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Tuesday 19 November 2024
Leader in debt collection scheme going to prisonRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Joseph Ciffa, 56, of Tonawanda, NY, who was convicted of conspiracy to commit wire fraud and filing a false tax return, was sentenced to serve 37 months by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Franz M. Wright, who handled the case, stated that Ciffa was involved in the debt collection business since at least 2013. Since early 2015, Ciffa ran, and conspired with others to run, an illegitimate debt collection business, operating out of multiple locations, which included: 1625 Buffalo Avenue in Niagara Falls, NY; 870 Ontario Street and 1567 Military Road, both in Kenmore, NY; and out of his home office on Grand Island. The operation utilized fraudulent means to collect debts, to recollect on debts already collected, to over-collect on debts actually owed, and to process and transfer payments related to the collection of such debts. Debt collectors made threatening statements over the telephone to debtors in an effort to induce payment of debts. Those statements included reference to criminal statutes, and the filing of criminal complaints and/or warrants. In order to intimidate debtors and induce payment, debtors were routinely routed to employees who posed as attorneys during the calls.
Between January 2015, and December 2016, Ciffa’s operation collected approximately $3,061,205 from victims. Ciffa also filed a false tax return for the tax year 2015, underreporting his business income, thereby avoiding a total tax liability of approximately $15,651. In addition, in 2016 Ciffa committed fraud involving Medicaid benefits. He lied in an application to the Erie County Department of Social Services, by under-reporting his income, in order to obtain benefits for himself and his children.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special-Agent-in-Charge Erin Keegan; the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Thomas Fattorusso; the United States Postal Service Inspection Service, under the direction of Acting Inspector-in-Charge Ketty Larco-Ward; and the New York State, Office of Inspector General, under the direction of Inspector General Lucy Lang.
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Lancaster Man Pleads Guilty to Wire FraudRead the Press Release
COLUMBIA, S.C. —Robert Namath Emory, 54, of Lancaster, has pleaded guilty to wire fraud after embezzling funds from his employer.
Evidence obtained in the investigation revealed that Emory was the head of the accounting department for Mar Mac Protective Apparel, a company in McBee that makes hazardous materials (HAZMAT) suits. Mar Mac used an invoice system that attached a blank, physical check to invoices of large vendors, but would submit payment electronically. Mar Mac used check numbers internally and never submitted them to the bank, thereby avoiding using duplicate checks numbers. Beginning in January 2016, Emory would exploit a flaw in this system by doubling the amount of the invoices, making an electronic payment to the vendor and then use the check numbers to write physical checks to himself or his personal LLC.
Emory pleaded guilty to count one of his 50-count indictment for submitting a fraudulent check for $9,583.79 in February 2021. Through this scheme, Emory was able to obtain nearly $5 million. Emory was previously convicted of wire fraud in 2008.
Emory faces a maximum penalty of 20 years in federal prison. He also faces a fine of up to $250,000, restitution, and three years of supervision to follow the term of imprisonment. United States District Judge Mary Geiger Lewis accepted the guilty plea and will sentence Emory after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.
This case was investigated by the FBI Columbia Field Office and the Chesterfield County Sheriff’s Office. Assistant U.S. Attorneys Winston Holliday and Scott Matthews are prosecuting the case.
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Lackawanna County Man Convicted of Distribution of Fentanyl Resulting in DeathRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Federico Rosario, age 30, of Scranton, Pennsylvania, was convicted on November 18, 2024, for the distribution of fentanyl resulting in death following a four-day jury trial before United States District Court Judge Robert D. Mariani.
According to United States Attorney Gerard M. Karam, Rosario was a drug dealer residing in Scranton in 2021. On August 11, 2021, Rosario sold a mixture containing fentanyl and cocaine to a 17-year-old who ingested the mixture and died shortly thereafter. Rosario was also found guilty of three additional sales of cocaine to the same victim that occurred on July 10th, July 13th, and July 28th, 2021.
During the four-day trial, prosecutors from the U.S. Attorney’s Office presented the testimony of 19 witnesses, including expert witness testimony from a forensic pathologist, a forensic toxicologist, two forensic chemists, a forensic cell phone examiner, a DNA expert, and an expert in drug trafficking investigations.
The charges stem from a joint investigation conducted by the Scranton Police Department and the Drug Enforcement Administration (DEA). The case was prosecuted by Assistant United States Attorneys Robert J. O’Hara and Sarah R. Lloyd.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also 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.
In this case, maximum penalty under the federal statute for drug distribution resulting in death is life imprisonment. The offense also carries a mandatory minimum sentence of twenty years’ imprisonment. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Justice Department Sues Pennsylvania over Discriminatory Code Requirements That Restrict Community-Based Housing for People with DisabilitiesRead the Press Release
SCRANTON – The U.S. Attorney’s Office for the Middle District of Pennsylvania and the Justice Department announced today that a lawsuit was filed against the Commonwealth of Pennsylvania, Pennsylvania Department of Labor and Industry and Pennsylvania Department of Human Services to challenge discriminatory code requirements that deny or limit the availability of community-based housing for people with intellectual disabilities and autism.
“People with disabilities should not have their housing opportunities stripped away from them by restrictive safety measures that are simply not necessary,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The failure of the Commonwealth’s building code to take into account the specific needs and the capacity of people with disabilities illegally denies them access to housing opportunities. Through vigorous enforcement of the Fair Housing Act, the Justice Department is committed to ensuring that building requirements, zoning restrictions and land use codes are not abused and manipulated to deny people with disabilities their right to live integrated in their communities.”
“Although expensive fire prevention methods, like automatic sprinklers, may reduce personal injury and damage to property, Pennsylvania cannot require individuals with disabilities to obey this code requirement without assessing their unique and specific needs,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “Pennsylvania’s building code enforcement improperly demands individuals with disabilities living in community homes to pay thousands of dollars to install automatic sprinklers yet allows those without disabilities in similar resident housing to avoid such costs. This office will continue to enforce the Fair Housing Act and partner with the Justice Department’s Civil Rights Division to ensure our disabled citizens share the same rights as their neighbors.”
Under the Commonwealth’s Uniform Construction Code, which all local governments must follow, every “community home” for persons with intellectual disabilities and autism must install, at their own expense, an automatic sprinkler system. No other single-family home, including newly constructed homes, is required to install automatic sprinklers. “Community homes” allow people with intellectual disabilities and autism to live in a family-like setting in the community, alongside people without disabilities. Such homes in Pennsylvania have an average of 2.3 residents and may have no more than four residents. The Commonwealth already requires community homes to comply with numerous fire and safety regulations, including regular fire drills verifying that the residents are able to evacuate in under two and one-half minutes.
Pennsylvania’s building code, however, classifies community homes for persons with intellectual disabilities and autism as “facilities” and requires them to install automatic sprinkler systems, regardless of how old the home is or how capable the residents are to evacuate notwithstanding their disabilities.
Sprinkler system requirements limit the availability of housing in several ways. First, landlords in rental housing may refuse to allow sprinkler systems to be installed because their appearance, which includes long, exposed metal pipes, may render a home less marketable to future tenants and is reminiscent of the institutional facilities community homes were intended to replace. Second, sprinkler systems often cannot feasibly be installed in individual apartments, thus eliminating their ability to be used as community homes. Finally, as the department’s investigation found, sprinkler systems cost, at a minimum, nearly $10,000 to install in a small, single-family home, but these costs may triple when local water utilities require sprinkler systems to have their own water line. These costs may exceed the financial means of many community home operators and may force others to operate larger, less individualized homes.
The lawsuit seeks injunctive relief, including an order requiring the Commonwealth to allow local governments to assess the need for automatic sprinklers in community homes based on the unique and specific needs and abilities of each home’s residents, as well as monetary damages.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals may report housing discrimination by calling the Justice Department’s Housing Discrimination tip line at 1-833-591-0291 or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
Individuals who have information on community homes being required to install automatic sprinklers in Pennsylvania or who have other information that may be relevant to this case may contact the Justice Department’s Housing Discrimination tip line at 1-833-591-0291, press 1 for English; press 1 for discrimination in housing; and press 9 for the United States v. Pennsylvania lawsuit mailbox. Individuals can also email the Justice Department at [email protected].
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Justice Department Sues Pennsylvania over Discriminatory Code Requirements That Restrict Community-Based Housing for People with DisabilitiesRead the Press Release
The Justice Department announced today that it filed a lawsuit against the Commonwealth of Pennsylvania, Pennsylvania Department of Labor and Industry and Pennsylvania Department of Human Services to challenge discriminatory code requirements that deny or limit the availability of community-based housing for people with intellectual disabilities and autism.
“People with disabilities should not have their housing opportunities stripped away from them by restrictive safety measures that are simply not necessary,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The failure of the Commonwealth’s building code to take into account the specific needs and the capacity of people with disabilities illegally denies them access to housing opportunities. Through vigorous enforcement of the Fair Housing Act, the Justice Department is committed to ensuring that building requirements, zoning restrictions and land use codes are not abused and manipulated to deny people with disabilities their right to live integrated in their communities.”
“Although expensive fire prevention methods, like automatic sprinklers, may reduce personal injury and damage to property, Pennsylvania cannot require individuals with disabilities to obey this code requirement without assessing their unique and specific needs,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “Pennsylvania’s building code enforcement improperly demands individuals with disabilities living in community homes to pay thousands of dollars to install automatic sprinklers yet allows those without disabilities in similar resident housing to avoid such costs. This office will continue to enforce the Fair Housing Act and partner with the Justice Department’s Civil Rights Division to ensure our disabled citizens share the same rights as their neighbors.”
Under the Commonwealth’s Uniform Construction Code, which all local governments must follow, every “community home” for persons with intellectual disabilities and autism must install, at their own expense, an automatic sprinkler system. No other single-family home, including newly constructed homes, is required to install automatic sprinklers. “Community homes” allow people with intellectual disabilities and autism to live in a family-like setting in the community, alongside people without disabilities. Such homes in Pennsylvania have an average of 2.3 residents and may have no more than four residents. The Commonwealth already requires community homes to comply with numerous fire and safety regulations, including regular fire drills verifying that the residents are able to evacuate in under two and one-half minutes.
Pennsylvania’s building code, however, classifies community homes for persons with intellectual disabilities and autism as “facilities” and requires them to install automatic sprinkler systems, regardless of how old the home is or how capable the residents are to evacuate notwithstanding their disabilities.
Sprinkler system requirements limit the availability of housing in several ways. First, landlords in rental housing may refuse to allow sprinkler systems to be installed because their appearance, which includes long, exposed metal pipes, may render a home less marketable to future tenants and is reminiscent of the institutional facilities community homes were intended to replace. Second, sprinkler systems often cannot feasibly be installed in individual apartments, thus eliminating their ability to be used as community homes. Finally, as the department’s investigation found, sprinkler systems cost, at a minimum, nearly $10,000 to install in a small, single-family home, but these costs may triple when local water utilities require sprinkler systems to have their own water line. These costs may exceed the financial means of many community home operators and may force others to operate larger, less individualized homes.
The lawsuit seeks injunctive relief, including an order requiring the Commonwealth to allow local governments to assess the need for automatic sprinklers in community homes based on the unique and specific needs and abilities of each home’s residents, as well as monetary damages.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals may report housing discrimination by calling the Justice Department’s Housing Discrimination tip line at 1-833-591-0291 or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
Individuals who have information on community homes being required to install automatic sprinklers in Pennsylvania or who have other information that may be relevant to this case may contact the Justice Department’s Housing Discrimination tip line at 1-833-591-0291, press 1 for English; press 1 for discrimination in housing; and press 9 for the United States v. Pennsylvania lawsuit mailbox. Individuals can also email the Justice Department at [email protected].
Justice Department Sues Kentucky Rental Property Manager and Owners for Sexual HarassmentRead the Press Release
The Justice Department announced today that it has filed a lawsuit against Adnan Shalash, the owner and operator of rental properties in Lexington, Kentucky, for engaging in sexual harassment and retaliation in violation of the Fair Housing Act. The lawsuit also names as defendants 12 owners of rental properties managed by Adnan Shalash, including Fox Den Properties LLC and Griffith Market Inc.
