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3 December 2024
Nashua Man Indicted for Robbery and Interstate Transportation of Stolen Vehicles and MoneyRead the Press Release
CONCORD – A Nashua man was indicted in connection with a robbery and transportation of stolen vehicles and money, U.S. Attorney Jane E. Young announces.
Barry English, 37, was indicted on one count of Hobbs Act Robbery, two counts of Interstate Transportation of a Stolen Vehicle, and one count of Interstate Transportation of Stolen Money. English was arrested on June 24, 2024. He appeared in federal court today and is detained.
According to the charging documents, on May 23, 2024, English drove a stolen Honda Fit from Massachusetts to New Hampshire. On June 23, 2024, he robbed a Cumberland Farms in Nashua. The following day, June 24, English drove a stolen BMW, along with more than $5000 in stolen cash, from Vermont to New Hampshire.
The charge of Hobbs Act Robbery provides for a sentence of no greater than 20 years in prison, 3 years of supervised release, and a fine of not more than $250,000. The charge of Interstate Transportation of a Stolen Vehicle provides for a sentence of no greater than 10 years in prison, 3 years of supervised release, and a fine of not more than $250,000. The charge of Interstate Transportation of Stolen Money provides for a sentence of no greater than 10 years in prison, 3 years of supervised release, and a fine of not more than $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation and the Nashua Police Department led the investigation. The Manchester Police Department, the New Hampshire State Police, the Lowell (Massachusetts) Police Department, and the Newport (Vermont) Police Department all provided valuable assistance. Assistant U.S. Attorney Tiffany Scanlon is prosecuting the case.
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.
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Morgan County Man Sentenced for Role in Drug Trafficking OrganizationRead the Press Release
MARTINSBURG, WEST VIRGINIA – A West Virginia man has been sentenced for his role and a Virginia woman has admitted to her involvement in a drug trafficking conspiracy operating in Berkeley, Morgan, and Hampshire Counties.
Andrew Scott Sager, 55, of Berkeley Springs, West Virginia, was sentenced to 70 months in prison for possession with intent to distribute methamphetamine hydrochloride, also known as “ice.” Sager has a criminal history that includes multiple DUIs, drug possession, firearms violations, and domestic battery.
Whitney Lynn, Mathias, 35, of Cross Junction, Virginia, pled guilty to conspiracy to possess with intent to distribute and to distribute methamphetamine hydrochloride, fentanyl, cocaine hydrochloride, and cocaine base. She faces up to 20 years in prison. She will be sentenced at a later date.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the cases on behalf of the government.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated. If convicted, a federal district court judge would determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Magistrate Judge Robert W. Trumble presided over the plea hearing.
U.S. District Judge Gina M. Groh presided over the sentencing hearing.
Moorhead, Minnesota, Real Estate Company Sentenced for Failing to Provide Lead-Based Paint DisclosureRead the Press Release
FARGO – United States Attorney Mac Schneider announced that on December 3, 2024, U.S. Magistrate Judge Alice R. Senechal sentenced Valley Property Partners LLC, d/b/a “House Dudes,” a Moorhead, Minnesota, based real estate company, to: 1) pay $4,274.78. in restitution and $10,000 in fines; 2) serve one-year probation; and 3) perform 50 hours of community service for failing to provide a home purchaser with lead-based paint disclosures as required by the Toxic Substances Control Act. As part of the sentence in this case, Valley Property Partners LLC has agreed to include a notice on its website about the harmful effects of lead-based paint exposure and its required obligations to home buyers pertaining to lead-based paint disclosures.
As stated in the information and plea agreement, On October 16, 2019, Valley Property Partners LLC sold a pre-1978 built home, located in Hillsboro, North Dakota, to a purchaser but failed to provide this purchaser with required lead-based paint disclosures in violation of the Toxic Substances Control Act. In April 2022, medical personnel diagnosed two children, aged between one and two years old at the time, who were living at the residence, with elevated blood lead levels. In June 2022, the North Dakota Department of Environmental Quality (NDDEQ) conducted an inspection for the presence of lead-based paint at the home located in Hillsboro, North Dakota. During this inspection, NDDEQ obtained positive results for lead-based paint in multiple areas of the home, including in areas of the children’s playroom.
“The Toxic Substances Control Act protects kids and homebuyers, and while most sellers make the required disclosures in good faith, there can be serious health impacts on children when the law is violated,” Schneider said. “As this case shows, there are also legal consequences for the violators. I want to thank our career prosecutors and their federal and state partners for providing accountability and reaching a fair outcome in this case.”
“Childhood lead exposure remains a significant public health concern and the EPA is committed to reducing lead exposures among children, who are the most vulnerable to the effects of lead,” said Special Agent in Charge Lance Ehrig of the Environmental Protection Agency’s Criminal Investigation Division (EPA CID) in North Dakota. “The actions of the defendant in this case resulted in two childhood lead exposures, which could have been prevented if the defendant had followed the law. Today’s sentencing demonstrates that those who violate our nation’s environmental laws and place children at risk will be held accountable for their actions.”
This case was investigated by the United States Environmental Protection Agency – Criminal Investigation Division with assistance from the North Dakota Department of Environmental Quality.
Assistant U.S. Attorney Jonathan J. O’Konek prosecuted this case.
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Minnesota Man Sentenced to Federal Prison for Escape from CustodyRead the Press Release
A man who escaped from custody in the Gerald R. Hinzman Center was sentenced today to 18 months in federal prison.
Joshua Taylor Watson, age 35, from Rochester, Minnesota, received the prison term after a June 10, 2024 guilty plea to one count of escape from federal custody.
At the plea hearing, Watson admitted that he was in custody at the Hinzman Center under a federal court order pursuant to his prior conviction for conspiracy to distribute methamphetamine. On January 22, 2024, Watson left the facility without permission and did not return. Watson was found in Rochester, Minnesota, and he was arrested on January 25, 2024.
Watson was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Watson was sentenced to 18 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Watson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Adam J. Vander Stoep and was investigated by the United States Marshals Service and the Northern Iowa Fugitive Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-9.
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Minneapolis Man Sentenced to 24 Years in Prison for Kidnapping, Bank Fraud, and Aggravated Identity TheftRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has been sentenced to 288 months in prison, five years of supervised release, and was ordered to pay $5,000 in restitution for kidnapping, bank fraud, and identity theft after robbing two women at gunpoint and stealing from another, announced U.S. Attorney Andrew M. Luger.
According to evidence presented at trial, on September 13, 2022, at approximately 7:30 a.m., Raphael Raymond Nunn, 58, approached a woman in Arden Hills who had just parked her vehicle. Nunn, who was wearing a mask, gloves, and carrying a handgun, forced the victim at gunpoint to drive him to an ATM in Minneapolis and withdraw cash for his own benefit. Nunn then ordered the victim to drive to Matthews Park, where he then ordered her to give him her keys so he could get away.
According to court documents, Nunn was later captured on surveillance videos from surrounding businesses and seen exiting the victim’s vehicle, removing his hood and mask, and entering a nearby corner grocery store. Four days later, Nunn returned to the store driving a vehicle registered in his name which led to the discovery of his address, where he was ultimately arrested on September 22, 2022
A search of his residence recovered evidence from the kidnapping and revealed Nunn had stolen from a second victim and robbed a third at gunpoint before fraudulently using the victims’ stolen credit cards to obtain money from their bank accounts.
On May 23, 2024, Nunn was convicted by a federal jury on one count of kidnapping, two counts of bank fraud, and two counts of aggravated identity theft following a four-day trial. He was sentenced last week in U.S. District Court by Judge Eric C. Tostrud. In handing down the sentence, Judge Tostrud commented that Nunn was “incorrigible,” and issued an upwards variance in his sentence noting that Nunn “posed an escalating danger to the public.”
This case is the result of an investigation conducted by the Ramsey County Sheriff’s Office, Oak Park Police Department, the City of Hudson Police Department, and the FBI.
Assistant U.S. Attorneys Albania Concepcion and Lauren O. Roso prosecuted the case.
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced December 2, 2024, to six months in federal prison.
Arturo Reyna-Arajo, age 31, a citizen of Mexico illegally present in the United States and residing in Postville, Iowa, received the prison term after a September 12, 2024, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Reyna-Arajo admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Reyna-Arajo was previously deported in February 2016. On June 22, 2024, immigration officials learned Reyna-Arajo had illegally returned to the United States following Reyna-Arajo’s arrest in Allamakee County on state charges. Reyna-Arajo was previously convicted in 2015 in the Clayton County, Iowa of falsifying public documents, a felony.
Reyna-Arajo was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Reyna-Arajo was sentenced to six months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Reyna-Arajo is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-1022.
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Maine’s U.S. Attorney’s Office Reaches Agreement with Lowe’s to Improve Customer Accessibility NationwideRead the Press Release
PORTLAND, Maine: The U.S. Attorney’s Office for the District of Maine has reached a settlement agreement with Lowe’s Companies, Inc. to resolve allegations that the retailer did not provide compliant access for customers with disabilities at many of its Maine locations.
The settlement agreement resolves an Americans with Disabilities Act (ADA) complaint filed by a Lowe’s customer with a mobility impairment who alleged that a Lowe’s location in Brewer did not provide accessible parking located on the shortest accessible route from the parking to an accessible entrance. The complaint also indicated that the same allegation may be applicable to other Lowe’s locations. As a result of its investigation, the United States contended that several Lowe’s locations in Maine, including in Brewer, Brunswick, Portland and Windham, failed to provide accessible parking spaces located on the shortest accessible route from the parking to an accessible entrance.
Title III of the ADA mandates that “[n]o individual shall be discriminated against on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of any place of public accommodation by any person who owns, leases (or leases to), or operates a place of public accommodation.”
Under the settlement agreement, Lowe’s has agreed to make certain modifications to improve accessibility at its retail locations for persons with mobility impairments. These include providing accessible parking spaces located on the shortest accessible route to the main customer entrance, providing groups of accessible parking spaces near all accessible entrances, keeping accessible parking spots operational and clear of obstructions, and providing improved and proper signage. In addition, Lowe’s agreed to designate at least one employee to serve as ADA Compliance Manager who will have a working knowledge and understanding of Title III of the ADA and to train current and future employees responsible for parking about ADA requirements. Lowe’s will compensate the complainant $5,000. In addition to making the improvements at the identified locations in Maine, Lowe’s has agreed that, within six months, it will provide the Department a plan on surveying the remainder of its locations nationwide for compliance regarding ADA accessible parking.
“No one living with a disability should be unlawfully denied safe and unencumbered access to a retail location,” said U.S. Attorney Darcie N. McElwee. “Ensuring that commercial retail locations do not discriminate against persons with disabilities is a priority for the Department of Justice and for my office. The remedial measures agreed to by Lowe’s, which will have nationwide effect, will give individuals with disabilities an equal opportunity to shop, as required by the ADA. I hope that other retailers will proactively comply with this important civil rights law.”
Lowe’s cooperated fully with the U.S. Attorney’s Office during its investigation.
Individuals who believe their civil rights may have been violated: Submit complaints by accessing https://civilrights.justice.gov/. For more information on the ADA, or to access publications available to assist entities in complying with the ADA, visit ada.gov or call the Justice Department’s toll-free ADA information line at 1-800-514-0301 or 1-800-514-0383 (TDD).
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Leader of $200 Million Ponzi Scheme Sentenced to 20 Years in PrisonRead the Press Release
MIAMI – Johanna Michely Garcia, the former Chief Executive Officer of MJ Capital Funding, LLC was sentenced to 240 months in prison today.
On July 16, Garcia, 41, from Broward County, Fla., pled guilty to conspiracy to commit mail and wire fraud. The conspiracy involved Garcia leading others, including Pavel Ramon Ruiz Hernandez, in an investment Ponzi fraud scheme totaling approximately $190,700,000.
According to court records, Garcia’s MJ Capital Funding was purportedly engaged in providing merchant cash advances, or MCAs, a type of short-term financing typically used by small businesses. Beginning in October 2020, and continuing through August 2021, Garcia conspired with others to fraudulently solicit money from investors to fund MJ Capital Funding’s MCAs. Garcia and her co-conspirators recruited other people to solicit investors for MJ Capital Funding’s investment offering and paid those recruiters commissions.
