest which is protected under federal law.
This case was investigated by the U.S. Fish and Wildlife Service and the South Dakota Game, Fish and Parks. Assistant U.S. Attorney Meghan Dilges prosecuted the case.
Violent Offender Sentenced to 10 Years in Prison for Selling Counterfeit Pills to Undercover OfficerRead the Press Release
BOSTON – A Taunton man who sold over a kilogram of counterfeit pills to an undercover officer was sentenced yesterday in federal court in Boston for selling counterfeit pills containing methamphetamine.
Shavon Gurley, a/k/a “Soo Soo,” 29, was sentenced by U.S. District Court Judge Myong J. Joun to 10 years in prison, to be followed by five years of supervised release. In October 2024, Gurley pleaded guilty to distribution and possession with intent to distribute 500 grams and more of a mixture and substance containing a detectable amount of methamphetamine.
Gurley was identified as being involved in trafficking fentanyl and methamphetamine in conjunction with a Brockton-based drug trafficking organization.
As part of the investigation, between Aug. 2-5, 2024, undercover law enforcement communicated with Gurley about purchasing methamphetamine pills. On Aug. 5, 2024, Gurley sold 6,000 counterfeit Adderall pills containing methamphetamine, weighing over a kilogram, to an undercover officer. During the interaction, Gurley stated that he would drop the price per pill if the undercover officer were to buy 10,000 or 20,000 pills. Gurley continued to discuss his drug operation with the undercover officer and boasted about selling kilograms of fentanyl that his customers then go on to sell in Maine.
During the controlled purchase with the undercover officer, Gurley stated that he sells kilograms of fentanyl for $30,000, and that the fentanyl is such high quality that it can be adulterated with cutting agents into 10 kilograms. Gurley then stated he also sells a higher quality and purity fentanyl for $50,000, which can be adulterated into 50 kilograms. Gurley also boasted about property he has already acquired through selling narcotics and that he intends to reach $600,000 in profits. Gurley complimented the undercover officer’s “aura” and promised to do business with the officer in the future. At the time of the sale, Gurley was on pretrial release for a domestic violence offense.
Lastly, during the execution of search warrants at Gurley’s residence and vehicle, law enforcement recovered a loaded black firearm, two posters depicting cherubim – with captions that read, “I Only Fear the Feds,” and “Rats Don’t Make it To Heaven,” – a bag containing an amount of controlled substances believed to be fentanyl, as well as a number of plastic bags containing approximately 10,000 counterfeit Adderall pills believed to contain methamphetamine.
Gurley has a lengthy juvenile record and criminal history that includes a number of prior firearm and violent offenses – including a 2012 conviction for assault and battery by means of a dangerous weapon for attacking a man with a pistol and pointing the firearm at the victim’s head, for which he served a six to 10 year term in state prison.
United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by Taunton Police Department. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case.
Utah Man Sentenced to Prison After Making Death Threats to the Salt Lake County Sheriff and Others over the Foreclosure of His PropertyRead the Press Release
SALT LAKE CITY, Utah – Ryan Gregory Bracken, 44, of West Valley City, Utah, was sentenced today to 60 months’ imprisonment and three years’ supervised release after he made repeated death threats to the Salt Lake County Sheriff, other government offices, and a local law firm.
The sentence, imposed by Senior U.S. District Court Judge Ted Stewart, comes after Bracken was found guilty by a federal jury in October 2024 of four counts of stalking and one count of interstate communication of threats. See prior press release here.
According to court documents, evidence presented at trial, and statements made at Bracken’s sentencing hearing, between March 20, 2024 and April 2, 2024, Bracken made specific threats to kill law enforcement officers and hold other victims responsible for “treason,” the penalty for which he described as “death.” Bracken believed those he threatened were responsible for – or could somehow stop – the foreclosure of his residence. Bracken also made threats of hangings and shootings, with repeated references to the caliber of ammunition he planned to use to shoot anyone who came on his property, which was subject to foreclosure. For example, Bracken made multiple threats that if the Sheriff’s sale of his property occurred, he would hold the Sheriff responsible for “treasonous acts” and that she would “swing from a rope.” As Bracken’s threats grew more extreme, a multi-agency operation was launched to protect the public from his threatened acts of violence.