“Sexual harassment by housing providers is an egregious abuse of power,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Women should never feel unsafe in their own homes. The Justice Department is committed to vigorously protecting the rights of vulnerable tenants subjected to sexual harassment and holding housing providers and managers accountable when they violate the law.”
“Sexual harassment in housing deprives its victims of the safety and security that a home is supposed to provide them,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “That makes committed enforcement of the Fair Housing Act critical to ensuring that victims can gain relief from this shameful conduct and seek a safe and secure home for their families.”
The lawsuit, filed in the U.S. District Court for the Eastern District of Kentucky, alleges that for many years Shalash has sexually harassed numerous female tenants. According to the complaint, Shalash has offered housing-related benefits in exchange for sexual contact, made unwelcome sexual comments and advances to female tenants, entered the homes of female tenants without their permission, subjected female tenants to unwelcome touching and groping and taken adverse housing-related actions against female tenants who refused his sexual advances.
The lawsuit, which is the result of a joint investigative effort of the Justice Department with the Department of Housing and Urban Development (HUD)’s Office of Inspector General, seeks monetary damages to compensate persons harmed by the alleged harassment, a civil penalty against each defendant to vindicate the public interest and a court order barring future discrimination.
“My office will not tolerate landlords committing sexual harassment or abuse against tenants,” said HUD Inspector General Rae Oliver Davis. “Adnan Shalash allegedly preyed upon vulnerable tenants’ basic human need for housing. Today’s complaint demonstrates the HUD Office of Inspector General’s commitment to stop landlords who abuse their power over vulnerable tenants and ensuring that victims of their sexual harassment obtain relief.”
The Justice Department launched its Sexual Harassment in Housing Initiative in October 2017. The initiative, which is led by the Civil Rights Division in coordination with U.S. Attorneys’ Offices across the country, seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or others who have control over housing. Since launching the initiative, the Justice Department has filed 46 lawsuits alleging sexual harassment in housing, recovering damages and civil penalties from those violating the law.
The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Adnan Shalash, or who have other information that may be relevant to this case, should contact the Housing Discrimination Tip Line, at 1-833-591-0291, select 1 for English and select option number 2 then option number 04 to leave a message. To leave a message in Spanish, select 2 for Spanish, and select option number 1 and then option number 9 to leave a message. Individuals may also email the Justice Department at [email protected] or submit a report online. Reports also may be made by contacting the HUD at 1-800-669-9777 or by filing a complaint online.
Investigation into Shooting in Bricktown Lands Oklahoma City Man in Federal Prison for 10 Years for Drug and Gun ChargesRead the Press Release
OKLAHOMA CITY – QUINTRAL DEMETRICES JONES, 28, of Oklahoma City, has been sentenced to serve 120 months in federal prison for possession of cocaine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Robert J. Troester.
On December 19, 2023, a federal Grand Jury returned a three-count Indictment against Jones, charging him with possession of cocaine with intent to distribute, illegal possession of a firearm after a previous felony conviction, and possession of a firearm in furtherance of a drug-trafficking crime. According to public record, on December 18, 2022, officers with the Oklahoma City Police Department responded to a parking lot in Bricktown in reference to a shooting. On scene, officers reviewed surveillance footage, where they watched a passenger of a vehicle—later determined to be Jones—fire a weapon out of the passenger window at another occupied vehicle. Officers eventually located and searched the vehicle Jones was in and found cocaine and a firearm, which was later confirmed to be the one fired at the scene of this shooting.
On June 24, 2024, Jones pleaded guilty, and admitted he intended to distribute the cocaine in the car and possessed a gun in furtherance of his drug trafficking.
At the sentencing hearing on November 19, 2024, U.S. District Judge Bernard M. Jones sentenced Jones to serve 120 months in federal prison, followed by five years of supervised release. In announcing his sentence, Judge Jones noted the serious nature of the offense involving the discharge of a firearm and the possession of distribution levels of cocaine. Judge Jones further noted that Jones had a lengthy criminal history—including previous convictions involving both guns and drugs—yet still participated in the activity leading to his convictions in this case. Public record reflects that Jones has a long criminal history, with convictions in Oklahoma County District Court that include:
- concealing stolen property and possession of marijuana in case number CF-2014-5742;
- unauthorized use of a vehicle, aggravated attempting to elude a police officer, and possession of an offensive weapon while committing a felony in case number CF-2014-6402;
- second degree burglary in case number CF-2014-6451;
- possession of cocaine with intent to distribute and felon in possession of a firearm in case number CF-2017-6174.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorney Stan J. West prosecuted the case.
This case is also part of “Operation Shots Fired.” Operation Shots Fired targets cases involving individuals who discharge firearms as part of their criminal activity, such as drive-by shootings or when shots are fired during robberies, domestic disputes, or other incidents. For more information about Project Safe Neighborhoods, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for additional information.
Indiana Man Sentenced to 21 Months for Illegally Possessing a FirearmRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Damarion Jackson, 21, Indianapolis, Indiana, was sentenced today by U.S. District Judge William M. Conley to 21 months in federal prison for possessing a firearm as a felon. Jackson pleaded guilty to this charge on August 28, 2024.
On November 4, 2023, Jackson was a passenger in a high-speed car chase in Monona, Wisconsin. Police officers were able to disable the car, forcing the driver to stop. Jackson fled on foot carrying a small bag. Officers found Jackson hiding between two residential fences with the bag nearby. In the bag there was a loaded Glock 29 10mm handgun with an extended magazine and equipped with a machinegun conversion device.
A machinegun conversion device is an illegal after-market device that converts a semi-automatic handgun into a fully functioning machinegun. A handgun with a machinegun conversion device is extremely dangerous, even for experienced firearms users, because it is difficult to control and is capable of firing 50 rounds in four seconds with a single pull of the trigger.
Jackson is not legally permitted to possess firearms or ammunition because of a prior felony conviction.
At sentencing, Judge Conley commented on Jackson’s escalating conduct and the dangers of having a handgun equipped with a machinegun conversion device. Judge Conley also noted that Jackson had “started a criminal lifestyle” at a young age, but expressed hope that this conviction would be a turning point for Jackson.
The charge against Jackson was the result of an investigation conducted by the Monona, Madison, and Fitchburg Police Departments. The ATF Madison Crime Gun Task Force also assisted with the investigation. The task force consists of federal agents from ATF and Task Force Officers (TFOs) from local agencies including the Dane County and Clark County Sheriff’s Offices and the Fitchburg, Madison, Sun Prairie, and La Crosse Police Departments. Assistant U.S. Attorney Louis Glinzak prosecuted this case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Indiana Man Pleads Guilty to and Sentenced for Making a False StatementRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that on November 18, 2024, Brandon Anderson, 34, of Greenwood, Indiana, pleaded guilty in United States District Court in Burlington, to making a false statement to a department or agency of the United States. During the same hearing on November 18, Chief U.S. District Judge Christina Reiss sentenced Anderson to time-served and one year of supervised release.
Previously, on February 22, 2024, a federal grand jury returned an indictment charging Anderson, with two counts of impersonation of an officer or employee of the United States and one count of making a false statement to a department or agency of the United States.
According to court records, Anderson, while wearing a tactical uniform with black body armor and a holstered firearm, impersonated a federal law enforcement official on two occasions. Anderson was not in fact a federal law enforcement official during either occasion, but instead was a privately contracted security guard for a federal agency. In addition, investigation of Anderson revealed that, in becoming a security guard for the federal agency, he falsely stated that he had served in the United States Marine Corps and received an honorable discharge, when in fact he had not served in the Marines at all.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of Homeland Security Investigations, the Chittenden County Sheriff’s Department, and the South Burlington Police Department.
The prosecutor is Assistant United States Attorney Andrew C. Gilman. Anderson is represented by Assistant Federal Public Defender Sara Puls.
Illinois Man Charged with Producing False U.S. Passports and Mailing Them to New JerseyRead the Press Release
NEWARK, N.J. – An Illinois man is charged with furnishing others with false U.S. passport cards through the mail, U.S. Attorney Philip R. Sellinger announced today.
Juma Wajid, aka “Jay Khan,” and “Jamal Anthony,” 36, most recently of Chicago, Illinois, is charged with one count of furnishing a false, forged, and counterfeited U.S. passport to another for use. Wajid appeared today before U.S. Magistrate Judge John K. Larkins III in Atlanta federal court and was released on $15,000 unsecured bond.
According to documents filed in this case and statements made in court:
In April 2024, law enforcement identified a package containing a fake U.S. passport card that was sent through the mail. Law enforcement found that Wajid used an online account to send hundreds of mailings between June 2022 and April 2024 and that he used an encrypted messaging application to advertise the sale of fake identification documents.
In August 2024, law enforcement purchased five false U.S. passport cards, as well as additional documents, from Wajid, who created the documents and mailed them to an address in New Jersey in exchange for payment in cryptocurrency.
The charge of furnishing a false passport to another person carries a maximum penalty of 10 years in prison and a fine of $250,000, or twice the amount of money involved in the offense, whichever is greater.
U.S. Attorney Sellinger credited special agents of the U.S. Department of State, Diplomatic Security Service, New York Field Office, under the direction of Special Agent in Charge Brian K. Wood; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher A. Nielsen; and officers of the New Jersey Office of Homeland Security and Preparedness, under the direction of Director Laurie Doran, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Trevor A. Chenoweth of the General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
wajid.complaint.pdfIllinois Man Arrested for Allegedly Plotting to Abduct a Child in FloridaRead the Press Release
CHICAGO — An Illinois man has been arrested in Chicago for allegedly plotting to abduct a child from a school in Fort Lauderdale, Fla.
DEVONTAY SHIELDS, 35, of Danville, Ill., is charged with one count of attempted kidnapping, according to a criminal complaint filed Sunday in U.S. District Court in Chicago. Shields was arrested on Saturday at Union Station in Chicago as he attempted to board an Amtrak train to Miami, Fla. He remains detained in federal custody. A preliminary hearing is set for Nov. 25, 2024, at 10:00 a.m., before U.S. Magistrate Judge M. David Weisman.
According to the federal complaint, Shields plotted to kidnap a boy from a school in Fort Lauderdale, Fla., and hold him for a $100,000 ransom. Shields communicated his plans to individuals who, unbeknownst to Shields, were cooperating with law enforcement. At the direction of law enforcement, the cooperating individuals surreptitiously recorded a conversation with Shields, during which Shields stated that he planned to “get me a little boy” from the Florida school, the complaint states. Prior to leaving for Florida, Shields went to retail stores and purchased two children’s toys and zip ties. He was in possession of those items when he was arrested at Union Station.
The complaint was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. Substantial assistance was provided by the HSI Fort Lauderdale office, Chicago Police Department, Amtrak Police Department, Chicago Metropolitan Rail Police Department, Carpentersville, Ill. Police Department, and U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. The government is represented by Assistant U.S. Attorney Kirsten Moran.
The attempted kidnapping charge is punishable by a maximum sentence of 20 years in federal prison. The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
shields_complaint.pdfHowe Residents Plead Guilty to Crimes Relating to Sexual Abuse of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Armondo Joseph Palma, age 22, and Brooklyn Elaine Wilson, age 27, of Howe, Oklahoma, entered guilty pleas related to the sexual abuse of a minor.
Palma entered a plea of guilty to one count of Transportation of a Minor.
Wilson entered a plea of guilty to four counts of Aggravated Sexual Abuse of a Minor and one count of Possession of Certain Material Involving the Sexual Exploitation of a Minor.
The Indictment alleged that in December of 2023, Palma and Wilson knowingly transported an individual under the age of 18 from Oklahoma to Missouri with intent to engage in sexual activity.
The Indictment further alleged that on November 2, 2023, November 9, 2023, December 4, 2023, and March 3, 2024, Wilson knowingly engaged in a sex act with a child under the age of 12 years intending to abuse, humiliate, harass, degrade, arouse, or gratify sexual desire. Additionally, the Indictment alleged that between about August of 2023 until about April of 2024, Wilson knowingly possessed a visual depiction of a minor under the age of 12 engaging in sexually explicit conduct.