Court records state that Garcia and her co-conspirators, directly and indirectly, made false statements and fraudulent representations to investors concerning the nature of the MJ Capital Funding investment and the use of investor funds. Garcia and others falsely told investors that their money would be used to fund MCAs and that investor returns would be paid from the profits of MJ Capital Funding’s MCA business. However, the company made few loans and failed to earn anywhere near the profits it needed to pay the investors the promised returns. As a result, Garcia paid investors by running a large Ponzi fraud scheme, paying existing investors using new investor funds while misappropriating millions of dollars for her own personal benefit. Of the nearly $200 million raised, investors lost nearly $90 million.
According to Court records, after the FBI and Securities and Exchange Commission (SEC) effectively shut down MJ Capital Funding, in the fall of 2021, Garcia, Ruiz Hernandez, and others began operating a new Ponzi scheme that was comparable to the MJ Capital Funding criminal enterprise. Garcia led this new scheme from its inception, up until her arrest, and after, while in Bureau of Prisons custody. The entities utilized by Garcia and her co-conspirators for the new fraud scheme included New Beginning Global Funding LLC, New Beginning Capital Funding LLC, Lion Heart Capital Group L.L.C., GMR Remodeling LLC, and Group Management LLC. Similar to the MJ Capital Funding fraud, Garcia and her partners told victims that their money would be used to fund commercial loans. In truth, the money raised was used to pay off previous investors, and fund Garcia and her coconspirators' lifestyles.
Ruiz Hernandez was charged in August 2022, pled guilty in April 2023, and was sentenced in September 2023 to 110 months’ imprisonment, followed by three years of supervised release.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida Special Agent in Charge Jeffrey B. Veltri, FBI Miami, and Russell C. Weigel, III, Commissioner, Florida Office of Financial Regulation (OFR) made the announcement.
FBI Miami and OFR investigated this case. SEC’s Miami Regional Office and Florida’s Office of Financial Regulation provided invaluable assistance. Assistant U.S. Attorney Roger Cruz prosecuted the case. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20350.
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Las Vegas Man Sentenced to Prison for Defrauding More Than $7 Million from Loan LendersRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced today by United States District Judge Gloria M. Navarro to 51 months in prison to be followed by three years of supervised release for orchestrating a scheme to defraud loan lenders and cause more than $7 million in losses.
According to court documents, from February 1, 2017 to October 1, 2018, Brandon David Sattler, 47, devised a scheme to defraud and obtain loans from three individual lenders. As part of the scheme, Sattler made false representations that his company needed loans to fulfill renovation contracts that he had with one hotel and casino and claimed to hold with other hotels and casinos. Sattler altered information from his bank to show his bank account held more than it actually did in order to influence the three individual lenders to loan money to his company. After obtaining the loans, Sattler made misrepresentations in order to extend the maturity date of the loans and delay the deadline for repayment. In total, Sattler caused a loss of more than $7 million.
Sattler pleaded guilty to one count of wire fraud. He has two prior convictions for fraud in California and Texas.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
This case was investigated by the FBI, and Assistant United States Attorney Daniel Schiess prosecuted the case.
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Kalamazoo Man Pleads Guilty to Possession with Intent to Distribute FentanylRead the Press Release
LANSING – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Lonnie Morrow, 33, of Kalamazoo, Michigan pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl. Morrow is scheduled to be sentenced on March 19, 2024, and faces a minimum of 5 years and a maximum of 40 years in federal prison.
“As little as two milligrams of fentanyl (a few grains of sand) can kill,” said U.S. Attorney Mark Totten. “The trafficking of illegal drugs, especially fentanyl, is driving the ongoing epidemic of drug poisoning deaths here at home and across the United States. My office is committed to disrupting the flow of these poisons into our communities.”
According to the plea agreement, Morrow possessed approximately 10,800 pills containing fentanyl, weighing over 1,100 grams, which he intended to distribute. During a traffic stop on March 9, 2024, officers with the Kalamazoo Department of Public Safety (KDPS) and the Kalamazoo Valley Enforcement Team (KVET) located the fentanyl pills in a bag concealed under Morrow’s seat. During a subsequent search, law enforcement also found three firearms, ammunition, cocaine, and over $12,000 in U.S. currency in Morrow’s apartment.
According to the Centers for Disease Control (see here), in 2023 at least 107,543 people died from drug poisoning across the United States, which is near the all-time high of 111,029 deaths in 2022. In Michigan, at least 2,931 people died from drug poisoning in 2023. Approximately 75% of the 2023 drug poisoning deaths across the United States were due to fentanyl. While current data shows a noticeable decrease in drug-related deaths across the nation, the numbers remain high.
The following services are available for people experiencing addiction, or their friends and loved ones:
- Substance Abuse and Mental Health Services Administration (SAMHSA) Helpline, 1-800-662-4357, www.samhsa.gov/find-support/in-crisis.
- Cope Network (providing free Naloxone and other harm reduction services in Barry, Berrien, Branch, Cass, Calhoun, St. Joseph, and Van Buren Counties), 269-580-8290, www.copenetwork.org.
- The Grand Rapids Red Project (providing free Naloxone and other harm reduction services in Kent and Muskegon Counties), 616-456-9063 (Kent County), 231-563-6865 (Muskegon County), www.redproject.org.
- The Michigan Department of Health and Human Services has a webpage that identifies county-by-county services.
The KDPS and KVET investigated this case with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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Justice Department Sues Kentucky Rental Property Owner for Sexual HarassmentRead the Press Release
The Justice Department announced today that it has filed a lawsuit against Joseph E. Johnson, also known as Joe Johnson, the owner and operator of rental properties in Lexington, Kentucky, for engaging in sexual harassment and retaliation in violation of the Fair Housing Act.
“For decades, this landlord used his position of power to sexually harass vulnerable women who simply wanted roofs over their heads,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Women should not live in fear when they pay their rent or seek repairs. The Justice Department will continue to vigorously enforce the Fair Housing Act’s prohibition on this conduct.”
“Sexual harassment in housing deprives its victims of the safety and security that a home is supposed to provide,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “That makes compelling enforcement of the Fair Housing Act critical to ensuring that victims can gain relief from such inexcusable 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 decades, Johnson has sexually harassed numerous female tenants. According to the complaint, Johnson has offered housing-related benefits in exchange for sexual contact, made unwelcome sexual comments and advances to female tenants, subjected female tenants to unwelcome touching and groping, taken adverse housing-related actions against female tenants who refused his sexual advances and failed to act when made aware of similar harassing behavior by one or more of his employees.
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 the defendant to vindicate the public interest and a court order barring future discrimination.
“It is unacceptable for landlords to threaten or commit sexual harassment or abuse against tenants,” said HUD Inspector General Rae Oliver Davis. “The defendant allegedly preyed upon vulnerable tenants and retaliated against them when they spurned his sexual advances. My office will continue to work with our law enforcement partners to hold housing providers accountable for this type of horrible conduct.”
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 47 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 Joe Johnson, 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 00 to leave a message. To leave a message in Spanish, select 2 for Spanish, and select option number 1 and then option number 00 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 HUD at 1-800-669-9777 or by filing a complaint online.
Justice Department Announces Successful Conclusion of Agreement with the City of Yonkers, New York and the Yonkers Police Department to Ensure Constitutional PolicingRead the Press Release
The Justice Department announced today the successful conclusion of its agreement with the City of Yonkers, New York, and the Yonkers Police Department (YPD). The agreement required YPD to improve its policies and practices regarding the use of force, stops, searches, and arrests, the protection of First Amendment rights, misconduct investigations and discipline, and community policing. Over the past eight years, the city and YPD have implemented all of the reforms required by the agreement and sustained those reforms for more than a year. Today, the Justice Department agreed to terminate the agreement and commends the city and YPD on their achievements.
“The success of Yonkers and the Yonkers Police Department under this agreement demonstrates the fundamental truth that fair, constitutional and effective policing can enhance public safety and promote trust between police and the community they are sworn to protect and serve,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Through this agreement, the city and YPD have significantly decreased settlement payouts on excessive force claims, and from 2017 to 2023, violent crimes in Yonkers also fell substantially. We commend YPD leadership, including former YPD Commissioners Charles Gardner and John Mueller, current YPD Commissioner Christopher Sapienza, as well as civilian staff and officers for their commitment to ensure constitutional policing for the people of Yonkers. Our settlements with police departments are of little utility unless real work and effort is put in to ensure that reforms are brought to life and successfully implemented.”
“Since the commencement of our investigation in 2007, the Yonkers Police Department has worked assiduously and cooperatively to implement significant reforms which ensure that its officers are well trained, well informed and guided on appropriate uses of force, and that a thorough and robust review system is in place to identify potentially problematic incidents, officers, training and tactics,” said U.S. Attorney Damian Williams for the Southern District of New York. “The Yonkers Police Department has achieved substantial compliance with all provisions of the agreement and established policies and programs that demonstrate a dedication and commitment to serving the community and ensuring its safety and well-being. I commend the Yonkers Police Department for its efforts.”
Over the period the agreement has been in place, there are substantial indications that the agreement has led to improvements in the constitutionality and effectiveness of YPD’s policing.
- The city has experienced a significant reduction in excessive force settlement payouts due to a marked decrease in allegations of unlawful uses of force.
- YPD’s Internal Affairs Department has dramatically improved its average times to complete critical use-of-force investigations, from 245 days in 2019, down to 69 days in 2023.
- YPD’s Internal Affairs Department has significantly reduced its average times for completing civilian misconduct complaint investigations, from 236 days in 2019, to 72 days in 2023.
- The City of Yonkers has also experienced a 22% reduction in violent crimes over the last five years.
The Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the Southern District of New York jointly handled the matter.
The Justice Department’s investigations have led to significant reforms of law enforcement agencies nationwide. For example, the Seattle Police Department reduced the use of serious force by 60%, and Seattle officers now use force in less than one-quarter of 1% of all events to which they respond. In Baltimore, the independent consent decree monitor found that officers use force less often and the force they do use is more likely to be consistent with department policy and the law. And under the consent decree in Albuquerque, use of force declined by 25% and violations of the force policy fell by half.
The technical assistance letter for Yonkers can be found here.
The settlement agreement with Yonkers can be found here.
Additional information about the Civil Rights Division’s work can be found here.
Jury finds Columbus man guilty on all charges, including murdering 3 victims, directing others to dismember & bury 2 of the bodiesRead the Press Release
COLUMBUS, Ohio – A federal jury has convicted a Columbus man of murdering three victims as part of a narcotics conspiracy to rob a local marijuana dealer of drugs and cash. Williams had others dismember and bury two of the bodies to dispose of evidence of his crimes.
Larry J. Williams, Jr., also known as “J Streets” and “J”, 43, was found guilty of all 16 counts as charged against him in a second superseding indictment in September 2021.
The verdict was announced today following a three-week trial before U.S. District Judge Michael H. Watson.
According to court documents and trial testimony, Williams was a leader of a narcotics conspiracy in 2018 to rob a local marijuana dealer of drugs and cash in his residence, which ultimately resulted in the shooting death of another person within that house. To cover up for this murder, Williams murdered a man and a woman with knowledge of the first murder.
Williams had solicited others in the conspiracy to learn of potential drug traffickers to rob of their drugs and drug proceeds.
As a result, on June 27, 2018, defendants robbed at gunpoint a drug premises at 847 E.N. Broadway in Columbus. The coconspirators planned and carried out the robbery to steal one of the resident’s marijuana and cash and then profit from the sale of the drugs; they recruited Williams to help in the robbery. During the robbery, Williams murdered a different individual present at the residence, Connor Reynolds, a 23-year-old from Grove City.
In August 2018, Williams then murdered Henry Watson, a 52-year-old from Columbus, to prevent him from providing information regarding Connor Reynolds’s murder to law enforcement.
On the same day, and immediately following the murder of Henry Watson, Williams murdered Tera Pennington, a 48-year-old from Columbus, to prevent her from serving as a witness to the previous crimes.
Williams then instructed individuals to clean the crime scene with bleach and other chemicals. Williams conspired to obstruct justice by concealing the bodies of Henry Watson and Tera Pennington. He directed others to dismember and remove the bodies from the crime scene and bury the victims’ remains at a different location.
Williams used the residence at 121 Stevens Ave. as a drug premises to sell fentanyl, heroin, methamphetamine and cocaine and allow addicts to use narcotics. On more than one occasion, users overdosed in the basement of the home and coconspirators provided Narcan to revive the users.
A total of 13 defendants have been charged in this case.
