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Tuesday 15 October 2024
Pediatric Physician Pleads Guilty to Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – An Overland Park, Kansas, pediatric physician pleaded guilty in federal court today to using concealed video cameras to secretly record 13 child victims for the purpose of producing child pornography over a three-year period from Oct. 4, 2020, to Oct. 28, 2023. Aalbers also admitted that he was in possession of child pornography.
Brian Michael Aalbers, 50, of Kansas City, Mo., pleaded guilty before U.S. Magistrate Judge Lajuana M. Counts to 13 counts of attempting to produce child pornography and one count of possessing child pornography.
Aalbers, a pediatric neurologist at Overland Park Regional Hospital in Overland Park, Kan., remains in federal custody without bond.
Concerns were received by both the FBI and the United States Attorney’s Office regarding the potential victimization of patients of Aalbers’s pediatric practice. During the investigation, it was determined there was no evidence to indicate any current or former patients were victimized by Aalbers. To protect and maintain the privacy of Aalbers’s victims, no additional information regarding the victims will be released.
According to today’s plea agreement, Kansas City, Mo., police officers investigated a report regarding concealed video cameras that had been found on Oct. 28, 2023. A witness later contacted officers to report that Aalbers was sending suicidal text messages. Lenexa, Kan., police officers located Aalbers and transported him to a local hospital to obtain voluntary mental health treatment. The hospital took possession of two laptop computers, two iPad tablets, and a cell phone that were inside a backpack Aalbers brought with him when he entered the facility.
Investigators obtained search warrants for those devices, as well as other cameras and electronic devices owned by Aalbers. Investigators found more than 50,000 video files associated with the hidden video cameras used by Aalbers, including more than 1,000 videos that contained pornographic depictions of the 13 child victims.
Investigators also obtained a search warrant for Aalbers’s iCloud account, which contained 1,000 additional images and 163 additional videos of child pornography, which included videos of the identified child victims that had been produced by Aalbers.
Under the terms of today’s plea agreement, the government and Aalbers are jointly requesting a sentence of at least 20 years, but no more than 30 years, in federal prison without parole. 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 Maureen A. Brackett. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Lenexa, Kan., Police Department, the Merriam, Kan., Police Department, and the Overland Park, Kan., Police Department, with assistance from the U.S. Attorney’s Office in the District of Kansas.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Pasco Man Who Attempted to Meet a 13-Year-Old for Sex at Richland Hotel Sentenced to Federal PrisonRead the Press Release
Richland, Washington – On October 15, 2024, Chief United States District Judge Stanley A. Bastian sentenced Julio Cesar Anaya, age 45, of Pasco, Washington, to 84 months in federal prison on child exploitation charges. Chief District Judge Bastian also imposed a lifetime of supervised release.
According to court documents and information presented at the sentencing hearing, in March of 2022, a Kennewick detective working with the Southeast Regional Internet Crimes Against Children Task Force (SER-ICAC) working in an undercover capacity as a 13-year-old girl, posted an ad on a website that is a well-known platform for sexual encounters. Anaya responded to the ad and began communicating with the detective, believing the detective to be a 13-year-old girl. Over the next three weeks, Anaya repeatedly discussed engaging in sexual intercourse with the child and requested that the child send him child pornography—that is, naked pictures of herself. Anaya also attempted to persuade the person he believed to be a 13-year-old girl to come to his house in Pasco. In one particularly deliberate act, he even offered to pay for her Uber.
Ultimately, Anaya said he planned to rent a hotel room in Richland near her home to facilitate a meeting with the girl. On April 11, 2023, Anaya booked a hotel room in Richland, told the purported child the hotel location and instructed her when to arrive. He also shared his detailed plans to engage in sex with the child.
On April 12, 2023, Anaya arrived at the hotel and checked in. A few moments later he was placed under arrest by detectives with the Richland Police Department. Anaya was carrying two cell phones and two bags when he was arrested. A search warrant for his bags revealed that he had brought with him massage oil, condoms, erectile dysfunction medication, lubricant, and hand sanitizer. In Anaya’s primary phone, he had communications with the purported 13-year-old; in his other phone he had saved more than 300 images of child pornography involving minor children – including infants and toddlers.
“Mr. Anaya booked a hotel room in Richland and made detailed plans to meet a person he believed was a 13-year-old child for illicit sex. Further investigation revealed Mr. Anaya was in possession of dozens of videos and images showing the sexual exploitation of young children,” stated U.S. Attorney Waldref. “I’m grateful for the important and difficult work that detectives on the Southeast Regional Internet Crimes Against Children Task Force do everyday to prevent horrific victimization of children, remove dangerous offenders from our community, and protect the most vulnerable among us.”
“It is incredibly fortunate that this child predator’s attempt at victimizing a person whom he believed to be a teenage girl was thwarted by our law enforcement partnerships,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “The devasting impact of online predators cannot be overstated. This sentence sends a strong message that abusing children will not be tolerated, whether it is downloading and possessing child pornography, trying to meet children for sex, or any other form of child exploitation.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the Southeast Regional ICAC Task Force, consisting of Homeland Security Investigations and the Richland and Kennewick Police Departments. This case was prosecuted by Assistant United States Attorney Laurel J. Holland.
4:23-cr-06023-SAB
O’Fallon, Missouri Man Admits Child Sex ChargesRead the Press Release
ST. LOUIS – A man from O’Fallon, Missouri on Tuesday admitted engaging in sexual activity with a 15-year-old that he met online and discussing child sex with another 15-year-old victim.
Andrew Haller, 34, pleaded guilty in U.S. District Court in St. Louis to all of the charges he faced: two counts of coercion and enticement of a minor, one count of distribution of child pornography and one count of receipt of child pornography.
Haller admitted separately meeting two 15-year-old girls on Tumblr before moving their conversations to the encrypted app Telegram.
The 15-year-old California victim told the FBI that Haller introduced the topic of “daddy dom,” and told her he was also sexually abusing another teen. Haller listed rules for the victim, including that she would have to ask his permission once a day to urinate, wear a collar at all times, and refer to him only as “Sir,” Dad” or “Daddy.” He also asked her for nude photos and sent her photos and videos of the other victim.
After identifying Haller and performing a court-approved search of his home in November of 2023, the FBI identified the other victim. She told the FBI that she sent Haller sexually explicit photos at his direction. They met in person twice in 2023 and engaged in sexual activity. Haller struck her during the first visit and took pictures and videos of her, his plea says. He also discussed with her his desire to abuse children too young to talk or remember the abuse.
Haller possessed 195 images and 92 videos of known or suspected child sexual abuse material, and sent that material to others via Telegram and Signal, another encrypted app, his plea says.
Haller is scheduled to be sentenced Jan. 28, 2025. The coercion charge carries a mandatory minimum sentence of 10 years in prison and the child pornography charges each carry a five-year mandatory minimum sentence. Assistant U.S. Attorney Michael Hayes has agreed as part of the plea to ask for no more than 25 years in prison.
The FBI investigated the case. Assistant U.S. Attorney Michael Hayes is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
North Carolina Woman Sentenced for Making False StatementsRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Greensboro, North Carolina, woman convicted of False Statement. The sentencing took place on October 10, 2024.
Dr. Erin Lynn Hower, age 39, was sentenced to time served, followed by one year of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $22,832.00 in restitution.
Hower was indicted on two counts of False Statement by a federal grand jury in January of 2023. She pleaded guilty on June 10, 2024.
Between January and February of 2018, Hower was employed as an urgent care locum tenens pediatrician in a pediatric clinic in North Carolina, where she held a medical license. During that time, Hower saw a male patient twice in January and once in February. Thereafter, Hower engaged in a sexual relationship with the male patient. After the sexual relationship was discovered, the North Carolina Medical Board began an investigation into Hower’s sexual relationship with the patient, as well as other complaints that had been made against her. Hower was made aware of the North Carolina Medical Board’s investigation and knew that one of the allegations being investigated was the sexual relationship with a patient.
In July of 2020, while the North Carolina Medical Board investigation was underway, Hower applied for a pediatric position with Indian Health Service (“IHS") in Pine Ridge, South Dakota. As part of the application, Hower completed a credentialing application, which was sent to and reviewed by several individuals, including the Acting Chief Executive Officer for IHS. The application contained several questions that Hower was required to answer, including whether there were any disciplinary actions or investigations against her by any state licensure board. Hower failed to disclose that the disciplinary action or investigation by the North Carolina Medical Board involved sexual misconduct allegations. Based on her false responses in her application, Hower was hired to work as a pediatrician at IHS in Pine Ridge and began in August of 2020. At no time during her employment did Hower disclose that she was under investigation by the North Carolina Medical Board for having an inappropriate sexual relationship with a patient. While Hower was employed at IHS, the North Carolina Medical Board completed its investigation and concluded Hower’s sexual relationship with a patient constituted unprofessional conduct. On January 4, 2021, the North Carolina Medical Board ordered Hower’s medical license to be indefinitely suspended. Thereafter, Hower continued to work at IHS for several weeks despite her medical license being suspended.
“We trust pediatricians with the most vulnerable among us—our children,” said U.S. Attorney Alison J. Ramsdell. “When pediatricians betray that trust by concealing allegations of sexual misconduct, they not only endanger the lives of those in their care, but they undermine the very foundation of medical ethics. It is therefore imperative that such actions are met with accountability. I am grateful to our partners at HHS-OIG and my colleagues at the U.S. Attorney’s Office for holding this defendant to account in federal court.”
“This physician sentenced in this case lied to conceal the fact that she was under investigation for sexual misconduct allegations when applying for a position in the Indian Health Service, thus jeopardizing patient safety through her dishonesty,” said Special Agent in Charge Linda T. Hanley of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to hold accountable those who undermine the integrity of federal health care programs to ensure that patients are provided quality care by appropriately licensed providers.”
This case was investigated by Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
North Carolina Man Sentenced to 13 Years in Prison for Federal Drug CrimeRead the Press Release
BLUEFIELD, W.Va. – Keith Deshon Adams, 39, of Statesville, North Carolina, was sentenced today to 13 years in prison, to be followed by four years of supervised release, for possession with intent to distribute 5 grams or more of methamphetamine and a quantity of fentanyl.
According to court documents and statements made in court, on September 7, 2022, law enforcement officers conducted a traffic stop of a vehicle in Oak Hill in which Adams was a passenger. Adams admitted that he tried to flee on foot after he was asked to exit the vehicle and stand at the front of an officer’s cruiser. An officer deployed a taser to stop Adams. While struggling with the officer, Adams opened a cross-body bag he was wearing and retrieved a plastic baggy containing fentanyl powder from it. Adams tore open the bag, causing the fentanyl to spill out of the bag and onto the officer’s clothing, face and mouth. The officer ingested some of the fentanyl and began suffering an apparent overdose.
Other officers secured Adams. A second officer suffered an apparent overdose after ingesting some of the spilled fentanyl. Both officers were taken to the hospital and treated with naloxone.
Adams admitted that the cross-body bag contained controlled substances including methamphetamine, fentanyl and tablets containing methamphetamine and ecstasy.
Adams has a long criminal history with prior convictions for such offenses as unlawful transport of firearms, possession with intent to distribute a controlled substance, and failure to register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Oak Hill Police Department, the Fayette County Sheriff’s Department, the Drug Enforcement Administration (DEA), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney JC MacCallum prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:23-cr-152.
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New Orleans Men Guilty of Conspiracy, Distribution of Fentanyl and Machinegun PossessionRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that JOSEPH MILLER (“MILLER”), age 21, and KENNETH TURNER (“TURNER”), age 37, residents of New Orleans, pled guilty before U.S. District Judge Lance M. Africk on October 2 and October 9, 2024, respectively.
MILLER pled to five counts of distributing various quantities of fentanyl and methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C). MILLER also pled to possession of a machinegun, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2).
TURNER pled to conspiracy to distribute and possess with intent to distribute, 40 grams or more of a mixture and substance containing a detectable amount of fentanyl and 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
According to court documents, MILLER made five distributions of fentanyl and methamphetamine to undercover agents and a confidential informant with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”). TURNER conspired with MILLER to distribute and possess with intent to distribute, the fentanyl and methamphetamine MILLER sold to ATF agents and, furthered the conspiracy, by supplying the drugs to MILLER to sell. MILLER also negotiated with an ATF undercover agent to sell a privately made semi-automatic pistol equipped with a machinegun conversion device, that turned this firearm into a fully automatic machinegun. The firearm was recovered by ATF agents during a search of MILLER’s residence.