The crimes occurred in LeFlore County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by Homeland Security Investigations, the District 16 District Attorney’s Task Force, the Rogers County Sheriff’s Office, the Tulsa County Sheriff’s Office, the Choctaw Nation Lighthorse Police, the Oklahoma Highway Patrol, and the Carl Albert State College Campus Police.
The Honorable D. Edward Snow, 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. Palma and Wilson will remain in the custody of the United States Marshals Service pending sentencing.
Assistant U.S. Attorney Caila M. Cleary represented the United States.
Head of School at Early Education Center in Northwest Arrested for Attempted Coercion and Enticement of a MinorRead the Press Release
WASHINGTON – James S. Carroll, 55, of Washington D.C., was arrested today on a criminal complaint filed in U.S. District Court, charging him in connection with attempted coercion and enticement of a minor, announced U.S. Attorney Matthew M. Graves and FBI Acting Special Agent in Charge David Geist of the Washington Field Office’s Criminal and Cyber Division.
Carroll, the Head of School at an early education center in Northwest Washington D.C., is charged with attempted coercion and enticement of a minor. He made his first court appearance today before Magistrate Court Judge Matthew J. Sharbaugh.
According to the criminal complaint, between November 5, 2024 and November 14, 2024, Carroll used the Discord messaging application to communicate with an undercover officer who posed as the father of a young child. Carroll directed the undercover officer to abuse his child over a period of approximately two weeks. Law enforcement agents identified Carroll as the Discord user based on IP addresses that traced back to both his residence and workplace.
This case is being investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, which includes agents and officers from the FBI Washington Field Office and the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney Karen Shinskie.
To report child exploitation, call the FBI at 1-800-CALL-FBI.
A criminal complaint is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Gary Man Sentenced to 105 Months in PrisonRead the Press Release
HAMMOND- Cachun Combs, Jr., 46 years old, of Gary, Indiana, was sentenced by United States District Court Judge Gretchen S. Lund after pleading guilty to being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Combs was sentenced to 105 months in prison followed by 3 years of supervised release.
According to documents in the case, on June 2, 2023, an officer with the Gary Police Department approached a running vehicle parked in an alley and observed Combs sleeping inside the vehicle with a loaded rifle on his lap. Comb’s criminal history revealed that he had prior felony convictions for aggravated discharge of a firearm, attempted battery and carrying a handgun without a license, battery resulting serious bodily injury, and a possession with intent to distribute cocaine base. Any one of these convictions prohibited him from possessing the firearm in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force and the Gary Police Department. This case was prosecuted by Assistant United States Attorney Kristian R. Mukoski.
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.
Fort Worth mother admits to smuggling minors from MexicoRead the Press Release
LAREDO, Texas – A 36-year-old woman has pleaded guilty to attempting to smuggle children into the United States for financial gain, announced U.S. Attorney Alamdar S. Hamdani.
On Aug. 8, Sandra Perez applied for admission into the United States driving an SUV. She had her three minor U.S. citizen children with her along with two minor Mexican children.
Perez claimed the two Mexican children were also hers and attempted to present Texas birth certificates and Social Security cards that belonged to her two other children as proof.
After the Mexican children failed to answer authorities questions, Perez admitted to attempting to bring the Mexican children into the United States to the children’s mother in Fort Worth, knowing that they did not have legal authority to enter the country.
She also admitted she expected to receive $5,000 per child after delivery.
U.S. District Judge Diana Saldaña accepted the plea and will set sentencing at a later date. At that time, Perez faces up to 10 years in federal prison and a possible $250,000 maximum fine.
Perez was permitted to remain on bond pending sentencing.
Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Jose Homero Ramirez is prosecuting the case.
Fort Myers Man Sentenced to More Than 5 Years in Federal Prison for Distributing FentanylRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri P. Chappell has sentenced Nicholas Smith (45, Fort Myers) to five years and five months in federal prison for possession with intent to distribute fentanyl. Smith was found guilty following a bench trial on August 21, 2024.
According to court documents, on September 5, 2023, officers with the Fort Myers Police Department stopped Smith for multiple traffic infractions near Winkler Avenue and Fowler Street in Fort Myers. During a subsequent search of Smith, officers retrieved a large plastic bag containing 11 smaller bags of a pink powdery substance that later tested positive for para-Fluorofentanyl and fentanyl, weighing 9.55 grams.
This case was investigated by Homeland Security Investigations and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Patrick L. Darcey
Former senior manager of Federal Reserve Bank of Richmond pleads guilty to insider trading and making false statementsRead the Press Release
RICHMOND, Va. – A Mosley man pled guilty today to committing insider trading and making false statements about his trading to his employer, the Federal Reserve Bank of Richmond (FRBR).
According to court documents, Robert Brian Thompson, 43, worked as a bank examiner and senior manager with supervisory duties for the FRBR. Due to his position, Thompson was privy to confidential information about certain financial institutions under FRBR’s supervision, including Confidential Supervisory Information (CSI), which is property of the Board of Governors of the Federal Reserve. As an employee of the FRBR, Thompson was also required annually to file a “Form for Employees Involved with Supervision and Regulation,” also called a “Form D.” Among other things, a Form D requires employees to disclose if they have any assets, including any equity interest in any banks that are members of the Federal Reserve System and/or bank holding companies.
According to court documents, from October 2020 through February 2024, Thompson misappropriated confidential information, including CSI, to execute trades in publicly traded financial institutions. In total, Thompson executed 69 trades in seven different publicly traded financial institutions for approximately $771,678 in personal profits. To conceal the scheme, in 2020, 2021, 2022, 2023, and 2024, Thompson falsely represented on the FRBR’s Form D that he had no equities in any publicly traded financial institutions, and that he had not engaged in any activity that would constitute conflicts of interest, violations of FRBR policies, or violations of law.
Thompson pleaded guilty to one count of insider trading and one count of making false statements. He is scheduled to be sentenced on March 19, 2025, and faces a maximum penalty of 20 years in prison for the insider trading count and five years in prison for the false statements count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; and Special Agent in Charge John Perez of Headquarters Operations, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-OIG), made the announcement.
FRB-OIG is investigating the case.
Assistant U.S. Attorney Thomas A. Garnett for the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Della Sentilles and former Assistant Chief Leslie S. Garthwaite of the Criminal Division’s Fraud Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-164.
Former Tennessee State Senator Resentenced and an Additional Fine ImposedRead the Press Release
Memphis, TN – A federal judge recently resentenced former Tennessee State Senator Katrina Robinson, 43, of Memphis, Tennessee to time served and imposed a fine in the amount of $48,600 for misrepresentations made to the Health Resources and Services Administration (HRSA). Acting United States Attorney Reagan Fondren announced the new sentence today.
According to the information presented in court, Robinson was the founder and director of The Healthcare Institute (THI), a for-profit provider of educational and training programs for jobs in the healthcare field. Between 2015 and 2019, THI received over $2.2 million in federal grants from HRSA, an agency of the United States Department of Health and Human Services.
In 2021, a jury found Robinson guilty of two counts of wire fraud in connection with transfers that she made from THI’s operating account for personal expenditures for her wedding. The jury also found Robinson guilty of two counts of wire fraud for fraudulent misrepresentations made by Robinson to HRSA when completing Annual Performance Review forms for years 2017-2018 (Count 19) and 2018-2019 (Count 20). With respect to Count 19, the government presented evidence that Robinson reported to HRSA that 215 students had received scholarships in 2017-2018, but an investigation had confirmed that only 161 of those students actually received scholarships.
The district court granted Robinson’s post-verdict motion for judgment of acquittal as to the wire fraud counts that involved fraudulent misrepresentations to HRSA, setting aside the jury’s verdict on Counts 19 and 20. The United States appealed the district’s court’s acquittal on Count 19 to the U.S. Court of Appeals for the Sixth Circuit. The appellate court reversed the district court’s grant of acquittal and reinstated the jury’s verdict with respect to Count 19. It held that the evidence at trial showed that Robinson made material misrepresentations to HRSA in 2017-2018 with the intent to deprive HRSA of grant funds and to induce HRSA to continue funding Robinson’s organization.
Upon remand, Chief United States District Judge Sheryl H. Lipman resentenced Robinson to time served and assessed Robinson a fine of $48,600 for the misrepresentations she made to HRSA in 2017-2018.
This case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services – Office of the Inspector General.
Acting U.S. Attorney Reagan Fondren thanked Assistant United States Attorneys Chris Cotten, Scott Smith, and Raney Irwin, who prosecuted this case in the district court, and Naya Bedini, who prosecuted this case on appeal with AUSA Cotten, as well as the law enforcement partners who investigated the case.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Former Senior Manager of Federal Reserve Bank of Richmond Pleads Guilty to Insider Trading and Making False StatementsRead the Press Release
A Virginia man pleaded guilty today for committing insider trading and making false statements about his trading to his employer, the Federal Reserve Bank of Richmond (FRBR).
According to court documents, Robert Brian Thompson, 43, of Mosley, worked as a bank examiner and senior manager with supervisory duties for the FRBR. Due to his position, Thompson was privy to confidential information about certain financial institutions under FRBR’s supervision, including confidential supervisory information (CSI), which is the property of the Board of Governors of the Federal Reserve. As an employee of the FRBR, Thompson was also required annually to file a “Form for Employees Involved with Supervision and Regulation,” which is also called a “Form D.” Among other things, Form D requires employees to disclose if they have any assets, including any equity interest in any banks that are members of the Federal Reserve System and/or bank holding companies.
From October 2020 through February 2024, Thompson misappropriated confidential information, including CSI, to execute trades in publicly traded financial institutions. In total, Thompson executed 69 trades in seven different publicly traded financial institutions for a total of approximately $771,678 in personal profits. To conceal the scheme, in each year from 2020 through 2024, Thompson falsely represented on the FRBR’s Form D that he had no assets, including no equities in any publicly traded financial institutions, and that he had not engaged in any activity that would constitute conflicts of interest, violations of FRBR policies, or violations of law.
Thompson pleaded guilty to one count of insider trading and one count of making false statements. He is scheduled to be sentenced on March 19, 2025, and faces a maximum penalty of 20 years in prison on the insider trading count and five years in prison on the false statements count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; and Special Agent in Charge John Perez of Headquarters Operations, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-OIG) made the announcement.
FRB-OIG is investigating the case.
Trial Attorney Della Sentilles and former Assistant Chief Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Thomas A. Garnett for the Eastern District of Virginia are prosecuting the case.
Former Rhode Island Correctional Officer Sentenced for Smuggling Contraband into a Federal Detention CenterRead the Press Release
PROVIDENCE, RI – A now former Donald W. Wyatt Detention Facility correctional officer who smuggled controlled substances into the federal detention center has been sentenced to federal prison to be followed by a term of home confinement, announced United States Attorney Zachary A. Cunha.
According to charging documents and information presented to the court, in mid-February 2021, two inmates housed at the Wyatt Detention Center communicated with a former detainee and another person outside of the facility to arrange to provide a controlled substance to then-correctional officer Kaii Almeida-Falcones, 30, of Smithfield, who smuggled the substances into the facility.
A strip search of a detainee on February 15, 2021, revealed a package containing the drugs smuggled by Almeida-Falcones, which were confirmed to be controlled substances by subsequent lab testing. Additional controlled substances smuggled into the facility were found in the cell of another detainee, concealed inside a pillowcase. Almeida-Falcones is seen on Wyatt Detention security video entering each of the detainees cells the evening before.
Almeida-Falcones was sentenced on November 14, 2024, by U.S. District Court Judge William E. Smith to six months of incarceration in federal prison to be followed by twenty-four months of federal supervised release - the first six months to be served on home confinement. He pleaded guilty on June 10, 2024, to the charge of providing contraband to an inmate.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by the FBI, the United States Marshals Service, the U.S. Department of Justice, Office of Inspector General, and the Professional Standards Unit at the Wyatt Detention Center.
