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Friday 11 October 2024
Mobile Man Sentenced to More Than 33 Years in Prison for Producing Child PornographyRead the Press Release
MOBILE, AL – Gary Daniel-Kyle Hay, age 26, was sentenced today to 405 months in prison after entering guilty pleas to twenty counts of Sexual Exploitation of a Minor and one count of Access with Intent to View Child Pornography. Hay entered his guilty pleas on June 20, 2024.
Evidence received by the judge established that Hay sexually abused an eight-year-old child and filmed the abuse on multiple occasions.
At sentencing, Judge DuBose imposed the 405-month sentence of incarceration and a 15-year term of supervised release upon his future release. During his term of imprisonment, Hay will be subject to sex offender treatment, substance abuse testing and treatment, and mental health treatment. Hay will be required to register as a sex offender and is to have no contact with minors. Hay was ordered to pay $45,500 in restitution to the victim of his offenses and $2,100 in special assessments.
The Federal Bureau of Investigation, Mobile County Sheriff’s Office, and the Alabama Law Enforcement Agency investigated the case. Assistant U.S. Attorneys Kacey Chappelear and Beth Stepan prosecuted the case on behalf of the United States.
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 https://www.justice.gov/psc/publications-resources
Miami Jury Finds Hollywood Car Dealership Employee Guilty of Carjacking CustomerRead the Press Release
MIAMI – On Oct. 8, a federal jury found Erik Hadad, 58, guilty of carjacking a customer of the car dealership his family operated.
According to evidence introduced at trial, Hadad and members of his family operated Guru Auto Sales (Guru), a car dealership that sold the victim a 2020 Honda Accord in October 2023. The victim, a 24-year-old Haitian immigrant, was not given a copy of the sales paperwork he signed. In making the purchase, the victim understood that he was paying a finance company. What the victim was not aware of was that there was an agreement between the finance company and Guru, and if the victim was late on a payment within the first two months of the loan, then the finance company could demand the approximately $13,800 it paid for the loan back from the dealership. That part of the agreement mattered because the victim’s first payment bounced after he set up autopay, with the victim paying the first installment late and with a late fee in late November 2023. Because of that, the finance company sent Guru a letter on Dec. 14, 2023 saying that Guru needed to buy the loan back and owed about $13,000 for the contract—the amount the finance company paid less the amount the victim had paid at that point.
The carjacking occurred on Dec. 19, 2023, five days after Guru received a letter from the finance company informing them that they needed to buy back the loan. The victim was current on his account that day, and Guru was expressly told they couldn’t repossess the car. Nevertheless, that morning, the victim was followed by a black BMW. When he reached a red light, Hadad, whom the victim had never met before, got out of the black BMW in the middle of the intersection and approached the victim’s Honda, ripping off the paper temporary tag and aggressively yelling at the victim to get out of the car. The victim was able to get away when the light turned green, but Hadad eventually caught up to the victim and continued aggressively screaming for the victim to get out of the car. Hadad lifted his shirt to reveal that he had a gun holstered in his waistband, which led the victim to surrender his keys. The victim called the police shortly thereafter, and Hadad was arrested on scene. Hadad was found to be armed with a loaded Smith & Wesson pistol, holstered in his waistband.
U.S. District Judge K. Michael Moore is scheduled to sentence Hadad on Jan. 9, 2025, after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, made the announcement.
ATF Miami Field Office investigated the case with assistance from the Miami-Dade Police Department (MDPD). Assistant U.S. Attorneys Zachary A. Keller and Brianna Coakley are prosecuting the case.
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-20220.
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Member of Bonanno Crime Family Convicted of Extortion of a WitnessRead the Press Release
Today, a federal jury in Brooklyn convicted John Ragano, also known as “Bazoo,” a member of the Bonanno organized crime family, for the extortionate collection of credit from a victim. The verdict followed a four-day trial before United States District Judge Hector Gonzalez. When sentenced, Ragano faces up to 20 years in prison. The defendant was acquitted of extortionate collection of credit conspiracy, witness harassment and witness tampering.
Breon Peace, United States Attorney for the Eastern District of New York, and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“The defendant’s extortion of a victim while on pre-trial release, carried out even in the sanctity of the federal courthouse, is an affront to the criminal justice system and a glaring example of this Bonanno mobster’s flagrant disrespect for the law,” stated United States Attorney Peace. “With today’s verdict, the jury has delivered a clear message that the rule of law will prevail over extortionate threats.”
“Despite previous arrests and detention, John Ragano tormented his victim to make weekly exorbitant loan payments and enforced humiliating methods when faced with resistance,” stated FBI Assistant Director in Charge Dennehy. “His actions reflected his apathy to the criminal justice system as he repeatedly attempted to extort his victims in the midst of active legal proceedings. Today’s verdict emphasizes the FBI’s intolerance of the mob’s historical inclination to utilize coercive and threatening tactics to fulfill their greedy demands.”
In early 2021, John Doe (“the victim”) borrowed $150,000 from Ragano and made interest payments of approximately $1,800 a week to him. On September 14, 2021, Ragano was arrested in connection with the extortionate loan to the victim, as well as separate schemes to traffic marijuana and commit fraud. While Ragano was on pre-trial detention in that case, and after he was released on bond from the Metropolitan Detention Center in December 2021, he continued to try to collect the 2021 loan from the victim. On November 28, 2022, Ragano pleaded guilty in connection with his loan to the victim. In 2022 and 2023, despite Ragano’s arrest, court supervision, guilty plea and sentence of 57 months’ imprisonment, he continued to extort the victim on the 2021 loan, including at status conferences held at the federal courthouse.
On March 25, 2023, the victim recorded a meeting with Co-Conspirator #1 who explained that Ragano wanted the entire amount of the loan repaid and that “nobody’s looking for anybody to get hurt.” On July 5, 2023, the victim went to a used auto parts yard where Ragano worked to discuss the loan and recorded the meeting. The victim told Ragano that he was going to stop repaying the loan. Ragano accused the victim of cooperating with the government and demanded that he remove all his clothes. Ragano stated: “Okay, well then take off your f-----g s—t right now my man. Take off your f-----g pants right now, lemme see, I want to see.” At Ragano’s insistence, the victim complied and took off all his clothing. At that point, two men at the business walked up behind Ragano, one of whom was holding metal tools. Ragano then demanded the victim pay the money the defendant believed he was owed. Despite being forced to strip naked, the victim was still able to record the confrontation.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Devon Lash and Andrew D. Reich are in charge of the prosecution with the assistance of Paralegal Specialist Kristina Kim.
The Defendant:
JOHN RAGANO
Age: 62
Franklin Square, Long IslandE.D.N.Y. Docket No. 24-CR-50 (HG)
Man Who Received and Downloaded Child Pornography Sentenced to More than Eight Years in PrisonRead the Press Release
A man who received child pornography over the internet was sentenced today to more than eight years in federal prison.