Williams was found guilty today of:
- Conspiracy to possess with intent to distribute controlled substances
- Murder related to drug trafficking crime
- Robbery
- Murder related to crime of violence (3 counts)
- Conspiracy to destroy evidence
- Murder of a witness (2 counts)
- Obstruction of justice
- Conspiracy to obstruct justice
- Conspiracy to possess with intent to distribute cocaine, methamphetamine, fentanyl, heroin
- Possession with intent to distribute cocaine, methamphetamine, fentanyl, heroin
- Possession of a firearm in furtherance of a drug trafficking crime
- Possession with intent to distribute fentanyl
- Distribution of cocaine
“We hope this verdict brings closure to the victims’ families and serves as a significant step towards justice for our Ohio communities,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “Drug traffickers will go to any lengths to further their violent enterprise, but thankfully Larry Williams’ crimes have come to an end. HSI Special Agents and task force officers worked tirelessly over the course of five years to investigate this case. These agents call central Ohio home and are fully committed to safeguarding the communities where they work and live. I’d like to thank the United States Attorney’s Office for the Southern District of Ohio, the Franklin County Sheriff’s Office and the Columbus Police Department and all our law enforcement partners across Ohio for their efforts and relentless pursuit of justice in this case."
Williams faces a mandatory sentence of life imprisonment.
Congress sets minimum and maximum statutory sentences and sentencing of the defendant will be determined by the Court at a future hearing based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Angie M. Salazar, Special Agent in Charge, Homeland Security Investigations Detroit (HSI); Franklin County Sheriff Dallas Baldwin and Columbus Police Chief Elaine Bryant announced today’s verdict. Assistant United States Attorneys Elizabeth A. Geraghty and Timothy D. Prichard are representing the United States in this case.
The joint investigation includes assistance from the Ohio Bureau of Criminal Investigation (BCI), Franklin County Coroner’s Office, Ohio Narcotics Intelligence Center (ONIC), U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Columbus Division of Fire and the Pickaway County Sheriff’s Office.
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Johnstown Man Sentenced to 10 Years in Prison for Distributing FentanylRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pennsylvania, was sentenced in federal court to a total of 120 months in prison, to be followed by three years of supervised release, on his conviction of possession with intent to distribute fentanyl, United States Attorney Eric G. Olshan announced today.
United States District Judge Stephanie L. Haines imposed the sentence on Nathaniel Jackson, 49.
According to information presented to the Court, on or about April 29, 2019, and on or about May 1, 2019, in the Western District of Pennsylvania, Jackson distributed and possessed with intent to distribute a quantity of fentanyl.
Assistant United States Attorney Arnold P. Bernard Jr. prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Jackson.
Jacksonville Convicted Child Sex Offender Pleads Guilty to Producing Videos and Photos Depicting the Sexual Abuse of A ChildRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Kevin John Merritt (63, Jacksonville) has pleaded guilty to producing videos and photos of him sexually abusing a child. Merritt faces a minimum penalty of 25 years, up to 50 years, in federal prison and a potential life term of supervised release. Merritt is a registered sex offender, having been convicted in August 2011 of possessing child sexual abuse materials. Merritt was arrested on March 16, 2023, and has been in custody since that time. His sentencing hearing is scheduled for February 18, 2025.
According to court documents, an investigation began when the National Center for Missing and Exploited Children (NCMEC) received a “CyberTipline Report” from an online social media app advising that certain files depicting child sexual abuse materials had been sent through the messaging function on the app on September 14, 2022, by user “Jackie Frost” to another user who was ultimately identified and located in Jacksonville. This information was forwarded to the Jacksonville Sheriff’s Office (JSO) for further investigation. JSO detectives obtained search warrants and subpoenas for the internet and cellphone service providers and social media apps that were connected to Merritt. The investigation confirmed that the user “Jackie Frost” was Merritt, and that Merritt had distributed child sexual abuse materials to another individual.
On March 16, 2023, JSO detectives and other personnel executed a search warrant at Merritt’s residence. Merritt was at the home and was arrested. Several of Merritt’s electronic devices were seized, including his cellphone. Forensic examination of the cellphone revealed an email account that was linked to the “Jackie Frost” social media account. It also contained more than 100 photos and videos depicting the sexual exploitation of a minor child who was later identified.
This case was investigated by the Jacksonville Sheriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys D. Rodney Brown and Elisibeth Adams.
This case was 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 victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Head of Drug Trafficking Organization Sentenced to 14 Years in PrisonRead the Press Release
PHOENIX, Ariz. – Heriberto Lopez-Landeros, 44, of Avondale, was sentenced last week by United States District Judge Steven P. Logan to 14 years in prison. Lopez-Landeros pleaded guilty to Possession with Intent to Distribute Methamphetamine on August 5, 2024.
Lopez-Landeros was the head of an Arizona-based drug trafficking organization responsible for importing large quantities of methamphetamine, fentanyl, and heroin from Mexico and transporting drugs across the United States. In order to transport the drugs, Lopez-Landeros recruited semi-truck drivers to transport drugs throughout the United States. The semi-truck drivers often carried the drugs inside the cab of their trucks. During a year-and-a-half long investigation, investigators were able to seize several large loads of drugs connected with Lopez-Landeros, including 83 kilograms of methamphetamine, 12 kilograms of fentanyl, and 645 grams of heroin.
This investigation was 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.
Homeland Security Investigations, the Drug Enforcement Administration, the Arizona Department of Public Safety, and Avondale Police Department conducted the investigation in this case. Assistant U.S. Attorney Ryan McCarthy, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-23-00212-PHX-SPL
RELEASE NUMBER: 2024-170_Lopez-Landeros# # #
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.Hays man admits to felony child abuseRead the Press Release
GREAT FALLS — A Hays area man accused of assaulting children on the Fort Belknap Indian Reservation admitted to child abuse charges today, U.S. Attorney Jesse Laslovich said.
The defendant, Catcher Cuts The Rope, 52, pleaded guilty to four counts of felony child abuse. Cuts The Rope faces a maximum of five years in prison, a $250,000 fine and three years of supervised release on each count.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for April 10, 2025. Cuts The Rope was detained pending further proceedings.
The government alleged in court documents that in May, Fort Belknap law enforcement notified the FBI that tribal social services had received a report from Jane Doe 1 about abuse committed by Cuts The Rope against her and two other children, John Doe and Jane Doe 2. John Doe disclosed that Cuts The Rope pointed a rifle at him during 2015 to 2017, when he was approximately 7 or 8 years old, and that two years ago, Cuts The Rope kicked him with boots and punched him, causing injuries. In approximately 2019, Cuts The Rope choked Jane Doe 1, when she was approximately 9 years old, and during 2021 to 2022, Cuts The Rope held a knife against the throat of Jane Doe 2, when she was approximately 10 years old.
The U.S. Attorney’s Office is prosecuting the case. The FBI and Fort Belknap Law Enforcement conducted the investigation.
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Hartford Man Sentenced to 34 Months in Federal Prison for Unlawfully Possessing Multiple FirearmsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that WESLEY S. PEARSON, 26, of Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 34 months of imprisonment, followed by two years of supervised release, for unlawfully possessing firearms.
According to court documents and statements made in court, on May 16, 2023, Bloomfield Police arrested Pearson after a domestic violence incident. Later that day, having applied for and received a Risk Protection Order from the Connecticut Superior Court, police searched the Bloomfield home where Pearson had been residing and seized three Glock handguns, two that were affixed with a “switch” that converted them to fully automatic firearms and a third that had an obliterated serial number; an L.A.R. Mfg. Grizzly15, multicaliber, short-barreled rifle; a privately manufactured AR-style pistol (“ghost gun”); 24 firearm magazines, including two high-capacity magazines; approximately 280 rounds of ammunition; and other firearm accessories.
The investigation revealed that Pearson directed music videos, under the name “The Kid Wes,” which featured suspected Hartford gang members celebrating gang violence and drug trafficking, among other topics. He also created his own videos, including one titled “Pray for Me” in which he raps “we outside every day on that strip…we got them Glocks with a switch, come out and play us, at least a hundred shots.”
Pearson was previously convicted in state court of a felony drug offense. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Pearson has been detained since May 16, 2023. On June 3, 2024, he pleaded guilty to unlawful possession of a firearm by a felon.
This investigation was conducted by the Bloomfield Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant U.S. Attorney Robert S. Dearington.
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 gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
High Ranking Tren De Aragua Fugitive from Venezuela Arrested in Tennessee Thanks to Interpol CollaborationRead the Press Release
High Ranking Tren de Aragua Fugitive from Venezuela Arrested in Tennessee Thanks to INTERPOL Collaboration
In a powerful demonstration of international law enforcement coordination, INTERPOL Washington announced the successful apprehension of Luis Alejandro Ruiz Godoy, a high-ranking Tren de Aragua fugitive from Venezuela with a history of violent crimes, including human trafficking, robbery, terrorism, weapons offenses, and escape.
“Through the immediate exchange of critical information and unparalleled cooperation with our international and domestic partners, this dangerous gang leader has been apprehended and will be held accountable for his crimes,” said INTERPOL Washington Acting Director Jeffrey A. Grimming. “Tren de Aragua has emerged as a significant threat to the United States as it infiltrates migration flows from Venezuela. INTERPOL Washington will continue to provide critical intelligence to our police partners across the continent to strengthen border and national security, ensuring these violent gang members find no safe harbor in our country.”
On November 7, INTERPOL Washington received an urgent alert from the INTERPOL Command and Coordination Center (CCC) in Lyon, France, regarding a notice for an international fugitive, issued by the INTERPOL National Central Bureau in Caracas, Venezuela. Ruiz Godoy, identified as a prominent gang leader, had been traveling toward the United States via Mexico.
Despite his entry into the United States prior to the publication of notice, swift action by INTERPOL Washington’s Global Police Services Division (GPS) ensured his location was identified. GPS Investigative Analysts helped trace Ruiz Godoy to a location in Tennessee. On a November 19 joint operation involving INTERPOL Washington, Ruiz Godoy was arrested in Memphis. He is currently in ICE custody.
Great Falls woman admits to trafficking meth in communityRead the Press Release
GREAT FALLS — A Great Falls woman accused of distributing methamphetamine and traveling outside of Montana to pick up the drug admitted to a conspiracy charge on Monday, U.S. Attorney Jesse Laslovich said today.
The defendant, Melissa Ann Barone, 55, pleaded guilty to conspiracy to possess with intent to distribute meth. Barone faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for March 26, 2025. Barone was detained pending further proceedings.
The government alleged in court documents that Barone was involved in distributing meth in the Great Falls area and elsewhere from January 2020 until about April 2024. Numerous individuals who purchased or received meth from Barone corroborated Barone’s involvement. The government alleged that Barone was a drug runner for her co-defendant, Daniel Allen Wakeford, who pleaded guilty to charges and is pending sentencing, and that she borrowed vehicles to travel outside of Montana to pick up meth.
As part of her guilty plea, Barone agreed to forfeit cash totaling $74,951 that was seized from a motorhome and two BMWs, an AK-47 pistol and magazine, a 2016 BMW and a 2002 40-foot motorhome.
The U.S. Attorney’s Office is prosecuting the case. The FBI, Drug Enforcement Administration, IRS, Great Falls Police Department and Russell Country Drug Task Force conducted the investigation.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
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Grass Valley Woman Sentenced to Jail for Trespassing at Beale Air Force BaseRead the Press Release
SACRAMENTO, Calif. — Today, after a one-day bench trial, Chief U.S. Magistrate Judge Carolyn K. Delaney found Shirley L. Osgood, 76, of Grass Valley, guilty of two-counts of unauthorized entry onto a military installation and sentenced her to five days in jail, 100 hours of community service, and a one-year term of probation, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, Osgood was arrested on Oct. 19, 2023, and again on March 14, 2024, after entering onto Beale Air Force Base without lawful authority. On both dates, Osgood was specifically advised that she was trespassing on the base, but she ignored law enforcement commands to stay off base property. Osgood testified at trial and admitted that she knew that she was trespassing and that she was not authorized to enter onto the base. Osgood said that she was protesting and trespassed because she wanted to speak to the base commander.
Osgood has previously been arrested and convicted for trespassing on Beale Air Force Base. In 2013, Osgood was convicted in federal court for trespassing at the base, and she was barred from entering.
This case was the product of an investigation by the U.S. Air Force Security Forces. Assistant U.S. Attorney Justin Lee prosecuted the case.
Gang member sentenced for possessing grenades and firearmRead the Press Release
McALLEN, Texas – A self-admitted member of the Westside gang has been sentenced for possessing destructive devices and utilizing a firearm in furtherance of drug trafficking activity, announced U.S. Attorney Alamdar S. Hamdani.
Jamez Aaron Sandoval, 26, of San Juan, pleaded guilty on Sept. 19.