As to his convictions for distributing 40 grams or more of fentanyl and 50 grams or more of methamphetamine, MILLER faces a mandatory minimum sentence of five years up to 40 years in prison, up to a $5,000,000 fine, and at least four years of supervised release as to each count. As to his conviction for possession of a machinegun, he faces up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
For his conspiracy conviction, TURNER faces a mandatory minimum sentence of five years up to 40 years in prison, up to a $5,000,000 fine, and at least four years of supervised release.
Each individual count against MILLER and TURNER also mandates payment of a mandatory special assessment fee of $100.
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney David Berman of the Violent Crime Unit is in charge of the prosecution.
New Orleans Man Guilty of Being Felon in Possession of AmmunitionRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on October 10, 2024, that WILLIE SYLVESTER (“SYLVESTER”), a/k/a “Wooso,” age 29, a resident of New Orleans, pled guilty to being a felon in possession of ammunition, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(2). SYLVESTER faces up to 10 years imprisonment, a fine of up to $250,000.00, up to 3 years of supervised release, and a mandatory special assessment fee of $100.00.
According to court records, on April 16, 2020, the Jefferson Parish Sheriff’s Office (JPSO) deputies were sent to the 1500 block of Westwood Drive in connection with a shooting at that location. Deputies located the victim, SYLVESTER, in a canal bank suffering from gunshots wounds to the hand and thigh. Crime scene technicians collected thirty-seven (37) nine-millimeter casings, as well as a copper jacket, some located near SYLVESTER. Testing determined that the casings were shot from two different weapons.
Between April and September of 2020, JPSO continued to investigate SYLVESTER for his involvement in the April 2020 shooting. Additionally, between April and September of 2020, investigators observed SYLVESTER post several social media messages with weapons and acknowledging an exchange of gunfire with another subject. SYLVESTER also specifically acknowledged in a separate message that he fired a gun during this shooting before being shot in the hand.
Federal law prohibits convicted felons, such as SYLVESTER, from possessing ammunition. In 2013, SYLVESTER was convicted of a felony in Orleans Parish Criminal District Court and again, on November 6, 2014, SYLVESTER was convicted in Louisiana’s 24th Judicial District Court. SYLVESTER knew he had been convicted of these felonies at the time that he possessed the ammunition.
Chief United States District Judge, Nannette Jolivette Brown, will sentence SYLVESTERon January 16, 2025.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department 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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Public Integrity Unit.
New Jersey Man Pleads Guilty to Causing the Death of A Seven-Year-Old Boy and A 48-Year-Old Woman in Hudson River Boat CapsizingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that RICHARD CRUZ pled guilty to misconduct and neglect of a ship officer resulting in death, in connection with the deaths of a seven-year-old boy and a 48-year-old woman after the motor vessel Stimulus Money capsized in the Hudson River in July 2022. CRUZ pled guilty before United States District Judge Katherine Polk Failla, who will sentence CRUZ on January 25, 2025, at 3:30 p.m.
U.S. Attorney Damian Williams said: “Richard Cruz admitted today that his misconduct and negligent actions caused the tragic deaths of a young boy and a woman when Cruz’s vessel capsized in the Hudson River. This prosecution should send a message to all captains and operators of commercial vessels that there will be consequences when they fail to follow the federal regulations and safety protocols that exist to keep passengers safe.”
According to the allegations contained in the Complaint, Information, and statements made in court:
On or about July 12, 2022, at approximately 2:40 p.m., the motor vessel Stimulus Money capsized in the Hudson River resulting in the death of two passengers — a seven-year-old boy (“Victim-1”) and a 48-year-old woman (“Victim-2”). At the time of the capsizing, RICHARD CRUZ was the owner and captain of the vessel. CRUZ had purchased the vessel approximately three months before the capsizing. CRUZ conducted boat “tours” for paying customers onboard the vessel on multiple occasions in the months leading up to the capsizing, despite not having the required United States Coast Guard (“USCG”) credentials and certifications to do so.
CRUZ’s negligent actions and omissions caused the capsizing and the deaths of Victim-1 and Victim-2. At the time of the capsizing, among other things: (i) CRUZ operated Stimulus Money with 13 people on board, exceeding the vessel’s maximum allowable capacity; (ii) CRUZ operated Stimulus Money at a high rate of speed even though an advisory had been issued to alert small watercraft of hazardous conditions, including high winds and heavy seas; (iii) CRUZ had not obtained a required USCG certification to operate the vessel with paying customers on board; and (iv) CRUZ operated Stimulus Money without a valid USCG Certificate of Inspection, which is required for a vessel to operate with paying customers on board.
All 13 people on board Stimulus Money were thrown overboard when it capsized in the Hudson River. Shortly after the capsizing, boats from the New York City Police Department’s (“NYPD”) Harbor Unit and the New York City Fire Department’s (“FDNY”) Dive Rescue Team, and ferries operating nearby, arrived at the scene of the capsizing to render emergency assistance. All but two passengers were recovered conscious and in varying medical conditions. They were subsequently transferred to hospitals in Manhattan and survived the capsizing. Approximately 25 minutes after the capsizing, members of the FDNY Dive Rescue Team recovered Victim-1 and Victim-2 from the Hudson River. They were trapped underneath the capsized vessel and found unconscious. Emergency medical personnel subsequently pronounced Victim-1 and Victim-2 deceased. The cause of death was drowning.
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Please report any illegal passenger charters to the USCG at https://www.p3tips.com/878.
CRUZ, 32, of Elizabeth, New Jersey, pled guilty to one count of misconduct and neglect of a ship officer resulting in death, which carries a maximum sentence of 10 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the USCG Investigative Service and the Special Agents and NYPD Detectives assigned to the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jeffrey W. Coyle is in charge of the prosecution.
New Jersey Construction Company Owner Admits Tax EvasionRead the Press Release
NEWARK, N.J. – The owner of several New Jersey masonry construction companies pleaded guilty to willfully evading taxes, U.S. Attorney Philip R. Sellinger announced today.
Joseph Caravella, 58, of Randolph, New Jersey pleaded guilty before U.S. District Court Judge Madeline Cox Arleo in Newark federal court on Oct. 10, 2024, to a superseding information charging him with tax evasion for tax years 2008 to 2019.
According to documents filed in this case and statements made in court:
From 2008 to 2016, the IRS assessed approximately $650,000 in Trust Fund Recovery Penalties against Caravella for causing three masonry businesses that he owned to fail to pay their employment taxes. From March 2008 through April 2019, Caravella attempted to evade these taxes by placing companies that he controlled in the names of nominee owners; providing the IRS with false and misleading information as part of an Offer in Compromise; filing a false individual income tax return; using bank accounts in the names of nominees for his own purposes; causing his personal expenses to be paid with corporate funds; and causing his compensation to be inaccurately reported or not reported to the IRS on Forms W-2.
The tax evasion charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for March 18, 2025.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark, and Trial Attorneys Kenneth Vert and Evan Mulbry of the Justice Department’s Tax Division.
caravella.sinformation.pdfNationwide Telecommunications Provider and its CEO Plead Guilty to Massively Defrauding Federal Government Programs Meant to Aid the NeedyRead the Press Release
MIAMI –Issa Asad, 51, of Southwest Ranches, Fla., and Q Link Wireless LLC, of Dania Beach, Fla., pleaded guilty today to conspiring to defraud and commit offenses against the United States in connection with a years-long scheme to steal over $100 million from a celebrated federal program providing discounted phone service to people in need. Asad, Q Link’s CEO, also pleaded guilty to laundering money from a separate scheme to defraud a different federal program meant to aid individuals and businesses hurt by the Covid-19 pandemic.
Asad and Q Link each pleaded guilty to Count 1 of an Information, which charges them with conspiring to commit wire fraud and to steal government money, and also with conspiring to defraud the United States, in violation of Title 18, United States Code, Section 371. Asad pleaded guilty as well to Count 2 of the Information, which charges him with money laundering in violation of Title 18, United States Code, Section 1957. Both defendants also pleaded guilty to the Information’s forfeiture allegations. U.S. District Judge Rodolfo A. Ruiz II accepted the guilty pleas and set the Defendants’ sentencing hearings for Jan. 15, 2025, at 1:30 p.m.
Asad’s plea agreement contains a joint recommendation that he serve the statutory maximum sentence of 5 years’ imprisonment on Count 1. The statutory maximum sentence on Count 2 is 10 years’ imprisonment. Asad’s exact sentence will be determined by the Court after considering the U.S. Sentencing Guidelines and other statutory factors.
Asad and Q Link also agreed to pay jointly $109,637,057 in restitution to the Federal Communications Commission (FCC) no later than the time of their sentencing hearings. Asad separately agreed to pay $1,758,339.25 in restitution to the U.S. Small Business Administration (SBA), and to a forfeiture judgment against him of at least $17,484,118.00.
“Issa Asad and his company, Q Link Wireless, purposefully defrauded two critical federal programs helping individuals and businesses suffering financial hardship, unlawfully taking hundreds of millions of dollars for their own use and profit, while obstructing the United States’ ability to help people who, unlike the Defendants, needed it,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “The plea agreements in this case impose extraordinary and unprecedented financial penalties, as they should. They also reflect our Office’s commitment to ensuring that individuals who orchestrate business scams are punished personally, not just corporations. That Asad cheated two different programs meant to help people in need makes this prosecution even more imperative. We will continue to investigate and prosecute vigorously all types of fraud, whether perpetrated by individuals or businesses, and seek justice for victims of these scams.”
“Brazen fraud schemes that prey on vulnerable populations and target federal telephone and broadband subsidy programs, designed to ensure that low-income consumers can access critical telecommunications services, demand the most serious punishments like the ones included in today’s plea agreement,” said FCC Inspector General Fara Damelin. “This result was made possible by dedicated investigators and our investment in a robust data analytics capability. The FCC OIG is committed to using all of our resources, and working with our outstanding law enforcement partners, to investigate and hold accountable those who abuse the FCC’s public subsidy programs and to protect all those who rely on them to stay connected.”
“Stealing over $100 million for programs meant to support people in times of need is a crime against the entire nation.” said Juan A. Vargas, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division. “Asad and Q Link’s guilty pleas send a clear message: those who cheat the government for personal gain will be held accountable.”
“This is precisely the type of conduct IRS Criminal Investigation and our law enforcement partners are committed to deterring,” said Kareem Carter, Executive Special Agent in Charge of the Internal Revenue Service - Criminal Investigation (CI), Washington, D.C. Field Office. “These crimes are far from victimless, as they financially harm taxpayers and erode public trust in our government. I want to extend my gratitude to our law enforcement partners for their unwavering commitment to safeguarding the integrity of federal relief programs and ensuring that the system works for those it was designed to help.”
“SIGPR is proud to have played a significant role teaming with its law enforcement partners in exposing Q Link Wireless LLC and CEO Issa Asad for operating schemes to defraud the FCC and the SBA’s federal program meant to aid individuals and businesses hurt by the Covid-19 pandemic, in addition to using some of the proceeds outside the U.S.,” said Brian Miller, the Special Inspector General for Pandemic Recovery (SIGPR).
According to court records, the cases arose out of the Defendants’ scheme to defraud the FCC’s Lifeline program. Lifeline makes basic communications services more affordable for low-income consumers. It provides subscribers a deep discount on qualifying monthly cellphone service, broadband Internet service, or bundled voice-broadband packages purchased from participating telecommunications providers. The discount helps ensure that low-income consumers can afford 21st century connectivity services and the access they provide to jobs, healthcare, and educational resources.
During their guilty pleas today, the Defendants agreed that they purposefully conspired to defraud this program. Specifically, beginning as early as 2012 and continuing through at least 2021, Q Link, directed by Asad, its CEO, cheated the Lifeline program by making repeated false claims for reimbursement, taking and retaining Lifeline funds that it was not entitled to receive, providing false information about its Lifeline customers, and deceiving the FCC about its compliance with program rules. Asad directed these illegal activities and conspired with others to commit the fraud.