Christopher Goins, age 47, from Cedar Rapids, Iowa, received the prison term after a May 13, 2024, guilty plea to one count of receiving child pornography.
In a plea agreement, Goins admitted that between December 2019 and December 2021, he knowingly received and downloaded photos and videos of child pornography, including depictions of minors under 12 years of age. During a search of Goins’ home in December 2021, agents from the Federal Bureau of Investigation seized 33 storage devices containing over 600 images of child pornography. In January 2024, following his arrest on federal child pornography charges, Goins said that additional child pornography would be found on his phone. During a search of Goins’ home, FBI agents found child pornography on Goins’ laptop and additional storage devices which Goins had obtained after his home was searched in December 2021.
Goins was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Goins was sentenced to 97 months’ imprisonment. He was ordered to make $3,000 in restitution to a child victim depicted in videos and photos he possessed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Goins is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Federal Bureau of Investigation.
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.”
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-06.
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Lewiston Man Arrested for Methamphetamine TraffickingRead the Press Release
PORTLAND, Maine: A Lewiston man has been arrested for possession with intent to distribute controlled substances.
Muktar Abshir (Mo) Aden, 25, was arrested at his residence in downtown Lewiston today on an arrest warrant issued by the court. He made his first appearance in U.S. District Court in Portland today.
This case is being investigated by Homeland Security Investigations (HSI) with assistance from the Maine Drug Enforcement Agency, Maine State Police and Lewiston Police Department.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Leader of Fatal Migrant Smuggling Conspiracy Sentenced to 10 YearsRead the Press Release
SAN DIEGO – Felipe de Jesus Rosales-Herrera of Riverside was sentenced in federal court today to 120 months in prison for leading an extensive migrant smuggling ring responsible for illegally transporting more than 100 migrants and causing one death.
According to his plea agreement, Rosales-Herrera employed foot guides to lead migrants over the border and drivers to pick them up on the U.S. side and deliver them to a stash house to meet a sponsor. Rosales-Herrera admitted that he charged approximately $10,000 per migrant. According to court documents, some of the smuggling events in the conspiracy resulted in high-speed chases and crashes, which placed the migrants, drivers, law enforcement and members of the public at risk. This culminated in a tragic collision on December 25, 2021.
Rosales admitted in his plea agreement that, even after learning his driver killed someone, he and his co-conspirators continued the conspiracy. As co-defendant John Douglas Oglesby III admitted in his plea agreement, drivers were told to flee if Border Patrol attempted to pull them over. Unfortunately, many drivers did just that, resulting in numerous high-speed chases and several crashes.
During the Christmas Day event in 2021, Kevin Antonio Quevedo-Moncada, acting under the supervision of co-defendant (and Rosales’ subordinate in the smuggling ring) Jose Luis Alejo-Cruz, picked up three undocumented migrants in a remote area. When Border Patrol attempted to pull him over, Quevedo-Moncada fled into a nearby campground, swerving wildly and careening around a field at high speed before ramming a Border Patrol vehicle to escape. As agents pursued him, he sped away on wet, winding roads, reaching speeds of close to 100 mph. Quevedo-Moncada lost control of his car and struck a tree, killing one of the migrants and leaving the other two in critical condition. Quevedo-Moncada pleaded guilty to charges related to this incident. Alejo-Cruz discussed the smuggling event with Rosales before the crash. Shortly after the crash, Rosales sent Alejo-Cruz a news article about the accident and confirmed that it was their driver.
Alejo-Cruz also relied on intimidation to preserve his position, tracking down and robbing two of his former drivers at gunpoint when he felt they had wronged him and plotting to kidnap a rival migrant smuggler.
“You traded in human life, trafficked in people… to line your own pockets” U.S. District Judge Cathy Ann Bencivengo told the defendant at todays hearing. “The worst-case scenario in alien smuggling, where someone died, did not deter you.” Judge Bencivengo ultimately ruled that the appropriate sentence was “fully and fairly the statutory maximum.”
“These smugglers viewed migrants as dollar signs, not people,” said U.S. Attorney Tara McGrath. “This significant sentence demonstrates the importance of protecting the public from the reckless tactics of criminal networks.”
“This event highlights the danger that these criminal organizations pose to the migrants they are transporting as well as the general public.” said U.S. Border Patrol, San Diego Sector Chief Patrol Agent Patrica McGurk-Daniel. “This outcome is the result of a concerted effort by Border Patrol agents and the U.S. Attorney’s Office to dismantle human smuggling networks and bring those responsible to justice. The sentencing today sends a clear message; if you smuggle people across our borders, you will face serious consequences.”
Co-defendants Alejo-Cruz and Oglesby were previously sentenced to 120 months and 70 months in federal prison, respectively. The final defendant, Miguel Isaac Villa-Gomez, is scheduled to be sentenced on December 6, 2024.
This case is being prosecuted by Assistant U.S. Attorney Paul Benjamin.
DEFENDANTS Case Number 23-CR-871-CAB
Felipe de Jesus Rosales-Herrera Age: 38 Riverside County, CA
Jose Luis Alejo-Cruz Age: 23 Long Beach, CA
John Douglas Oglesby III Age: 20 Chesapeake, VA
Miguel Isaac Villa-Gomez Age: 27 Downey, CA
Case Number 22-CR-1995-B__
John Douglas Oglesby III Age: 20 Chesapeake, VA
SUMMARY OF CHARGES
Conspiracy to Transport Aliens – Title 8, U.S.C., Section 1324
Maximum penalty: Ten years in prison and $250,000 fine
INVESTIGATING AGENCY
United States Border Patrol
Last of Three Men Sentenced for Meth and Fentanyl ConspiracyRead the Press Release
Three Co-Conspirators to Serve 27 Years Collectively in Federal Prison
OKLAHOMA CITY – JAMES BUCHANNON WIYNINGER, 50, of Oklahoma City, has been sentenced to serve 80 months in federal prison for drug conspiracy, announced U.S. Attorney Robert J. Troester.
On February 8, 2024, Wiyninger was charged by Superseding Information for his role in a drug conspiracy involving approximately 70 pounds of methamphetamine and four pounds of fentanyl. According to public record, on September 6, 2023, a Wheeler County, Texas Sheriff’s deputy initiated a traffic stop on I-40 of a vehicle occupied by CARLOS ALREDO HERRERA-JIMENEZ, 30, and ARTURO NAJERA-TORRES, 28. Inside the vehicle, law enforcement located two trash bags with the approximately 70 pounds of methamphetamine and four pounds of fentanyl inside. Agents with the Drug Enforcement Administration (DEA) were able to determine that the drugs were meant to be delivered to a location in Oklahoma City. DEA agents thereafter delivered the drugs as planned to a pickup and another vehicle at an Oklahoma City hotel on September 7, 2023. Law enforcement then followed those vehicles to a metro address, where they arrested Wiyninger without incident.
The driver of the other vehicle, JERRY WARD, 53, rammed his vehicle into an Oklahoma Highway Patrol car and tried to flee the scene. Authorities were able to disable Ward’s car, and he was arrested shortly after.