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Former Pittsburgh Resident Sentenced to 34 Years in Prison for Large-Scale Fentanyl Trafficking and Money Laundering ConvictionsRead the Press Release
PITTSBURGH, Pa. - A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 34 years of imprisonment, to be followed by lifetime supervised release, on his convictions of conspiracy to distribute fentanyl and acetyl fentanyl and conspiracy to commit money laundering, United States Attorney Eric G. Olshan announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Paris Carter, 35. Earlier this year, a federal jury in Pittsburgh found Carter guilty of conspiracy to distribute 400 grams or more of fentanyl and 100 grams or more of acetyl fentanyl and conspiracy to commit money laundering.
According to information presented to the Court, between January 2017 and February 2018, Carter arranged for the illegal importation of multiple kilograms of fentanyl and acetyl fentanyl directly from China into the Pittsburgh area and then arranged for the distribution of those drugs in the Pittsburgh area. Using the proceeds of his drug trafficking, Carter moved to Beverly Hills, California, where he rented two different homes at costs of $14,500 and $10,000 per month and also leased three vehicles: two Bentleys and a Mercedes Benz.
The evidence at trial also established that Carter laundered his drug trafficking proceeds by using others to initiate financial transactions in their names to pay for the drugs obtained from China. He also provided drug proceeds to approximately seven other individuals who used the funds to purchase cashier checks that Carter then used as downpayments on his vehicles, which he arranged to lease in the name of his aunt and co-defendant, Tamara Carter, whom the jury acquitted at trial.
“Paris Carter’s time driving Bentleys and living a life of luxury in Beverly Hills has come to an end,” said U.S. Attorney Olshan. “Today, a federal judge imposed a 34-year prison sentence, an appropriate punishment for a defendant who flooded the Pittsburgh area with kilogram quantities of Chinese-sourced fentanyl. Holding the most dangerous and prolific drug traffickers accountable to the fullest extent of the law is and will remain a top priority for our office and our valued partners in federal, state, and local law enforcement.”
“We hope the magnitude of this sentence is a deterrent to anyone who is considering becoming involved in the drug trafficking business, particularly involving life threatening synthetic opioids like fentanyl,” said Lesley Allison, Inspector in Charge of the Pittsburgh Division of the United States Postal Inspection Service. “The fact that Paris Carter will be behind bars for multiple decades should be a welcomed sigh of relief for our community members. This is a testament that Postal Inspectors will use all available resources to hold accountable those who use the mail for nefarious activity. At our core, we strive to keep the mail system safe, and ensure the trust of the American public. We want to thank our law enforcement partners for helping us achieve our goal.”
Prior to imposing sentence, Judge Horan noted the serious nature and impact of Carter’s crimes and stated that her sentencing of the defendant reflected both the course of conduct Carter chose to pursue and flagrancy Carter adopted in his actions.
Carter had previously been convicted in the Western District of Pennsylvania of a serious drug felony—namely, possession with the intent to distribute heroin, for which he was sentenced to 37 months of imprisonment in 2011.
Assistant United States Attorneys Brendan T. Conway and Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Postal Inspection Service, which worked with numerous other federal and state law enforcement agencies, for the investigation leading to the successful prosecution of Carter.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former GE Executive Convicted at Trial of Fraud and Identity TheftRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of WILSON DANIEL FREITA DA COSTA of one count of wire fraud and two counts of aggravated identity theft for his role in a scheme to use forged documents on Angolan Government letterhead to deceive a subdivision of the GE Company and the Angolan Government. The jury convicted DA COSTA yesterday following a two-week trial before U.S. District Judge P. Kevin Castel.
U.S. Attorney Damian Williams said: “As a unanimous jury of his peers has found, Wilson Da Costa brazenly used forged documents to deceive a subdivision of the GE Company and the Angolan Government, causing hundreds of millions of dollars to be disbursed. The scheme further committed the Angolan Government to purchase expensive equipment that it had not agreed to purchase – all so that Da Costa could receive millions of dollars for himself on the back end. Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners at HSI, Da Costa has now been held to account for his fraudulent conduct.”
As reflected in the Superseding Indictment, public filings, and the evidence presented at trial:
In or about October 2017, DA COSTA, the former Chief Executive Officer of GE Angola, disseminated fake documentation on Angolan Government letterhead, purportedly signed by officials from the Angolan Government and purportedly showing the Angolan Government’s commitment to purchase more GE-manufactured turbines than the Angolan Government had actually agreed to purchase. These forged documents were then used to justify and support payouts from a $1.1 billion loan from a subdivision of the GE Company to the Angolan Government. Subsequently, when questions arose about the number of turbines the Angolan Government had actually purchased, DA COSTA lied and continued to rely on the same forged documents that he had previously disseminated. For his efforts, DA COSTA received millions of dollars in kickback payments from the founder of a local Angolan company that had contracts to supply the Angolan Government with the GE-manufactured turbines.
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DA COSTA, 51, a naturalized U.S. citizen, was convicted by a jury of one count of wire fraud, which carries a maximum sentence of 20 years in prison, and two counts of aggravated identity theft, each of which carries a mandatory minimum sentence of two years in prison to run consecutively to any other prison terms imposed.
The statutory minimum and maximum penalties in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. DA COSTA is scheduled to be sentenced by Judge Castel on February 26, 2025.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations.
This case is being handled by the Office’s Illicit Finance & Money Laundering Unit. Assistant U.S. Attorneys Jennifer N. Ong, Christopher D. Brumwell, and Samuel P. Rothschild are in charge of the prosecution, with assistance from Paralegal Specialists Angelica Cotto and Nerlande Pierre.
Florida Man Pleads Guilty to Making Hate Crime Threats against the Council on American-Islamic Relations (“CAIR”) Michigan ChapterRead the Press Release
DETROIT – A Florida man pleaded guilty today to federal charges for repeatedly threatening the Council on American-Islamic Relations (“CAIR”) Michigan Chapter, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Division of the Federal Bureau of Investigation, and Chad Baugh, Chief of the Canton Police Department.
According to court documents, Michael Shapiro, 72, of West Palm Beach, Florida, placed three separate phone calls to CAIR’s office located in Canton, Michigan, and left voicemails containing the following threats:
• December 8, 2023: “I’m going to kill you bastards. I’m going to kill you bastards.”
• December 14, 2023: ““I’m going to kill you mother f*****g bastards. Muslims! I’m going to kill you mother f*****s. I’m going to kill you! I’m going to kill you! I’m going to kill you!”
• December 15, 2023: “You’re a violent people. Why do you come to America? Why do you come to Europe? Mother f*****s. You’re violent. You’re killers. You’re rapists. I’m going to kill you mother f*****s!”
For this, Shapiro pleaded guilty to one count of transmitting threats in interstate commerce. Shapiro also admitted that he intentionally selected CAIR as the victim of his threats because of the actual and perceived religion and national origin of the people who work at and are assisted by CAIR.
“No one should be able to threaten violence and instill fear on an entire community. Today’s conviction should send a strong message that those who do so will be investigated, identified, and aggressively prosecuted,” stated U.S. Attorney Ison.
"Michael Shapiro's guilty plea for threats motivated by religious bias underscores the FBI's unwavering commitment to protecting individuals from hate and intolerance," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "This conviction serves as a powerful demonstration of the serious consequences faced by those who engage in hate-fueled threats, sending a clear warning to others. The success of this case is a direct result of the strong collaboration between the FBI Michigan and the Canton Police Department. Law enforcement efforts are greatly bolstered by the community's support, including faith-based organizations, in addressing and preventing hate crimes. Together, we remain steadfast in our dedication to combating violence rooted in bias and will continue to promote safety, respect, and justice for all members of our diverse communities. This case unequivocally illustrates that acts of hate and intolerance are met with zero tolerance by the Michigan law enforcement community. Such offenses will be vigorously prosecuted to the fullest extent of the law, exemplifying our unwavering commitment to justice and protecting all community members."
This case was investigated by the Federal Bureau of Investigation and the Canton Police Department. The case is being prosecuted by Assistant U.S. Attorney Frances Lee Carlson.
Five Members of Drug Trafficking Organization Plead Guilty to Federal Drug and Drug-Related CrimesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that five members of a drug trafficking organization pleaded guilty to Drug Conspiracy and other federal drug and drug-related crimes.
Rito Alvarado Gomez, age 36, pleaded guilty to Drug Conspiracy. Jose Alberto Alvarado Gomez, age 34, Ricardo Villeda, age 26, and Iris Yoselin Luna-Herrera, age 27, pleaded guilty to Distribution of Methamphetamine. Ana Isabel Frayre Barboza, age 38, pleaded guilty to Misprision of Felony.
The Indictment alleged that beginning in 2018 and continuing until around March 13, 2024, the defendants willfully and knowingly conspired together and with others to possess and distribute methamphetamine in the Eastern District of Oklahoma and elsewhere.
The charges arose from a joint investigation led by the Drug Enforcement Administration, along with the Bureau of Indian Affairs, the Federal Bureau of Investigation, Homeland Security Investigations, the Oklahoma Bureau of Narcotics, the 8th North Drug Task Force of Hope, Arkansas, and the 9th West Drug Task Force of Nashville, Arkansas. Additionally, several law enforcement agencies contributed to this investigation, including the Arkansas State Police, the Hope Police Department, and the McCurtain County Sheriff’s Office.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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. Rito Alvarado Gomez, Jose Alberto Alvarado Gomez, Ricardo Villeda, and Iris Yoselin Luna-Herrera were remanded to the custody of the United States Marshals Service pending sentencing. Ana Isabel Frayre Barboza was allowed to remain on bond pending sentencing.
Assistant U.S. Attorneys Erin Cornell and Jordan Howanitz represented the United States.
Felon Sentenced to 64 Months in Prison for Stealing from Gun StoreRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Tuesday sentenced a convicted felon who stole a gun from a St. Louis County gun store to 64 months in prison.
On Oct. 17, 2023, Johnny Phillips stole a Smith & Wesson M&P 5.7 pistol from the display case of the store. His theft was captured on video. The next day, the Bridgeton Police Department arrested Phillips and recovered the gun. As a convicted felon, he is barred from possessing a firearm.
Phillips, now 33, of Bellefontaine Neighbors, pleaded guilty in July to one count of theft of a firearm from a federally licensed firearm dealer and one count of being a felon in possession of a firearm.
The Bridgeton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney J. Christian Goeke 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.
Fayette County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Bryson J. England, 42, of Oak Hill, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on February 2, 2024, England was a passenger in a vehicle pulled over by law enforcement officers in the Beckley area of Raleigh County. During the vehicle stop, officers conducted a pat-down search of England and found a loaded Armscor of the Philippines model M1911-AU FS .45-caliber pistol on his person. Officers also searched the vehicle and found an AR-15 semiautomatic rifle on the passenger side.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. England knew he was prohibited from possessing a firearm because of his prior felony conviction for unlawful wounding in Kanawha County Circuit Court on January 6, 2003.
England is scheduled to be sentenced on March 14, 2025, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the West Virginia State Police.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Brian D. Parsons is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-138.
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Exeter Man Sentenced to Federal Prison for 48 Months for Possessing over 2,000 Images of Child Sexual AbuseRead the Press Release
CONCORD – An Exeter man was sentenced in federal court in connection with the possession of child sexual abuse materials, U.S. Attorney Jane E. Young announces.
Nathan Kohler, 41, was sentenced by U.S. District Court Judge Joseph Laplante to 48 months in prison and 5 years of supervised release. Kohler was also ordered to pay $21,000 in restitution to the victims of his offense. On July 8, 2024, Kohler pleaded guilty to one count of Possession of Child Pornography.
“The actions of the defendant fuel the demand for the horrific sexual abuse of children and results in life-long suffering for those victims,” said U.S. Attorney Jane E. Young. “Those who would seek out on the internet these images documenting the pain and abuse of a child are on notice. They will be found, prosecuted, and incarcerated.”
“Kohler admitted that he had been downloading child sexual abuse material at his home for years. The children depicted in these images were victimized at the time the photos were taken and victimized again every time they are distributed. HSI works tirelessly with our partners to ensure those who trade in these horrific images are brought to justice,” said HSI New England Special Agent in Charge Michael J. Krol.