U.S. Chief District Judge Randy Crane has now imposed a total sentence of 120 months in the Bureau of Prisons to be immediately followed by 3 years of supervised release. At the hearing, the Court learned Sandoval attempted to make a homemade grenade, carried a firearm during a grenade transaction and recorded himself firing fully automatic weapons. In handing down the prison terms, Judge Crane noted that Sandoval promoted violence with his social media post of an individual firing a firearm equipped with a machinegun conversion device towards law enforcement.
On Aug. 1, authorities arrested Sandoval after he purchased two grenade-style destructive devices from an ATF undercover agent. Law enforcement then conducted a search of his residence and found cocaine, marijuana, drug dealing paraphernalia as well as firearms. Sandoval previously sold law enforcement machinegun conversion devices before asking to purchase the grenades.
Further investigation revealed Sandoval used a firearm found in the residence for protection during the commission of drug trafficking activities.
Sandoval has been and will remain in custody pending his transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety, and Alamo Police Department conducted the joint investigation.
Assistant U.S. Attorney Cahal P. McColgan prosecuted the case as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Former police officer and felon admits to illegally possessing firearmRead the Press Release
McALLEN, Texas – A 44-year-old resident of McAllen has pleaded guilty to unlawfully being a felon in possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani.
On June 25, 2023, Michael Gallegos-Martinez was driving a Cadillac CTS when he failed to come to a complete stop. Law enforcement conducted a traffic stop, at which time they noticed Gallegos-Martinez appeared nervous. He claimed there were no firearms or narcotics within the vehicle. However, a K-9 alerted, and authorities conducted search of the vehicle which resulted in the discovery of a firearm Rossi, Model 461, .357 caliber magnum revolver in a grocery bag hanging from the gear shift. They also discovered 25 grams of cocaine, a bottle of Xanax pills and approximately $25,000 in cash.
The investigation revealed Gallegos-Martinez had previously served as a police officer before being convicted of a felony for possession of a controlled substance. As a felon, he is prohibited from possessing firearms and ammunition per federal law.
Chief U.S. District Judge Randy Crane accepted the plea and has set sentencing for Feb. 2, 2025. At that time, Gallegos-Martinez faces up to 15 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending sentencing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with assistance from the Alamo Police Department. Assistant U.S. Attorney Jose A. Garcia is prosecuting the case.
This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former local police officer sentenced to more than 5 years in prison for conspiring to traffic drugsRead the Press Release
COLUMBUS, Ohio – A former Columbus police officer was sentenced in U.S. District Court today to 65 months in prison for conspiring with another police officer to traffic more than eight kilograms of fentanyl and for conspiring with a confidential informant to traffic 40 kilograms of cocaine.
John J. Kotchkoski, 36, of Marengo, Ohio, conspired to distribute and to possess with the intent to distribute 400 grams or more of fentanyl.
“Failing to uphold his oath to serve the residents of this great community, Kotchkoski forever stained his badge, not the badge of all the incredible men and women of the Columbus Division of Police. He should be held accountable for his misdeeds. This sentence of more than five years in prison for conspiring to distribute this poison in our community should send a message to every member of law enforcement that any such failure to uphold our oath to the community will not be tolerated,” said U.S. Attorney Kenneth L. Parker.
According to court documents, from at least June 2021 through his September 2021 arrest, while assigned to investigate drug crimes, Kotchkoski conspired with a fellow Columbus police officer and with a confidential informant to illegally traffic drugs.
Kotchkoski provided the confidential informant approximately 40 kilograms of cocaine to be sold and then kept most of the proceeds.
The defendant conspired with the other officer to receive a portion of the drug proceeds made from selling kilogram quantities of fentanyl. For example, on at least three occasions, the coconspirator distributed fentanyl to another individual and accepted $32,500 for approximately one of the kilograms of fentanyl. Kotchkoski received a portion of these drug proceeds.
In late August 2021, Kotchkoski expected to receive an additional portion of drug proceeds for more than eight kilograms of fentanyl being provided by his coconspirator but was arrested before he was able to do so.
Kotchkoski pleaded guilty to a bill of information in April 2022.
As part of his conviction, Kotchkoski will forfeit a Cadillac Escalade, a Chevrolet Corvette, more than 20 firearms and a money judgment totaling half a million dollars.
Coconspirator Marco R. Merino was sentenced in February 2023 to nine years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Columbus Police Chief Elaine Bryant; Ohio Attorney General Dave Yost and the Ohio Bureau of Criminal Investigation, and the FBI’s Public Corruption Task Force, announced the sentence imposed by U.S. District Court Judge Edmund A. Sargus, Jr. Assistant United States Attorney Peter K. Glenn-Applegate and Elizabeth A. Geraghty are representing the United States in this case.
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Florida Physician Assistant Pleads Guilty to a $7.3 Million Health Care Fraud ConspiracyRead the Press Release
CONCORD – A Florida man pleaded guilty today in federal court in Concord for his role in a conspiracy to defraud Medicare of $7.3 million, U.S. Attorney Jane E. Young announces.
Shane Jordan, 38, of Orlando, Florida, pleaded guilty to one count of conspiracy to commit health care fraud. U.S. District Court Judge Joseph Laplante scheduled sentencing for March 13, 2025. Jordan was charged on September 20, 2024.
According to court documents and statements made in court, Jordan was a physician assistant licensed in multiple jurisdictions, including New Hampshire. From February 2021 until May 2024, Jordan worked for a Florida-based telemedicine company and agreed to electronically sign doctor’s orders for cancer genetic testing regardless of the medical necessity for the testing, in the absence of a pre-existing medical provider-patient relationship with the Medicare beneficiary, and frequently based solely on a short telephone conversation. Jordan was paid approximately $25 per patient telemedicine “consultation” – totaling more than $212,000. The doctor’s orders signed by Jordan were then used to submit more than $7.3 million in false and fraudulent claims to Medicare for cancer genetic testing.
The charging statute provides a sentence of no greater than 10 years in prison, 3 years of supervised release, and a fine of $250,000 or twice the pecuniary gain. 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.
The Federal Bureau of Investigation and the Department of Health and Human Services Office of Inspector General led the investigation. First Assistant U.S. Attorney Jay McCormack and Assistant U.S. Attorney Geoffrey Ward are prosecuting the case.
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Federal Inmate Admits to Stabbing, SentencedRead the Press Release
CLARKSBURG, WEST VIRGINIA – Sean Robin Howard, 22, an inmate at Federal Correctional Institution Hazelton in Bruceton Mills, West Virginia, was sentenced to 36 months in prison for stabbing another inmate.
Howard pled guilty to assault with a dangerous weapon resulting in serious bodily injury. According to court documents, Howard was involved in a verbal dispute with another inmate in a housing unit. Howard stabbed the inmate in the neck area and caused a serious wound. The inmate was transported to a hospital and was treated for his injuries.
Howard’s sentence is to be served consecutively to his current sentence.
Assistant U.S. Attorney Brandon Flower prosecuted the case on behalf of the government.
The Federal Bureau of Prisons investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Environmental Manager Sentenced to Prison for Stealing from EmployerRead the Press Release
GAINESVILLE, Ga. - Michael Mayfield has been sentenced to prison for defrauding his employer of over $1.2 million.
“Mayfield devised a false invoicing scheme to betray and defraud his employer of more than $1 million,” said U.S. Attorney Ryan K. Buchanan. “This sentencing sends a clear message to others that our office is committed to working with our law enforcement partners to hold criminals accountable for stealing from employers who trust them.”
“Mayfield betrayed the trust his company had in him then used the fraudulently gained money for personal use and to try and build his reputation in the community,” said FBI Atlanta’s Acting Special Agent in Charge Sean Burke. “Our agents work every day to hold criminals like Mayfield accountable for their actions.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Michael Mayfield was an environmental manager at the Mars Wrigley factory in Flowery Branch, Georgia. In that role, he oversaw the Health, Safety, and Environmental and Recycling Programs.
The recycling waste produced at the factory was valuable and companies often made direct payments or sent Mars Wrigley rebate checks after disposal of the material. But unbeknownst to Mars Wrigley, Mayfield diverted the checks to his own company, WWJ Recycling. The fraudulently obtained checks totaled over $500,000. Mayfield used the funds to pay for hunting trips worth more than $100,000, a donation to his church for more than $80,000, and more than $200,000 in personal checks.
Mayfield also directed his co-conspirator to create false invoices from ASA Safety Supply, a supplier to Mars Wrigley. The co-conspirator sent the invoiced items to Mayfield for his personal use and then submitted false invoices from ASA Safety Supply to Mars Wrigley for payment. The purchased items included football supplies for the Flowery Branch High School football team, such as cleats and clothing, improvements to the stadium, tickets to a University of Georgia football game, and gift cards. These false invoices totaled over $199,000.
Mayfield also sent invoices from WWJ Recycling to ASA Safety Supply. His co-conspirator directed ASA Safety Supply to pay those invoices and then submit the false invoices to Mars Wrigley for payment for work that was not done. The WWJ Recycle invoices totaled over $750,000.
Mayfield engaged in this scheme from as early as December 2016 until sometime in 2022. Ultimately, Mars paid over $1.2 million because of Mayfield’s fraudulent scheme.
Michael Mayfield, 55, of Flowery Branch, Georgia, was sentenced by U.S. District Judge Richard W. Story to three years in prison followed by three years of supervised release. He was also ordered to pay restitution in the amount of $1,269,457.56. Mayfield was convicted of these charges on August 19, 2024, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
El Departamento de Justicia demanda a un propietario de propiedades de alquiler de Kentucky por acoso sexualRead the Press Release
El Departamento de Justicia anunció hoy que ha entablado una demanda contra Joseph E. Johnson, también conocido como Joe Johnson, propietario y operador de propiedades de alquiler en Lexington, Kentucky, por acoso sexual y represalias, en contra de la ley de Vivienda Justa.
“Durante décadas, este propietario utilizó su posición de poder para acosar sexualmente a mujeres vulnerables que simplemente querían un techo sobre su cabeza”, afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Las mujeres no deben vivir con miedo cuando pagan su alquiler o buscan reparaciones. El Departamento de Justicia continuará haciendo cumplir con firmeza la prohibición de esta conducta en virtud de la ley de Vivienda Justa”.
“El acoso sexual en la vivienda priva a sus víctimas de la seguridad 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 convincente de la ley de Vivienda Justa sea fundamental para garantizar que las víctimas puedan obtener compensación por esta conducta tan imperdonable 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 décadas, Johnson ha acosado sexualmente a numerosas inquilinas. De acuerdo con la queja, Johnson ha ofrecido beneficios relacionados con la vivienda a cambio de contacto sexual, ha hecho comentarios y avances sexuales no deseados a inquilinas, 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 y no tomó ninguna medida correctiva al enterarse de conductas acosadoras por parte de uno o más de sus empleados.
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 el demandado para vindicar el interés público y una orden judicial que prohíbe la discriminación futura.
“Es inaceptable que los propietarios amenacen con o cometan actos de acoso sexual o abuso contra las inquilinas”, dijo la Inspectora General del HUD, Rae Oliver Davis. “El demandado supuestamente se aprovechó de inquilinas vulnerables y tomó represalias contra ellas cuando rechazaron sus insinuaciones sexuales. Mi oficina continuará trabajando con nuestros socios de aplicación de la ley para responsabilizar a los proveedores de vivienda por este tipo de conducta horrible”.
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 47 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, nacionalidad, 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 Joe Johnson 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 00 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 009 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.
Eastern Panhandle Man Sentenced for Child Pornography ChargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Steven James Priore, 41, of Hedgesville, West Virginia, was sentenced to 78 months in federal prison for the possession of child pornography.
According to court documents, the National Center for Missing and Exploited Children received a cyber tip of uploaded child pornography from an email address traced back to Priore. A search of Priore’s home resulted in the seizure of devices that contained images and videos depicting child pornography.
Prior was also ordered to pay $65,000 in restitution. He will serve supervised release for life following his prison sentence.
Assistant U.S. Attorney Kimberley Crockett prosecuted the case on behalf of the government.
The West Virginia State Police investigated.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
U.S. District Judge Gina M. Groh presided.
Deputy Attorney General Announces over 50 Actions to Reduce the Risk of Suicide for Adults in the Department’s CustodyRead the Press Release
Deputy Attorney General Lisa Monaco today announced over 50 new actions the Justice Department will take to reduce the risk of death by suicide of adults who are detained or incarcerated in the custody of the U.S. Marshals Service (USMS) or Federal Bureau of Prisons (FBOP). These actions follow from recommendations developed by a working group of experts, from across the Department, tasked by the Deputy Attorney General with creating a multifaceted approach to reducing the risk of suicide and self-directed violence among those in the Department’s care and custody.