This year, Wiyninger, Ward, and Jimenez all pleaded guilty to individual superseding informations, charging each of them with drug conspiracy.
At the sentencing hearing on October 7, 2024, U.S. District Judge Jodi W. Dishman sentenced Wiyninger to serve 80 months in federal prison.
Ward has been sentenced to serve 200 months, and Jimenez has been sentenced to serve 44 months in federal prison.
Torres was scheduled for a combined plea and sentencing hearing in September 2024, but he did not appear. A bench warrant was issued and he remains at large.
This case is the result of an investigation by the Drug Enforcement Administration, with assistance from the Oklahoma Highway Patrol. Assistant U.S. Attorney Travis Leverett is prosecuting the case.
Reference is made to public filings for additional information.
Last Defendant Convicted of Robbing Lake Charles Jewelry Store Receives 20 Year Federal Prison SentenceRead the Press Release
LAKE CHARLES, La. - United States Attorney Brandon B. Brown announced that Trevione James Terry, 26, of Houston, the last remaining defendant convicted in jewelry store robbery case in Lake Charles, has been sentenced. United States District Judge James D. Cain, Jr. sentenced Terry to 241 months in prison, followed by 5 years of supervised release.
Terry admitted to his involvement in the robbery of Nederland Jewelers in Lake Charles on June 8, 2020, as well as Korman Fine Jewelry in Austin, Texas on May 7, 2020. Terry pleaded guilty to a Bill of Information on July 8, 2024, charging him with interference with commerce by robbery, and using, carrying and discharging a firearm during and in relation to a crime of violence.
According to information introduced in court, on May 7, 2020, Terry, along with five other co-conspirators, were involved in an armed robbery of Korman Fine Jewelry in Austin, Texas. On that date, Terry waited near the store in a white Porsche while the five others arrived at the jewelry store and exited the vehicle. The robbers burst into the store wearing masks. One of the robbers brandished a loaded firearm while shouting and ordering the employees and customers to get on the floor. Within a few seconds of bursting into the store, the robbers encountered a security guard. The armed robber pointed his gun at the security guard and shot him. Another customer was struck in the back of the head by the same robber, and he pointed his gun at other employees ordering them to the ground. Meanwhile, two other robbers smashed a Rolex watch display case and grabbed several Rolex watches. The robbers ran out of the store and were later apprehended. Law enforcement investigators were able to tie Terry to the Korman robbery through phone records and cellular telephone data obtained after the robbery proving that Terry was responsible for setting up the Korman robbery.
On June 8, 2020, Terry and six other coconspirators traveled from Houston to Lake Charles with the intention to commit a robbery of Nederland Jewelers. On that date, co-defendant Phaezon Stewart entered the store armed with a black Springfield XD handgun and ordered the employees to get on the ground. Terry and others entered the store wearing masks and armed with hammers. While Stewart pointed the firearm at the employee victims, the others broke the glass display cases and removed over 34 Rolex watches with an estimated value of over $350,000. Stewart, Terry, and the other coconspirators then exited the store and fled the scene in a white Porsche.
The white Porsche then traveled to the L’Auberge Casino and stopped and met with a Chevrolet Impala being driven by Carey Nimmons, with Johnson Moore as a passenger. Terry exited the Porsche with a backpack containing the stolen Rolex watches and got into the Impala with Nimmons and Moore and began traveling towards a residence in Lake Charles. Law enforcement agents were able to track the suspects to a specific area on Pryce Street in Lake Charles and began to search the area. Officers located Terry and co-defendant Joshua Evans hiding in a shed with the backpack in their possession which contained 32 of the 34 stolen Rolex watches. Nimmons was found in a nearby carport and Moore was found behind a residence less than 200 feet from where the other defendants were located, and all were subsequently arrested.
This case was investigated by the Federal Bureau of Investigation, Lake Charles Police Department, Calcasieu Parish Sheriff’s Office and Austin Police Department, and prosecuted by Assistant U.S. Attorney Daniel J. Vermaelen. The case in the Western District of Texas was prosecuted by Assistant U.S. Attorney Matthew Devlin.
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Justice Department Sues Virginia for Violating Federal Law’s Prohibition on Systematic Efforts to Remove Voters Within 90 Days of an ElectionRead the Press Release
The Justice Department announced today that it has filed a lawsuit against the State of Virginia, Virginia State Board of Elections and Virginia Commissioner of Elections to challenge a systematic state program aimed at removing voters from its election rolls too close to the Nov. 5 general election in violation of the National Voter Registration Act of 1993 (NVRA).
Section 8(c)(2) of the NVRA, also known as the Quiet Period Provision, requires states to complete systematic programs aimed at removing the names of ineligible voters from voter registration lists no later than 90 days before federal elections. The Quiet Period Provision applies to certain systematic programs carried out by states that are aimed at striking names from voter registration lists based on a perceived failure to meet initial eligibility requirements — including citizenship — at the time of registration.
“As the National Voter Registration Act mandates, officials across the country should take heed of the law’s crystal clear and unequivocal restrictions on systematic list maintenance efforts that fall within 90 days of an election,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “By cancelling voter registrations within 90 days of Election Day, Virginia places qualified voters in jeopardy of being removed from the rolls and creates the risk of confusion for the electorate. Congress adopted the National Voter Registration Act’s quiet period restriction to prevent error-prone, eleventh hour efforts that all too often disenfranchise qualified voters. The right to vote is the cornerstone of our democracy and the Justice Department will continue to ensure that the rights of qualified voters are protected.”
The Quiet Period is an important protection for voters, because systematic removal programs may be error-ridden, cause voter confusion and remove eligible voters days or weeks before Election Day who may be unable to correct the State’s errors in time to vote or may be dissuaded from voting at all. States may remove names from official lists of voters in various ways and for various reasons, but they may not carry-on this kind of systematic removal program so close to a federal election.
On Aug. 7, the governor of Virginia signed an executive order requiring among other things that the commissioner of the Department of Elections certify that the Department of Elections was conducting “Daily Updates to the Voter List.” These updates included “compar[ing] the list of individuals who have been identified as non-citizens” by the State Department of Motor Vehicles “to the list of existing registered voters.” Local registrars were then required to “notify any matches of their pending cancellation unless they affirm their citizenship within 14 days.” The letter directs recipients who are in fact U.S. citizens and eligible to vote to complete and return an Affirmation of Citizenship form. The notice informs voters that, if they do not respond to the notice within 14 days, they will be removed from the list of registered voters. This process has led to U.S. citizens having their voter registrations cancelled.
The process laid out in the executive order formalized an ongoing list maintenance procedure that has been carried out into the quiet period, including at least as recently as late September. This systematic voter removal program, which the State is conducting within 90 days of the upcoming federal election, violates the Quiet Period Provision.