“The safety of our citizens is a priority for the U.S. Attorney’s Office and law enforcement,” said U.S. Attorney Trina A. Higgins of the District of Utah. “Bracken’s conduct was extreme, unabated, and dangerous. It is our hope the victims he terrorized may find peace in knowing he is behind bars and justice was served.”
"I want to thank all the agencies involved in this investigation and bringing it to a closure,” said Salt Lake County Sheriff Rosie Rivera. “I appreciate the U.S. Attorney's Office for prioritizing the safety of our community and our public servants."
"The circumstances Mr. Bracken found himself in were not the making of those he callously threatened to harm but the consequences of his actions," said HSI Salt Lake City Assistant Special Agent in Charge Brandon Crane. "We will aggressively pursue those threatening public servants for performing their sworn duties and serving our communities and ensure that individuals like Mr. Bracken face justice for their actions."
The case was investigated jointly by Homeland Security Investigations (HSI) and the Salt Lake County Sheriff’s Office.
The U.S. Attorney’s Office for the District of Utah prosecuted the case.
Undocumented Individual Sentenced to Five Years in Prison for Voting Fraud and Passport FraudRead the Press Release
HUNTSVILLE, Ala. – An undocumented individual has been sentenced in connection with her fraudulent assumption of a United States citizen’s identity and her use of that identity to vote in multiple elections and obtain multiple United States passports, announced U.S. Attorney Prim F. Escalona and Resident Agent in Charge Joseph R. Wysowaty of the U.S. State Department’s Diplomatic Security Service (DSS) Atlanta Resident Office.
U.S. District Judge Liles C. Burke sentenced Angelica Maria Francisco, 42, of Russellville, to 60 months in prison. In September 2024, Francisco pleaded guilty to two counts of false claims of citizenship in connection with voting, one count of false statements in application for a United States passport, five counts of use of a United States passport obtained by false statements, and one count of aggravated identity theft.
“This sentence sends a clear message that any attempts by non-U.S. citizens to vote in the Northern District of Alabama are unacceptable and will result in serious consequences,” said U.S. Attorney Prim Escalona. “Maintaining the sanctity of the U.S. election system is one of the most important responsibilities of federal law enforcement. My office will remain vigilant in carrying out this mission and, to that end, will continue to work with our federal, state, and local partners to investigate and prosecute individuals who seek to undermine our elections.”
According to the plea agreement, in 2011, Francisco assumed the identity of a United States citizen. Francisco used the false identity to obtain a United States passport in 2011. She subsequently used the United States passport to travel to and from her native country of Guatemala in 2012, 2015, and 2018. Using the same false identity, Francisco also registered to vote in Alabama in 2016 and voted in the 2016 and 2020 primary and general elections. And in 2021, Francisco used the same false identity to apply for and receive a renewed passport, which she used to travel to and from Guatemala in 2022.
DSS investigated the case with assistance from the Alabama Law Enforcement Agency, the East Metro Area Crime Center, and the Alabama Secretary of State’s Office. Assistant U.S. Attorney Brett A. Janich prosecuted the case.
U.S. Attorney’s Office Secures Sentencing of Fruitland Woman Convicted of Violent AssaultRead the Press Release
ALBUQUERQUE – A Fruitland woman was sentenced to 33 months in prison for a violent incident that left her victim with serious head injuries in February 2023. On October 17, 2024, she pled guilty to both counts in the indictment, which charged her with two felonies—assault resulting in serious bodily injury and assault with a dangerous weapon.