On January 2, 2023, and again on February 14, 2023, the NH Internet Crimes Against Children (“ICAC”) Task Force’s BitTorrent software identified a target IP address making child sexual abuse material (“CSAM”) available for download through the Peer-to-Peer (“P2P”) network BitTorrent. Further investigation identified the defendant’s residence in Exeter, New Hampshire as the subscriber of the target IP address.
On April 5, 2023, law enforcement executed a federal search warrant at the defendant’s residence. During that search, law enforcement seized a Dell laptop computer from the defendant’s bedroom, containing approximately 2,000 images of CSAM and two video files. Numerous images depicted prepubescent minors, or minors who had not attained 12 years of age as well as sadistic or masochistic conduct.
During an interview with law enforcement, the defendant admitted that he was the individual who has been using the internet in the residence to download CSAM and has been engaged in such activity for a number of years. The defendant stated that he used his laptop computer which was located in his bedroom to access CSAM.
Homeland Security Investigations led the investigation. Valuable assistance was provided by the New Hampshire Internet Crimes Against Children Task Force and the Exeter Police Department. Assistant U.S. Attorney Geoffrey Ward is prosecuting the case.
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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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Evansville Drug Dealer Sentenced to Three Years in Federal Prison After Investigators Locate 2,000 Fake Pills Laced with FentanylRead the Press Release
EVANSVILLE— Andre Lamont Wright Jr., 29, of Evansville, has been sentenced to three years in federal prison, followed by three years of supervised release, after pleading guilty to possession with intent to distribute fentanyl.
According to court documents, prior to December 2022, law enforcement officers received information that Wright was selling large quantities of fentanyl-laced counterfeit “M30” oxycodone pills. On December 7, 2022, investigators with the Drug Enforcement Administration and the Evansville Police Department observed Wright conduct a drug deal outside of his Evansville home. Officers stopped the buyer for a traffic violation after leaving Wright’s home and recovered approximately eighteen counterfeit M30 fentanyl pills.
Officers conducted a court-authorized search of Wright’s home and found approximately 2,000 counterfeit “M30” pills containing fentanyl, a digital scale, a 9mm semiautomatic handgun, 9mm ammunition, plastic bags, and $453 in cash.
According to the Drug Enforcement Administration, as little as two milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage—a tiny amount that can fit on the tip of a pencil. Seven out of ten illegal fentanyl tablets seized from U.S. streets and analyzed by the DEA have been found to contain a potentially lethal dose of the drug.
“Fentanyl traffickers are responsible for incalculable damage to our families and communities, peddling deadly pills with utter disregard for human life,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Just one of these fake pills can kill, that’s why we prioritize federal prosecution of the criminals who push this poison. Together with the Evansville Police Department and the DEA, our federal prosecutors will continue working to remove fentanyl and fentanyl dealers from our neighborhoods.”
The Drug Enforcement Administration and the Evansville Police Department investigated this case. The sentence was imposed by U.S. District Judge Richard L. Young.
U.S. Attorney Myers thanked Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted this case.
One Pill Can Kill: Avoid pills bought on the street because One Pill Can Kill. Fentanyl has now become the leading cause of death for adults in the United States. Fentanyl is a highly potent opioid that drug dealers dilute with cutting agents to make counterfeit prescription pills that appear to be Oxycodone, Percocet, Xanax, and other drugs. Fake prescription pills laced with fentanyl are usually shaped and colored to look like pills sold at pharmacies. For example, fake prescription pills known as “M30s” imitate Oxycodone obtained from a pharmacy, but when sold on the street the pills routinely contain fentanyl. These pills are usually round tablets and often light blue in color, though they may be in different shapes and a rainbow of colors. They often have “M” and “30” imprinted on opposite sides of the pill. Do not take these or any other pills bought on the street – they are routinely fake and poisonous, and you won’t know until it’s too late.
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El Departamento de Justicia demanda a un administrador de propiedades de alquiler de Kentucky y a los propietarios por acoso sexualRead the Press Release
El Departamento de Justicia anunció hoy que ha entablado una demanda contra Adnan Shalash, propietario y operador de propiedades de alquiler en Lexington, Kentucky, por acoso sexual y represalias, en violación de la ley de Vivienda Justa. La demanda también nombra como demandados a 12 propietarios de propiedades de alquiler administradas por Adnan Shalash, incluidas Fox Den Properties LLC y Griffith Market Inc.
“El acoso sexual por parte de los proveedores de viviendas es un abuso de poder atroz”, afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Las mujeres nunca deben sentirse inseguras en sus propios hogares. El Departamento de Justicia se compromete a proteger activamente los derechos de inquilinas vulnerables sujetas al acoso sexual y a responsabilizar a los proveedores y administradores de vivienda cuando infrinjan la ley”.
“El acoso sexual en la vivienda priva a sus víctimas de la seguridad y protección que se supone que una casa les debe proporcionar”, declaró Carlton S. Shier, IV el Fiscal Federal para el Distrito Este de Kentucky. “Esto hace que la aplicación comprometida de la ley de Vivienda Justa sea fundamental para garantizar que las víctimas puedan obtener compensación por esta conducta vergonzosa y buscar un hogar seguro para sus familias”.
La demanda, presentada en el Tribunal Federal de Distrito para el Distrito Este de Kentucky, alega que durante muchos años Shalash ha acosado sexualmente a numerosas inquilinas. De acuerdo con la queja, Shalash ha ofrecido beneficios relacionados con la vivienda a cambio de contacto sexual, ha hecho comentarios y avances sexuales no deseados a inquilinas, ha entrado en las casas de inquilinas sin su permiso, ha sometido a inquilinas a contacto y manoseo no deseados y ha tomado medidas adversas relacionadas con la vivienda contra inquilinas que rechazaron sus insinuaciones sexuales.
La demanda, que es el resultado de un esfuerzo de investigación conjunto del Departamento de Justicia con la Oficina del Inspector General del Departamento de Vivienda y Desarrollo Urbano (HUD, por sus siglas en inglés), busca daños monetarios para compensar a las personas perjudicadas por el supuesto acoso, una sanción civil contra cada demandado para reivindicar el interés público y una orden judicial que prohíbe la discriminación futura.
“Mi oficina no tolerará que propietarios cometan actos de acoso o abuso sexual contra las inquilinas”, dijo la Inspectora General del HUD, Rae Oliver Davis. “Adnan Shalash supuestamente abusó de la necesidad humana básica de vivienda de inquilinas vulnerables. La queja de hoy demuestra el compromiso de la Oficina del Inspector General del HUD de detener a los propietarios que abusan de su poder sobre inquilinas vulnerables y garantizar que las víctimas de su acoso sexual obtengan una compensación”.
El Departamento de Justicia lanzó su Iniciativa contra el acoso sexual en la vivienda en octubre del 2017. La iniciativa, dirigida por la División de Derechos Civiles en coordinación con las Fiscalías Federales por todo el país, busca abordar y aumentar la concientización sobre el acoso sexual por parte de propietarios, administradores de propiedades, trabajadores de mantenimiento, oficiales de préstamos u otras personas que tienen control sobre la vivienda. Desde el lanzamiento de la iniciativa, el Departamento de Justicia ha presentado 46 demandas que alegan acoso sexual en la vivienda, así recuperando daños y sanciones civiles de aquellos que infringen la ley.
La ley de Vivienda Justa prohíbe la discriminación en las viviendas por motivos de raza, color de piel, religión, origen nacional, sexo, discapacidad y situación familiar. Hay más información sobre la División de Derechos Civiles y las leyes que hace cumplir en su sitio web en www.justice.gov/crt.
Aquellas personas que crean que pueden haber sido víctimas de acoso sexual u otros tipos de discriminación en la vivienda en viviendas de alquiler de los que Adnan Shalash es propietario o administrador, o que tienen otra información que puede ser relevante para este caso, deben comunicarse con la línea informativa para discriminación en la vivienda al 1-833-591-0291, seleccionar 1 para inglés y seleccionar la opción número 2 y luego la opción número 04 para dejar un mensaje. Para dejar un mensaje en español, hay que seleccionar 2 para español, seleccionar la opción número 1 y luego la opción número 9 para dejar un mensaje. También se puede enviar un correo electrónico al Departamento de Justicia a [email protected] o entregar un informe en línea. Los informes también se pueden realizar comunicándose con el HUD al 1-800-669-9777 o rellenando una queja en línea.
Eden Prairie Man Sentenced to over Seven Years in Prison for COVID Relief Fraud, Aggravated Identity Theft, and Money LaunderingRead the Press Release
ST. PAUL, Minn. – An Eden Prairie man has been sentenced to 87 months in federal prison, three years of supervised release, and was ordered to pay restitution for fraudulently applying for more than $2.1 million in COVID-19 relief funds and then spending those proceeds on himself, announced U.S. Attorney Andrew M. Luger.As proven at trial, between March and May 2020, Harold Bennie Kaeding, 75, applied for at least $2,182,625 in loans through the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (EIDL) Program. Kaeding used the name of his own close family members to submit the loan applications in the names of six different purported corporate entities. But these entities were either defunct or not even in existence when the pandemic began, trial evidence showed. None of the businesses had filed tax returns or reported the payment of wages to a single employee for calendar years 2019 and 2020. Kaeding instead fabricated tax documents, manufactured bank statements, and submitted other records to ensure the applications appeared legitimate. These false statements to lenders manufactured the number of employees a given entity employed, the amount of average monthly payroll expenses, and false statements about the intended use of the loan proceeds.
As a result of his material falsehoods and omissions, Kaeding initially received approximately $1,642,670 in relief funds before some banks detected irregularities and clawed back some of the money. This left Kaeding with $658,490 in fraud proceeds, which he transferred to bank accounts—often opened in the names of close family members—that he controlled. Among other things, Kaeding used the money to get his personal residence out of impending foreclosure, purchase an SUV, and stockpile more than $80,000 in cash. In early 2021, Kaeding fled to Colombia after learning he was under investigation. Law enforcement eventually located Kaeding and successfully deported him back to the United States to face prosecution.
Following a ten-day trial in August 2024, Kaeding was convicted by a federal jury on three counts of wire fraud, three counts of aggravated identity theft, and one count of money laundering. He was sentenced last Friday, November 15, 2024, by Judge Eric C. Tostrud in U.S. District Court.
This case is the result of an investigation conducted by the FBI and IRS—Criminal Investigation. Assistant U.S. Attorneys Jordan L. Sing and Robert M. Lewis prosecuted the case.
Dorchester Man Sentenced to Prison for Illegal ReentryRead the Press Release
BOSTON – A Dominican man residing in Dorchester was sentenced yesterday in federal court in Boston for unlawfully reentering the United States after deportation.
Tommy Raul Jimenez-Perez, 26, was sentenced by U.S. District Court Judge Leo T. Sorokin to 18 months in prison, to be served concurrent to an already imposed state drug sentence of five to seven years, and three years of supervised release. In October 2023, Jimenez-Perez pleaded guilty to unlawful reentry of a deported alien.
On an unknown date, Jimenez-Perez entered the United States from the Dominican Republic without inspection. Thereafter, on two different dates in May 2018, Jimenez-Perez was convicted of two separate narcotics cases before departing the United States on his own, on an unknown date. In February 2020, Jimenez-Perez was arrested by U.S. Border Patrol in Texas after it was determined that he had unlawfully entered the United Staes without inspection. Jimenez-Perez was removed from the United States on March 3, 2020. Sometime after his removal, Jimenez-Perez unlawfully reentered the United States before being arrested in January 2023 on new, unrelated charges.
Acting United States Attorney Joshua S. Levy; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and Boston Police Commissioner Michael Cox made the announcement. Assistant U.S. Attorneys Charles Dell’Anno and Suzanne Sullivan Jacobus of the Criminal Division prosecuted the case.
Dell and Iron Bow Agree to Pay $4.3M to Resolve False Claims Act Allegations Relating to Submitting Non-Competitive Bids to the ArmyRead the Press Release
BIRMINGHAM – Dell Technologies Inc. and Dell Federal Systems L.P. (collectively Dell), located in Austin, Texas, have agreed to pay $2,300,000 to resolve allegations that they violated the False Claims Act by submitting and causing the submission of non-competitive bids to the Army and thereby overcharging the Army under the Army Desktop and Mobile Computing 3 (ADMC-3) contract. Iron Bow Technologies LLC (Iron Bow), located in Herndon, Virginia, also agreed to pay $2,051,000 for its role in the scheme.