The Justice Department seeks injunctive relief that would restore the ability of impacted eligible voters to vote unimpeded on Election Day and would prohibit future quiet period violations. The department also seeks remedial mailings to educate eligible voters concerning the restoration of their rights and adequate training of local officials and poll workers to address confusion and distrust among eligible voters accused of being noncitizens.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Jessica Aber for the Eastern District of Virginia and U.S. Attorney Christopher R. Kavanaugh for the Western District of Virginia made the announcement.
Individuals who are eligible voters and believe that they may have been removed from the voter rolls as a result of Virginia’s systematic removal process should contact the Civil Rights Division’s Voting Section through the internet reporting portal at 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. More information about the NVRA and other federal voting laws is available at www.justice.gov/crt/voting-section. The department recently announced a new guidance document addressing limits on when and how jurisdictions may remove voters from their voter lists. Complaints about discriminatory voting practices may be reported to the Civil Rights Division’s Voting Section through the internet reporting portal at civilrights.justice.gov or by telephone at 1-800-253-3931.
Justice Department Sues South Bend, Indiana, for Discriminating Against Black and Female Police Officer ApplicantsRead the Press Release
The Justice Department filed a lawsuit today against the City of South Bend, Indiana, alleging that the hiring process for entry-level police officers at the South Bend Police Department (SBPD) violates Title VII of the Civil Rights Act. Specifically, the department alleges that South Bend uses a written examination that discriminates against Black applicants and a physical fitness test that discriminates against female applicants.
Title VII is a federal statute that prohibits employment discrimination based on race, sex, color, national origin and religion. Title VII prohibits not only intentional discrimination but also employment practices that result in a disparate impact on a protected group, unless such practices are job related and consistent with business necessity.
“Equal employment opportunity is critical to ensuring that law enforcement agencies do not unfairly exclude otherwise eligible job applicants based on discriminatory practices,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Discriminatory barriers that deny qualified Black and female applicants the opportunity to be police officers violate civil rights and undermine public safety efforts. The Justice Department is committed to equal access to employment opportunities in the policing sector so that all qualified applicants have a fair chance to protect and serve their communities.”
The lawsuit stems from a pattern and practice investigation launched by Civil Rights Division in 2021 into SBPD’s hiring practices. The investigation found that SBPD’s written examination and physical fitness test do not meaningfully distinguish between applicants who can and cannot perform the position of entry-level police officer. These tests also had the effect of disqualifying Black and female applicants from the hiring process at significantly disproportionate rates. The department thus concluded that these tests violate Title VII’s bar on discrimination in employment.
Filed in the Northern District of Indiana, the lawsuit alleges that, since at least 2016, South Bend has used a written examination that has disproportionately excluded Black applicants and a physical fitness test that has disproportionately excluded female applicants from consideration for police officer positions. The complaint asserts that South Bend’s uses of these tests are neither job related nor consistent with business necessity, and thus, violate Title VII.
The Justice Department is seeking a court order to ensure that South Bend uses only lawful tests in its entry-level police officer hiring process. The department also seeks relief for Black and female applicants disqualified by the challenged tests, including back pay and, for those who can successfully complete the new lawful selection process, job offers with retroactive seniority.
The full and fair enforcement of Title VII is a top priority of the Civil Rights Division. The division recently proposed consent decrees to resolve lawsuits challenging similarly discriminatory hiring processes at the Maryland Department of State Police and the Durham Fire Department. The division has issued a fact sheet on combating hiring discrimination by police and fire departments to help applicants for public safety jobs understand their Title VII rights to be free from discriminatory hiring processes. More information about the Civil Rights Division can be found at www.justice.gov/crt.
Jury Convicts Fort Dodge, Iowa Man for Illegal Possession of FirearmRead the Press Release
A man who illegally possessed a firearm was convicted by a jury on October 10, 2024, after a three-day trial in federal court in Sioux City.
Lennox Vanvacter, 31, was convicted of one count of prohibited person in possession of a firearm. The verdict was returned following about 7 hours of jury deliberations.
The evidence at trial showed that on July 30, 2023, law enforcement officers observed Vanvacter operating a motor vehicle. Based on their observations and the fact Vanvacter had an active arrest warrant for a previous eluding charge, officers attempted to initiate a traffic stop and apprehend him. When emergency lights/sirens were activated, Vanvacter engaged in a high-speed attempt (approximately 30 minutes in duration) to elude law enforcement, including speeds of 70 mph or more in Fort Dodge and 100 mph or more outside city limits in Webster County. Two sets of spike strips deployed by officers ultimately stopped the vehicle. Once stopped, Vanvacter attempted to flee from the officers on foot, through the passenger door, but was captured a short distance later. Officers located a loaded Smith & Wesson 9mm pistol, near the end of the vehicle’s flight path. Later, officers determined by review of patrol car camera video, that the firearm was thrown from the vehicle at the end of the pursuit.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Vanvacter remains in custody of the United States Marshal and will remain in custody pending sentencing. Vanvacter faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine, and not more than three years of supervised release following any imprisonment.
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 is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, Iowa DCI Laboratory, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3037.
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Jamaican woman sentenced for passport fraudRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Maria Josephine Wright-Lawrence, 34, a Jamaican citizen, who was convicted of false use of a passport, was sentenced to serve nine months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Franz M. Wright, who handled the case, stated that on January 4, 2024, Wright-Lawrence and another individual arrived at the Rainbow Bridge Port of Entry from Canada at around 11:30 p.m. attempting to enter the United States. While at primary inspection, a Customs and Border Protection officer interviewed the two to determine their status and their ability to legally enter the United States. Wright-Lawrence provided the CBP officer with a United States Passport, with the purported name “K.E.M,” and stated she was a U.S. Citizen living in the state of Texas. The CBP officer noticed that the photograph on the passport was blurry and altered, and observed that Wright-Lawrence was acting nervous, and avoided making eye contact. Wright-Lawrence and the other individual were referred to secondary inspection for further questioning. During secondary inspection, another CBP officer examined the passport and confirmed that it had been forged and altered. Further investigation by confirmed that the passport had been stolen in Kingston, Jamaica, and belonged to “K.E.M.,” not Wright-Lawrence. Her fingerprints also confirmed her true identity was Maria Josephine Wright-Lawrence, a Jamaican citizen not legally permitted to enter the United States. A search of the vehicle also recovered several identification cards with Maria Josephine Wright-Lawrence’s real name and photograph.
The sentencing is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Erin Keegan.
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Iowa Farmer Sentenced to More Than Fifteen Years in Cattle Theft and Bankruptcy Fraud SchemeRead the Press Release
A Clayton County farmer who stole over $5 million in livestock and COVID-19 pandemic benefits was sentenced on October 10, 2024, to more than 15 years in federal prison. Michael Wayne Butikofer, age 54, from Monona, Iowa, received the prison term after a December 1, 2023, guilty plea to one count of theft of livestock, one count of wire fraud, and one count of false bankruptcy declaration.