According to court documents, on February 21, 2023, Richelle Rose Upshaw, 24, an enrolled member of the Navajo Nation, and three other women embarked on a nearly 23-mile trek from the Journey Inn in Farmington to Upshaw’s trailer on the Navajo Nation. The group engaged in multiple physical fights with each other during their journey, reportedly fueled by alcohol consumption. Upon arrival at the trailer, tensions escalated when Upshaw demanded the other women leave. Upshaw then engaged in a fistfight with Jane Doe, which culminated in Upshaw stabbing Doe in the head with her pocketknife.
Photo of Upshaw’s knife with three-inch blade
Following the stabbing, Jane Doe was transported to the Northern Navajo Medical Center in Shiprock, where she was treated for serious injuries.
Upshaw fled the scene and was arrested later that day by officers from the Navajo Nation Police Department at a nearby residence, where officers noted a strong odor of alcohol on her.
Upon her release from prison, Upshaw will be subject to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from Navajo Nation Police Department and Department of Criminal Investigations. Assistant United States Attorneys Zachary C. Jones and Meg Tomlinson are prosecuting the case.
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U.S. Attorney’s Office Concludes Investigation into Fatal Police Shooting of Justin RobinsonRead the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia announced today that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against two Metropolitan Police Department (MPD) Officers for their role in a September 1, 2024, fatal shooting of Justin Robinson, 25.
The U.S. Attorney’s Office and the MPD’s Internal Affair’s Division conducted a comprehensive review of the incident. This included a review of physical evidence, surveillance video footage, body-worn camera footage, audio and visual recordings from nearby video cameras, witness accounts, autopsy records, and MPD reports.
On September 1, 2024, at about 5:20 a.m., Metropolitan Police Department (MPD) Officers received a radio run for a vehicle that had crashed into the side of the McDonald’s located at 2529 Marion Barry Avenue in Southeast D.C. MPD Officers and D.C. Fire and Emergency Medical Service (DCFEMS) members responded to the scene and observed an unresponsive individual, later identified as Justin Robinson, sitting in the driver’s seat of the vehicle. Mr. Robinson had been sitting inside his car in the drive-thru of the McDonald’s, unresponsive, for around an hour before it moved forward and crashed into the building. When the MPD Officers arrived, they observed a firearm in plain view in Mr. Robinson’s lap.
As the officers were devising a plan to remove the firearm from the vehicle, Mr. Robinson woke up, prompting multiple officers to scream at Mr. Robinson to put his hands up and not to touch the gun. As an MPD officer reached into the car and attempted to retrieve the gun from Mr. Robinson’s lap, a struggle ensued, during which Mr. Robinson refused to relinquish control of his own gun and grabbed the firearm of that MPD Officer. MPD officers instructed Mr. Robinson to take his hand off the gun. After this warning, as Mr. Robinson continued to struggle, two MPD officers discharged a total of 11 rounds from their service pistols at Mr. Robinson, striking him.
After Mr. Robinson was struck by the MPD Officers’ discharged rounds, the officers safely removed Mr. Robinson’s firearm, removed Mr. Robinson from the vehicle, and immediately began resuscitation efforts. Although DCFEMS took over the life-saving efforts, Mr. Robinson was pronounced dead on the scene.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the MPD Officers were criminally liable for Mr. Robinson’s death.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are investigated fully and completely. MPD’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
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U.S. Attorney's Office Secures Sentencing of Church Rock Man for Sexual Abuse of MinorsRead the Press Release
ALBUQUERQUE – A Church Rock man was sentenced to 264 months in prison after pleading guilty to multiple counts of sexual abuse involving three young victims, two of whom were under the age of 12 at the time of the offenses and one was under the age of 16.
According to court documents, between January 2014 and December 2021, Nathaniel Luz, 32, and enrolled member of the Navajo Nation, engaged in sexual contact with two victims, both children who had not yet attained the age of 12 years.