Among other things, according to court records, the Defendants engaged in multiple tricks designed to mislead the FCC about how many people were actually using Q Link’s Lifeline phones, and to prevent customers who did not want the phones from ending their relationship with Q Link (which would have prevented Q Link from billing the program for them). The Defendants manufactured non-existent cellphone activity and engaged in coercive marketing techniques to get people to remain Q Link customers. On one occasion, for example, the Defendants devised the following automated script to be played for Q Link customers: “Hello, your Medicaid, Food Stamp and Lifeline benefits are about to get cancelled. To avoid cancelation of these benefits, press 1 now to indicate that you wish to remain enrolled in these government programs. Press 2 if you wish to speak to a representative about your government benefits. To opt out of any future calls, press 3.” The Defendants used this false and threatening script to coerce customers into accepting Lifeline services. In another recorded call in which a similar script was deployed, a customer who called to cancel due to a non-working cellphone asked the Q Link customer service representative “do you want me to throw it in the garbage?” The representative responded instead: “Just make sure you continue to use the device at least once every 30 days.”
Upon learning that the FCC was investigating their Lifeline billing, the Defendants created and provided false records to the FCC to conceal the scam and to continue collecting reimbursement. As part of this plan, the Defendants, with the help of others, simply manufactured cellphone activity on behalf of Q Link customers who were not using their cellphones. At no point did Q Link amend past Lifeline claims for customers who were not using their cellphones or return any of the Lifeline payments.
The plea agreements state that a reasonable estimate of the total actual loss to the FCC that resulted from the conduct of the Defendants and their co-conspirators was $109,637,057. As part of his plea, Asad admitted that he personally received approximately $15 million from Q Link as a result of the fraud.
Meanwhile, Asad defrauded another federal government program, the Paycheck Protection Program (PPP), by making false statements about Q Link’s business. Congress created the PPP program during the Covid-19 pandemic to authorize forgivable loans to small businesses for job retention and certain other expenses. Asad, in Q Link’s name, executed a fraudulent scheme to obtain, and keep, PPP proceeds. To further the scheme, he made false statements about Q Link’s business, including a false claim that Q Link’s Lifeline reimbursements substantially decreased as a result of the pandemic. According to court records, Asad spent the proceeds of this PPP loan on the construction of a new home. Over $140,000 in PPP funds were used to make donations to a local university, purchase items at a jewelry store and to pay Asad’s property taxes on his residence.
Homeland Security Investigations (HSI) also assisted with this matter.
As part of the Pandemic Response Accountability Committee (PRAC) Fraud Task Force, the Special Inspector General for Pandemic Recovery investigated the COVID-19 fraud related to this case with its other law enforcement partners. The PRAC was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending.
Assistant U.S. Attorneys Elizabeth Young, Dan Bernstein, and John Shipley are prosecuting the case. Assistant U.S. Attorneys Joshua Pastor and Sara Klco are handling asset forfeiture.
Present or former Q Link subscribers who seek more information may follow this link at https://www.justice.gov/usao-sdfl/united-states-v-issa-asad.
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 24-cr-20363.
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Mother Pleads Guilty in Death of Three-Year-Old Child from Fentanyl PoisoningRead the Press Release
WASHINGTON – Sasha McCoy, 28, of Washington, D.C., pleaded guilty on October 15, 2024, on the charge of voluntary manslaughter in the death of her 3-year-old daughter on October 28, 2022, U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD), announced.
McCoy has been in custody since her arrest on February 15, 2024. Her guilty plea, which was contingent upon the Court’s approval, called for an agreed-upon 4 to10-year prison sentence, to be followed by five years of supervised release.
According to a proffer of facts submitted at the plea hearing, at approximately 1:00 p.m. on October 28, 2022, McCoy took her two children to the back bedroom of the location she was staying for a nap and placed them in the bed. When McCoy went to check on her children, she found her 3-year-old daughter unconscious and unresponsive. She later died at the hospital. A small plastic bag that contained two blue round pills with a monogram “M” and half of an oval pill were discovered on top of the bed that the children were sleeping in. The drug analysis determined that the partial tablet was Alprazolam – that is Xanax. The oval pills were determined to contain 4-ANPP, Acetaminophen, Fentanyl, Flurofentanyl, as well as other substances. Medical examiners determined the decedent died from fentanyl and flurofentanyl intoxication.
In announcing the plea, U.S. Attorney Graves and Chief Smith commended the work of those investigating the case from the Metropolitan Police Department (MPD) and Assistant United States Attorney Emma McArthur for her efforts in prosecuting this case.
Media Advisory – U.S. Attorney to Announce Charges Against 16 Individuals Related to Hells Angels’ Racketeering Enterprise in Raleigh and FayettevilleRead the Press Release
RALEIGH, N.C. – United States Attorney Michael Easley, along with several federal, state, and local law enforcement partners, will hold a press conference tomorrow to announce indictments and arrests related to an alleged Hells Angels’ racketeering enterprise in Raleigh and Fayetteville.
WHERE: U.S. Attorney’s Office – 150 Fayetteville Street, Suite 2100, Raleigh, NC 27601
WHEN: Wednesday, October 16th at 2:00 p.m.
Media: please arrive by 1:30 for set up.
McDowell County Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
BLUEFIELD, W.Va. – Lansen Sharif Waugh, 44, of Kyle, was sentenced today to two years and six months in prison, to be followed by three years of supervised release, for distribution of cocaine and methamphetamine.
According to court documents and statements made in court, on June 15, 2021, Waugh sold controlled substances that contained cocaine and methamphetamine to a confidential informant at a residence in Kyle where Waugh was staying. Waugh admitted to the transaction and further admitted to selling cocaine and a controlled substance containing heroin and fentanyl to the confidential informant on two other occasions.
On July 2, 2021, law enforcement officers executed a search warrant at Waugh’s residence in Kyle and found two firearms and additional quantities of cocaine. Waugh admitted that he intended to distribute the cocaine found during the search.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Southern Regional Drug and Violent Crime Task Force. The task force consists of members of the West Virginia State Police, the Bluefield Police Department, the Princeton Police Department, the Mercer County Sheriff’s Department, the McDowell County Sheriff’s Department, and the Wyoming County Sheriff’s Department.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Brian D. Parsons prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:23-cr-121.
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Massachusetts Man Sentenced to Two Years for Stealing U.S. Postage Stamps Using Fraudulent Checks, and an Additional 20 Months for Violating His Conditions of Supervised ReleaseRead the Press Release
SYRACUSE, NEW YORK – William Soto, age 32, of Springfield, Massachusetts, was sentenced to serve 24 months in federal prison following his conviction for twelve (12) counts of theft of government property, United States Attorney Carla B. Freedman and Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS) announced.
As part of his previous guilty plea, Soto admitted that, while on supervised release for a 2021 federal conviction for distributing controlled substances, he used fraudulent checks to purchase more than $30,000 worth of United States Postal Service postage stamps over the course of two days in Oneida County, Oswego County, and Onondaga County in August 2023. Soto stole stamps from 12 different Post Offices, and, in one instance, he bought $9,438.00 in stamps from a post office in Oswego County using a fake check.
United States District Judge Glenn T. Suddaby also ordered that Soto pay $31,101.84 in restitution to the United States Postal Service, be subject to a forfeiture judgement in the amount of $31,101.84, and to serve a three-year term of post-incarceration supervised release. In addition to the 24-month prison sentence, Soto was also sentenced to a consecutive 20-month term of imprisonment for violating the conditions of his supervised release from his prior offense.
The United States Postal Inspection Service (USPIS) investigated the case with assistance from the Fulton Police Department. Special Assistant U.S. Attorney Paul Tuck prosecuted the case.
Massachusetts Man Pleads Guilty to Multiple Civil Rights Charges for Committing Sex Trafficking of Victims Addicted to Opioids and Cocaine and Other OffensesRead the Press Release
A Massachusetts man pleaded guilty today to four counts of conspiracy to commit sex trafficking by force, fraud or coercion and one count of possession with intent to distribute cocaine and fentanyl.
According to court documents, Marvin Pompilus, 39, of Stoughton, conspired to use force, threats of force, fraud and coercion to compel three adult victims to engage in commercial sex acts in the Randolph, Massachusetts, area between October 2021 and October 2022. He also conspired to compel another other adult victim to engage in commercial sex acts in September 2022. In addition, Pompilus pleaded guilty to possessing cocaine and fentanyl with the intent to distribute in September 2022. Pompilus was previously arrested and charged in November 2023. He has remained in federal custody.
According to court documents, Pompilus knew that the victims abused opioids and cocaine, and he specifically targeted the victims because of this vulnerability. For example, Pompilus promised the victims cocaine, heroin and fentanyl in exchange for engaging in commercial sex, with all the profits of the sex acts going directly to Pompilus. Pompilus also possessed distribution quantities of cocaine and fentanyl when Randolph Police Department conducted a car stop in September 2022 and found these drugs inside the crotch of his pants.
Court documents also demonstrate that Pompilus was previously convicted in Suffolk Superior Court in February 2018 of multiple counts of trafficking a person for sexual servitude and deriving support for prostitution. Pompilus was sentenced to six years in state prison and he was released in October 2021. Within days of his release, Pompilus began the sex trafficking conspiracy to which he pleaded guilty today.
“This defendant callously picked up right where he left off when he was released from state prison, believing that he could profit by peddling drugs and misery to people suffering with substance abuse issues,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant specifically targeted victims who were struggling with addiction to opioids and cocaine, coerced them into sex trafficking and cruelly exploited them because of their vulnerability. The Justice Department will continue to investigate and prosecute human traffickers who exploit for their own personal gain the most vulnerable members of society, such as those experiencing substance abuse disorders.”
“Marvin Pompilus targeted and brutalized his victims, and this was promptly after he was released from jail following his conviction on similar state charges,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “These crimes are a violation of human dignity and human rights. Our office, along with our federal, state and local partners, are dedicating substantial resources to both protecting victims of trafficking and holding defendants accountable by prosecuting them to the fullest extent of the law. This is especially true for repeat offenders like Mr. Pompilus.”
“Marvin Pompilus admitted today that as soon as he got out of state prison for sex trafficking, he started doing it again, targeting and exploiting four vulnerable women using violence and threats to force them to engage in commercial sex,” said Special Agent in Charge Jodi Cohen of the FBI Boston Field Office. “What he did is unconscionable, and the harm he’s inflicted on these women is immeasurable. The FBI will do everything in its power to protect trafficking victims from further harm and see the predators who so viciously abuse them brought to justice.”
A sentencing hearing is scheduled for Jan. 23, 2025. According to the plea agreement, Pompilus faces a minimum penalty of 12 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Boston Field Office, Massachusetts State Police and Randolph Police Department investigated the case. Massachusetts State Police Troopers Ashleigh Moore and John Hagerty are especially commended for identifying Pompilus and detecting his trafficking scheme during a routine car stop in the summer of 2021.
Chief of the Civil Rights and Human Trafficking Unit Liz Riley-Cunniffe for the District of Massachusetts and Trial Attorney Meghan Tokash of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Mason City Man Sentenced to Federal Prison for Possession of a Firearm by a Prohibited Person and Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
A man who possessed a firearm as a prohibited person and possessed methamphetamine with the intent to distribute was sentenced October 11, 2024, to more than 8 years in federal prison.
Tirrell Harlan Hopkins, Jr., age 24, from Mason City, Iowa, received the prison term after a plea on May 3, 2024, to one count of possession of a firearm by a prohibited person and one count of possession with intent to distribute a controlled substance.
At the plea hearing Hopkins admitted that on November 18, 2023, in Mason City, Cerro Gordo County, Iowa, he knowingly possessed a firearm, a Springfield Armory, Model: Saint, Caliber: 2.33 NATO, Type: Pistol. At the time, Hopkins possessed the gun, he knew he was a user of illegal drugs, had been convicted of a felony, and convicted of a crime of domestic violence, all of which prohibited him from legally possessing a gun. Hopkins also admitted that on or about November 18, 2023, in the Northern District of Iowa, he was in possession of methamphetamine, and intended to distribute some or all of the methamphetamine to another person.