The settlements resolve allegations that from May 2020 to April 2024, Dell operated a deal registration program, whereby it gave advantageous pricing to Iron Bow to sell certain Dell computer hardware products to the Army in response to solicitations under the AMDC-3 contract. The United States alleged that Dell also submitted its own direct bids to the Army on the same solicitations, knowing that its prices would be higher than Iron Bow’s, thereby creating a false appearance of competition. The United States further alleged that Dell’s practice of providing higher direct bids influenced the Army’s source selection process and enabled Iron Bow to overcharge the Army for certain Dell products.
“The United States relies on competition to get the best value and price for the American taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates the department’s commitment to hold accountable those who overcharge the government through collusion or other unlawful conduct.”
“Fraud in the government contracting process costs taxpayers untold dollars each year,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “We will continue to work with our federal law enforcement partners to investigate and pursue those who commit government contracting fraud.”
The Dell settlement also resolves a lawsuit filed against Dell under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that a defendant has submitted false claims for government funds and receive a share of any recovery. The settlement in this case provides for the whistleblower, Brent Lillard, an executive of another IT reseller, to receive a $345,000 share of the recovery from Dell. The qui tam case is captioned United States ex rel. Lillard v. Dell Technologies Inc., No. 5:20-CV-1613-HNJ (NDAL).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of Alabama, with assistance from the Justice Department’s Office of Inspector General, Army Criminal Investigation Division, National Aeronautics and Space Administration Office of Inspector General and General Services Administration Office of Inspector General.
Trial Attorney Samson Asiyanbi of the Justice Department’s Civil Division and Assistant U.S. Attorney Sarah Blutter for the Northern District of Alabama handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Dell and Iron Bow Agree to Pay $4.3M to Resolve False Claims Act Allegations Relating to Submitting Non-Competitive Bids to the ArmyRead the Press Release
Dell Technologies Inc. and Dell Federal Systems L.P. (collectively Dell), located in Austin, Texas, have agreed to pay $2,300,000 to resolve allegations that they violated the False Claims Act by submitting and causing the submission of non-competitive bids to the Army and thereby overcharging the Army under the Army Desktop and Mobile Computing 3 (ADMC-3) contract. Iron Bow Technologies LLC (Iron Bow), located in Herndon, Virginia, also agreed to pay $2,051,000 for its role in the scheme.
The settlements resolve allegations that from May 2020 to April 2024, Dell operated a deal registration program, whereby it gave advantageous pricing to Iron Bow to sell certain Dell computer hardware products to the Army in response to solicitations under the AMDC-3 contract. The United States alleged that Dell also submitted its own direct bids to the Army on the same solicitations, knowing that its prices would be higher than Iron Bow’s, thereby creating a false appearance of competition. The United States further alleged that Dell’s practice of providing higher direct bids influenced the Army’s source selection process and enabled Iron Bow to overcharge the Army for certain Dell products.
“The United States relies on competition to get the best value and price for the American taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates the department’s commitment to hold accountable those who overcharge the government through collusion or other unlawful conduct.”
“Fraud in the government contracting process costs taxpayers untold dollars each year,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “We will continue to work with our federal law enforcement partners to investigate and pursue those who commit government contracting fraud.”
The Dell settlement also resolves a lawsuit filed against Dell under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that a defendant has submitted false claims for government funds and receive a share of any recovery. The settlement in this case provides for the whistleblower, Brent Lillard, an executive of another IT reseller, to receive a $345,000 share of the recovery from Dell. The qui tam case is captioned United States ex rel. Lillard v. Dell Technologies Inc., No. 5:20-CV-1613-HNJ (NDAL).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of Alabama, with assistance from the Justice Department’s Office of Inspector General, Army Criminal Investigation Division, National Aeronautics and Space Administration Office of Inspector General and General Services Administration Office of Inspector General.
Trial Attorney Samson Asiyanbi of the Justice Department’s Civil Division and Assistant U.S. Attorney Sarah Blutter for the Northern District of Alabama handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Dell Settlement
Iron Bow Settlement
Dallas Gang Member Arrested with Switch Detained Pending TrialRead the Press Release
A Dallas gang member arrested with a Glock equipped with a gold switch has been detained pending trial, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Johnny Bates, 19, was charged via criminal complaint with possession of a machinegun. He was arrested Nov. 7 and ordered detained pending trial after a hearing on Friday.
According to court documents, in December 2023, Mr. Bates was allegedly caught on video firing a pistol that appeared to be fully automatic. Police were unable to apprehend him, but recovered a switch-equipped Glock pistol along the path where he had fled.
In October 2024, Dallas Police Department detectives tracked Mr. Bates, a known “415 East Dallas Posse” gang member, to an apartment in Dallas’s Oak Cliff neighborhood. Officers attempted to place him under arrest on outstanding warrants from the December 2023 incident, but he resisted. They wrestled him to the ground until backup arrived.
In his backpack, officers found a 9mm Glock pistol equipped with a gold switch and an extended magazine allegedly belonging to Mr. Bates:
A query of the National Integrated Ballistic Information Network (NIBIN) linked the Glock was to an aggravated assault that occurred in Dallas on Sept. 12. (Officers have no reason to believe Mr. Bates was involved in that incident, as a suspect has already been identified.)
At Friday’s detention hearing, officers testified to Mr. Bates’s alleged pattern of possessing machinegun conversion devices, offering images from his Instagram of firearms with switches attached and plainly visible.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Bates is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 10 years in federal prison.
The Dallas Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorney Robert Withers is prosecuting the case.
This case is part of “Operation Texas Kill Switch,” a statewide initiative taking aim at machinegun conversion devices, also known as “switches,” which transform commercially available semi-automatic firearms into fully-automatic weapons capable of firing faster than military-grade machine guns. Spearheaded by U.S. Attorneys Leigha Simonton, Alamdar Hamdani, Damien Diggs and Jaime Esparza, Operation Texas Kill Switch relies on partnerships with state and local law enforcement as well as rewards offered by Crime Stoppers.Corrections Officer Charged Along with Inmates and Others in Conspiracy to Smuggle Contraband into the D.C. JailRead the Press Release
WASHINGTON – Corrections Officer Rashaad Roper, 45, of Gaithersburg, MD, is one of five people charged by indictment, unsealed today, in a conspiracy to provide a knife, drugs, and cell phones to inmates in the D.C. jail as they awaited trial for murder and assault with intent to kill while armed. The charges were announced by U.S. Attorney Matthew M. Graves, FBI Acting Special Agent in Charge David Geist of the Washington Field Office Criminal and Cyber Division, and Chief Investigator Kevin L. Hammond of the D.C. Department of Corrections Office of Investigative Services.
Also named in the indictment are: LaTara Brown, 31, of Capitol Heights, Maryland, and Kiya Holland, 33, of Oxon Hill, Maryland, who were arrested on November 19, 2024. Roper, Brown, Holland, and their co-defendants—Darius Robertson, 31, Marcel Vines, 28, and Stefon Freshley, 28—are each charged with providing or possessing contraband in a prison, as well as conspiring to do so.
According to the indictment, Holland and Brown packaged contraband, such as a knife, cell phones, and controlled substances, into Tupperware containers hidden concealed in saranwrap in the middle of prepared food. They would bring the Tupperware containers to the Central Detention Facility, also known as the D.C. Jail, where Officer Roper or another corrections officer identified in the indictment as Co-Conspirator 1, would take possession of the containers and smuggle them into the jail. Once inside, the corrections officer would deliver the contraband to Robertson, Vines, and/or Freshley, who were inmates inside the housing unit where the officers worked.
On two occasions, the Department of Corrections Office of Investigative Services (“OIS”) recovered contraband related to the conspiracy. On February 28, 2024, OIS intercepted a bag Holland dropped off at the jail and that Roper intended to pick up. The bag contained two Tupperware containers filled with: (1) one switchblade knife; (2) one Apple iPhone cellphone; (3) a white USB iPhone charger; (4) two pairs of eyeglasses; (5) a bundle marijuana wrapped in clear saranwrap; (6) suspected tobacco wrapped in clear saranwrap; (7) several sheets of white rolling papers; (8) a pair of gambling dice; (9) three white sheets of bonded paper that were damp and emitted a chemical odor; (10) two saran-wrapped packages of marijuana; and (11) five individually wrapped packages in clear saranwrap containing approximately 100 cigarettes.
Additionally, on July 25, 2024, OIS did a sweep of the housing unit where Robertson, Vines, and Freshley were held. Officers recovered, among other things, (1) 269 blue pills (including 120 from Vines’ cell), containing 5F-ADB—a synthetic cannabinoid and a Schedule I controlled substance; (2) 60 cigarettes soaked in an unknown liquid (including 40 in Vines’ cell); (3) 255 strips containing Buprenorphine (170 in Vines’ cell)—a Schedule III narcotic controlled substance; (4) 7 pieces of paper soaked in an unknown liquid substance; (5) three cellular phones; and (6) cigarettes.
The conspiracy charge carries a statutory maximum sentence of 5 years in prison, while providing or possessing contraband in a prison carries a statutory maximum of 20 years in prison. A U.S. District court judge will determine the appropriate sentence after considering the sentencing guidelines and other factors.
This case was investigated by the FBI’s Washington Field Office and the D.C. Department of Corrections Office of Investigative Services with the assistance of the Department of Justice Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Joshua Gold.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
roper_et_al_indictment.pdfConvicted Criminal Sentenced to Six Years in Prison After Repeatedly Illegally Reentering the United StatesRead the Press Release
A criminal who returned to the U.S. within five months of last being deported was sentenced to six years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Moises Olivos-Hrucha, a 31-year-old citizen of Mexico, was charged in this District with illegal reentry after removal in March 2021, convicted in May 2021, and sentenced in January 2022 to 27 months in federal prison. After serving his sentence, he was deported. Just five months later, in October 2023, he was found back in the state of Texas. He was again charged with illegal reentry after removal and pleaded guilty in May 2024.
He was sentenced on Tuesday, Nov. 19 by U.S. District Judge Ada Brown, who ordered him to serve 68 months for the 2024 conviction and four months on the revocation of supervised release for the 2022 conviction, to run consecutively for a total of 72 months in federal prison.
At Monday’s sentencing, prosecutors noted Mr. Olivos-Hrucha had engaged in criminal activity in the U.S. multiple times in between deportations. In 2013, he was convicted by the state of robbery and sentenced to five years’ imprisonment after punching the victim’s head, slamming her onto the ground, and dragging her across the ground.
Mr. Olivos-Hrucha will be subject to deportation again after serving his six-year sentence.
Immigration & Customs Enforcement (ICE) conducted the investigation. Assistant U.S. Attorney Madeleine Case prosecuted the most recent criminal case and revocation; former NDTX Assistant U.S. Attorney Travis Elder (now serving in Utah) prosecuted the original criminal case.
Colombian Man Extradited to the United States for Alleged Role in Extensive Money Laundering ConspiracyRead the Press Release
BOSTON – A Colombian man has been extradited to the United States from the Republic of Colombia to face charges related to his alleged role in a sophisticated money laundering organization that laundered over $2 million in drug trafficking proceeds.
Jose Edison Montealegre-Fernandez, 60, was arrested in Cali, Colombia on Nov. 10, 2021 and extradited to the United States on Nov. 15, 2024. He appeared in federal court in Boston today and was ordered detained pending trial. On Nov. 4, 2021, Montealegre-Fernandez was indicted by a federal grand jury in Boston on charges of money laundering conspiracy, laundering of monetary instruments and engaging in monetary transactions in criminally derived property.
According to the charging documents, in or about November 2017, law enforcement began an investigation into a sophisticated money laundering organization located primarily in Cali, Colombia. During an extensive three-year investigation, the organization allegedly laundered over $2 million in drug proceeds through intermediary banks in the United States, including banks in Massachusetts.