In August 2022, Luz also engaged in a sexual act with a third victim, a child who had attained the age of 12 years but had not yet attained the age of 16 years.
Upon his release from prison, Luz will be subject to fifteen years of supervised release and must register as a sex offender.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the FBI Albuquerque Field Office with assistance from the Navajo Police Department and the Navajo Department of Criminal Investigations investigated this case. This case is being prosecuted by Assistant U.S. Attorney Brittany DuChaussee as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and 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 Justice.gov/PSC.
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U.K. Man Pleads Guilty to Lying on Immigration ApplicationRead the Press Release
BOSTON – A U.K. man pleaded guilty today in federal court in Boston to making false statements in an immigration matter.
Duncan Hollands, a/k/a Duncan Herd, 58, a citizen of the United Kingdom residing in Cambridge pleaded guilty to one count of falsely swearing in an immigration matter. U.S. District Court Judge Denise J. Casper scheduled sentencing for April 10, 2025. In August 2024, Hollands was charged by criminal complaint.
In May 2021, Hollands applied for lawful permanent residence status (more commonly known as a green card) and attended an interview for that application. The application form requires applicants to answer various background questions, such as prior names or aliases and any criminal history, so that immigration authorities can determine whether the applicant is eligible for the sought status. On his application and during his interview in February 2022, Hollands falsely reported that he had never used another name and denied having any history with the criminal justice system. However, Hollands did in fact have a prior name, Duncan Herd, under which he was previously convicted and sentenced to over three years in prison for obtaining property by deception along with other charges. Hollands also had other interactions with the criminal justice systems in the United Kingdom and France.
The charge provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office made the announcement. Valuable assistance was provided by U.S. Citizenship and Immigration Services, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Cambridge and Woburn, Mass. Police Departments and U.K. law enforcement authorities. Assistant U.S. Attorney John J. Reynolds III of the Major Crimes Unit is prosecuting the case.
Two People Federally Charged with Stealing Millions of Dollars from the Oglala Sioux TribeRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Porcupine, South Dakota, man and a Rushville, Nebraska, woman for Conspiracy to Commit Wire Fraud, 22 counts of Wire Fraud, and seven counts of Money Laundering.
Patrick Ross, age 55, and Buffy Redfish, age 56, were indicted in December 2024. Ross appeared before U.S. Magistrate Judge Daneta Wollman on January 8, 2025, and Redfish appeared before Judge Wollman on January 13, 2025. Both pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $500,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund on each count. Restitution may also be ordered.
Between May 2017 and May 2024, while Redfish was working for the Oglala Sioux Tribe’s Tribal Employment Rights Office (TERO), she and Ross, working together, developed a scheme to defraud the Oglala Sioux Tribe by diverting TERO fee checks totaling more than $4.7 million belonging to the Oglala Sioux Tribe and depositing the checks into Ross’s bank account. Ross and Redfish then split the embezzled funds between themselves and used the funds for their own personal benefit, including buying homes and vehicles. Ross is a citizen of the Oglala Sioux Tribe. Redfish is a citizen of the Gila Tribe in Arizona.
The charges are merely an accusation and Ross and Redfish are presumed innocent until and unless proven guilty.
The investigation is being conducted by Health and Human Services-Office of Inspector General. Supervisory Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Ross and Redfish were released on bond pending trial. A trial date has been scheduled for March 25, 2025.
Two Men Sentenced for Roles in Drug Trafficking OrganizationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two men have been sentenced today for their leadership of a drug trafficking operation in the Eastern Panhandle of West Virginia.
Dorian Scott Burks, age 29, of Jeannette, Pennsylvania, was sentenced today to 262 months in federal prison. John William Malcolm, 57, of Clarksburg, West Virginia, was sentenced to 300 months in prison.