Evidence in the case established that Butikofer operated a large farming operation in northeast Iowa known as “Fawn Hollow.” Butikofer operated a so-called “custom cattle” feeding operation in which employees of his organization would raise and care for cattle owned by other individuals, including cattle investors located across the United States. Fawn Hollow then sold the cattle, primarily to a Wisconsin slaughterhouse.
At no time was Butikofer or “Fawn Hollow” registered with the United States Department of Agriculture (“USDA”) as a “dealer” under the Packers and Stockyards Act of 1921 (“the Act”). Butikofer participated in the “H-2A” visa program and recruited agricultural workers from the Republic of South Africa to work at Fawn Hollow.
Between July 2020 and February 2022, Butikofer converted the proceeds of sales of cattle owned by eight cattle investors, totaling over $2.5 million, to his own use. Butikofer had convinced the cattle investors to allow Butikofer to sell the cattle in his own name. When Butikofer sold the cattle to the Wisconsin slaughterhouse, Butikofer falsely represented to the slaughterhouse that he had “good and merchantable title to” the cattle when he did not, in fact, own or otherwise have title to the cattle. By convincing the cattle investors to permit Butikofer to sell their cattle in his own name, and by fraudulently concealing the true ownership of the cattle from the slaughterhouse, Butikofer attempted to evade the requirements of the Act and its regulations for registration, posting of a dealer bond, and prompt payment, which would have protected the cattle investors’ funds.
In July 2020 and August 2020, Butikofer defrauded the USDA of more than $1.2 million in emergency assistance funds designed to assist livestock producers during the COVID-19 pandemic. Specifically, applications were submitted in the name of another individual and entitled “Coronavirus Food Assistance Program” (“CFAP”) payments. A cattle producer qualified for CFAP payments on a per head basis based on the producer’s owned inventory of eligible beef cattle on a date selected by the producer between certain dates in calendar year 2020. It was part of Butikofer’s wire fraud scheme that Butikofer falsely represented in CFAP applications that he and some of his associates owned cattle when, in truth, they did not own the cattle in question.
In February 2022, Butikofer received over $1.5 million from the Small Business Administration (“SBA”) as part of an application for an Economic Injury Disaster Loan (“EIDL”). Butikofer made false representations to the SBA about his financial condition and intended use for the SBA loan funds. Butikofer used part of the SBA funds to file for bankruptcy later that same month.
During the bankruptcy case, Butikofer perjured himself five times and made a series of false and fraudulent statements about his financial condition in bankruptcy filings. In March 2022, Butikofer submitted a false and fraudulent statement of financial affairs in his bankruptcy case. There were more than 100 creditors in Butikofer’s bankruptcy case, and Butikofer used the bankruptcy case to intentionally delay and hinder their legitimate collection efforts.
In 2018, Butikofer used forced labor to financially benefit Fawn Hollow. Butikofer dumped dead cattle near a house in which the H2-A workers lived on his farm. The workers had no hot water or furniture, and their water was contaminated. On one occasion, Butikofer assaulted one worker, grabbing the migrant worker by the shirt and pushing him towards a corn auger. Butikofer also tied the hands of another South African H-2A worker with a cable tie to an electric jigsaw and threatened workers with hanging and an electric shock dog collar. In 2020, three migrant workers obtained a $247,000 civil judgment against Butikofer in federal court for violations of the Fair Labor Standards Act and the Trafficking Victims Protective Reauthorization Act. Butikofer later used his fraudulent bankruptcy proceeding to convince the workers to settle their judgment for $75,000.
From April 2023 to November 2023, while on federal pretrial release, Butikofer recruited and caused another person in the Fawn Hollow criminal organization to recruit H-2A workers to the United States under false and fraudulent pretenses, representations, and promises. The false and fraudulent pretenses, representations, and promises included: (1) the housing conditions provided to the employees; (2) the location of the employees’ work; (3) the terms and timing of reimbursement for the employees’ work and expenses; and (4) payment for injuries sustained during the employment. For example, Butikofer convinced an H2-A worker from South Africa to come to the United States and bring his wife and teenaged daughter with him. When the family arrived, however, Butikofer moved the family to live in a camper without water, electricity, or heat. Ultimately, agents from the U.S. Department of Homeland Security rescued the family and paid for their food and shelter at a hotel in Cedar Rapids. Agents later rescued other workers bound for Fawn Hollow in April 2024.
While Butikofer’s criminal case was pending, he repeatedly contacted witnesses in violation of a court order. Butikofer also attempted to convince grand jury and trial witnesses to make false statements and sign false documents in attempts to obstruct justice.
Butikofer was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. At the sentencing, Judge Williams observed that Butikofer was operating a “Ponzi” scheme with investor cattle. Butikofer was sentenced to 188 months’ imprisonment. Butikofer was ordered to make over $5.7 million in restitution, forfeit $500,000, and repay $5,000 in attorney fees. Butikofer must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. As part of his plea agreement, Butikofer promised to pay the H-2A workers’ entire $247,000 judgment and also to voluntarily terminate and cease participation in foreign labor programs with respect to any program administered by the U.S. Department of Labor or U.S. Department of Homeland Security. Butikofer is being held in the United States Marshal’s custody until he can be transported to a federal prison.
United States Attorney Timothy T. Duax stated, “Butikofer treated his victims and the rule of law with equal contempt, and fully deserves his fifteen-year sentence to federal prison. This office will continue to aggressively prosecute people who defraud the government through the agricultural sector, the bankruptcy court, and by the mistreatment of foreign workers.”
“Michael Butikofer exploited the H-2A program in order to enrich himself at the expense of agricultural workers. Butikofer recruited H-2A workers from South Africa. Once the workers were in the United States, Butikofer used threats of force to compel them to work for him. This sentencing sends a clear message that those who abuse the H-2A program will be held accountable. We will continue to work with our law enforcement partners to aggressively pursue those who exploit foreign labor certification programs,” said Casey Howard, Special Agent-in-Charge, Central Region, U.S. Department of Labor, Office of Inspector General.
“This sentencing demonstrates the commitment to holding individuals accountable for defrauding government programs, especially those designed to provide critical relief during the pandemic,” said Brady Ipock, Special Agent in Charge of the SBA OIG’s Central Region. “Our office will continue to pursue justice for victims and ensure the integrity of SBA’s disaster relief programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their collaboration and dedication to justice.”
“The defendant in this case was held accountable for a number of serious fraudulent activities,” said Justin Bundy, Special Agent in Charge, Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). “He converted more than $2.5 million through a cattle investment scam and used those funds to enrich himself, at the expense of unsuspecting victims. He also falsely represented his financial condition and the intended use for SBA loan funds and defrauded the USDA of more than $1.5 million in funds designed to assist livestock producers during the COVID-19 pandemic. Also egregious was his use of forced labor to financially benefit his business and his mistreatment of migrant works that he employed. The FDIC OIG remains committed to working with our law enforcement partners to investigate and bring to justice those who participate in fraudulent schemes and threaten to undermine the integrity of our Nation’s banking system and government programs intended to benefit the American people.”