Hopkins was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Hopkins was sentenced to 98 months. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Hopkins is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The was prosecuted by Assistant United States Attorney Kevin C. Fletcher and was investigated by the Mason City Police Department, Cerro Gordo County Sheriff’s Office, Iowa State Patrol, Cerro Gordo County Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms & Explosives, the Iowa Division of Criminal Investigations Laboratory, and the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-03008.
Follow us on Twitter @USAO_NDIA.
Man Sentenced to 12 Years in Prison Following the Fentanyl Poisoning of an Auburn TeenagerRead the Press Release
Montgomery, Ala. – On October 10, 2024, a federal judge sentenced 23-year-old Jay Quan Adams, a resident of Auburn, Alabama, to 144 months in prison, announced Acting United States Attorney Kevin Davidson and Special Agent in Charge Steven Hofer with the Drug Enforcement Administration’s New Orleans Field Division. There is no parole in the federal system.
“Fentanyl is a deadly drug that is destroying lives and devastating families,” said Acting U.S. Attorney Davidson. “This case is a tragic example of the toll the drug is taking on communities right here in the Middle District of Alabama. My office will continue to prioritize the prosecution of anyone selling these deadly pills.”
“Yesterday’s sentence brings a measure of justice to the victim’s family,” said Special Agent in Charge Hofer. “Fentanyl is a silent killer that has claimed countless lives, and this case is a reminder of the dangers of the synthetic opioid. We must continue to educate ourselves, and our communities, about the risks associated with fentanyl in hopes of preventing future tragedies.”
According to the plea agreement and other court records, on March 26, 2021, law enforcement responded to a report of a teenager found unresponsive in his Auburn home. It was determined that he died as a result of ingesting a pill which, without his knowledge, contained fentanyl. An investigation following the victim’s death revealed that he had gone to Adams’ Auburn residence the previous night and paid Adams $80. On March 29, 2021, law enforcement executed a search warrant on Adams’ residence and found numerous pills containing fentanyl. During his plea hearing on May 15, 2024, Adams admitted that he possessed the pills found during the search with the intent to distribute them.
The Drug Enforcement Administration and Auburn Police Department investigated this case, with assistance from the Alabama Department of Forensic Sciences. Acting United States Attorney Kevin Davidson prosecuted the case.
Local man convicted of recording himself while engaging in sexual intercourse with minorRead the Press Release
McALLEN, Texas – A 29-year-old McAllen resident has entered guilty pleas to enticement of a minor and production of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Christian Hanks recorded himself with a minor victim in December 2023.
The investigation also revealed Hanks had engaged in conversation with another minor victim in the Western District of Louisiana to entice her to engage in sexual conduct with him. The investigation revealed he also engaged in sexual intercourse with the second minor victim.
U.S. District Judge Micaela Alvarez will impose sentencing Jan. 15, 2025. At that time, Hanks faces up to 30 years in federal prison for the production of child pornography and up to life for enticing the second minor victim.
He has been and will remain in custody pending that hearing.
Homeland Security Investigations in Texas and Louisiana conducted the investigation.
Assistant U.S. Attorneys Cahal P. McColgan and Earl M. Campbell prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
LeFlore County Resident Sentenced for Federal Drug CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Michael John Jones, age 41, of Talihina, Oklahoma, was sentenced to 63 months in prison for one count of Possession with Intent to Distribute Methamphetamine.
The charges arose from an investigation by the Choctaw Nation Lighthorse Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On February 6, 2024, Jones pleaded guilty to the charge. According to investigators, on January 24, 2023, law enforcement conducting a routine traffic stop discovered Jones driving on a suspended license while travelling northbound on Highway 63 west of Talihina. A subsequent search revealed Jones to be in possession of multiple plastic baggies containing over 124 grams of methamphetamine intended for distribution.
The Honorable Ronald A. White, Chief U.S. Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Jones will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Michael E. Robinson represented the United States.
LA Autoridad De Vivienda De Chicopee Resuelve Una Demanda De Discriminación Por Discapacidad Y RacialRead the Press Release
BOSTON- La Autoridad de Vivienda de Chicopee (CHA) y su ex Director Ejecutivo, han resuelto una demanda que alegaba que la CHA y su Director llevaban a cabo un modelo de prácticas de discriminación contra inquilinos de la CHA basadas en su raza, nacionalidad de origen o discapacidad.
La Orden de Consentimiento requiere que la CHA pague $435,000 para compensar a las personas perjudicadas por sus prácticas discriminatorias, y una multa civil de $25,000 a los Estados Unidos. El acuerdo también requiere que la CHA realice amplios cambios para proteger los derechos de los inquilinos con discapacidades, incluida la contratación de un Coordinador de Derechos por Incapacidad, la implementación de nuevas medidas para manejar las solicitudes de los inquilinos para alojamiento y mudanzas y la construcción de nueve nuevas unidades de vivienda para personas con discapacidades. La Orden de Consentimiento también prohíbe la discriminación en el futuro y requiere que la CHA implemente nuevos procedimientos para quejas por discriminación y la capacitación de los empleados.
De conformidad con el acuerdo, la Directora de la CHA, Monica Blazic, renunciará a su cargo en la CHA al final del 2024 y no tendrá ninguna vinculación adicional con la CHA. El asunto surgió de una investigación del Departamento de Vivienda y Desarrollo Urbano (HUD), que, en Marzo del 2021 halló que la CHA y Blazic violaron la Ley de Vivienda Justa al no permitir que una persona con enfermedad renal en etapa terminal se transfiriera a una unidad de un cuarto en un primer piso o con acceso a un ascensor, para que pudiese recibir tratamiento diario de diálisis en su hogar. Los Estados Unidos inicialmente presentaron una demanda contra los acusados en Abril del 2021 por no proveer alojamiento razonable. En Diciembre del 2021, los Estados Unidos modificaro su demanda, de modo que incluyese reclamos adicionales de que los demandados discriminaban a inquilinos negros e hispanos, al realizar declaraciones discriminatorias a inquilinos negros e hispanos acerca de ellos, incluyendo insultos raciales y lenguaje despectivo.
“Es completamente inaceptable que los funcionarios de vivienda pública discriminen por motivos de raza y discapacidad. Este acuerdo compensará a los inquilinos que fueron perjudicados por las prácticas ilegales de la CHA y garantizará que la autoridad de vivienda avance con un nuevo liderazgo y nuevos sistemas para proteger a sus inquilinos de la discriminación en el futuro”, dijo el fiscal federal interino Joshua S. Levy. "Al crear nuevas unidades de vivienda accesibles, la CHA también podrá satisfacer mejor las necesidades de la comunidad".
"La discriminación racial y de origen nacional, y la discriminación contra personas que viven con discapacidades, son ilegales y no se permitirán en el mercado inmobiliario de nuestro país", dijo la subsecretaria adjunta principal Diane M. Shelley de la Oficina del Departamento de Vivienda y Desarrollo Urbano (HUD) de Vivienda Justa e Igualdad de Oportunidades. "La HUD aplaude al Departamento de Justicia por llegar a este acuerdo y continuará apoyando sus esfuerzos para responsabilizar a los proveedores de vivienda cuando no cumplan con sus obligaciones conforme a las leyes de vivienda del país".
Los inquilinos de CHA pueden ser elegibles para participar del presupuesto del acuerdo si previamente solicitaron transferir apartamentos para adaptarse a una discapacidad, y la CHA retrasó o negó indebidamente la transferencia. Se recomienda a esos inquilinos que se comuniquen con la Oficina del Fiscal Federal llamando al 617-275-8756 o enviando un correo electrónico a [email protected].
El fiscal federal interino Levy; La Fiscal General Adjunta Kristen Clarke; y la subsecretaria adjunta principal de la HUD, Shelley, hicieron el anuncio hoy. Los fiscales federales adjuntos Hillary Harnett, Anuj Khetarpal, Gregory Dorchak, Michelle Leung y Jennifer Serafyn de la Unidad de Derechos Civiles se encargaron del asunto. La resolución de este asunto fue el resultado de un esfuerzo coordinado entre la Fiscalía Federal para el Distrito de Massachusetts y el Departamento de Vivienda y Desarrollo Urbano de los Estados Unidos.
La Unidad de Derechos Civiles de la Fiscalía Federal se estableció en 2015 con la misión de mejorar la aplicación federal de los derechos civiles. Para obtener más información sobre los esfuerzos de derechos civiles de la Oficina, visite www.justice.gov/usao-ma/civil-rights.
Kanawha County Man Sentenced to Prison for Child Pornography CrimeRead the Press Release
HUNTINGTON, W.Va. – Jerry Dewayne Carroll, 43, of Crown Hill, was sentenced today to seven years in prison, to be followed by 20 years of supervised release, and ordered to pay $15,000 in restitution for possession of prepubescent child pornography. Carroll must also register as a sex offender.
According to court documents and statements made in court, on or about April 10, 2023, law enforcement officers executed a search warrant for Carroll’s person and seized his cell phone. A search of Carroll’s cell phone revealed 2,087 images of child pornography, including images depicting the sexual abuse of infants and toddlers by adult men and through the use of animals. A search of Carroll’s encrypted cloud storage account held by Mega Ltd., accessible through his seized cell phone, revealed an additional 82 videos of child pornography. The videos include footage of the sexual abuse of infants and toddlers, bestiality, and sadomasochistic material. The images and videos possessed by Carroll depict 56 known child victims.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Holly Wilson and Josh Hanks prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-122.
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Justice Department’s Nationwide Election Day Program for the General ElectionRead the Press Release
TULSA, Okla. – Today, U.S. Attorney Clinton J. Johnson announced that Assistant United States Attorney (AUSA) Steven Briden will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. AUSA Briden has been appointed to serve as the District Election Officer for the Northern District of Oklahoma, and in that capacity, is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Clint Johnson said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
In order to respond to complaints of voting rights concerns and election fraud during the upcoming elections, and to ensure that such complaints are directed to the appropriate authorities, AUSA Briden will be on duty in this District while the polls are open. He can be reached at 918-703-7832 or by email at [email protected]
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 405-290-3700.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
Justice Department to Monitor Compliance with Federal Voting Rights Laws in Portage County, OhioRead the Press Release
The Justice Department announced today that it will monitor compliance with federal voting rights laws in Portage County, Ohio, during the early voting period and on Election Day.
The Justice Department enforces the federal voting rights laws that protect the rights of all citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country. In addition, the department also deploys federal observers from the Office of Personnel Management, where authorized by federal court order.
Voters in Portage County have raised concerns about intimidation resulting from the surveillance and the collection of personal information regarding voters, as well as threats concerning the electoral process. Attempted or actual intimidation, threats or coercion directed toward any person for voting and related activities or urging or aiding others in voting is prohibited by Section 11(b) of the Voting Rights Act of 1965.
The Civil Rights Division’s Voting Section, working with U.S. Attorneys’ Offices, enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Civil Rights Acts and Uniformed and Overseas Citizens Absentee Voting Act.
Reports related to voter intimidation in Portage County and complaints about any other possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s internet reporting portal at www.civilrights.justice.gov or by telephone at 1-800-253-3931. More information about voting and elections, including guidance documents and other resources, is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.
Justice Department Secures $8M from Fairway Independent Mortgage Corporation to Address Redlining in Black Communities in Birmingham, AlabamaRead the Press Release
WASHINGTON – The Justice Department and Consumer Financial Protection Bureau (CFPB) announced today that Fairway Independent Mortgage Corporation (Fairway) has agreed to pay $8 million and a $1.9 million civil money penalty to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black neighborhoods in and around Birmingham, Alabama.
Redlining is an illegal practice by which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of residents in those communities.
With this settlement, the Justice Department’s Combating Redlining Initiative surpassed $150 million in relief for communities of color nationwide that have experienced lending discrimination. This settlement marks the Justice Department’s 15th redlining settlement in three years. Under the Combating Redlining Initiative, the Department has secured a historic amount of relief that is expected to generate over $1 billion in investment in communities of color in places such as Houston; Memphis; Los Angeles; Philadelphia; and Birmingham.