The Justice Department’s mission to uphold the rule of law, keep our country safe, and protect civil rights includes safely and humanely caring for those in its custody. While the Department has long worked to reduce the risk of suicide in the populations it serves, too many individuals die by suicide in federal custody while they await trial or serve a sentence. Even though the suicide mortality rate in federal custody is generally lower than that in local jails and state prisons, the Department must strive to avert every preventable death of an individual in its custody.
As detailed in the “Report on Actions to Reduce the Risk of Suicide by Adults in Federal Custody and Advance a Culture of Safety” issued today, the Deputy Attorney General directed components to take corresponding action to implement the following five objectives to improve suicide prevention policy and protocols for individuals in the Department’s custody:
- Focusing prevention efforts through enhanced information sharing;
- Improving access and delivery of suicide prevention-related care;
- Promoting a healthy culture in facilities for employees and adults in custody;
- Reducing opportunity for and lethality of incidents of self-directed violence; and
- Using data and research to refine suicide prevention policies.
“The Department of Justice is committed to protecting the health and safety of every individual in our custody,” said Deputy Attorney General Monaco. “Today’s reforms — recommended by experts from across the Department’s litigation, law enforcement, and policy operations — will reduce the risk of suicide among adults in federal facilities. Simply put, these measures can help us save lives. I’m grateful not only to our Department experts, but also to the research, law enforcement, judicial, and suicide prevention organizations and advocates that contributed to this effort.”
The report was developed following a comprehensive review by experts from USMS, FBOP, the Civil Rights Division, Executive Office for U.S. Attorneys, National Institute of Justice, Bureau of Justice Statistics, Justice Management Division, Office of Legal Policy, and Office of the Deputy Attorney General. The review also included consultation with the Office of Inspector General, which recently completed an evaluation of inmate deaths at FBOP institutions and has identified institutional safety and security as a critical Department challenge.
In addition to reviewing existing policy, independent research, and data, the Department convened listening sessions with external experts and partners — including:
- Researchers who specialize in suicide prevention in custodial settings;
- Representatives from federal, state, and local law enforcement from across government;
- Representatives from the Administrative Office of the U.S. Courts as well as federal defender and national defense counsel organizations; and
- Suicide prevention and prison reform organizations that advocate on behalf of individuals in the Department’s custody.
DOJ sends nearly $12 million to Washington State for drug treatment programsRead the Press Release
Seattle – Nearly $12 million is headed to Washington State from the Department of Justice Office of Justice Programs (OJP) to support drug treatment programs statewide, in specific counties, and tribal communities, announced U.S. Attorney Tessa M. Gorman.
“These DOJ grants recognize the need for treatment in our state, and also highlight the good work being done here to break the cycle of addiction,” said U.S. Attorney Gorman. “It is a competitive process to get this funding and I congratulate the counties, tribes and organizations who successfully applied for these grants.”
The largest award, $7 million, is to the Washington State Health Care Authority to bolster and support substance use treatment programs in the community as well as in state jails and correctional institutions. The grant also pays for opioid overdose training for law enforcement and a peer mentoring program for those leaving prison with substance use disorder.
Pierce County was awarded $1.6 million to improve substance abuse treatment options in rural areas. The program will focus on justice involved adults. The results will be studied for best practices.
Grays Harbor County was awarded $1 million to enhance the Substance Use Disorder (SUD) treatment available in the Grays Harbor County Jail. With these additional grant funds, the county will provide mental health as well as substance use disorder treatment and will work with the Coastal Community Action Program to make services available to those transitioning from jail and prison to the community.
The private non-profit Progress House Association was awarded $833,000 to enhance treatment and recovery services for 170 people across King, Pierce, Snohomish, and Thurston Counties who are currently incarcerated. The funding will enhance treatment for substance use disorder as well as co-occurring mental health disorders.
Finally, two tribal nations were awarded grants for their substance use and mental health treatment programs.
The Tulalip Tribes of Washington was awarded $718,151 to expand the Tulalip Tribes Family Wellness Court. The money will provide for a dedicated Social Worker and Recovery Support specialist to provide services directly to families impacted by substance abuse disorder. The goal is to reunify families and reduce the number of children in long-term out of home care.
The Lummi Nation received $550,000 to implement a Mental Health Court for tribal citizens impacted by both mental health challenges and substance use disorder. The program is designed to enhance treatment support with integrated treatment plans.
Cuba couple arrested, charged with operating marijuana grow operationRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Daniel S. Ackerman, 58, and Ana L. Maldonado-Delgado, 31, both of Cuba, NY, were arrested and charged by criminal complaint with manufacture and possession with intent to distribute 100 or more marijuana plants, which carry a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Donna Duncan, who is handling the case, stated that according to the complaint, the Cuba Police Department became aware of an operation cultivating marijuana for large scale distribution and launched an investigation. On October 10, 2024, law enforcement executed a search warrant at Ackerman and Maldonado-Delgado’s Farnsworth Road residence. During the search, it was apparent that marijuana was being grown on a large scale, processed, and packaged. Investigators seized 475 growing marijuana plants, 124 dried marijuana plants, a large quantity of processed marijuana, 10 glass jars containing liquid concentrated cannabis, a 9mm pistol, suspected psilocybin mushrooms, two cell phones and drug paraphernalia.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the Cuba Police Department, under the direction of Chief Dustin Burch, the Allegany County Sheriff’s Office, under the direction of Sheriff Scott Cicirello, the Olean Police Department, under the direction of Chief Ron Richardson, and the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy Whitcomb.
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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Convicted Drug Dealer Pleads Guilty to Escaping Halfway HouseRead the Press Release
ALBANY, NEW YORK – Dyshawn Fisher, age 29, of Troy, New York, pled guilty today to escaping from the Horizon House Residential Reentry Center on October 1, 2024. United States Attorney Carla B. Freedman and David L. McNulty, United States Marshal for the Northern District of New York, made the announcement.
Fisher admitted that on November 25, 2020, he was sentenced in federal court to 75 months in prison following his conviction by guilty plea to numerous felonies, including possession of a firearm in furtherance of a drug trafficking crime and possession with intent to distribute controlled substances. On October 10, 2023, while serving that sentence, Fisher was transferred by the Bureau of Prisons to the Horizon House in Albany. On October 1, 2024, Fisher left the Horizon House without the approval that he knew he needed and remained at large in the community until October 17, 2024, when he was arrested in Cohoes, New York.
Fisher is scheduled to be sentenced by United States District Judge Anne M. Nardacci on April 2, 2025. He faces a maximum term of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The United States Marshals Service is investigating the case. Assistant U.S. Attorney Benjamin S. Clark is prosecuting the case.
Columbia Man Pleads Guilty to Fentanyl Trafficking, Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man who distributed thousands of fentanyl pills pleaded guilty in federal court today to illegally possessing fentanyl and several firearms.
Keaveon Zaniyah T. Harris, 25, pleaded guilty before U.S. Chief Magistrate Judge Willie J. Epps, Jr., to one count of possessing fentanyl with the intent to distribute and one count of being a felon in possession of a firearm.
By pleading guilty today, Harris admitted that he was in possession of hundreds of fentanyl pills and several firearms when he was stopped by Columbia police officers on May 10, 2023. Officers searched his vehicle during the traffic stop and found a bag near the middle console that contained 832 fake Percocet pills, which were actually fentanyl, as well as multiple broken pills. Officers also found 105 additional pills in a pill bottle near the shifter, and a cigarette package that contained about 15 crushed pills.
On the passenger side rear floorboard, officers found a loaded Taurus revolver and a loaded Springfield 9mm handgun with a drum magazine. On the driver’s side rear floorboard, officers found a Zastava Drako pistol.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Harris has a prior felony conviction for stealing.
When investigators searched Harris’s phone, they found evidence that he was selling thousands of fentanyl pills to multiple customers. Messages indicated his partner traveled to Arizona at least twice to purchase fake Percocet pills, then mailed them to Harris in Columbia. Three packages of fake Percocet pills mailed to Harris weighed a total of approximately 4.8 kilograms.
Under federal statutes, Harris is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 35 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Melissa A. Pierce. It was investigated by the Columbia, Mo., Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Ciudadano peruano extraditado por facilitar una red de centros de atención telefónica que amenazaban y estafaban a consumidores estadounidenses de habla hispanaRead the Press Release
El Departamento de Justicia y el Servicio de Inspección Postal de los Estados Unidos (USPIS, por sus siglas en inglés) anunciaron hoy que un residente de Lima, Perú, fue extraditado a los Estados Unidos y fue procesado ante un tribunal federal de Miami en el día de la fecha, tras ser acusado de facilitar redes de fraude en las que actuaron varios centros de atención telefónica peruanos y que estafaron a víctimas de todos los Estados Unidos.
David Cornejo Fernández, de 36 años y natural de Lima, Perú, enfrentará cargos federales de fraude electrónico, extorsión y conspiración. Las autoridades peruanas detuvieron a Cornejo el 17 de mayo en virtud de una solicitud de extradición estadounidense, momento desde el cual se encuentra detenido.
Según la acusación formal presentada, desde noviembre de 2012 hasta junio de 2019, el acusado suministró líneas telefónicas a través de internet, servicios de suplantación de identidad de llamadas y funciones de grabación a centros de llamadas fraudulentos. Cornejo facilitó a sus cómplices en Perú la tecnología necesaria para hacer llamadas fraudulentas y extorsivas a personas vulnerables de habla hispana en los Estados Unidos. Los cómplices mentían a las víctimas diciéndoles que habían sido elegidas para recibir un premio, por ejemplo, una tablet que incluía un curso de inglés. Muchas víctimas manifestaron su interés en recibir los premios. En llamadas posteriores, se exigía a las víctimas pagos cuantiosos para recibir los premios. Ante la negación de las víctimas, las personas que llamaban afirmaban falsamente que, si no pagaban, afrontarían graves consecuencias, como procesos judiciales, detenciones o perjuicios a su condición migratoria. Los autores de las llamadas fingían ser abogados, funcionarios judiciales, agentes federales y policías para amenazar e intimidar a las víctimas y obligarlas a realizar los pagos.
Cornejo facilitó a sus cómplices el software (y, en ocasiones, la capacitación) para fingir, de manera convincente, que eran funcionarios públicos y extorsionar a las víctimas. Con la tecnología aportada por Cornejo, los cómplices manipularon los números de teléfono de los identificadores de llamadas de las víctimas, lo que les permitió hacer llamadas intimidatorias que simulaban proceder de agencias federales estadounidenses, funcionarios judiciales o autoridades policiales. Cornejo también instaló grabaciones en las líneas telefónicas entrantes de sus cómplices que aparentaban ser grabaciones genuinas de tribunales, departamentos de policía y agencias federales estadounidenses, incluido el Servicio de Ciudadanía e Inmigración de los Estados Unidos (USCIS, por sus siglas en inglés). Estas grabaciones aumentaban la supuesta legitimidad de las llamadas intimidatorias y se utilizaban para extorsionar a consumidores vulnerables del Distrito Sur de Florida y de todos los Estados Unidos.
El fiscal general interino de los Estados Unidos, Brian M. Boynton, jefe de la División Civil del Departamento de Justicia, declaró: «La Subdivisión de Protección del Consumidor del Departamento de Justicia perseguirá y procesará a los delincuentes transnacionales que intenten aprovecharse de los consumidores vulnerables de los Estados Unidos. El Departamento de Justicia y las autoridades policiales estadounidenses seguirán colaborando estrechamente con sus socios policiales en todo el mundo para frustrar a los delincuentes que estafan y extorsionan a víctimas estadounidenses desde fuera de Estados Unidos. Agradezco a la República del Perú y a su policía nacional por ayudarnos en la extradición de esta persona a fin de que afronte los cargos aquí en los Estados Unidos».
El fiscal federal del Distrito Sur de Florida, Markenzy Lapointe, manifestó que «la jurisdicción extraterritorial de la justicia de nuestro país no conoce límites a la hora de encontrar a los estafadores que se aprovechan de los habitantes más vulnerables de nuestra nación, entre ellos, las personas mayores y los nuevos inmigrantes. No permitiremos que los delincuentes transnacionales utilicen tácticas de miedo e intimidación para robar el dinero de los ciudadanos a los que prestamos servicio. Aquellos que defrauden a los consumidores estadounidenses responderán ante la justicia, sin importar dónde se encuentren».