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Small Business Administration, Office of Inspector General, the Federal Deposit Insurance Corporation, Office of Inspector General, the United States Department of Agriculture, Office of Inspector General, the United States Department of Labor, Office of Inspector General, and Homeland Security Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1018.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Oct. 11 was:
Johntay Jujuan Taylor, 27, of Texas, on charges of conspiracy to commit bank fraud and wire fraud. If convicted of the most serious crime, Taylor faces a maximum of 30 years in prison, a $1 million fine and five years of supervised release. Taylor was detained pending further proceedings. The FBI; U.S. Secret Service; Chubbock, Pocatello and Kemmerer, Idaho, Police departments; Bannock County, Idaho, Sheriff’s Office; Idaho State Police; Missoula, Bozeman, Helena, Livingston and Laurel, Montana, Police departments; Yellowstone County, Montana, Sheriff’s Office; Teton County, Wyoming, Sheriff’s Office; and Evanston and Mountain View, Wyoming, Police departments conducted the investigation. PACER case reference. 23-13.
Appearing Oct. 10 was:
Keegan Allan Strelnik, 42, of Florence, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Strelnik faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Strelnik was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Probation Office and Montana Department of Fish, Wildlife and Parks conducted the investigation. PACER case reference. 24-54.
Nicole Lynn Shain, 39, of Bonners Ferry, Idaho, on charges of possession with intent to distribute methamphetamine and fentanyl. If convicted of the most serious crime, Shain faces a mandatory minimum of five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Shain was detained pending further proceedings. Homeland Security Investigations and the Flathead Tribal Police Department conducted the investigation. PACER case reference. 24-50.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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IMPD Sergeant Facing Federal Charges for Possession and Distribution of Child Sexual Abuse MaterialRead the Press Release
INDIANAPOLIS—A federal grand jury has returned an indictment charging Indianapolis Metropolitan Police Department Sergeant, Javed Richards, 42, with five counts of distribution of child sexual abuse material and one count of possession of child sexual abuse material. Richards had his initial appearance in federal court on October 10th.
According to the indictment, on July 14, 2024, Richards allegedly distributed at least five videos of minors under the age of 12 engaged in sexually explicit conduct to other individuals via the Kik messenger application. Richards is further charged with possessing numerous images and videos of child sex abuse material on his iCloud account.
IMPD announced it has suspended Sergeant Richards pending a recommendation of termination to the IMPD Civilian Police Merit Board.
The FBI and Indiana Internet Crimes Against Children Task Force is investigating this case, with cooperation from the Indianapolis Metropolitan Police Department. If convicted, Richards faces up to 20 years in federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Tiffany J. Preston, who is prosecuting this case.
This investigation was conducted by the FBI which is part of the Indiana Internet Crimes Against Children (ICAC) Task Force, a multiagency task force led by the Indiana State Police that investigates and prosecutes persons who use the internet to sexually exploit or entice children. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse. Visit https://www.internetcrimesagainstkids.com to learn more about their efforts.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the 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.
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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Hagerstown Man Sentenced to 10 Years in Federal Prison for Possessing Sexually Explicit Images of ChildrenRead the Press Release
Baltimore, Maryland – U.S. District Judge Julie R. Rubin sentenced Chad Christopher Langgle, age 30, of Hagerstown, Maryland, to 10 years in federal prison, followed by lifetime supervised release, for possession of child pornography.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, and Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations (HSI).
According to his guilty plea, in December 2022, Langgle emailed more than 50 videos containing child pornography, possessed images of child pornography on his cell phone, and had additional videos stored in his email account. Langgle was previously convicted of sex abuse of a minor and second-degree assault on a minor in the Circuit Court for Calvert County, Maryland. Additionally, he was previously convicted of a second-degree sex offense in the Circuit Court for St. Mary’s County, Maryland.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices, and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended HSI, the Maryland State Police, and the United States Marshals Service for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorney Reema Sood, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Greenwood Felon on Federal Supervised Release Sentenced for Weapons Violation Arising from State Domestic Violence ChargesRead the Press Release
SPARTANBURG, S.C. — Thaddeus Deon Devlin, Jr., 29, of Greenwood was sentenced to 100 months in federal prison after pleading guilty to possession of a firearm by a convicted felon.
Evidence presented to the court showed that on March 11, 2023, a victim called 911 stating that her children’s father had a gun, threatened her with it, and had taken her 5-year-old son. Greenwood Police Department officers responded to the location where the victim indicated Devlin would likely take her child and saw Devlin pull up. When Devlin and the child exited the car, Devlin was holding a liquor bottle and stated that he had been drinking. Officers searched the car and located a loaded .40 caliber pistol. At the time of the offense, Devlin’s criminal history included multiple incidences of domestic violence, assault and battery, and a prior felon in possession of a firearm charge. Devlin was on federal supervised release at the time.
United States District Judge Donald C. Coggins, Jr., sentenced Devlin to imprisonment for a term of 84 months on the indictment and a consecutive 16 months on the supervised release violation, all to be followed by a one-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenwood Police Department. Assistant U.S. Attorney Jamie Lea Schoen is prosecuting the case.
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Fresno Man Sentenced to 3 Years in Prison for Series of Vehicle Pipe-BombingsRead the Press Release
FRESNO, Calif. — Scott Eric Anderson, 46, of Fresno, was sentenced Wednesday to three years in prison for conspiracy to destroy property, malicious destruction by means of an explosive device and being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between November 2022 and February 2023, Anderson committed a series of pipe-bombings on unoccupied vehicles and property in Fresno. The bombings damaged vehicles belonging to two auto-related businesses on Clinton Avenue in Fresno. On Feb. 19, 2023, a bomb heavily damaged a vehicle used by a home health care business on Fallbrook Avenue in Fresno. Anderson sometimes recorded his crimes by video. Law enforcement also recovered a pistol in Anderson’s bedroom. Anderson was previously convicted of carrying a loaded and concealed weapon and is prohibited from possessing a firearm.
This case was the product of an investigation by the Fresno Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael G. Tierney prosecuted the case.
Fraudulent developer imprisoned for spending over $500,000 of investor’s funds on vacations and mortgageRead the Press Release
HOUSTON – A 48-year-old Houston resident has been sentenced for wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
Walter Salek pleaded guilty April 5 to his involvement in a fraudulent scheme to obtain more than $1 million and falsely informing an investor the funds would be used to develop real estate.
U.S. District Judge Sim Lake has now ordered Salek to serve 15 months in federal prison to be immediately followed by three years of supervised release. He must also pay the victim $571,000 in restitution. At the hearing, the court heard additional testimony from the victim that described how Salek portrayed himself as a successful real estate developer who flew around in private jets and was letting the victim in on investments that before had only been available to Salek’s family. The victim testified that the worst part was not the fraud, but that Salek betrayed his trust by taking his money when Salek knew the victim’s wife was dying and leaving him with three children to raise. In handing down the prison sentence, the court noted that Salek’s claim he engaged in the fraud during a “manic episode” could not be true because the fraud and cover-up went on for years.