According to court documents and statements made in court, Burks, also known as “Cash,” and Malcolm worked with others to sell methamphetamine, fentanyl, heroin, cocaine, and cocaine base in Berkeley, Morgan, and Hampshire Counties. Burks would travel from Pittsburgh, Pennsylvania, to Clarksburg, West Virginia, and Bunker Hill, West Virginia, to deliver large quantities of methamphetamine and cocaine to other conspirators, including Malcolm, for resale in the Eastern Panhandle. During a traffic stop, officers found 333 grams of methamphetamine and drug paraphernalia in Malcolm’s vehicle.
U.S. District Court Judge Gina M. Groh noted during sentencing that Burks was a dealer’s dealer due to the substantial quantities of high-purity crystal methamphetamine. At the hearing, evidence was presented that Burks supplied over 32 pounds of crystal methamphetamine from January 2023 through July 2023.
Burks had firearms and maintained a property for drug distribution, something the judge took into consideration during sentencing. Malcolm is a career criminal, with a history that includes grand larceny, assault, drug trafficking, and firearms violations.
Burks and Malcolm will each serve five years of supervised release following their prison sentences.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated.
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.
Three Individuals Sentenced for Participating in an International Mail and Wire Fraud ConspiracyRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark A. Totten today announced that three individuals were sentenced for participating in an international mail and wire fraud scheme originating in Nigeria and frequently targeting elderly individuals. The defendants pleaded guilty in July 2024.
“Financial fraud is not a ‘faceless’ crime – and today’s sentencings help secure a measure of justice for the victims of this international fraud scheme,” said U.S. Attorney Mark Totten. “Some of the victims lost their retirement savings, took loans against their homes, or suffered other financial distress because of the defendants’ lies. The defendants used modern technology, including the internet and social media platforms – something we all rely upon every day to communicate and carry out legitimate tasks in our daily lives – to prey on elderly and vulnerable victims. My office will continue to vigorously pursue justice for the victims of financial fraud.”
- Fatai Okunola, 38, of Kalamazoo, Michigan, was sentenced to 121 months’ imprisonment for his role in the fraud conspiracy and ordered to pay restitution of $731,879.16; he was additionally sentenced to 60 months’ imprisonment for making false statements when seeking naturalization as a U.S. Citizen and 120 months’ imprisonment for committing money laundering with the proceeds from the fraud conspiracy, those sentences running concurrently with the sentence for his participation in the conspiracy. The court also ordered him to report to immigration authorities for deportation following his sentence.
- Oluwaseyi Adeola, 34, of Dallas, Texas, was sentenced to 34 months’ imprisonment for his role in the fraud conspiracy and ordered to pay restitution of $409,968.93.
- Ijeoma Adeola, 36, also of Dallas, Texas, was sentenced to three years’ probation for misprision of a felony (the failure to report the commission of a felony to appropriate authorities and taking an affirmative step to assist in the concealment of the crime) and ordered to pay restitution of $48,570.
- Cory McDougal, 33, of Romeoville, Illinois, who also pled guilty to the fraud conspiracy, will be sentenced on a later date to be determined by the court.
According to court records, the defendants conspired with individuals primarily in Nigeria to defraud individuals in the United States, many that were elderly or particularly vulnerable, through a variety of fraud schemes using interstate wire transmissions or the mail system. The conspirators in Nigeria created false online personas to develop relationships with their victims over the internet, through social media, by text messages or by telephone. These relationships centered around romantic interests, offers to buy or sell goods or services, apartment rentals, or offers to make loans or provide grant funding, among other schemes. The conspirators sent pictures or provided other information to the victims to make their schemes appear genuine. When the conspirators used telephone calls, they used voice-over-internet-protocol numbers to make it appear as if the calls were originating within the United States near the victims. After developing the relationships, the conspirators asked for money for a variety of reasons related to the scheme.