Según las declaraciones del inspector a cargo de la División Miami del USPIS, Juan A. Vargas, «la comparecencia inicial de David Cornejo Fernández en el día de la fecha es una prueba contundente del compromiso conjunto del Servicio de Inspección Postal de los Estados Unidos, la División de Protección al Consumidor del Departamento de Justicia y la Fiscalía del Distrito Sur de Florida, que no se detendrán ante nada para juzgar a quienes atentan contra nuestros ciudadanos. Quisiera agradecer a la República de Perú y a todos nuestros colaboradores en las fuerzas del orden que trabajan sin descanso para combatir estas redes transnacionales que buscan estafar a los consumidores estadounidenses. Juntos seguimos enviando un mensaje firme: la justicia no tiene fronteras y esta colaboración entre países demuestra los esfuerzos por preservar el Estado de derecho».
En febrero de 2023, se presentó una acusación formal federal de seis cargos contra el acusado en el Tribunal de Distrito de los EE. UU. para el distrito Sur de Florida, cuyo contenido fue revelado tras la extradición a los Estados Unidos. Los cargos contra el acusado son de conspiración, fraude electrónico y extorsión. Una acusación formal se limita a alegar que se han cometido delitos; de ser declarado culpable, Cornejo enfrenta una pena máxima de 20 años de prisión. Un juez de un tribunal federal de distrito dictará sentencia después de evaluar las directrices federales para la imposición de penas de los Estados Unidos y demás cuestiones legales.
Todos los acusados se presumen inocentes hasta que se demuestre su culpabilidad más allá de toda duda razonable.
El caso está a cargo de Phil Toomajian, abogado litigante sénior y coordinador de litigios penales transnacionales, junto con la abogada litigante Carolyn Rice, de la División de Protección al Consumidor del Departamento de Justicia.
El USPIS investigó el caso y contó con la ayuda fundamental de la Oficina de Asuntos Internacionales del Departamento de Justicia, la Fiscalía del Distrito Sur de Florida, el Servicio de Seguridad Diplomática del Departamento de Estado, el Servicio de Marshals de Estados Unidos, la Policía Nacional del Perú y el Ministerio Público del Perú.
El Departamento de Justicia continúa investigando y presentando cargos en otros casos similares relacionados con amenazas contra residentes hispanohablantes de los Estados Unidos. Si usted o alguien que conoce es mayor de 60 y ha sido víctima de fraude financiero, puede comunicarse con la línea directa nacional contra el fraude a personas mayores: 1-833-FRAUD-11 (1-833-372-8311), donde tendrá a su disposición profesionales experimentados en este tipo de delitos. La línea directa del Departamento de Justicia, gestionada por la Oficina para las Víctimas de Delitos, puede brindar ayuda personalizada a las víctimas mediane la evaluación de las necesidades de la víctima e identificación de los pasos que se deben seguir. Los coordinadores de casos identificarán los organismos de denuncia adecuados, brindarán información a las víctimas para ayudarlas a presentar la denuncia, las pondrán en contacto directamente con los organismos correspondientes y les brindarán recursos y referencias, según cada caso en particular. El primer paso es presentar una denuncia; esto puede ayudar a las autoridades a identificar a quienes cometen fraude. La denuncia inmediata de las pérdidas económicas por fraude puede aumentar la probabilidad de recuperar las pérdidas. La línea directa está abierta de lunes a viernes de 10.00 a. m. a 6:00 p. m., hora del este, y está disponible en inglés, español y otros idiomas.
Puede consultar la página web de la Iniciativa de Justicia para Personas Mayores para obtener más información sobre las medidas del Departamento a fin de ayudar a las personas mayores estadounidenses. Para obtener más información sobre la División de Protección al Consumidor y las medidas adoptadas para lograr el cumplimiento de la normativa, visite el sitio web www.justice.gov/civil/consumer-protection-branch. Los consumidores pueden presentar las denuncias ante la Comisión Federal de Comercio (FTC, por sus siglas en inglés) en reportfraud.ftc.gov/ o llamando al 877-FTC-HELP. El Departamento de Justicia ofrece una variedad de recursos relacionados con la victimización por fraude de personas mayores a través de su Oficina para las Víctimas de Delitos, a la que se puede acceder en www.ovc.gov
Para más información sobre la División de Protección al Consumidor y sus medidas de lucha contra el fraude, visite su sitio web en www.justice.gov/civil/consumer-protection-branch.Celsius Founder and Former CEO Alexander Mashinsky Pleads Guilty to Multi-Billion Dollar Fraud and Market Manipulation SchemesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ALEXANDER MASHINSKY, the founder and former Chief Executive Officer of Celsius Network LLC and their affiliated entities (collectively, “Celsius”), pled guilty to one count of committing commodities fraud and one count of committing securities fraud in connection with two fraudulent schemes at Celsius, the purported “bank” of the crypto industry. In the first scheme, MASHINSKY misled Celsius’s customers about core aspects of the company he founded, including Celsius’s success and profitability and the nature of the investments Celsius made using customer funds. In the second scheme, MASHINSKY illicitly manipulated the price of CEL, Celsius’s proprietary crypto token, while he was secretly selling his own CEL token at artificially inflated prices. As part of his plea, MASHINSKY has agreed to forfeit over $48 million in proceeds from his illegal schemes. MASHINSKY pled guilty today before U.S. District Judge John G. Koeltl.
U.S. Attorney Damian Williams said: “Alexander Mashinsky orchestrated one of the biggest frauds in the crypto industry. He lured ordinary, retail crypto investors into investing billions of dollars in Celsius with false promises that their investments were low-risk. Using catchy slogans like ‘Unbank Yourself,’ Mashinsky promised that Celsius would keep customers’ crypto as safe as money in a bank, but that, unlike a bank, Celsius returned most of the profits from its business back to users. In reality, Celsius was never profitable. To disguise the flaws in his business model, Mashinsky put investors’ money into riskier and riskier bets, and secretly used customer money to prop up the price of CEL token. Mashinsky made tens of millions of dollars selling his own CEL at artificially high prices, while his customers were left holding the bag when the company went bankrupt. Today’s convictions reflect this Office’s commitment to holding fraudsters like Mashinsky accountable for their crimes.”
According to the allegations contained in the Indictment and statements made in public filings and in public court proceedings:
Celsius was a crypto asset platform that, among other things, allowed its customers to earn returns on their crypto assets in the form of weekly “rewards” payments, to take loans secured by their crypto assets, and to custody their crypto assets. Celsius billed itself as the “safest place for your crypto” and urged potential customers to “unbank” themselves by moving their crypto assets to Celsius. Celsius’s primary public offering was its “Earn” program, through which Celsius offered to deploy customers’ crypto assets to generate investment returns. In addition to its Earn program, Celsius offered retail investors a “Custody” program and a “Borrow” program, which allowed customers to receive retail loans in exchange for posting their crypto assets as collateral with Celsius.
MASHINSKY directly marketed Celsius to retail customers located in the U.S. and abroad. Throughout his tenure as CEO of Celsius, MASHINSKY repeatedly made public misrepresentations regarding core aspects of Celsius’s business and financial condition in order to induce retail customers to provide their crypto assets to Celsius and continue to use Celsius’s services. MASHINSKY misrepresented, among other things, the safety of Celsius’s yield-generating activities, Celsius’s profitability, the long-term sustainability of Celsius’s high rewards rates, and the risks associated with depositing crypto assets with Celsius.
As MASHINSKY falsely portrayed Celsius as a safe and secure institution, Celsius’s customer base grew exponentially. Many of those customers were retail investors rather than large institutions. By in or about the fall of 2021, Celsius had grown to become one of the largest crypto platforms in the world, purportedly holding approximately $25 billion in assets at its peak.
MASHINSKY and others working at Celsius also orchestrated a yearslong scheme to mislead customers and market participants regarding the market value and interest in Celsius’s proprietary crypto token CEL. They did so by manipulating the price of CEL through causing Celsius to spend hundreds of millions of dollars purchasing CEL in the open market with the objective of artificially supporting and inflating the price of CEL. At various times during MASHINSKY’s tenure, MASHINSKY and his co-conspirators also caused Celsius to use its own customer deposits to fund these market purchases of CEL in order to prop up CEL’s price, without disclosing this fact to Celsius’s customers.
Without Celsius’s aggressive and illegal price manipulation, the price of CEL would have been drastically lower. As Roni Cohen-Pavon, Celsius’s Chief Revenue Officer who previously pled guilty to illegally manipulating the price of CEL, wrote to MASHINSKY in a private message exchanged during the scheme: “[T]he issue is that people are selling [CEL] and no one is buying except for us,” adding, “[t]he main problem was that the value was fake and was based on us spending millions (~8M a week and even more until February 2020) just to keep it where it is.”
To further the scheme to manipulate CEL, MASHINSKY also repeatedly made false and misleading public statements concerning the nature of Celsius’s market activity and the extent to which Celsius itself was responsible for artificially supporting and inflating the price of CEL. In certain instances, MASHINSKY and other Celsius executives also personally purchased CEL for the purpose of artificially supporting CEL’s price.
Artificially inflating the price of CEL allowed MASHINSKY to sell his own CEL holdings for a substantial profit. MASHINSKY personally reaped approximately $48 million in proceeds from his sales of CEL. At various times, MASHINSKY made false and misleading public statements about his own sales of CEL, claiming that he was not selling CEL, when, in reality, he was taking advantage of the upward price manipulation he had orchestrated by contemporaneously selling huge quantities of his CEL on the market, including, on occasion, to Celsius itself.
In the lead up to the June 12, 2022 “Pause” of Celsius customer withdrawals, MASHINSKY continued to assure Celsius customers that Celsius was in a strong financial position and had sufficient liquidity to meet all customer withdrawal demands. Even as he made these statements, however, MASHINSKY had removed approximately $8 million worth of his own non-CEL crypto assets from the Celsius platform.
On June 12, 2022 Celsius announced it was halting all customer withdrawals from the Celsius platform, at which time hundreds of thousands of Celsius customers—many of whom were retail investors—still had approximately $4.7 billion worth of crypto assets on the Celsius platform, none of which they could access. On or about July 13, 2022, Celsius filed for Chapter 11 bankruptcy.
If you believe you have been a victim of the schemes described above, and you wish to provide information to law enforcement with connection to sentencing or to receive additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office of the Southern District of New York, at 866-874-8900 or [email protected].
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MASHINSKY, 58, of New York, New York, pled guilty to one count of commodities fraud and one count of securities fraud, which combined carry a maximum sentence of 30 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. MASHINSKY is scheduled to be sentenced by Judge Koeltl on April 8, 2024.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams also thanked the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, each of which has filed a parallel civil action.
The case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Peter J. Davis, Adam S. Hobson, Allison Nichols, and Noah Solowiejczyk are in charge of the prosecution.
Cedar Rapids Man Sentenced to Federal Prison for Possession with Intent to Distribute Methamphetamine and CocaineRead the Press Release
A man who committed a drug trafficking offense was sentenced today to 14 years in federal prison.
Darryl Fonte Jackson, age 51, from Cedar Rapids, Iowa, received the prison term after a July 1, 2024 guilty plea to one count of possession with intent to deliver a controlled substance.
Evidence at the plea and sentencing hearings showed that, on July 25, 2022, law enforcement officers utilized a confidential informant to purchase methamphetamine and synthetic cannabinoids from Jackson. About a week later, officers searched Jackson’s home and place of work. At his home, officers located methamphetamine, marijuana, cocaine, and synthetic cannabinoids. At his place of work, officers located methamphetamine, cocaine, and a loaded firearm. Jackson was previously convicted in 2006 for federal drug and gun crimes.
Jackson was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Jackson was sentenced to 168 months’ imprisonment. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
Jackson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Adam J. Vander Stoep and was investigated by the High Risk Unit of the Sixth Judicial District Department of Correctional Services, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-69.
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Cary Businessman Sentenced to Prison for over $1 Million in Tax Evasion SchemeRead the Press Release
RALEIGH, N.C. – Arturo Barcenas Gonzalez, a Cary businessman, was sentenced to 37 months in federal prison, followed by three years of supervised release, for evading over $1 million in federal taxes. In addition to his prison sentence, Barcenas was ordered to pay restitution to the Internal Revenue Service (IRS) in an amount to be determined at a later date.