Montealegre-Fernandez allegedly participated in the transfer of substantial amounts of bulk cash in the United States through schemes that involved picking up large amounts of drug proceeds at locations around the world and then subsequently laundering those funds through accounts in the United States to various individuals and entities in order to repay drug suppliers in Colombia. According to court documents, the investigation led to the seizure of over six kilograms of suspected heroin, over 2.8 kilograms of a substance that field-tested positive for heroin, fentanyl, cocaine, a hydraulic drug press, a Glock 10mm semi-automatic handgun, an SKS assault rifle with a loaded Beta C-mag containing 100 rounds of 7.62 caliber ammunition and $250,000 in cash.
The charges of money laundering conspiracy and laundering of monetary instruments each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. The crime of engaging in monetary transactions in criminally derived property provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000, or twice the amount involved. 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.
Acting United States Attorney Joshua Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché at the U.S. Embassy in Bogota provided critical assistance in securing the arrest and extradition of Montealegre-Fernandez. Assistant U.S. Attorneys Jared C. Dolan and Alathea E. Porter of the Criminal Division are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chinle Man Sentenced to 22 Years for Child Sexual AbuseRead the Press Release
PHOENIX, Ariz. – Ty O’Brien Shorty, 33, of Chinle, was sentenced last week by United States District Judge John J. Tuchi to 22 years in prison, followed by lifetime supervised release. Shorty pleaded guilty to Abusive Sexual Contact of a Child on May 16, 2024.
On July 23, 2023, Shorty sexually abused a four-year-old child. The victim suffered severe injuries and was hospitalized as a result. The crime occurred on the Navajo Nation, of which Shorty is an enrolled member.
The Federal Bureau of Investigation and the Navajo Nation Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorney Jillian Besancon, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-23-8093-PHX-JJT
RELEASE NUMBER: 2024-156_Shorty# # #
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.Charlotte County Woman Sentenced to Prison for Threatening A Federal JudgeRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Alice Marie Pence (68, Port Charlotte) to 10 months in federal prison for threatening a United States district judge in the Northern District of Texas. Pence entered a guilty plea on June 28, 2024, in the Middle District of Florida to the charge of influencing a federal official by threat.
According to court documents, Pence made an interstate telephone call from the Middle District of Florida to the chambers of a United States district judge in the Northern District of Texas. In the voicemail, Pence demanded the judge “make the right decision” about a pending case over which the judge was presiding.
This case was investigated by the United States Marshals Service. Prosecution was initiated by Assistant United States Attorney Matthew Weybrecht of the Northern District of Texas. The plea agreement and sentencing were handled by Assistant United States Attorney Mark Morgan of the Middle District of Florida.
Charleston Man Pleads Guilty to Violating the Federal Sex Offender Registration and Notification ActRead the Press Release
CHARLESTON, W.Va. – Casey Thomas Judd, 36, of Charleston, pleaded guilty today to for failure to provide information related to interstate travel as required by the Sex Offender Registration and Notification Act (SORNA).
According to court documents and statements made in court, on or about June 14, 2024, Judd relocated from Charleston to Springfield, Ohio. Judd failed to register or update his registration as required by SORNA after his relocation.
Judd is required to register as a sex offender and comply with SORNA because of his prior conviction for third-degree sexual assault in Kanawha County Circuit Court on August 21, 2015.
Judd is scheduled to be sentenced on February 19, 2025, and faces a maximum penalty of 10 years in prison, at least five years and up to a lifetime of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service (USMS).
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Jonathan T. Storage is prosecuting the case.
SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006 and provides a comprehensive set of minimum standards for sex offender registration and notification in the United States. SORNA seeks to strengthen the nationwide network of sex offender registration and notification programs, in part by requiring registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
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-164.
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California Man Sentenced for Acting as an Illegal Agent of the People’s Republic of China Government and BriberyRead the Press Release
John Chen, 71, of the People’s Republic of China (PRC) and Los Angeles, was sentenced today to 20 months in prison for acting as unregistered agents of the PRC and bribing an IRS agent in connection with a plot to target U.S.-based practitioners of Falun Gong — a spiritual practice banned in the PRC.
According to court documents, from at least approximately January 2023 to May 2023, Chen and co-defendant Lin Feng, 44, a PRC citizen and resident of Los Angeles, California, worked inside the United States at the direction of the PRC government, including an identified PRC government official PRC Official-1, to further the PRC government’s campaign to repress and harass Falun Gong practitioners. The PRC government has designated the Falun Gong as one of the “Five Poisons,” or one of the top five threats to its rule. In China, Falun Gong adherents face a range of repressive and punitive measures from the PRC government, including imprisonment.
As part of the PRC's campaign against the Falun Gong, Chen and Feng engaged in a PRC government-directed scheme to manipulate the IRS’ Whistleblower Program in an effort to strip the tax-exempt status of an entity run and maintained by Falun Gong practitioners, the Shen Yun Performing Arts Center. After Chen filed a defective whistleblower complaint with the IRS (the Chen Whistleblower Complaint), Chen and Feng paid $5,000 in cash bribes and promised to pay substantially more to a purported IRS agent (Agent-1) who was, in fact, an undercover officer, in exchange for Agent-1’s assistance in advancing the complaint. Neither Chen nor Feng notified the Attorney General that they were acting as agents of the PRC in the United States.
In the course of the scheme, Chen, on a recorded call, explicitly noted that the purpose of paying these bribes, which were directed and funded by the PRC, was to carry out the PRC government’s aim of “toppl[ing] . . . the Falun Gong.” During a call intercepted pursuant to a judicially authorized wiretap, Chen and Feng discussed receiving “direction” on the bribery scheme from PRC Official-1, deleting instructions received from PRC Official-1 in order to evade detection, and “alert[ing]” and “sound[ing] the alarm” to PRC Official-1 if Chen and Feng’s meetings to bribe Agent-1 did not go as planned. Chen and Feng also discussed that PRC Official-1 was the PRC government official “in charge” of the bribery scheme targeting the Falun Gong.
As part of this scheme, Chen and Feng met with Agent-1 in Newburgh, New York, on May 14, 2023. During the meeting, Chen gave Agent-1 a $1,000 cash bribe as an initial, partial bribe payment. Chen further offered to pay Agent-1 a total of $50,000 for opening an audit on the Shen Yun Performing Arts Center, as well as 60% of any whistleblower award from the IRS if the Chen Whistleblower Complaint were successful. On May 18, 2023, Feng paid Agent-1 a $4,000 cash bribe at John F. Kennedy International Airport as an additional partial bribe payment in furtherance of the scheme.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Damian Williams for the Southern District of New York, and Executive Assistant Director Robert R. Wells of the FBI’s National Security Branch made the announcement.
In addition to the prison term, Chen was sentenced to three years of supervised release and ordered to forfeit $50,000. Feng was sentenced on Sept. 26, to a time-served sentence of 16 months in prison.
The FBI and Office of the Treasury Inspector General for Tax Administration investigated the case.
Assistant U.S. Attorneys Qais Ghafary, Michael D. Lockard, and Kathryn Wheelock for the Southern District of New York and Trial Attorney Christina Clark of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
California Man Sentenced for Acting as an Illegal Agent of the PRC Government and BriberyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHN CHEN was sentenced today to 20 months in prison for acting as an unregistered agent of the government of the People’s Republic of China (“PRC”) and bribing an Internal Revenue Service (“IRS”) agent in connection with a plot to target U.S.-based practitioners of Falun Gong — a spiritual practice banned in the PRC. CHEN pled guilty on July 24, 2024, before U.S. Magistrate Judge Andrew E. Krause and was sentenced today by U.S. District Judge Nelson S. Román.
U.S. Attorney Damian Williams said: “John Chen aligned himself with the PRC government and its goals to harass and intimidate the Falun Gong, a long-standing target of PRC repression. In doing so, Chen boldly attempted to bribe an individual he believed to be an IRS agent to corrupt the administration of the U.S. tax code and pervert the IRS whistleblower program. This Office will not tolerate efforts like this to repress free speech by targeting critics of the PRC in the United States. Today’s sentence is a reminder that the U.S. justice system will hold accountable those who attempt to engage in malicious transnational repression on American soil.”
According to the Indictment and other court documents:
From at least approximately January 2023 to May 2023, CHEN and his co-defendant, Lin Feng (“FENG”) worked inside the U.S. at the direction of the PRC Government, including an identified PRC Government official (“PRC Official-1”), to further the PRC Government’s campaign to repress and harass Falun Gong practitioners. The PRC Government has designated the Falun Gong as one of the “Five Poisons,” or one of the top five threats to its rule. In China, Falun Gong adherents face a range of repressive and punitive measures from the PRC Government, including imprisonment.
As part of the PRC Government’s campaign against the Falun Gong, CHEN and FENG engaged in a PRC Government-directed scheme to manipulate the IRS’s Whistleblower Program in an effort to strip the tax-exempt status of an entity run and maintained by Falun Gong practitioners, the Shen Yun Performing Arts Center. After CHEN filed a defective whistleblower complaint with the IRS (the “Chen Whistleblower Complaint”), CHEN and FENG paid $5,000 in cash bribes, and promised to pay substantially more, to a purported IRS agent who was, in fact, an undercover officer (“Agent-1”) in exchange for Agent-1’s assistance in advancing the complaint. Neither CHEN nor FENG notified the Attorney General that they were acting as agents of the PRC Government in the U.S.
In the course of the scheme, CHEN, on a recorded call, explicitly noted that the purpose of paying these bribes, which were directed and funded by the PRC Government, was to carry out the PRC Government’s aim of “toppl[ing] . . . the Falun Gong.” During a call intercepted pursuant to a judicially authorized wiretap, CHEN and FENG discussed receiving “direction” on the bribery scheme from PRC Official-1, deleting instructions received from PRC Official-1 in order to evade detection, and “alert[ing]” and “sound[ing] the alarm” to PRC Official-1 if CHEN and FENG’s meetings to bribe Agent-1 did not go as planned. CHEN and FENG also discussed that PRC Official-1 was the PRC Government official “in charge” of the bribery scheme targeting the Falun Gong.
As part of this scheme, CHEN and FENG met with Agent-1 in Newburgh, New York, on May 14, 2023. During the meeting, CHEN gave Agent-1 a $1,000 cash bribe as an initial, partial bribe payment. CHEN further offered to pay Agent-1 a total of $50,000 for opening an audit on the Shen Yun Performing Arts Center, as well as 60% of any whistleblower award from the IRS if the Chen Whistleblower Complaint were successful. On May 18, 2023, FENG paid Agent-1 a $4,000 cash bribe at John F. Kennedy International Airport as an additional partial bribe payment in furtherance of the scheme.
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In addition to the prison term, CHEN, 71, of Chino, California, was sentenced to three years of supervised release and ordered to forfeit $50,000.
FENG, 44, a PRC citizen and resident of Los Angeles, California, was sentenced by Judge Román on September 26, 2024, to a time-served sentence of 16 months in prison.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s New York and Los Angeles Field Offices and Counterintelligence Division and the Office of the U.S. Treasury Inspector General for Tax Administration. Mr. Williams also thanked the Department of Justice’s National Security Division, Counterintelligence and Export Control Section for their assistance.
The case is being handled by the Office’s White Plains Division and National Security and International Narcotics Unit. Assistant U.S. Attorneys Qais Ghafary, Michael D. Lockard, and Kathryn Wheelock are in charge of the case, with assistance from Trial Attorney Christina Clark of the Counterintelligence and Export Control Section.
CEO of Artificial Intelligence Startup Company Charged with Defrauding InvestorsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging JOANNA SMITH-GRIFFIN with securities fraud, wire fraud, and aggravated identity theft in connection with defrauding investors in AllHere Education, Inc., the startup artificial intelligence education technology company she founded, out of millions of dollars. SMITH-GRIFFIN was arrested earlier today in the Eastern District of North Carolina and will be presented this afternoon before a magistrate judge in that district. The case has been assigned to U.S. District Judge John G. Koeltl.
U.S. Attorney Damian Williams said: “As alleged, Joanna Smith-Griffin orchestrated a deliberate and calculated scheme to deceive investors in AllHere Education, Inc., inflating the company’s financials to secure millions of dollars under false pretenses. The law does not turn a blind eye to those who allegedly distort financial realities for personal gain.”