After the victims agreed, the conspirators directed the victims to send the money to the defendants, who opened numerous bank accounts to receive the victims’ money. On some occasions, the defendants received the victims’ money in post office boxes maintained under alias names or through payments made payable to “shell” businesses that the defendants, including Ijeoma Adeola, created to receive fraud proceeds. The victims sent the money to the defendants through the mail, bank-to-bank transfers, or through peer-to-peer money transfer services like Zelle or PayPal. After the defendants received the money in their accounts, they transferred the money to each other, to the conspirators overseas, and to their own accounts in Nigeria. Fatai Okunola used some of the fraud proceeds he received to assist others in purchasing automobiles in the United States and then exporting them to Nigeria. According to the indictment, defendants received more than $2 million dollars in their accounts from the scheme between 2017 and 2022.
“Our agents will continue the important work of dismantling interstate and international fraud schemes that would seek to rob Americans of their hard-earned money,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “These cases are too often a reminder for us to check in on elderly family members and members of our community to ensure that they are not taken advantage of by sophisticated schemes.”
“Today's sentencing of these defendants underscores our dedication to safeguarding vulnerable victims from those who attempt to exploit them through various fraud schemes,” said Rodney M. Hopkins, Inspector in Charge of the Detroit Division of the U.S. Postal Inspection Service. “This case's outcome showcases the outstanding efforts of the U.S. Postal Inspection Service, and our law enforcement partners in dismantling this international fraud scheme and delivering justice for those affected.”
Anyone who suspects an ongoing internet crime is encouraged to file a report with the Internet Crime Complaint Center (IC3.gov), the FBI’s central hub for reporting cybercrime. Those reports often provide invaluable information to help the FBI and its law enforcement partners investigate and prosecute fraud schemes like the one charged in this case.
Federal law enforcement provides a number of tips on how to protect yourself from similar internet or email scams, including:
- Be cautious of unsolicited phone calls, e-mails, and mailings.
- Never give or send any sensitive information (including your date of birth, account numbers, or passwords), credit or debit card numbers, or money to unverified people or businesses.
- Resist the pressure to act quickly. Scammers create a false sense of urgency to lure people to immediate action.
- If you recognize a scam attempt, immediately end all communication with the perpetrator.
The Homeland Security Investigations, and United States Postal Inspection Service, Grand Rapids offices, are investigating this case. The Kalamazoo Department of Public Safety also provided valuable assistance. Assistant U.S. Attorney Ron Stella prosecuted the case.
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Three Indicted and Internet Domain Seized in $44 Million Nationwide Book Publishing Scam Targeting Elderly AuthorsRead the Press Release
SAN DIEGO – A federal grand jury has charged three people with defrauding elderly authors across the United States of almost $44 million by convincing the victims that publishers and filmmakers wanted to turn their books into blockbusters — but only if they paid some fees first.
According to the indictment, Gemma Traya Austin of Chula Vista was the organizer and registered agent for PageTurner, Press and Media LLC (“PageTurner”), a Chula Vista company that claimed to be a book publishing business. Michael Cris Traya Sordilla and Bryan Navales Tarosa, both of the Philippines, were executives at Innocentrix Philippines, a business process outsourcing company.
The indictment alleges that between September 2017 and December 2024, the defendants used PageTurner to operate a book publishing scam in which the conspirators working for Innocentrix Philippines contacted individual authors through unsolicited calls and emails. As part of the scam, the conspirators falsely represented that PageTurner was a book publishing business that worked with literary agents, major motion picture studios, and popular video streaming services, and that PageTurner acted as a liaison between individuals who sought to publish their books or have their books turned into motion pictures or television series.
As part of the conspiracy, the scammers falsely told victims their works had been selected for acquisition by publishers or movie studios, and fraudulently convinced victims to send PageTurner payments for various services, including pre-payment of taxes and transaction fees, before the victim-author’s work could be published or optioned to studios.
According to statements made by prosecutors in court, the FBI identified more than 800 victims of the scheme who collectively lost more than $44 million.