“We are turbocharging white collar enforcement in North Carolina with groundbreaking state and federal partnerships,” said U.S. Attorney Michael F. Easley, Jr. “This businessman’s convoluted scheme involved titling cars for cash and using that cash to creatively conceal his income and fuel a lifestyle complete with high-end vehicles and a million-dollar home. This partnership with NC Division of Motor Vehicles, Homeland Security Investigations, and the NC Department of Insurance worked together seamlessly with IRS to build the case.”
According to court documents and other information presented in court, Barcenas operated multiple businesses in Cary, including Barcenas Insurance Agency, LLC (BIA) and Barcenas Financial Services, LLC (BFS). BIA, a retail insurance provider, offered both traditional and automotive insurance policies. Investigations revealed that BIA operated a high-volume, cash-intensive business that included registering and titling vehicles for undocumented individuals using fraudulent business names and certificates. BFS, on the other hand, specialized in tax return preparation for federal and state filings.
The investigation disclosed that in July 2018, Barcenas filed a falsified 2017 federal income tax return that concealed over $300,000 in business revenue. Subsequent evidence showed Barcenas stopped filing tax returns entirely after that year, despite generating receipts exceeding $1 million annually between 2018 and 2022. To evade IRS scrutiny, Barcenas used various methods, such as titling assets under nominees, depositing business proceeds into personal accounts, and handling large amounts of cash to conceal income. Barcenas used his untaxed gains to fund his personal lifestyle, including the purchase of high-end vehicles and a $1 million residence.
In May 2023, federal agents executed a search warrant at Barcenas’s Cary offices. The operation led to the recovery of multiple income-related documents indicating that Barcenas had misled federal investigators in prior interactions. The total estimated tax loss attributable to his actions amounted to over $1 million for the tax years 2018 through 2021.
Michael F. Easley, Jr., United States Attorney for the Eastern District of North Carolina, made the announcement after the sentencing by United States District Judge Louise W. Flanagan. IRS-Criminal Investigation, based in Raleigh, investigated the case. The U.S. Department of Homeland Security, Homeland Security Investigations, the North Carolina Department of Insurance, and the North Carolina Department of Motor Vehicles also provided valuable assistance.
Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-376-FL.
Canadian Man Sentenced to 30 Months in Federal Prison for Telemarketing FraudRead the Press Release
SAN FRANCISCO – Nemr Hallak was sentenced today to 30 months in prison for his role in a large-scale “Yellow Pages” telemarketing fraud scheme that he and others orchestrated from Canada. The sentence was handed down by the Honorable Edward M. Chen, Senior U.S. District Judge.
Hallak, 43, of Quebec, Canada, was indicted by a federal grand jury in 2016 on charges of conspiracy to commit money laundering, conspiracy to commit mail and wire fraud, mail fraud, and wire fraud. He was initially arrested in Greece in 2016, and was re-arrested and extradited to the United States in late 2023. Hallak pleaded guilty to conspiracy to commit mail and wire fraud on Sept. 12, 2024.
In his plea agreement, Hallak admitted that he conspired with co-defendants and others to carry out a “business directory” telemarketing scheme. Using a variety of means, including false and misleading cold calls and false invoices, Hallak and his co-conspirators caused victims to pay for business directory services they neither ordered nor received. Co-defendants Tolga Suatac and Michelina Perna pleaded guilty to conspiracy to commit mail and wire fraud and were sentenced in March 2023. Co-defendant Roberto Mancini’s case is pending.
“The defendant and his co-conspirators devised a scheme that targeted small businesses, misleading those businesses into believing they owed money for fake directory listings,” said United States Attorney Ismail J. Ramsey. “Regardless of where they are operating, fraudsters who cheat and deceive U.S. businesses will be investigated and brought to justice.”
“To protect the public, Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners at the IRS’s Criminal Investigation Division to arrest and prosecute those individuals responsible for fraud schemes committed against small businesses and the public,” said San Francisco Division Inspector in Charge Stephen M. Sherwood of the U.S. Postal Inspection Service (USPIS).
“Nemr Hallak’s sentencing demonstrates IRS-CI’s commitment to bringing to justice those who prey upon American businesses. The intricacy of the telemarketing scheme that victimized thousands of individuals out of more than $5 million was complicated by it largely being run abroad,” said IRS Criminal Investigation (IRS-CI) Oakland Field Office Special Agent in Charge Linda Nguyen. “What Hallak and his co-conspirators did not account for is the global reach of IRS-CI international operations and our partnerships with international law enforcement. We are committed to following the money no matter where it takes us.”
Court documents described that Hallak and others caused shell companies to be formed in Florida and Delaware in the names of nominees, who were paid in cash to be listed as officers and directors of the shell companies but did no meaningful work and did not really control the companies. Many of the shell companies used the term “Yellow Pages” to suggest their operations were legitimate.
According to Hallak’s plea agreement, thousands of victims were cold called and told that they had a pre-existing business relationship with a “Yellow Pages” or other entity formed by members of the conspiracy, that they had previously purchased business directory services from the defendants, and that they owed money for those services. Victims were told that they owed anywhere between $400 and $1,800 for a previously purchased business directory listing, and were sent fake invoices. When such initial misrepresentations were not sufficient to induce payment, some victims were harassed and threatened with legal action and sent additional false invoices with additional charges.
In addition to the terms of imprisonment, Judge Chen sentenced Hallak to three years of supervised release. Hallak was also ordered to pay $5,381,702.86 in restitution. Hallak is currently in federal custody and will begin serving his sentence immediately.
Assistant United States Attorney Lloyd Farnham is prosecuting the case with the assistance of Kathy Tat and Helen Yee. The prosecution is the result of an investigation by USPIS and IRS-CI. The Justice Department’s Office of International Affairs provided critical assistance in securing the extradition of Hallak. The Justice Department thanks the Ministry of Justice of the Hellenic Republic and the Hellenic Police which provided excellent cooperation in the arrest and re-arrest of Hallak and his subsequent extradition.
California Man Arrested for Allegedly Exporting Shipments of Firearms, Ammunition and Other Military Items to North KoreaRead the Press Release
Shenghua Wen, 41, of Ontario, California, was arrested today on a criminal complaint alleging that he exported shipments of firearms, ammunition and other military items to North Korea that were concealed inside shipping containers bound from Long Beach.
Wen, a Chinese national illegally residing in the United States, was arrested this morning and is expected to make his initial appearance this afternoon in the Central District of California.
According to an affidavit filed on Nov. 26 with the complaint, Wen obtained firearms, ammunition, and export-controlled technology with the intention of shipping them to North Korea — a violation of federal law and United States sanctions against that nation. Wen and his co-conspirators allegedly exported shipments of firearms and ammunition to North Korea by concealing the items inside shipping containers that were shipped from Long Beach through Hong Kong to North Korea.
On Aug. 14, law enforcement seized at Wen’s home two devices that he intended to send to North Korea for military use: a chemical threat identification device and a hand-held broadband receiver that detects eavesdropping devices. On Sept. 6, law enforcement seized approximately 50,000 rounds of 9mm ammunition that Wen allegedly obtained to send to North Korea.
A review of Wen’s iPhone revealed to law enforcement that in December 2023, Wen smuggled items from Long Beach to Hong Kong with their destination being North Korea. Messages retrieved from Wen’s cellphones revealed discussions he had earlier this year with co-conspirators about shipping military-grade equipment to North Korea. Some of these messages include photographs that Wen sent of items controlled for export under the International Traffic in Arms Regulations. From January to April, Wen sent emails and text messages to a U.S.-based broker about obtaining a civilian plane engine. There also were several text messages on Wen’s iPhone concerning price negotiation for the plane and its engine.
Wen is a Chinese national who is illegally in the United States after overstaying his student visa and is therefore prohibited from possessing any firearms or ammunition. Wen lacks the required licenses from the U.S. government to export ammunition, firearms, and the other devices that law enforcement seized at his home to North Korea.
Wen is charged with conspiracy to violate the International Emergency Economic Powers Act, which carries a statutory maximum penalty of 20 years in federal prison.
The FBI, Homeland Security Investigations, Defense Criminal Investigative Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Department of Commerce Bureau of Industry and Security are investigating the case.
Assistant U.S. Attorney Sarah E. Gerdes for the Central District of California and Trial Attorney Ahmed Almudallal of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Boswell Resident Pleads Guilty to Federal Drug and Firearm ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joe Clay Harris, age 39, of Boswell, Oklahoma, entered a guilty plea to one count of Possession with Intent to Distribute Methamphetamine and one count of Felon in Possession of a Firearm.
The Indictment alleged that on April 6, 2024, Harris knowingly possessed methamphetamine, a Schedule II controlled substance, intending to distribute it, and that Harris knowingly possessed a .22 caliber semi-automatic rifle and five rounds of .22 caliber ammunition after having been convicted of a crime punishable by imprisonment for a term exceeding one year.
The charges arose from an investigation by the Hugo Police Department, the Choctaw County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Gerald L. Jackson, 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. Harris will remain in the custody of the United States Marshals Service pending sentencing.
Assistant U.S. Attorney Richard J. Lorenz represented the United States.
Berkeley County Man Sentenced to 20 Years for Child Pornography ChargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Beau Thomas Shores, 42, of Bunker Hill, West Virginia, was sentenced today to 240 months in federal prison for the receipt of child pornography.
According to court documents and statements made in court, Shores was using his cell phone to access child pornography on the internet. The National Center for Missing and Exploited Children reported the activity to law enforcement. A search of Shores' home, phones, and computers uncovered thousands of images and videos depicting child pornography, some with children as young as 3 years old.
Shores was ordered to pay a $64,500 fine. He will serve 30 years of supervised release following his prison sentence.
Assistant U.S. Attorney Kimberley Crockett prosecuted the case on behalf of the government.
This case was investigated by personnel from the FBI and the Ranson Police Department assigned to the West Virginia Child Exploitation and Human Trafficking Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
U.S. District Judge Gina M. Groh presided.
Baltimore Man Sentenced to 20 Years for Fentanyl Trafficking OperationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Sean Jarred Davis, 33, of Baltimore, Maryland, was sentenced to 240 months in federal prison for operating a fentanyl trafficking organization in Hampshire and Mineral Counties.
According to court documents and statements made in court, Davis, also known as “Mike” and “Mike White,” was supplying large quantities of fentanyl and heroin, delivering the drugs to others in Hampshire and Mineral Counties to sell on his behalf.
Davis will serve three years of supervised release following his prison sentence.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of members from the Federal Bureau of Investigation, the Drug Enforcement Administration, the West Virginia State Police, the Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Hardy County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department.
This case 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.
U.S. District Judge Gina M. Groh presided.
Armed New Jersey Man Sentenced to Five Years in PrisonRead the Press Release
RALEIGH, N.C. – James Hathcock, 45, of New Jersey City, NJ, was sentenced to 68 months in prison for distributing drugs around a neighborhood in Pollocksville. Hathcock pled to possession of a firearm in connection to a drug crime and possessing with the intent to distribute cocaine, fentanyl, and methamphetamine.
According to court records and evidence presented in court, in February of 2023, law enforcement received complaints of possible drug activity on Nguyen Lane, a local neighborhood street in Pollocksville. From March 3 to April 20, 2023, law enforcement was able to conduct seven controlled purchases using a confidential source (CS), where Hathcock provided the CS with cocaine, methamphetamine, and fentanyl. During many of these purchases, Hathcock traveled to meet his supplier, co-defendant Robert Milton Green, before completing the transaction.
After completing the controlled purchase on April 20, 2023, law enforcement simultaneously executed search warrants at Hathcock’s and Green’s residences. From Hathcock’s residence, law enforcement seized 10 grams of crack cocaine, 84 grams of cocaine, 28 grams of crystal methamphetamine, nine grams of fentanyl, 112 grams of marijuana, a .380 caliber handgun, two .45 caliber handguns, assorted ammunition, digital scales, and three Narcan nasal spray bottles. From Green’s residence, law enforcement seized 137.7 grams of crack cocaine, 52.4 grams of crystal methamphetamine, 159.4 grams of fentanyl, 568.8 grams of cocaine, 253 grams of marijuana, 34.6 grams of heroin, and $10,800 in U.S. currency.
Green was sentenced to 11 years on October 25, 2024, for possessing with intent to distribute 500 grams or more of cocaine, 40 grams or more of fentanyl, 50 grams or more of methamphetamine, and a quantity of cocaine.
Michael F. Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security, the Jones County Sheriff’s Office, and the Craven County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Leonard Champaign prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:23-CR-00035-M.