“Walter Salek took money from a friend who was in the midst of a family tragedy,” said Hamdani. “Instead of investing the money, he used it to live an extravagant lifestyle that included things like traveling by private jet, a $100,000 family vacation to Scotland and mortgage payments on a brownstone in Boston and his multi-million dollar house here in Houston. Today’s sentence demonstrates that everyone, even people living like the top 1%, will be held accountable for their criminal conduct.”
“Walter Salek committed clear-cut fraud, lived a care-free life until he got caught and will now spend time in federal prison for his crime,” said Special Agent in Charge Douglas Williams of the FBI Houston field office. “Salek took advantage of a friend’s long-time trust and money to invest in his fraudulent property ventures. He let his personal greed supersede that friendship and any potential opportunity for lawful prosperity.”
At the time of the plea, Salek admitted between 2019 and 2021, he entered into agreements with an investor to develop real estate in the Houston area. As per the agreement, Salek was to contribute real estate and the investor was to provide cash to develop the properties. Once developed, properties were to be either leased or sold.
The investor believed the funds would be used for the developments and deposited over $1 million into business bank accounts that Salek controlled through use of interstate wire communications. However, Salek diverted at least $571,000 of the investment funds for his own personal use on mortgage payments and luxury vacations.
Salek 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 FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek prosecuted the case.
Former Tufts Medical Center Doctor Convicted of Attempted Sex Trafficking of a ChildRead the Press Release
BOSTON – A former anesthesiologist at Tufts Medical Center was convicted yesterday by a federal jury of attempted sex trafficking of a child.
Sadeq Ali Quraishi, 47, was convicted of one count of attempted sex trafficking of a child. U.S. District Court Judge Angel Kelley scheduled sentencing for Jan. 28, 2024. Quraishi was indicted by a federal grand jury in November 2022.
“The trafficking of women and minors for commercial sex is ever present in our communities and sex buyers from all walks of life drive this demand. As a practicing physician, Sadeq Quraishi was in a position of trust and expected to possess a strong ethical and moral compass. Instead, he engaged in extended negotiations with a purported trafficker and ultimately agreed to buy sex with a 14-year-old girl. Fortunately, this was a law enforcement operation and no real child was involved, but sadly that is not always the case.” said Acting United States Attorney Joshua S. Levy. “We are actively prosecuting the men and women who traffic adults and kids for profit, but in order to make a real dent in this pernicious conduct, we also must go after the demand part of the equation –the people who are trolling the internet and trying to purchase sex with little kids. I hope that every coward behind a keyboard who is thinking about engaging in the rape of the child under the auspices of a commercial transaction thinks twice – you may very well be talking to an undercover federal agent. Don’t do it. If you do, you are looking at a minimum of 10 years or more behind bars.”
“As a society, we put our trust in doctors and hold them to the highest ethical standards. Quraishi betrayed that trust by seeking out and attempting to pay to sexually abuse a child,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “HSI will never relent in our pursuit of bringing child predators to justice.”
In November 2022, Quraishi, then a practicing anesthesiologist at Tufts Medical Center in Boston, responded to an online advertisement offering commercial sex with two young girls. Through an ensuing text conversation with undercover agents posing as the seller of the two girls, Quraishi agreed to pay $250 for a sex act to be performed by a 14-year-old girl. Shortly thereafter, Quraishi obtained cash from an ATM, and drove from his Boston home to a Waltham hotel to meet with the purported seller. Once at the hotel, he met with an undercover agent, confirmed he had the money to pay for the commercial sex act, and accepted a keycard he believed would give him access to the room where the 14-year-old girl would be located. During that meeting, Quraishi was arrested and found to be in possession of exactly $250.
The charge of attempted sex trafficking of a child carries a mandatory minimum sentence of 10 years in prison and provides a maximum sentence of up to life in prison, a term of supervised release of at least five years 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.
If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact [email protected].
Acting U.S. Attorney Levy and HSI SAC Krol made the announcement today. Assistant U.S. Attorneys Brian A. Fogerty of the Office’s Civil Rights & Human Trafficking Unit and Lauren A. Graber of the Health Care Fraud Unit are prosecuting the case.
Former School Janitor Pleads Guilty to Child Pornography ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Bradley Arkesteyn, 29, of Kent County, pleaded guilty to possession of child pornography. Arkesteyn is scheduled to be sentenced on February 12, 2025, and faces a maximum sentence of 20 years in federal prison.
“Child exploitation cases are some of our most critical as we work to protect our most vulnerable: our children,” said U.S. Attorney Mark Totten. “While thankfully the evidence in this case did not reveal any hands-on abuse of children, there is everlasting harm suffered by the victims whose images were traded on the internet by Mr. Arkesteyn. I am proud of the law enforcement work to hold him accountable.”
In pleading guilty, Arkesteyn admitted to possessing over 700 images of child pornography, some involving children who had not yet reached puberty. As described in more detail in the criminal complaint, Arkesteyn posted images and videos of child pornography in a social media group called “kiddo only.” Arkseteyn also communicated privately with an undercover FBI task force officer about a sexual interest in children and his work as a custodian in a Kent County elementary school. The relevant school district was notified.
“Today's conviction of Bradley Arkesteyn sends a stern message to those who commit crimes involving our children that they will be investigated and arrested by members of the FBI and our law enforcement partners in Michigan. Mr. Arkseteyn used his position as a school janitor to feed his sexual interest in children,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI Michigan. “The members from FBI Michigan, alongside task force officers from the West Michigan Based Child Exploitation Task Force, worked tirelessly to investigate this crime, and their dedicated work contributed to the conviction of a sexual predator.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Federal Bureau of Investigation is investigating this case.
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Former Owner of ‘The Timepiece Gentleman’ Luxury Watch Consignment Store in Beverly Hills Pleads Guilty to Fraud ChargesRead the Press Release
LOS ANGELES – A Los Angeles man who ran a Beverly Hills luxury watch consignment business and was known as “The Timepiece Gentleman” pleaded guilty today to swindling dozens of his customers of out a total of at least $5.6 million.
Anthony Farrer, 36, formerly of downtown Los Angeles, pleaded guilty to one count of wire fraud and one count of mail fraud. He has been in federal custody since November 2023.
According to his plea agreement, from November 2022 to November 2023, Farrer used his business – also called “The Timepiece Gentlemen” – to connect purchasers and sellers of high-end watches. In a typical consignment sale, a client would ship a watch to The Timepiece Gentleman and Farrer would take possession of the watch, agreeing to display it at his Beverly Hills store and through online and social media marketing. The items involved in this case included luxury watches by Rolex, Richard Mille, and Patek Phillipe, among others.
Once the watch was sold, Farrer was supposed to remit the sales proceeds back to the client, minus a consignment fee, which typically was approximately 5% of the sales price. If the watch did not sell within a specific time or for a specified price, Farrer was to return the watch to the client.