“This settlement, and the over $150 million in relief the Justice Department has secured for communities across the country through our Combating Redlining Initiative, will help to ensure that future generations of Americans inherit a legacy of home ownership that they too often have been denied,” said Attorney General Merrick B. Garland. “This case is a reminder that redlining is not a relic of the past, and the Justice Department will continue to work urgently to combat lending discrimination wherever it arises and to secure relief for the communities harmed by it.”
The Justice Department and CFPB allege that Fairway illegally redlined Black neighborhoods in Birmingham, including through its marketing and sales actions, and discouraged residents of those neighborhoods from applying for mortgage loans. The settlement announced today requires Fairway to provide $7 million for a loan subsidy program to offer affordable home purchase, refinance, and home improvement loans in Birmingham’s majority-Black neighborhoods, invest an additional $1 million in programs to support that loan subsidy fund, and pay a $1.9 million civil penalty to the CFPB’s victims relief fund.
This case is the third redlining enforcement action brought jointly by the Justice Department and the CFPB under the initiative, highlighting the strong partnership between the agencies to root out and address lending discrimination.
“Birmingham lies at the heart of our nation’s civil rights struggle but is also a community that bears the legacy of discriminatory redlining and other exclusionary policies,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement will provide Birmingham’s Black neighborhoods with the access to credit they have long been denied and increase opportunities for homeownership and generational wealth. This settlement makes clear our intent to uproot modern-day redlining in every corner of the country, including in the deep South. With more than $150 million in total relief secured in three short years, our Combating Redlining Initiative is generating real economic opportunity for communities of color while sending a strong message to mortgage lenders, no matter their business model, that discriminatory lending will not be tolerated in America.”
“The settlement reached with Fairway Mortgage is a win for communities of color here in Birmingham that have historically been denied access to vital economic resources,” said U.S. Attorney Prim Escalona for the Northern District of Alabama. “Our office is committed to ensuring that these communities have equal access to housing and credit resources.”
“The CFPB and Justice Department are holding Fairway accountable for redlining Black neighborhoods,” said CFPB Director Rohit Chopra. “Fairway’s unlawful redlining discouraged families from seeking loans for homes in Birmingham’s Black neighborhoods.”
Fairway is a non-depository mortgage company headquartered in Madison, Wisconsin. In 2022, Fairway was the nation’s fifth-largest lender by origination volume and ninth-largest by application volume. Fairway operates in the Birmingham area under the trade name MortgageBanc.
The complaint describes how Fairway redlined majority-Black neighborhoods in the Birmingham Metropolitan Statistical Area (Birmingham MSA). During the period covered by the complaint, the Birmingham MSA included six counties in north central Alabama with a combined population of about 1.1 million. While Fairway claimed to serve the entire metropolitan area, it concentrated all its retail loan offices in majority-white areas, directed less than 3% of its direct mail advertising to consumers in majority-Black areas, and for years discouraged homeownership in majority-Black areas by generating loan applications at a rate far below its peer institutions.
The Justice Department and CFPB allege that Fairway violated the Fair Housing Act, Equal Credit Opportunity Act, and Consumer Financial Protection Act. Specifically, the government alleges problematic conduct by Fairway including:
- Failing to address known signs of discrimination: Fairway’s own data showed that, since at least 2017, it was failing to serve majority-Black neighborhoods in the Birmingham area, but before October 2022, it took no meaningful actions to address redlining risk. Between 2018 and 2022, only 3.7% of Fairway’s applications were for properties in majority-Black areas, compared to 12.2% for Fairway’s peer lenders. In other words, Fairway’s peer lenders generated applications for properties in majority-Black areas at over three times the rate of Fairway. This disparity was even higher in neighborhoods with 80% or more Black residents, where Fairway made loans at less than one-eighth of the rate of its peer lenders. Despite these figures, Fairway failed to adopt any written plan for marketing or growth to address the concern.
- Redlining Black neighborhoods: From 2015 through 2022, Fairway operated three retail loan offices and three loan production desks within real estate offices in the Birmingham MSA, all of which were in majority-white areas. Fairway also relied on referrals from real estate professionals and its loan officers’ personal contacts to generate applications, and the vast majority of Fairway’s referral sources and referred consumers were located in majority-white areas. Fairway predominantly directed its marketing to majority-white areas and failed to train or incentivize its existing loan officers to better serve majority-Black areas. By taking these actions, Fairway discriminated against, and unlawfully discouraged mortgage loan applications for properties in, majority-Black neighborhoods.
The proposed consent order, which awaits approval by the Federal District Court for the Northern District of Alabama, would require Fairway to:
- Provide $7 million for a loan subsidy program: The order would require Fairway to offer home purchase, refinance, and home improvement loans on a more affordable basis than otherwise available in majority-Black neighborhoods in the Birmingham MSA. The program may provide lower interest rates, down payment assistance, closing cost assistance, or payment of initial mortgage insurance premiums.
- Invest at least $1 million in redlined neighborhoods: Fairway would be required to open or acquire a new loan production office or full-service retail office in a majority-Black neighborhood in the Birmingham MSA. The company must also spend at least $500,000 on advertising and outreach, at least $250,000 on consumer financial education, and at least $250,000 on partnerships with one or more community-based or governmental organizations to serve the affected neighborhoods.
- Pay a $1.9 million penalty: The proposed order imposes a $1.9 million civil penalty against Fairway, which would be paid into the CFPB’s Civil Penalty Fund, also referred to as the victims’ relief fund.
Information about the Justice Department’s fair lending enforcement work can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
Consumers can submit complaints about financial products and services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).
Employees who believe their company has violated federal consumer financial protection laws are encouraged to send information about what they know to [email protected]. To learn more about reporting potential industry misconduct, visit the CFPB’s website.
Justice Department Secures $8M from Fairway Independent Mortgage Corporation to Address Redlining in Black Communities in Birmingham, AlabamaRead the Press Release
The Justice Department and Consumer Financial Protection Bureau (CFPB) announced today that Fairway Independent Mortgage Corporation (Fairway) has agreed to pay $8 million and a $1.9 million civil money penalty to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black neighborhoods in and around Birmingham, Alabama.
Redlining is an illegal practice by which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of residents in those communities.
With this settlement, the Justice Department’s Combating Redlining Initiative surpassed $150 million in relief for communities of color nationwide that have experienced lending discrimination. This settlement marks the Justice Department’s 15th redlining settlement in three years. Under the Combating Redlining Initiative, the Department has secured a historic amount of relief that is expected to generate over $1 billion in investment in communities of color in places such as Houston; Memphis; Los Angeles; Philadelphia; and Birmingham.
“This settlement, and the over $150 million in relief the Justice Department has secured for communities across the country through our Combating Redlining Initiative, will help to ensure that future generations of Americans inherit a legacy of home ownership that they too often have been denied,” said Attorney General Merrick B. Garland. “This case is a reminder that redlining is not a relic of the past, and the Justice Department will continue to work urgently to combat lending discrimination wherever it arises and to secure relief for the communities harmed by it.”
The Justice Department and CFPB allege that Fairway illegally redlined Black neighborhoods in Birmingham, including through its marketing and sales actions, and discouraged residents of those neighborhoods from applying for mortgage loans. The settlement announced today requires Fairway to provide $7 million for a loan subsidy program to offer affordable home purchase, refinance, and home improvement loans in Birmingham’s majority-Black neighborhoods, invest an additional $1 million in programs to support that loan subsidy fund, and pay a $1.9 million civil penalty to the CFPB’s victims relief fund.
This case is the third redlining enforcement action brought jointly by the Justice Department and the CFPB under the initiative, highlighting the strong partnership between the agencies to root out and address lending discrimination.
“Birmingham lies at the heart of our nation’s civil rights struggle but is also a community that bears the legacy of discriminatory redlining and other exclusionary policies,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement will provide Birmingham’s Black neighborhoods with the access to credit they have long been denied and increase opportunities for homeownership and generational wealth. This settlement makes clear our intent to uproot modern-day redlining in every corner of the country, including in the deep South. With more than $150 million in total relief secured in three short years, our Combating Redlining Initiative is generating real economic opportunity for communities of color while sending a strong message to mortgage lenders, no matter their business model, that discriminatory lending will not be tolerated in America.”
“The settlement reached with Fairway Mortgage is a win for communities of color here in Birmingham that have historically been denied access to vital economic resources,” said U.S. Attorney Prim Escalona for the Northern District of Alabama. “Our office is committed to ensuring that these communities have equal access to housing and credit resources.”
“The CFPB and Justice Department are holding Fairway accountable for redlining Black neighborhoods,” said CFPB Director Rohit Chopra. “Fairway’s unlawful redlining discouraged families from seeking loans for homes in Birmingham’s Black neighborhoods.”
Fairway is a non-depository mortgage company headquartered in Madison, Wisconsin. In 2022, Fairway was the nation’s fifth-largest lender by origination volume and ninth-largest by application volume. Fairway operates in the Birmingham area under the trade name MortgageBanc.
The complaint describes how Fairway redlined majority-Black neighborhoods in the Birmingham Metropolitan Statistical Area (Birmingham MSA). During the period covered by the complaint, the Birmingham MSA included six counties in north central Alabama with a combined population of about 1.1 million. While Fairway claimed to serve the entire metropolitan area, it concentrated all its retail loan offices in majority-white areas, directed less than 3% of its direct mail advertising to consumers in majority-Black areas, and for years discouraged homeownership in majority-Black areas by generating loan applications at a rate far below its peer institutions.
The Justice Department and CFPB allege that Fairway violated the Fair Housing Act, Equal Credit Opportunity Act, and Consumer Financial Protection Act. Specifically, the government alleges problematic conduct by Fairway including:
- Failing to address known signs of discrimination: Fairway’s own data showed that, since at least 2017, it was failing to serve majority-Black neighborhoods in the Birmingham area, but before October 2022, it took no meaningful actions to address redlining risk. Between 2018 and 2022, only 3.7% of Fairway’s applications were for properties in majority-Black areas, compared to 12.2% for Fairway’s peer lenders. In other words, Fairway’s peer lenders generated applications for properties in majority-Black areas at over three times the rate of Fairway. This disparity was even higher in neighborhoods with 80% or more Black residents, where Fairway made loans at less than one-eighth of the rate of its peer lenders. Despite these figures, Fairway failed to adopt any written plan for marketing or growth to address the concern.
- Redlining Black neighborhoods: From 2015 through 2022, Fairway operated three retail loan offices and three loan production desks within real estate offices in the Birmingham MSA, all of which were in majority-white areas. Fairway also relied on referrals from real estate professionals and its loan officers’ personal contacts to generate applications, and the vast majority of Fairway’s referral sources and referred consumers were located in majority-white areas. Fairway predominantly directed its marketing to majority-white areas and failed to train or incentivize its existing loan officers to better serve majority-Black areas. By taking these actions, Fairway discriminated against, and unlawfully discouraged mortgage loan applications for properties in, majority-Black neighborhoods.
The proposed consent order, which awaits approval by the Federal District Court for the Northern District of Alabama, would require Fairway to:
- Provide $7 million for a loan subsidy program: The order would require Fairway to offer home purchase, refinance, and home improvement loans on a more affordable basis than otherwise available in majority-Black neighborhoods in the Birmingham MSA. The program may provide lower interest rates, down payment assistance, closing cost assistance, or payment of initial mortgage insurance premiums.
- Invest at least $1 million in redlined neighborhoods: Fairway would be required to open or acquire a new loan production office or full-service retail office in a majority-Black neighborhood in the Birmingham MSA. The company must also spend at least $500,000 on advertising and outreach, at least $250,000 on consumer financial education, and at least $250,000 on partnerships with one or more community-based or governmental organizations to serve the affected neighborhoods.
- Pay a $1.9 million penalty: The proposed order imposes a $1.9 million civil penalty against Fairway, which would be paid into the CFPB’s Civil Penalty Fund, also referred to as the victims’ relief fund.
Information about the Justice Department’s fair lending enforcement work can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
Consumers can submit complaints about financial products and services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).
Employees who believe their company has violated federal consumer financial protection laws are encouraged to send information about what they know to [email protected]. To learn more about reporting potential industry misconduct, visit the CFPB’s website.