Armed Felon Sentenced to 15 Years Following Rampage in Harnett CountyRead the Press Release
RALEIGH, N.C. – A Fayetteville man was sentenced to 180 months in prison for possession of a firearm by a convicted felon after attempting to carjack man with a loaded gun in Harnett County. On May 9, 2024, Terry A. Frederick pleaded guilty to the charge.
According to court documents and other evidence presented in court, on the evening of January 31, 2023, Frederick, 40, was seen walking near Hodges Chapel Road and I-95 in Harnett County. Witnesses reported that Frederick shouted threats at people in the area and fired a handgun. He then approached a man in a pickup truck, trying to pull him from the vehicle. However, the truck driver managed to close the door and drive away. Frederick subsequently fired at least one shot at the truck.
When police attempted to arrest Frederick, he resisted. Officers eventually arrested him and discovered a partially loaded, stolen .40 caliber pistol in his jacket pocket. Frederick has a history of multiple felony convictions, including drug and property crimes.
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.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Dunn Police Department and the Harnett County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Sarah E. Nokes prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-108-D-RJ.
Alleged Child Molester Identified by His Distinctive TattoosRead the Press Release
An alleged child molester has been identified and charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Christopher Lynn Driskill, 48, formerly identified by the FBI as “John Doe 49,” thought to have critical information about ongoing child sexual exploitation, was identified on November 18. He was charged via criminal complaint with production of child pornography, arrested on Nov. 26, and made his initial appearance before U.S. Magistrate Judge John R. Parker on Tuesday.
According to court documents, in July 2024, a foreign partner referred child sexual abuse material posted on the dark web to the FBI’s Victim Identification Program. In the videos, an unknown male subject with several distinctive tattoos – including the word “DABBY” on his chest,” the number “197x” on his left bicep, the words “CAST NO STONES” on his left forearm, and a Texas flag in the shape of a head on his right forearm – can be seen sexually assaulting a prepubescent male.
Separately, in September 2024, Mr. Driskill’s former dating partner reported to the Coleman Police Department that Mr. Driskill had confessed, while intoxicated, to molesting a child and recording it. Officers met with the child, who did not make an outcry, and interviewed Mr. Driskill, who denied sexually abusing the child and claimed his former partner was mad at him over a bad breakup. With no additional evidence at the time, the police department closed their investigation. However, the recorded interview with Mr. Driskill showed a “CAST NO STONES” tattoo on his left forearm, a 1975 tattoo on his left bicep, and part of a Texas flag in the shape of a head on his right forearm.
Meanwhile, FBI agents searching for John Doe 49 located a public Instagram account whose profile picture appeared similar to the images of the subject in the child sexual abuse material. They traced the account to Mr. Driskill in Coleman, Texas. On Nov. 22, agents coordinating with Coleman Police Department learned of the investigation into a possible molestation involving Mr. Driskill, and compared the footage of his interview to the child sexual abuse material. The face and tattoos allegedly matched.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Mr. Driskill is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 30 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the help of the Bureau’s Endangered Child Alert Program (ECAP). Assistant U.S. Attorney Matt Tusing is prosecuting the case.
Active-duty Army soldiers charged and convicted for obtaining fraudulent COVID-19 related loansRead the Press Release
RICHMOND, Va. – Two active-duty U.S. Army soldiers pled guilty to, and a third soldier was charged with, obtaining fraudulent loans through a COVID-19 relief program while stationed at Fort Gregg-Adams.
Major Eduwell Jenkins, 42, pled guilty today to defrauding the Small Business Administration (SBA) by obtaining a fraudulent loan through the Paycheck Protection Program (PPP). Also today, a federal grand jury returned an eight-count indictment charging Sergeant First Class Crispin Antonio Abad, 42, with obtaining two fraudulent PPP loans while on active duty. On Nov. 5, Sergeant Malaysia Stubbs, 30, pled guilty to obtaining a fraudulent PPP loan.
According to their plea documents, Jenkins and Stubbs filed for fraudulent PPP loans in 2021. Though they were active-duty soldiers, Jenkins and Stubbs falsely represented to the SBA that they each had jobs separate from their military employment that generated over $100,000 in annual income. To substantiate this false income, Jenkins and Stubbs generated fabricated Internal Revenue Service (IRS) tax return forms, submitting them to the SBA as supporting documentation for the PPP applications. Jenkins and Stubbs never submitted these falsified tax return forms to the IRS as part of legitimate tax filings. Based on their false submittals, Jenkins and Stubbs each received over $20,000 in government-backed PPP loans to which they were not entitled.
Separately, an indictment alleges that, while stationed at Fort Gregg-Adams in 2021, Abad was responsible for, among other things, enforcing the Army’s Honor Code and Standards of Conduct. In April 2021, Abad allegedly applied for two fraudulent PPP loans, claiming exactly $100,000 in income in 2020 from a business named “Granny’s Delight.” Abad allegedly represented that his business was to sell his grandmother’s pies. To substantiate this false income, Abad allegedly generated a fabricated IRS tax return form, submitting this form to the SBA as supporting documentation for the PPP applications. According to the indictment, Abad never submitted this falsified IRS tax return form to the IRS as part of legitimate tax filings. As a result of his false submittals, Abad allegedly received over $41,000 in PPP loans to which he was not entitled. Abad then allegedly used fraudulently obtained funds for various luxury and recreational spending, including purchases at the Fort Gregg-Adams Golf Course, Ace Adventure Resort in West Virginia, Victoria’s Secret, Sunglass Hut, and the Virginia ABC Store. Additionally, Abad allegedly purchased jewelry at Reeds Jeweler and withdrew hundreds of dollars in fraud proceeds at the MGM Casino in National Harbor, Maryland.
Jenkins is scheduled to be sentenced on March 25, 2025. Stubbs is scheduled to be sentenced on March 20, 2025. Jenkins and Stubbs face a maximum penalty of 5 years in prison. If convicted, Abad faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. 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; Keith K. Kelly, Special Agent in Charge of the Department of the Army Criminal Investigation Division’s Fraud Field Office; and Christopher Dillard, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement.
Assistant U.S. Attorney Avi Panth is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-139 (Jenkins), Case No. 3:24-cr-159 (Stubbs), and Case No. 3:24-cr-178 (Abad).
An indictment is merely an accusation. A defendant is presumed innocent until proven guilty.
8-Hour Armed Standoff Leads to 5+ Year Federal Sentence for Westbrook Man Who Illegally Possessed GunRead the Press Release
PORTLAND, Maine: A Westbrook man was sentenced today in U.S. District Court in Portland for possession of a firearm by a felon.
U.S. District Judge John A. Woodcock, Jr. sentenced Corey Faulkner, 39, to 64 months in prison followed by three years of supervised release.
According to court records, in October 2023, officers from the Westbrook Police Department responded to Faulkner’s residence following a 911 call reporting domestic violence. The victim reported that Faulkner had assaulted her, including by strangling her. After fleeing the apartment, the victim called 911 and reported to officers that Faulkner possessed firearms and had made suicidal statements. After Faulkner ceased communications with law enforcement, officers cleared a perimeter around the residence and ordered a shelter-in-place for the nearby buildings. Officers obtained a state arrest warrant for Faulkner and breached the building’s basement, using unmanned drones and a robot to locate him in a bathroom. Faulkner surrendered when the bathroom window was breached. The incident lasted more than eight hours.
Officers recovered a 12-gauge shotgun, 12-gauge ammunition, a 9mm pistol case, and 9mm ammunition during an initial search of the residence. A 9mm pistol was recovered from a kitchen cabinet during a second search. Faulkner was precluded from possessing any firearms due to his conviction history. In 2013, Faulkner was convicted on state charges of operating under the influence, endangering the welfare of a child, and domestic violence assault. In 2018, Faulkner was convicted of aggravated assault after punching a woman, dousing her with rubbing alcohol and threatening to set her on fire, and strangling her.
The Westbrook Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case.
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$2 Million Resolves Kickback Allegations Relating to Denver Neuromonitoring CompanyRead the Press Release
DENVER — The U.S. Attorney’s Office for the District of Colorado announced today that Denver-based Assure Holdings Corp. and its subsidiary Assure Neuromonitoring LLC (together “Assure”), Assure’s founder Preston Parsons, Denver-based neurosurgeon Dr. Brent Kimball, and California businessman James Mathew McAlpin have entered into settlements totaling more than $2 million to resolve allegations that they violated the False Claims Act by arranging kickbacks for neuromonitoring services.
The Anti-Kickback Statute prohibits knowingly offering, paying, soliciting, or receiving remuneration to induce referrals or orders for items or services covered by Medicare, Medicaid, TRICARE and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. Claims to federally funded healthcare programs that include items or services resulting from a violation of the Anti-Kickback Statute also violate the False Claims Act, which prohibits submitting false or fraudulent claims for payment to the federal government.
The civil settlements announced today resolve allegations relating to intraoperative neuromonitoring services. Intraoperative neuromonitoring uses electrodes to monitor a patient’s nervous system during surgery. Typically, a technician present in the surgical suite places the electrodes before surgery, and then an oversight physician located elsewhere remotely monitors the data output while the surgeon is operating on the patient.
The United States alleges that Assure paid illegal remuneration to surgeons through joint venture companies to induce those surgeons to order intraoperative neuromonitoring services from Assure. In Dr. Kimball’s case, the alleged kickbacks were routed to Dr. Kimball through a complex web of transfers. At Dr. Kimball’s request, Mr. McAlpin, a friend of Dr. Kimball, formed a company that entered into a joint venture with Assure’s founder, Mr. Parsons. That joint venture was known as Englewood Professional Reading LLC. Through a series of transactions, a portion of the payments received by Englewood Professional Reading for oversight physician claims were routed to Dr. Kimball.
The United States alleges that these kickbacks resulted in claims paid for by federally funded healthcare programs. When Dr. Kimball ordered interoperative neuromonitoring services through Assure, Assure caused claims to be submitted by a third-party billing company on Englewood Professional Reading’s behalf to the patient’s insurer for payment of the oversight physician’s monitoring services. Sometimes, these claims for payment were submitted to Medicare Advantage Organizations responsible for providing coverage for Medicare beneficiaries. Other times, oversight physicians arranged by Assure submitted their own claims directly to Medicare or Colorado Medicaid for services provided to Medicare and Medicaid beneficiaries.
As part of the civil settlements, Assure has agreed to pay $1.008 million; Dr. Kimball has agreed to pay $650,000; Mr. Parsons has agreed to pay $225,000; and Mr. McAlpin has paid $125,000. Mr. Parsons’ settlement amount is based on his financial condition and limited ability to pay.
“Doctors’ decisions about which services to use when providing care to patients should never be tainted by how much money the doctor can make from kickbacks,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “We will continue to use the False Claims Act and other enforcement tools to maintain integrity in healthcare.”
“Ensuring that health care professionals and entities are held accountable for kickback violations is essential for preserving public trust and safeguarding the integrity of federal health care programs,” said Special Agent in Charge Linda T. Hanley of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our federal and state law enforcement partners to identify and investigate alleged kickback schemes.”
The settlements also resolve claims brought under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of the recovery. The qui tam case is captioned United States ex rel. Mathis v. Kimball, et al., No. 21-cv-01352-STV (D. Colo.). Mr. Mathis will receive 18% of the proceeds from the settlements.
The resolutions obtained in this matter were a result of a coordinated effort between the U.S. Attorney’s Office for the District of Colorado and the Medicaid Fraud Control Unit of the Colorado Attorney General’s Office, with assistance from HHS-OIG. Assistant United States Attorney Jasand Mock investigated the matter.
The claims resolved by the settlements are allegations only. There has been no determination of liability.
2 December 2024
Wolcott, Vermont Woman Sentenced for Stealing Social Security BenefitsRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on December 2, 2024, Maryann Manning, 63, of Wolcott, Vermont, was sentenced by Chief United States District Judge Christina Reiss to two years of probation. Chief Judge Reiss also ordered Manning to pay restitution to the Social Security Administration in the amount of $119,978. Manning previously pleaded guilty to a one-count information charging Manning with receiving stolen government money.
According to court records, Manning’s brother received disability insurance benefit payments from the Social Security Administration (SSA). Manning’s brother died in October 2015 at which time his SSA benefits should have terminated. Following his death, however, Manning collected her brother’s benefits from SSA by withdrawing the money from his accounts. Manning admitted to investigators that she knew that she stole the money that did not belong to her. The total loss to the Social Security Administration was more than $119,000.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Social Security Administration’s Office of the Inspector General.
The case was prosecuted by Assistant U.S. Attorney Zachary Stendig. Manning was represented by Robert Behrens, Esq.