Sordilla and Tarosa were arrested on December 9, 2024, in San Diego. Austin was arrested on December 12, 2024, in Chula Vista. All three are charged with conspiracy to commit mail and wire fraud and money laundering conspiracy. The FBI also seized the PageTurner website: pageturner.us.
“What started with the promise of a Hollywood dream turned into a devastating nightmare for victims,” said U.S. Attorney Tara McGrath. “Authors should stay vigilant, do their research, and think twice before giving money to anyone promising a blockbuster deal. If you or anyone you know has been targeted in a similar scheme, please report it to the FBI immediately.”
“As alleged, the defendants’ actions not only jeopardized the integrity of the publishing industry, but also took advantage of innocent professionals and defrauded them of their hard-earned money,” said FBI San Diego Special Agent in Charge Stacey Moy. “Fraud remains one of the most devastating violations the FBI works due to the number of victims and staggering amount of loss. We will continue our efforts to disrupt fraud schemes, educate the public, and ultimately hold individuals behind these schemes accountable.”
“The U.S. Postal Inspection Service San Diego Mail Fraud Team, along with the FBI San Diego, have worked tirelessly to bring justice to individuals who target, exploit, and victimize our most vulnerable citizens,” said Matt Shields, Inspector in Charge for the U.S. Postal Inspection Service’s San Diego Field Office. “The U.S. Postal Inspection Service remains firm in our commitment to disrupt and dismantle foreign-based fraud schemes that prey on our older Americans. We will continue to work side by side with our law enforcement partners to deter and defeat organized fraud rings, no matter where they are located.”
This case is being investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service.
If you believe you are a victim of the PageTurner scam, please contact the FBI at [email protected].
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available through the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). You can also report fraud to any local law enforcement agency or on the FBI’s Internet Crime Complaint Center at www.ic3.gov.
The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS Case Number 24CR2712-JLS
Gemma Traya Austin Age: 58 Chula Vista, CA
In custody. Arrested in Chula Vista, California, on December 12, 2024.
Michael Cris Traya Sordilla Age: 32 Philippines
In custody. Arrested in San Diego, California, on December 9, 2024.
Bryan Navales Tarosa Age: 34 Philippines
In custody. Arrested in San Diego, California, on December 9, 2024.
SUMMARY OF CHARGES
Conspiracy to Commit Mail and Wire Fraud – Title 18, U.S.C., Section 1349
Maximum Penalties: Twenty years in prison; $250,000 fine
Conspiracy to Launder Monetary Instruments – Title 18, U.S.C., Section 1956(h)
Maximum Penalties: Twenty years in prison; maximum fine of $500,000 or twice the amount laundered
INVESTIGATING AGENCIES
Federal Bureau of Investigation
United States Postal Inspection Service
Texas hospital CEO sentenced to federal prison for role in health care kickback conspiracyRead the Press Release
TYLER, Texas – A former Texas hospital chief executive officer has been sentenced to 36 months in federal prison for conspiring to violate the Anti-Kickback Statute, announced U.S. Attorney Damien M. Diggs.
Jeffrey Paul Madison, 49, of Burnet, Texas; Susan L. Hertzberg, 66, of New York, New York; Matthew John Theiler, 58, of Pinehurst, North Carolina; David Weldon Kraus, 66, of Maryville, Tennessee; and Thomas Gray Hardaway, 52, of San Antonio, Texas, were found guilty by a jury on November 30, 2023, following a seven-week-long trial before U.S. District Judge Jeremy D. Kernodle.
Madison was sentenced to 36 months in federal prison by Judge Kernodle on January 15, 2025. Madison also agreed to pay $5,343,630 to resolve allegations under the False Claims Act involving illegal payments to physicians for laboratory referrals in violation of the Anti-Kickback Statute.
On November 20, 2024, Theiler was sentenced to 18 months in federal prison and ordered to pay a $75,000 fine. On December 5, 2024, Kraus was sentenced to 22 months in federal prison and ordered to pay a $25,000 fine.