Juniata County Woman Pleads Guilty to Social Security and Housing Choice Voucher Program FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Doris Santana, age 53, of Thompsontown, Pennsylvania, pleaded guilty on October 11, 2024, to a three-count criminal information charging her with social security fraud and theft of public money related to her theft of social security and federal housing funds.
According to court documents and statements made in court, between February 2008 and December 2021, Santana was a participant in the Department of Housing and Urban Development (HUD) Section 8 Housing Choice Voucher Program (HCVP), which provided rental assistance to eligible recipients. Between May 2018 and September 2024, Santana also received Supplemental Security Income (SSI) from the Social Security Administration (SSA). In April 2011, Santana married Individual 1. However, Santana concealed the marriage from the SSA and HUD. Santana’s marriage to, cohabitation with, and receipt of income from, Individual 1 rendered Santana ineligible to receive SSI and Housing Choice Voucher Program funds.
As alleged by the government, over the relevant time period, Santana’s conduct resulted in a total loss of $145,397.30 from the SSA and HUD.
The case was investigated by the Social Security Administration’s Office of Inspector General and Department of Housing and Urban Development’s Office of Inspector General. Assistant United States Attorney David C. Williams is prosecuting the case.
The total maximum penalty under federal law for these offenses is up to 25 years’ imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Inmate sentenced for distributing child pornography from Beaumont federal prisonRead the Press Release
BEAUMONT, Texas – A federal inmate has been sentenced to an additional 21 years in federal prison for committing child exploitation violations while incarcerated in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Jonathan Lee Edwards, 42, of Houston, pleaded guilty to distributing child pornography and was sentenced to 262 months in federal prison by U.S. District Judge Marcia A. Crone on October 15, 2024. Edwards was ordered to begin serving his sentence following the completion of his current federal sentence of 23 years.
According to information presented in court, in December 2021, federal agents received information from the National Center for Missing and Exploited Children regarding images of possible child pornography being uploaded to an online email account. Further investigation linked the accounts to Edwards, who was currently serving a 23-year sentence in the Bureau of Prisons’ Federal Correctional Complex in Beaumont for possession of child pornography. During the investigation, Edwards used a cellular phone to send five videos containing child pornography to a person he believed to be a minor. The cellular phone was seized by correctional officers. Based on the evidence, Edwards is responsible for possessing 477 images of child pornography while in federal custody.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by Homeland Security Investigations in Houston; Palm Beach, Florida; and Beaumont. This case was prosecuted by Assistant U.S. Attorney Rachel Grove.
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Hull, Iowa Man Sentenced to 12 Years in Federal Prison for Meth Distribution and Illegal Firearm PossessionRead the Press Release
Victor Perez-Martinez, 24, from Hull, Iowa was sentenced on October 11, 2024, in federal court in Sioux City. Perez-Martinez pled guilty May 24, 2024, to seven counts, which included conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, four counts of distribution of methamphetamine, and possession of a firearm by a prohibited person.
Evidence at the plea and sentencing hearings showed that Perez-Martinez was involved in the distribution of sizable quantities of pure methamphetamine during four controlled drug purchases with law enforcement, some within 1000 feet of a protected location (totaling more than 264 grams of methamphetamine). In October 2023, during a search warrant executed at Perez-Martinez’s residence, law enforcement seized: 329 grams of methamphetamine, two cellular telephones; various items of drug use and distribution paraphernalia; $4,267 in cash, and a .380 ACP pistol. Evidence also showed that Perez-Martinez was involved in a conspiracy that distributed over 500 grams of methamphetamine to a number of individuals in the Spencer and Orange City, Iowa area.
Sentencing was held before United States District Court Judge Leonard T. Strand. Perez-Martinez was sentenced to 144 months’ imprisonment and must serve a term of ten years of supervised release following the imprisonment. There is no parole in the federal system. Perez-Martinez remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Iowa DCI Laboratory, Clay County Sheriff’s Office, Spencer, Iowa Police Department, and the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-4067. Follow us on X @USAO_NDIA.
Houston man guilty in $160M Medicare fraud schemeRead the Press Release
HOUSTON - A 59-year-old man has been convicted of all 15 counts as charged for heading a massive Medicare fraud scheme involving the fraudulent billing of expensive topical creams, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for less than five hours before convicting Mohamad Mokbel following a 10-day trial.
From 2014 through 2021, Mohamad Mokbel led a company called 4M Pharmaceuticals which operated 14 pharmacies with straw owners. The jury heard evidence that Mokbel illegally purchased thousands of Medicare beneficiaries, including their identification number, personal health and physician information. Mokbel targeted elderly diabetic patients who are dependent on diabetic testing supplies to manage their blood sugar levels. Mokbel paid $16 to $40 per Medicare beneficiary.
To maximize reimbursements and without regard for medical necessity, Mokbel then directed 4M employees to use the Medicare beneficiaries’ patient data to run insurance claims to determine if Medicare or other insurance plans would cover and reimburse at a high rate for the topical creams, Omega-3 pills and other medications that Mokbel intended to sell through 4M pharmacies.
At Mokbel’s direction, 4M employees would then fax pre-filled prescription requests to the patients’ doctors appearing to be for diabetic testing supplies with topical creams added at the bottom. They also included false representations that the patient was requesting a 4M Pharmacy fill their medications. In reality, Mokbel had previously purchased the patient’s personal information, the patient had not selected a 4M Pharmacy and the patient was often unaware the request was being made on their behalf.
Many doctors apparently took the representations in the fax at face value and did sign and send back the prefilled prescription requests to 4M. Mokbel’s call center in Houston and later in Egypt then contacted the patients and made false and misleading statements about the topical cream and their doctor’s order. Mokbel’s pharmacies then shipped out numerous topical creams, often on auto-refill, and excessively billed Medicare, Medicaid and private insurance plans.
Mokbel made over $200 million as a result of the scheme.
From 2015 through 2020, Mokbel also corruptly gave a series of bribe payments, ranging from $2,000 to $5,000 and totaling over $188,000 an employee of a pharmacy benefits manager - OptumRx - in exchange for favorable treatment for 4M pharmacies. They were credentialed and recredentialed with OptumRx which allowed them to enter into retail network agreements with OptumRx, participate in the Medicare Part D program and submit claims for prescriptions for Medicare beneficiaries. Mokbel also received information and advice about responding to audits and preventing and/or delaying OptumRX termination of many 4M pharmacies.
U.S. District Judge Lee H. Rosenthal accepted the verdict and set sentencing for Jan. 7, 2025. At that time, Mokbel faces up to 20 years for conspiracy to commit mail fraud and health care fraud, 10 years for each of five counts of health care fraud, each of six counts of money laundering and one count of bribery concerning programs receiving federal funds as well as five years for
conspiracy to violate the Anti-Kickback Statute and conspiracy to commit bribery. He could also be ordered to pay up to a total of $4 million in fines and possible restitution in excess of $160 million.
Previously released on bond, Mokbel was taken into custody pending sentencing.
The FBI, IRS Criminal Investigation, Homeland Security Investigations, Department of Health and Human Services, Food and Drug Administration and the Texas Attorney General Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorneys Kathryn Leigh Olson and Adam Laurence Goldman are prosecuting the case.
Horry County Man Pleads Guilty to Possession of Machine Gun and Machine Gun Conversion DevicesRead the Press Release
FLORENCE, S.C. —Orlanier Colon Menendez, 21, of Conway has pleaded guilty to possession of a machine gun and multiple machine gun conversion devices.
Evidence obtained in the investigation revealed that Conway Police Department officers responded to a vehicle crash within the city limits involving Menendez. While investigating the crash, the responding officer found a .45 caliber handgun that had a machine gun conversion device installed on the firearm. During a search, officers found a backpack that contained an additional 12 machinegun conversion devices, also known as Glock conversion switches, and a rotary tool with accessories commonly used to install the devices.
Menendez faces a maximum penalty of 10 years in federal prison. He also faces a fine of up to $250,000, restitution, and three years of supervision to follow the term of imprisonment. United States District Judge Joseph Dawson accepted the guilty plea and will sentence Menendez after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Conway Police Department. Special Assistant U.S. Attorney Scott Hixson is prosecuting the case.
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Haverhill Man Sentenced for Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Haverhill man has been sentenced in federal court in Boston for his role in a North Shore-based drug trafficking organization (DTO) that allegedly distributed tens of thousands of counterfeit prescription pills containing fentanyl and methamphetamine.
David Delauri, 32, was sentenced by U.S. District Court Chief Judge Dennis F. Saylor IV to 102 months in prison to be followed by four years of supervised release. In July 2024 Delauri pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances; aiding and abetting; one count of possession with intent to distribute more than 50 grams of a mixture or substance containing a detectable amount of methamphetamine; and aiding and abetting.
According to court documents, the DTO distributed counterfeit oxycodone pills containing fentanyl and counterfeit Adderall pills containing methamphetamine, among other things, to various individuals in the Lynn area.
On May 10, 2022, Delauri allegedly arranged to acquire nearly 600 counterfeit Adderall pills containing methamphetamine from co-defendant Lawrence Michael Nagle. Delauri immediately distributed the pills to co-defendant Savannah Bartone. Bartone was subsequently stopped by police, who seized the pills.
Bartone pleaded guilty in November 2023 and is pending sentencing. Lawrence Michael Nagle has pleaded not guilty and is scheduled for trial on Jan. 6, 2024.Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Geoffrey Noble, Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Beverly, Everett, Peabody, Revere, Salem, Saugus and Swampscott Police Departments. Assistant U.S. Attorney Evan D. Panich of the Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
The details contained in the indictment are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hartford Man Pleads Guilty to Gun ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that on October 11, 2024, CHEVON GRANT, 27, of Hartford, pleaded guilty before U.S. District Judge Kari A. Dooley in Bridgeport to a federal firearm charge stemming from a gang-related shootout.
According to court documents and statements made in court, on April 18, 2022, after an unidentified shooter, who is suspected of being a member of a rival gang, opened fire at individuals who were standing in a parking lot outside of a memorial gathering at a party venue on Main Street in Hartford, surveillance cameras at the location recorded at least nine individuals drawing firearms, some of whom returned fire. Shot Spotter technology recorded approximately 50 shots fired within approximately 90 seconds in and around the location, and law enforcement recovered at least 31 shell casings from the scene. Grant was present at the memorial gathering and was recorded on surveillance videos brandishing a handgun.
Following the shooting, Hartford Police obtained a warrant for Grant’s arrest in relation to the April 18 shootout. At the time, Grant was also subject to two additional state arrest warrants for other alleged offenses. On May 7, 2022, officers encountered Grant in the driver’s seat of a parked vehicle, retrieved a loaded Ruger P90 .45 firearm from beneath the driver’s seat, and took Grant into custody.
Grant’s criminal history includes state felony convictions for robbery and larceny offenses. 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.
Judge Dooley scheduled sentencing for January 9, at which time Grant faces a maximum term of imprisonment of 10 years.
Grant is detained in state custody, and state charges against him are pending.
This investigation is being conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Robert S. Dearington and John T. Pierpont, Jr.
U.S. Attorney Avery thanked the Hartford State Attorney’s Office for its cooperation in the investigation and prosecution of this matter.
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.
Greenup County Man Sentenced for Receiving Child PornographyRead the Press Release
ASHLAND, Ky. – A South Shore, Ky., man, Austin Hardin, 29, was sentenced on Tuesday, by U.S. District Judge David Bunning, to 84 months in prison, for receiving a visual depiction of a minor engaged in sexually explicit conduct.
According to his plea agreement, on August 3, 2023, law enforcement received information that Hardin had been engaged in sexual chatting with a person purporting to be a minor. When questioned about the situation, Hardin admitted to chatting with the person, but stated he believed the profile to be fake. Hardin also admitted that he had sexually explicit images of minors on his phone and proceeded to show law enforcement that he had a secret folder that contained multiple explicit images of minors that he had received using various social media and messaging applications. In total, over 600 images and videos of minors engaged in sexually explicit conduct were located on Hardin’s cellphone.