FBI Assistant Director in Charge James E. Dennehy said: “Joanna Smith-Griffin allegedly misrepresented the composition of her startup company to defraud investors of millions and masqueraded as a financial consultant to perpetuate the scheme once discrepancies were discovered. Her alleged actions impacted the potential for improved learning environments across major school districts by selfishly prioritizing personal expenses. The FBI will ensure that any individual exploiting the promise of educational opportunities for our city’s children will be taught a lesson.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
From at least in or about November 2020 through at least in or about June 2024, SMITH‑GRIFFIN engaged in a scheme to defraud investors in AllHere Education, Inc. (“AllHere”), an educational technology startup she founded at Harvard that sold artificial intelligence software designed to increase classroom attendance and engagement in K-12 school districts. Beginning as early as AllHere’s Series A financing round in November 2020 and continuing through the collapse of the company in June 2024, SMITH-GRIFFIN misrepresented AllHere’s revenue, customer base, and cash to her investors.
For example, in the spring of 2021, SMITH-GRIFFIN told potential AllHere investors that AllHere had generated approximately $3.7 million in revenue in 2020, had approximately $2.5 million in cash on hand, and had major school district customers like the New York City Department of Education ("NYC DOE") and Atlanta Public Schools. In fact, AllHere had generated approximately $11,000 in revenue in 2020, had approximately $494,000 in cash, and did not have contracts with many of the customers it represented, including the NYC DOE and Atlanta Public Schools.
SMITH-GRIFFIN’s misrepresentations continued through AllHere’s collapse, during which time she was able to obtain nearly $10 million from investors and sought an additional $35 million from a private equity investor who ultimately decided not to invest. She used some of the fraudulently obtained funds to put a down payment on her house in North Carolina and pay for her wedding. SMITH-GRIFFIN also embezzled corporate funds for her own benefit. When AllHere’s investors and outside accountant accidentally discovered the discrepancy between AllHere’s actual financials and what SMITH-GRIFFIN was telling investors, SMITH-GRIFFIN tried to cover up her crimes, going so far as to create a fake email account for AllHere’s outside financial consultant, which she used to send additional fraudulent financial documents to her largest investor.
AllHere is now in Chapter 7 bankruptcy, its employees have been laid off, and AllHere is under the control of a court-appointed bankruptcy trustee.
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SMITH-GRIFFIN, 33, of Raleigh, North Carolina, is charged with securities fraud, which carries a maximum sentence of 20 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; and aggravated identity theft, which carries a mandatory sentence of two years in prison.
Mr. Williams praised the outstanding work of the FBI.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Matthew R. Shahabian is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Buffalo man indicted on charges of selling fentanyl that resulted in two deathsRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a superseding indictment charging Rashaun Crule, 30, of Buffalo, NY, with narcotics conspiracy and distribution of fentanyl resulting in the death, which carry a mandatory minimum penalty of 20 years in prison and a maximum of life.
Assistant U.S. Attorney Evan K. Glaberson, who is handling the case, stated that, according to the superseding indictment, in February 2023, Crule distributed fentanyl to two individuals identified as M.M. and B.Y. in Amherst, NY. The victims believed they were purchasing cocaine, when in reality Crule delivered a bag of pure fentanyl. Both M.M. and B.Y. ingested the fentanyl shortly after receiving it, overdosed immediately, and died as a result. The victims bodies were not discovered for several days. A search of Crule’s cell phone determined that he deleted all messages between himself and one of the victims. In addition, about five months after the deaths of the two victims, Crule joked in a text message with another individual about the strength of the fentanyl that he was selling, responding with laughing emojis to a message suggesting his fentanyl was strong enough to cause overdoses.
At the time, Crule was on probation for a 2022 felony drug conviction in Erie County.
The superseding indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarentino, New York Field Division, and the Amherst Police Department, under the direction of Chief Scott Chamberlin.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Brothers Residing in New York and Bangladesh Charged with Running Digital Streaming Piracy SchemeRead the Press Release
On Nov. 15, a federal grand jury in the Eastern District of New York returned an indictment charging Noor Nabi Chowdhury, 56, of Cheektowaga, New York, and his brother, Mohammad Rahman, 36, of Dhaka, Bangladesh, with conspiracy to provide to the public an illicit digital transmission service; providing an illicit digital transmission service; conspiracy to commit wire fraud; and aggravated identity theft. The charges stem from their operation of 247TVStream, an online subscription-based service that permitted users to stream copyrighted content, such as live sports programming and television shows, without the permission of the relevant copyright owners.
According to court documents, Chowdhury and Rahman allegedly ran the illegal scheme for years and collected more than $7 million in subscriber fees from 247TVStream subscribers. The estimated harm to legitimate copyright owners caused by 247TVStream is more than $100 million. Chowdhury and Rahman also allegedly used a victim’s identification to facilitate the infrastructure for the scheme.
The indictment was unsealed earlier today, following Chowdhury’s arrest, and he appeared for his arraignment in the U.S. District Court for the Western District of New York this afternoon. An arrest warrant was issued for Rahman, who remains at large.
“According to the indictment, Chowdhury and Rahman ran an illicit digital streaming site that infringed upon more than a hundred million dollars of intellectual property owned by legitimate copyright owners,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Thanks to the work of our prosecutors, along with our domestic and international law enforcement partners, the illicit digital streaming site no longer exists, and Chowdhury is in custody. These actions demonstrate the Criminal Division’s commitment to protecting intellectual property rights by vigorously enforcing the laws against illicit digital transmission services.”
“As alleged, the defendants operated a bootleg online streaming service that distributed copyrighted television programs that they stole for their personal enrichment,” said U.S. Attorney Breon Peace for the Eastern District of New York. “My office and the Justice Department are committed to protecting the rights of intellectual property holders from digital pirates like these defendants.”
“Noor Nabi Chowdhury and Mohammad Rahman are accused of committing copyright infringement to the tune of over $100 million,” said Special Agent in Charge William S. Walker of the Homeland Security Investigations (HSI) New York Field Office. “As alleged and in furtherance of their criminal scheme, the defendants stole an unsuspecting victim’s identity to exploit major American businesses, in pursuit of illicit wealth. HSI New York proudly stands alongside our law enforcement and private sector partners, both domestic and abroad, to thwart criminal organizations who seek to financially capitalize on their wrongdoing.”
Also today, HSI executed a seizure order from the Eastern District of New York against website domain names used by Chowdhury and Rahman to operate 247TVStream. The seizure of these domains by the government will prevent the owners and third parties from using the sites to operate 247TVStream. Individuals, including subscribers, visiting those sites now will see a message indicating that the site has been seized by the federal government. In addition, in coordination with international law enforcement partners to enforce criminal copyright laws, Dutch and United Kingdom authorities have seized the servers hosting a portion of the 247TVStream infrastructure.
If convicted, Chowdhury and Rahman each face a maximum penalty of five years in prison on the conspiracy to provide the illicit digital transmission service charge; three years in prison on the providing the illicit digital transmission service charge; 20 years in prison for the conspiracy to commit wire fraud charge; and a mandatory penalty of two years in prison for aggravated identity theft, to run consecutive to the other sentences.
The HSI New York Field Office is investigating the case, with assistance from the HSI Buffalo Field Office and their Attaché Offices in Ottawa, The Hague, and London.
The Justice Department’s Office of International Affairs also assisted. The Justice Department appreciates the additional assistance provided by the Surrey and City of London Police of the United Kingdom, Royal Canadian Mounted Police, and Fiscale inlichtingen- en opsporingsdienst of the Netherlands.
Trial Attorneys Vasantha Rao and Jeff Pearlman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Rebecca Schuman for the Eastern District of New York are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brevard County Man Sentenced to 10 Years’ Imprisonment for Cocaine OffenseRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory A. Presnell has sentenced Jackie Jamal Hines (47, Melbourne) to 10 years in federal prison for possessing with intent to distribute multiple kilograms of cocaine. Hines pleaded guilty on May 30, 2024.
According to court documents, in December 2023, law enforcement officers attempted a traffic stop on a vehicle Hines was driving after he left his storage unit in Melbourne. Hines exited his vehicle and fled on foot from the officers. Once he was detained, officers found a bag containing more than 300 grams of cocaine and two digital scales on his person. A search warrant was then obtained for the storage unit, where agents located a safe with five pressed bricks containing about a kilogram each of cocaine.
This case was investigated by the Drug Enforcement Administration and the Melbourne Police Department. It was prosecuted by Assistant United States Attorney Megan Testerman.
Boynton Beach Man Pleads Guilty to Distributing Child Sexual Abuse Material over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Timothy Burch Morris (46, Boynton Beach) has pleaded guilty to distributing child sexual abuse material over the internet. Morris faces a minimum penalty of 5 years, up to 20 years, in federal prison and a potential lifetime term of supervised release. His sentencing hearing is scheduled for January 27, 2025.
According to court documents, on November 20, 2023, an undercover FBI agent (UC) in Jacksonville was working on a particular social media application (app) to identify individuals who were attempting to sexually exploit children. The UC joined an online public chat room on the app posing as an adult with access to a child. App user “timkw37138,” who was later identified as Morris, posted within this public group, “Hi all. 44 very well hung male in Florida. My PM is open.” Later that day, the UC and Morris began texting using the private messaging feature of the app. Morris typed, “I just love stroking to guys [sic] daughters,” and stated that his favorite age is “prob 13-15 give or take a couple years neither side.” When he was told that UC had access to an even younger child, Morris replied, “Ow wow / That could work.” When asked to verify that he was “legit,” Morris sent the UC an explicit photo of himself taken in a hotel room. Five minutes later, Morris sent the UC two videos that depicted minors being sexually abused. During another online conversation, Morris sent the UC another explicit photo of himself.
After further investigation, FBI agents arrested Morris near his residence in Boynton Beach. During a search incident to his arrest, agents seized Morris’s phone. A search of the device revealed several photos consistent with those Morris had sent to UC. During an interview with law enforcement, Morris admitted having the “timkw37138” user account on the app for more than five years and stated that he had recently deleted the app from his phone because he started having conversations that he should not be having.
This case was investigated by the Federal Bureau of Investigation in Jacksonville and West Palm Beach, with the assistance from the Boynton Beach Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 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 child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Beckley Man Pleads Guilty to Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Ryan H. Guerrant, 33, of Beckley, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on November 26, 2023, law enforcement officers responded to reports of a shooting at a Beckley residence and found Guerrant in the residence with a Bersa model BP9CC 9mm next to him on a bed.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Guerrant knew he was prohibited from possessing a firearm because of his prior felony convictions for first-degree robbery, conspiracy to commit first-degree robbery, and escape in Raleigh County Circuit Court on January 15, 2010.
Guerrant is scheduled to be sentenced on March 14, 2025, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Beckley Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Brian D. Parsons is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-93.
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Auburn Man Sentenced to 63 Months in Prison for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Timothy Durel, 58, of Auburn, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years and three months in prison to be followed by five years of supervised release for receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2012 and 2021, Durel uploaded and shared between email accounts hundreds of visual depictions of minors engaged in sexually explicit conduct. This included images of prepubescent children. When law enforcement searched Durel’s home in 2021, they seized electronic devices and found hundreds of additional images of child pornography.
This case was the product of an investigation by Homeland Security Investigations and the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Roger Yang prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Auburn Man Pleads Guilty After Being Caught on Video Selling Crack CocaineRead the Press Release
PORTLAND, Maine: An Auburn man pleaded guilty today in U.S. District Court in Portland to distributing and possessing with intent to distribute controlled substances.
According to court records, in May and June 2024, agents from the U.S. Drug Enforcement Administration (DEA) directed a confidential source to conduct two controlled buys from Pierre Calhoun, 39, with both transactions captured on video and audio recordings. The DEA lab later tested the seized drugs and confirmed them to be approximately 24.7 grams of crack cocaine.
Calhoun faces up to 20 years imprisonment and a fine up to $1 million. Any sentence would be followed by no less than three years of supervised release. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA investigated the case.
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