On January 12, 2022, Hertzberg, Theiler, Kraus, Hardaway, and Madison, as well as Jeffrey Paul Parnell, 56, of Tyler; Laura Spain Howard, 50, of Lucas; Todd Dean Cook, 59, Ocala, Florida; William Todd Hickman, 61, of Anna; Christopher Roland Gonzales, 48, of Fairview; Ruben Daniel Marioni, 40, of Spring; Jordan Joseph Perkins, 40, of Conroe; Elizabeth Ruth Seymour, 42, of Corinth; Linh Ba Nguyen, 60, of Dallas; Thuy Ngoc Nguyen, 56, of Dallas; Joseph Gil Bolin, of Dallas; Heriberto Salinas, 64, of Dallas; and Hong Davis, 57, of Copper Canyon, were indicted for conspiring to commit illegal remunerations in violation of the Anti-Kickback Statute. The statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federal health care programs. The defendants were charged for their roles in a conspiracy through which physicians were incentivized to make referrals to rural hospitals and an affiliated lab in exchange for kickbacks which were disguised as investment returns; and in which marketers were incentivized to arrange for or recommend the ordering of services from rural hospitals and an affiliated lab.
Two rural Texas hospitals, Little River Healthcare (LRH) based in Rockdale, and Stamford Memorial Hospital based in Stamford, partnered with Boston Heart Diagnostics (BHD), a clinical laboratory based in Framingham, Massachusetts, that specialized in advanced cardiovascular lipid testing. For a fee, BHD processed the blood tests while the hospitals billed the tests to insurers as hospital outpatient services, with the hospitals charging insurers a much higher rate than BHD could receive as a clinical laboratory. The hospitals utilized a network of marketers who in turn operated management services organizations (MSOs) that offered investment opportunities to physicians throughout the State of Texas. In reality, the MSOs were simply a means to facilitate payments to physicians in return for the physicians’ laboratory referrals. Pursuant to the kickback scheme, the hospitals paid a portion of their laboratory revenues to marketers, who in turn kicked back a portion of those funds to the referring physicians who ordered BHD tests from the hospitals or from BHD directly. BHD executives and sales force personnel leveraged the MSO kickbacks to gain and increase referrals and, in turn, to increase their revenues, bonuses, and commissions.
Parnell, Howard, Cook, Hickman, Gonzales, Marioni, Perkins, Seymour, Thuy Nguyen, Salinas, and Davis pleaded guilty prior to trial.
In January 2022, Robert O’Neal, 66, of Beaumont, pleaded guilty to conspiracy to commit illegal remunerations, in violation of Anti-Kickback Statute, and to conspiracy to commit money laundering. His role in the kickback conspiracy was to arrange for physician referrals and recommend the ordering of services to the rural hospitals and BHD. O’Neal also had kickback proceeds laundered on his behalf and, at various times, obtained proceeds from the kickback conspiracy.
In July 2023, Peter J. Bennett, of Houston, was convicted of money laundering conspiracy, money transmitting conspiracy, and perjury. According to information presented in court, Bennett created sham trusts and shell corporations through which he laundered at least $2,724,080.41 in healthcare kickback proceeds. Bennett used his law firm’s Interest on Lawyers Trust Account (IOLTA), operating account, and a personal bank account to launder and transmit the kickback proceeds.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remunerations in exchange for the referral of or arranging for or recommending the ordering of items or services payable under federal health care programs. Under federal statutes, violations of the Anti-Kickback statute are punishable by up to five years in federal prison.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the U.S. Department of Defense – Defense Criminal Investigative Service (DCIS) with assistance from the U.S. Secret Service and the U.S. Department of Commerce - Export Enforcement. It was prosecuted by Assistant U.S. Attorneys Adrian Garcia, Nathaniel C. Kummerfeld, Lucas Machicek, and Robert Austin Wells.
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