Under federal law, Hardin must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 20 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI); Chief Kenneth Hudson, City of Russell Police Department; and Sheriff Matt Smith, Greenup County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by HSI, City of Russell Police Department, and Greenup County Sheriff’s Office. Forensic examination of Hardin’s electronic devices was conducted by the Ashland Police Department. Assistant U.S. Attorney Erin Roth is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case 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 U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Greenup County Man Sentenced for Production and Possession of Child PornographyRead the Press Release
ASHLAND, Ky. – A Flatwoods, Ky., man, Skyler Allen Mullins, 23, was sentenced on Tuesday, by U.S. District Judge David Bunning, to 35 years in prison, for attempted production of child pornography and possession of child pornography.
According to his plea agreement, on May 4, 2022, law enforcement discovered that Mullins was using a social media application to exchange sexually explicit images of children. Law enforcement interviewed Mullins and he admitted to attempting to create videos of himself sexually assaulting a minor known to him. Mullins also admitted using social media platforms to exchange materials and links to images and video of minors engaged in sexually explicit conduct.
In total, Mullins possessed over 600 images or videos of minors engaged in sexually explicit conduct.
Under federal law, Mullins must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 30 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the FBI and Kentucky State Police. Assistant U.S. Attorney Erin Roth is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case 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 U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Former Official Accused of Stealing Nearly $700,000 from St. Louis County CharityRead the Press Release
ST. LOUIS – A former official of a charity that houses adults with intellectual and developmental disabilities has been indicted and accused of embezzling about $690,000 over more than a decade.
Joelle Fouse, 57, was indicted October 9 with three felony counts of wire fraud. She is surrendering Tuesday and will appear in U.S. District Court in St. Louis to plead not guilty.
The indictment says that Fouse was the manager / director of finance and human resources for the charity from October 2012 through December 2023, when she was terminated. Fouse was responsible for payroll, expense reimbursement and maintaining the charity’s books and records. She stole from the charity in three ways, the indictment says. Fouse provided false information to a third-party payroll processing company that caused the company to make 71 unauthorized payments totaling $139,810 to multiple bank accounts controlled by Fouse, the indictment says. The indictment also accuses Fouse of triggering 181 unauthorized expense payments into bank accounts she controlled, totaling $407,186. Finally, Fouse allegedly used her company credit card to make184 unauthorized purchases totaling $133,210. The charity also overpaid the employer portion of payroll taxes by about $10,694 due to the inflated payroll, the indictment says.
The indictment says Fouse took cash out of ATMs and used the charity’s funds for travel, clothing, entertainment, restaurant meals, rent payments and day-to-day expenses for herself and relatives. She tried to cover up her crimes by making false entries in financial and accounting records, it says.
The charity contacted the FBI and cooperated with their investigation.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Each wire fraud charge carries a penalty of up to 20 years in prison, a $250,000 fine or both prison and a fine.
The FBI investigated the case. Assistant U.S. Attorney Hal Goldsmith is prosecuting the case.
Former New York Man Pleads Guilty to Traveling to New Hampshire to Sexually Assault a MinorRead the Press Release
CONCORD – A former New York man pleaded guilty in federal court to traveling to New Hampshire to sexually assault a child survivor, U.S. Attorney Jane E. Young announces.
Blake Hall, 21, formerly of New York, pleaded guilty to travel with intent to engage in illicit sexual conduct. U.S. District Court Judge Paul Barbadoro scheduled sentencing for January 14, 2025.
In July of 2022, Hall traveled from his then-home in New York to New Hampshire to meet a 12-year-old girl with whom he had been corresponding on social media. Hall transported the child from New Hampshire to his home in New York, where he engaged her in illegal sexual activity. He also took sexually explicit photographs of the child. Hall returned her home to New Hampshire the following day.
The charging statute provides for a sentence of up to 30 years in prison, at least 5 years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Homeland Security Investigations led the investigation. Valuable assistance was provided by the New Hampshire State Police, the Troy New Hampshire Police Department, and Homeland Security Investigations- Albany. Assistant U.S. Attorney Kasey Weiland is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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Former Juvenile Justice Employee Sentenced for Violating the Civil Rights of Youth in His CareRead the Press Release
ASHLAND, Ky. – A former Kentucky Department of Juvenile Justice employee, Nathaniel K. Lumpkins, 33, of Elkfork, Ky., was sentenced to 36 months in prison by U.S. District Judge David Bunning, on Tuesday, for one count of deprivation of rights under color of law.
Lumpkins was employed at Woodsbend Youth Development Center, a Kentucky Department of Juvenile Justice facility located in West Liberty, Ky., and worked as a Youth Worker, responsible for the custody, care, and control of the juveniles housed there. As he admitted in his plea agreement, on January 23, 2019, Lumpkins violated the civil rights of a fifteen-year-old at Woodsbend, when he used unreasonable force on the victim. When the victim was already compliant, on the ground, and being held by three other adult Youth Workers, Lumpkins began twisting the victim’s hand back onto his wrist and pushing his body weight repeatedly down onto the youth’s wrist and arm. While doing this, Lumpkins broke the victim’s arm, and admitted in his plea agreement that he did so out of anger and not for any legitimate purpose. Lumpkins later slammed the victim’s already-broken arm into a concrete wall, again out of anger with no legitimate purpose. Then, Lumpkins wrote and signed an incident report that included false information, in an attempt to cover up his unlawful use of force.
Under federal law, Lumpkins must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Office, jointly announce the sentencing.
The investigation was conducted by the FBI, with assistance from the Internal Investigations Branch of the Kentucky Justice and Public Safety Cabinet. Assistant U.S. Attorney Zach Dembo is prosecuting the case on behalf of the United States.
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Former Castroville Police Chief Convicted of Wire FraudRead the Press Release
SAN ANTONIO – A federal jury convicted former Castroville Police Chief, Christopher Filline, for one count of conspiracy to commit wire fraud.
According to court documents and evidence presented at trial, Filline, 58, developed a scheme in 2016 to defraud Farmers Insurance Group by destroying his vehicle that he insured through the company, and claiming it had been stolen. Filline arranged for two co-conspirators to take the vehicle and light it on fire using an accelerant. He subsequently filed a false report with the Lytle Police Department and an insurance claim with Farmers Insurance Group, declaring his vehicle had been stolen. The filing resulted in Filline receiving a $14,388.25 payment.
Filline was indicted in January 2020. He faces up to 20 years in federal prison and a $250,000 fine. A sentence hearing has been set for Jan. 22, 2025.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The FBI, Texas Department of Public Safety, and the Bexar County Fire Marshal’s Office investigated the case.
Assistant U.S. Attorneys Greg Surovic and Christina Playton are prosecuting the case.
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Former Air Force Member Indicted for 2019 Sexual Assault at Air Base in the United KingdomRead the Press Release
MIAMI — A former U.S. Air Force member was charged in an indictment unsealed today in the Southern District of Florida with sexually assaulting another service member at Royal Air Force Mildenhall, United Kingdom, in May 2019.
The indictment charges James Loubeau, 36, of Miami, with one count of sexual abuse and two counts of abusive sexual contact. Loubeau made his initial court appearance today in the U.S. District Court for the Southern District of Florida.
According to the indictment, on May 4, 2019, Loubeau sexually assaulted the victim at Royal Air Force Mildenhall. Loubeau was later discharged from the Air Force in March 2020. The charges were brought under the Military Extraterritorial Jurisdiction Act (MEJA), which establishes U.S. jurisdiction over certain offenses committed abroad by, among others, persons who served with the armed forces but who are no longer subject to military prosecution.
If convicted, Loubeau faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Michael Koellner of the Air Force Office of Special Investigations (OSI); and Special Agent in Charge Jeffrey B. Veltri of FBI’s Miami Field Office made the announcement.
The Air Force OSI and FBI are investigating the case.
Assistant U.S. Attorney Arielle Klepach for the Southern District of Florida and Trial Attorney Ryan Lipes of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Air Force Member Indicted for 2019 Sexual Assault at Air Base in the United KingdomRead the Press Release
A former U.S. Air Force member was charged in an indictment unsealed today in the Southern District of Florida with sexually assaulting another service member at Royal Air Force Mildenhall, United Kingdom, in May 2019.
The indictment charges James Loubeau, 36, of Miami, with one count of sexual abuse and two counts of abusive sexual contact. Loubeau made his initial court appearance today in the U.S. District Court for the Southern District of Florida.
According to the indictment, on May 4, 2019, Loubeau sexually assaulted the victim at Royal Air Force Mildenhall. Loubeau was later discharged from the Air Force in March 2020. The charges were brought under the Military Extraterritorial Jurisdiction Act (MEJA), which establishes U.S. jurisdiction over certain offenses committed abroad by, among others, persons who served with the armed forces but who are no longer subject to military prosecution.
If convicted, Loubeau faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Michael Koellner of the Air Force Office of Special Investigations (OSI); and Special Agent in Charge Jeffrey B. Veltri of FBI’s Miami Field Office made the announcement.
The Air Force OSI and FBI are investigating the case.
Trial Attorney Ryan Lipes of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Arielle Klepach for the Southern District of Florida are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
First Feeding Our Future Defendant Sentenced to 12 Years in PrisonRead the Press Release
MINNEAPOLIS – The first defendant in the $250 million Feeding Our Future fraud scheme to be sentenced received 144 months in federal prison followed by three years of supervised release, announced U.S. Attorney Andrew M. Luger. Ismail was also ordered to pay $47,920,514 in restitution.
On June 7, 2024, following a six-week trial in U.S. District Court before Judge Nancy E. Brasel, a Mohamed Jama Ismail, 51, of Savage, Minnesota, was convicted of one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, and one count of money laundering. Ismail was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Based on their fraudulent claims, Ismail and his co-defendants received more than $40 million in fraudulent Federal Child Nutrition Program funds.
As proven at trial, Ismail and his co-defendants obtained, misappropriated, and laundered millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. Ismail and his co-defendants exploited changes in the program intended to ensure underserved children received adequate nutrition during the COVID-19 pandemic. The convicted defendants created and submitted false documentation. They submitted fraudulent meal count sheets purporting to document the number of children and meals served at each site and false invoices purporting to document the purchase of food to be served to children at the sites. Ismail and his co-defendants also submitted fake attendance rosters purporting to list the names and ages of the children receiving meals at the sites each day. These rosters were fabricated and created using fake names.
Ismail was sentenced today in U.S. District Court by Judge Nancy E. Brasel. When handing down the sentence, Judge Brasel commented that “The taxpayers in Minnesota are rightfully outraged by the brazenness and the scope of [Ismail’s] crime. The evidence at trial was frankly breathtaking.” Judge Brasel also emphasized that during a disaster, such as the COVID-19 pandemic, “many of us were taught to look for the helpers . . . when the world was at its most vulnerable [Ismail] decided not to be a helper, but to be a thief.”
This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, and Daniel W. Bobier tried the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
Federal Jury Convicts Imran Alrai in Connection with a Financial Scheme to Steal Approximately $6.7 Million from the United WayRead the Press Release
CONCORD – After a 2-week trial, a Windham man was convicted by a federal petit jury, for wire fraud and money laundering in connection with his ownership of an information technology (IT) company that contracted with the United Way of Massachusetts Bay and Merrimack Valley (United Way) while being employed by United Way, United States Attorney Jane E. Young announces.
Imran Alrai, 50, was convicted of 12 counts of wire fraud and 6 counts of money laundering. United States District Court Judge Joseph Laplante ordered Alrai detained pending sentencing, which is scheduled for January 17, 2025.
“The jury’s swift verdicts in this case underscore the overwhelming evidence presented at trial of Mr. Alrai’s guilt,” said U.S. Attorney Jane E. Young. “Over the past two weeks, prosecutors skillfully untangled the web of the defendant’s deceit, highlighting for the jury how he used his position of trust to rig and maintain a major contract with United Way in favor of a company he owned and controlled. The United Way lost millions to the defendant – we hope the jury’s verdicts in this case is a step forward for their community.”
“Imran Alrai abused his position of trust with the United Way of Massachusetts Bay and Merrimack Valley to steal millions of dollars to which he knew he wasn’t entitled, money that was intended to help the less fortunate in our area. Instead, he used it to pay off his house, and increase his personal wealth,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “The FBI is grateful for the jury’s swift verdict, and we will not hesitate to investigate and bring to justice anyone engaged in such egregious financial fraud.”
Between 2012 and June 2018, Alrai, an IT professional at the United Way, obtained approximately $6.7 million in payments for IT services supposedly provided to United Way by an independent outside contractor, DigitalNet Technology Solutions, Inc. Alrai misrepresented material facts about DigitalNet and fraudulently concealed that he owned and controlled DigitalNet. In early 2013, Alrai rigged the bidding process for a major contract to provide managed IT services at the United Way so that DigitalNet was chosen. Alrai then gave fake references and false information about DigitalNet to United Way.
For the next five years, while serving as United Way’s Vice President for IT Services, Alrai steered additional IT work to DigitalNet, so that his company soon became United Way’s second-largest outside vendor, receiving more than $1 million annually. Alrai concealed his connection with DigitalNet from his colleagues. He routinely sent emails with attached invoices from a fictitious person to himself at United Way.
After the fraud came to light, in June 2018, officials at the United Way confronted Alrai and terminated him. Federal agents executed search and seizure warrants and seized incriminating documents and data from Alrai’s home office in Windham, as well as approximately $2.2 million in fraud proceeds in bank and investment accounts. During the scheme, Alrai wired $1.2 million in fraud proceeds to a DigitalNet bank account in Lahore, Pakistan.
According to expert testimony at the trial, United Way lost at least $3.5 million as a result of DigitalNet’s excessive billing, duplicate billing, and billing for services not delivered.
Homeland Security Investigations and the Federal Bureau of Investigation led the investigation. The Internal Revenue Service provided valuable assistance. Assistant U.S. Attorneys Charles L. Rombeau and John J. Kennedy are prosecuting the case.
Fargo, ND Man Indicted for Possession of Firearms and Ammunition by a Convicted Felon and by a Drug User or Addict, and Possession of a Firearm with an Obliterated Serial NumberRead the Press Release
Fargo – United States Attorney Mac Schneider announced that on October 15, 2024, Amire J. Logan, made his initial appearance and was arraigned in federal court. The United States District Court for the District of North Dakota unsealed an Indictment revealing that a federal grand jury indicted Logan on two counts of Possession of Firearms and Ammunition by a Convicted Felon, two counts of Possession of Firearms and Ammunition by a Drug User or Addict, and one count of Possession of a Firearm with an Obliterated Serial Number, arising from a June 24, 2024 incident in Fargo, and a September 24, 2024 incident in West Fargo.
The Indictment in this case is not evidence of guilt. The defendant is presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
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. PSN is based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is being investigated by the Fargo Police Department, the West Fargo Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case is being prosecuted by Assistant United States Attorney Jacob T. Rodenbiker.
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Falmouth Woman Pleads Guilty to Embezzling More Than $1.3 MillionRead the Press Release
BOSTON – The former bookkeeper of a Falmouth flooring company pleaded guilty to embezzling more than $1.3 million from her employer.
Susan Figuerido, 73, of Falmouth, pleaded guilty to wire fraud and filing a false tax return. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 15, 2025.
Between June 2015 and February 2023, Figuerido embezzled more than $1.3 million from her employer by writing checks to herself drawn on her employer’s bank account. To conceal her scheme, Figuerido did not record the checks that she wrote to herself in her employer’s accounting system. Figuerido did not report or include the funds that she embezzled on her federal income tax filings, resulting in a tax loss of approximately $353,000.
The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Harry T. Chavis Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The Falmouth Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Ex-Smyrna Detective Pleads Guilty to Child Sexual Exploitation ChargeRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Michael Kealty, a former detective with the Smyrna Police Department, pleaded guilty today to coercing and enticing a minor to engage in illicit sexual activity. The Honorable U.S. District Judge Richard G. Andrews accepted the plea.
Kealty pleaded guilty to Coercion/Enticement of a Minor. He will be sentenced on February 12, 2025, at 10 a.m. and faces a mandatory minimum term of 10 years in prison, and a maximum term of life in prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss stated, “As a police officer, Mr. Kealty took an oath to protect and serve. Instead of honoring that oath, he chose to prey upon the most vulnerable members of our community. Prosecuting these child exploitation cases will remain a priority for my office, and I commend the FBI’s diligence in investigating this case.”
“Michael Kealty’s actions reveal a calculating and dangerous criminal. He repeatedly sought opportunities to target vulnerable minors and was committing the very crimes he was sworn to investigate as a police detective. Pursuing justice for victims of child exploitation is one of the FBI’s highest priorities,” says Special Agent in Charge William J. DelBagno of the FBI’s Baltimore Field Office. “FBI Baltimore's Violent Crimes Against Children Task Force will continue to work with our partners to investigate these horrific acts and bring those responsible to justice.”
This case was investigated by the FBI and Assistant U.S. Attorney Briana Knox is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
Ex-Husband of ‘Real Housewives of New Jersey’ Star Sentenced to Seven Years in Prison for Violent Crime in Aid of Racketeering and Obstruction of JusticeRead the Press Release
NEWARK, N.J. – The ex-husband of a former star of the Bravo reality television show “The Real Housewives of New Jersey,” was sentenced today to 84 months in prison for hiring, then assisting, a soldier in the Lucchese Crime Family to assault his ex-wife’s current husband, U.S. Attorney Philip R. Sellinger announced.
Thomas Manzo, 59, of Franklin Lakes, New Jersey, was convicted on June 4, 2024, after a two-and-a-half week trial before Judge Susan D. Wigenton in Newark federal court. The jury convicted Manzo of one count of committing a violent crime in aid of racketeering, one count of conspiracy to commit a violent crime in aid of racketeering, and one count of falsifying and concealing documents related to a federal investigation.
“Whether you’re actually in the Mafia or not, hiring the mob to assault someone because of your marital problems is abhorrent. Covering up the role you played only makes it worse. The jury’s verdict, and today’s sentence, make clear that this office will spare no resources to hold accountable anyone who commits such crimes.”
U.S. Attorney Philip R. Sellinger
According to documents filed in this case and the evidence at trial:
In the spring of 2015, Manzo, a co-owner of The Brownstone, a Paterson, New Jersey, catering hall, hired Lucchese Crime Family soldier John Perna to assault his ex-wife’s then-boyfriend, paying for the assault with a free wedding reception. Perna, a “made man” with his own crew, worked with them to carry out the assault on July 18, 2015. The Perna wedding, held in August 2015 at the Brownstone, was attended by approximately 330 people, many of whom also were members of the Lucchese Crime Family. Four years later, Manzo concealed and falsified documents related to the Perna wedding in response to a grand jury subpoena.
In addition to the prison term, Judge Wigenton sentenced Manzo to three years of supervised release and ordered him immediately remanded.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the conviction. U.S. Attorney Sellinger also thanked special agents of the U.S. Department of Labor, Office of the Inspector General, Officers with the Lyndhurst Police Department, Officers with the Totowa Police Department, Investigators with the Monmouth County Prosecutors Office, Investigators of the New Jersey State Police, and the Passaic County Prosecutor’s Office for their substantial assistance.
The government is represented by Assistant U.S. Attorney Kendall R. Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit, Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office’s Special Prosecutions Division and Bruce P. Keller, Special Counsel to the U.S. Attorney.
Drug trafficking mom imprisoned for smuggling meth across borderRead the Press Release
McALLEN, Texas – A 41-year-old Dallas woman has been sentenced for possession with intent to distribute more than 500 grams of meth, announced U.S. Attorney Alamdar S. Hamdani.
Alma Delia Rios pleaded guilty March 22, 2022.
U.S. District Judge Micaela Alvarez has now ordered Rios to serve a total of 145 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard that Rios imported narcotics from Mexico on behalf of Dallas drug traffickers. In handing down the sentence, the court noted Rios’ use of her minor daughter as a means to disguise the trip as a typical family vacation when is was a drug deal.
In October 2021, Rios attempted entry from Mexico into the United States via the Hidalgo Port of Entry. A K-9 alerted to narcotics in her vehicle’s gas tank and door panels. A subsequent search revealed approximately 12 kilograms of crystal meth in the door panels and approximately 28 kilos of liquid meth in the gas tank.
Law enforcement determined Rios drove her minor daughter along with several friends from Dallas to a hotel in Reynosa, Mexico. Rios then knowingly provided her vehicle to Mexican drug traffickers who hid the narcotics in the vehicle.
Just a few months prior, in June 2021, Rios made the same trip and successfully entered the port of entry undetected with narcotics hidden in the same vehicle.
Rios was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Laura Garcia prosecuted the case.
Dominican Man Indicted for Illegal ReentryRead the Press Release
BOSTON – A Dominican man has been indicted by a federal grand jury in Boston for illegally reentering the United States after deportation.
Jose De La Rosa Rosario, 50, was indicted on one count of unlawful reentry of a deported alien.
De La Rosa was remanded into federal custody after previously being arrested by police on Sept. 3, 2024, and then detained by Immigration and Customs Enforcement on Sept. 16, 2024. He will appear in federal court in Boston on a later date.
According to the indictment, De La Rosa was deported from the United States on July 3, 2018. It is alleged that sometime after his July 2018 removal, De La Rosa illegally reentered the United States without permission.
The charge of unlawful reentry of a deported alien provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit 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.
District Election Officer appointed to oversee election day complaints in the Southern District of GeorgiaRead the Press Release
SAVANNAH, Ga.: Southern District of Georgia U.S. Attorney Jill E. Steinberg announced today that she has appointed a District Election Officer (DEO) to lead the efforts of the office in connection with the Justice Department’s nationwide Election Day Program for the upcoming Nov. 5, 2024, general election.
The DEO is responsible for overseeing the district’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Steinberg said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
U.S. Attorney Steinberg stated that, “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, the DEO will be on duty in this District while the polls are open. The DEO can be reached by the public at the following telephone number, 912-201-2560, or by email at [email protected].”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 770-216-3000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.
U.S. Attorney Steinberg said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
Department of Justice awards more than $2 million to local non-profits to provide services to victims of domestic violence and human traffickingRead the Press Release
Seattle – The Department of Justice Office for Victims of Crime and the Office on Violence Against Women has awarded more than $2 million to various non-profits to elevate their success in supporting survivors of human trafficking and victims of intimate violence and stalking.
“These federal resources recognize the good work being done in Western Washington to assist vulnerable victims of domestic violence or human trafficking,” said U.S. Attorney Tessa M. Gorman. “By providing housing assistance to these survivors, these non-profits help to break the cycle of domestic violence and human trafficking.”
YouthCare, a Seattle-based non-profit has been awarded over $730,000 to their new project titled “YouthCare’s Family Engagement Services for Minor Survivors of Human Trafficking”. This project aims to provide a multitude of services to young victims including connections to therapists on-site, providing bi-weekly case management, and referrals for supportive services such as substance abuse treatment, mental health counseling, medical care, and housing assistance. YouthCare will also collaborate with local partners such as King County’s Juvenile Court Services and other non-profits.
Our Sisters’ House, a Tacoma-based non-profit was awarded $475,000 to their Culturally Specific Services Program, which aims to enhance the accessibility of resources to victims of domestic violence, dating violence, sexual assault, and stalking. This increased accessibility entails enhancing culturally relevant and linguistically specific resources to victims and exposed children within these affected communities. This award will also fund domestic violence prevention efforts through the program with support groups, a teen dating violence prevention program, crisis intervention, court support, and referrals.
Silent Taskforce of Seattle was also awarded $475,000 to support the maintenance and replication of existing community-based programs providing culturally specific services to victims of domestic violence, dating violence, sexual assault, and stalking. Silent Taskforce will also be providing culturally specific resources addressing the safety, economic, housing, and workplace needs of victims. This award will also fund domestic violence prevention efforts through non-traditional healing methods such as meditation, photography, music, painting, and poetry, as well as financial assistance, crisis intervention, educational support, and referrals for further support.
Lifewire, a Bellevue-based non-profit was awarded $500,000 to support their efforts to provide housing assistance and supportive services to survivors of domestic violence, dating violence, sexual assault, and stalking. Through private landlord housing units, Lifewire will collaborate with partners to provide a holistic and multidisciplinary approach to traditional housing needs to survivors and their families. They also provide services such as rental and utility assistance, case management, safety planning, legal advocacy, support groups, mental health therapy, financial empowerment, educational support, connections to community-based resources and housing advocacy.