However, instead of remitting watch sales proceeds – or the unsold watches themselves – back to the clients, Farrer sold the client watches and kept the proceeds for himself. He also used client watches – without the client’s knowledge or permission – as collateral for loans that he took out from lenders.
When a client asked about the status of a watch on consignment sale, Farrer lied and said that the watch had not yet been sold. In fact, Farrer already had sold the watch or otherwise disposed of it, keeping the funds for his own personal benefit.
In addition to his consignment sale business, Farrer also purported to purchase watches on behalf of his clients. Typically, a client sent funds to Farrer, often by wire transfers to his bank accounts or through payment processors such as Zelle, for the purpose of Farrer locating and buying a specified watch on the client’s behalf.
But in fact, Farrer took the clients’ money and used it for other purposes, including to fund his lavish lifestyle such as buying or leasing luxury automobiles, apartments, and other luxury goods.
When a client who had sent him money asked Farrer about the status of a watch purchase, Farrer often sent another watch to the client to tide the client over or lull them into a false sense of security regarding the status of the purchase. Similar to a Ponzi scheme, the other watch Farrer sent to the client often belonged to other clients who had themselves sent him that watch for a consignment sale. These clients were unaware Farrer was using their watches for that purpose, rather than attempting to sell the watches on behalf of the clients.
In total, Farrer fraudulently obtained money and property belonging to more than 40 victims and caused total losses of at least $5,691,005.
United States District Judge Josephine L. Staton scheduled a January 31, 2025, sentencing hearing, at which time Farrer will face a statutory maximum sentence of 20 years in federal prison for each count.
The FBI, IRS Criminal Investigation, and the Beverly Hills Police Department investigated this matter.
Assistant United States Attorney Joshua O. Mausner of the Violent and Organized Crime Section is prosecuting this case.
Former King County Jail guard sentenced to more than eight years in prison for accepting bribe to bring narcotics into facilityRead the Press Release
Seattle – A former King County Jail guard with a history of corrupt actions was sentenced today in U.S. District Court in Seattle to 102 months in prison for bribery and distributing methamphetamine and fentanyl pills, announced U.S. Attorney Tessa M. Gorman. Former jail employee Mosses Ramos, 40, of Milton, Washington, had been a King County jail guard for 18 years before he was fired last year. At the sentencing hearing U.S. District Judge Ricardo S. Martinez told Ramos “You betrayed your fellow corrections officers…. You jeopardized the safety of other officers as well as the safety of inmates…. You were smuggling deadly poison into the jail.”
“Corrections officers are critical for operating safe, humane, and secure detention facilities,” said U.S. Attorney Gorman. “In this case Mr. Ramos betrayed the trust placed in him and jeopardized the safety of his colleagues and detainees by smuggling highly addictive and lethal drugs into the jail.”
According to records filed in the case, between March and May 2023, Ramos accepted a $5,000 bribe to bring about a pound of methamphetamine and 100 fentanyl pills into the jail for inmates Michael Anthony Barquet, 37, and Francisco Montero, 25. Both men are currently incarcerated. Montero is facing trial in King County Superior Court for a double homicide. Barquet is scheduled for trial on drug and bribery charges for this case in April 2025.
The web of bribes and drug trafficking extended outside the jail with three coconspirators who are alleged associates of the two inmates: Neca Silvestre, 38,of Kent; Katrina Cazares, 38, of Burien; and Kayara Zepeda Montero, 27, of Seattle have all pleaded guilty in the case and await sentencing.
In asking for a ten-year sentence, Assistant United States Attorney Cindy Chang wrote to the court, “Ramos has a history of abusing his authority as a long-serving King County corrections officer. For years, he introduced drugs and other contraband into the facility. He disclosed confidential information to inmates. He allowed inmates to assault one another and even expressed a desire for an inmate to be assaulted when he believed the inmate “snitched” on him. Ramos’ unwavering abuse of power before, during, and after the charged offenses is an aggravating factor for his sentence.”
“Impact in our community is built on the foundation of trust, and Mr. Ramos chose to violate that trust,” said Kelly M. Smith, Assistant Special Agent in Charge of FBI Seattle. “We are grateful for the exceptional collaboration with the King County Sheriff’s Office and the King County Department of Adult & Juvenile Detention who share our commitment to holding public servants accountable and keeping drugs out of our correctional facilities. This successful joint investigation demonstrates the commitment by public safety professionals to hold those who violate this trust to the highest standards.”
“The Sheriff’s Office is eager to take any steps necessary to help keep fentanyl and other deadly drugs out of our communities, including our jails,” said King County Sheriff Patti Cole-Tindall. “We are glad to have played a role in helping the Department of Justice shed light on these egregious and appalling crimes.”
The case was investigated by the FBI and the King County Sheriff’s Office with support from the King County Prosecuting Attorney’s Office.
The case is being prosecuted by Assistant United States Attorneys Cindy Chang and Vince Lombardi.
Former Correctional Officer Sentenced for Smuggling Mobile Phones into Federal Detention CenterRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Lee E. Moore, Jr., 36, of Sicklerville, New Jersey, was sentenced yesterday to three years of probation with six months of home detention and a $5,000 fine by United States Magistrate Judge Scott W. Reid, all arising from Moore smuggling mobile phones into the Federal Detention Center in Philadelphia (“FDC”) while he was employed as a correctional officer at the FDC.
From August 2016 to June 2023, Moore was a correctional officer at the FDC. During May-June 2020, Moore smuggled mobile phones into the FDC in exchange for payments from an inmate’s wife. In June 2020, Moore also approached a second inmate about smuggling in contraband or other special favors in exchange for payment.
“Correctional officers have a tough enough job without having to deal with inmates who have access to smuggled contraband,” said U.S. Attorney Romero. “Lee Moore put his fellow COs and the public at risk by smuggling cell phones into the FDC for a price. But the price for breaking his law enforcement oath is much higher: he’s lost his job and now has a federal conviction on his record.”
"When a corrections officer chooses greed over integrity, it undermines the hard work and dedication their colleagues put forward every day to ensure a safe environment inside our detention centers," said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. "The FBI and our partners reaffirm our commitment to holding accountable those in the corrections system who abuse their positions of trust."
The case was investigated by the Federal Bureau of Investigation, the Department of Justice’s Office of Inspector General, and the Federal Detention Center and was prosecuted by Assistant United States Attorney Vineet Gauri.
Former Chief Executive Officer of Chicago Hospital Added to Federal Indictment Alleging Corruption and EmbezzlementRead the Press Release
CHICAGO — An ongoing federal investigation into alleged corruption and embezzlement at a Chicago hospital has resulted in a conspiracy charge against the hospital’s former Chief Executive Officer.
A 45-count, second superseding indictment accuses former CEO GEORGE MILLER, JR., 73, of Dallas, Texas, of conspiring with the hospital’s then-Chief Financial Officer, ANOSH AHMED, 40, of Houston, Texas, to corruptly steer vendor contracts and other hospital business to certain medical supply companies in exchange for cash from the companies’ owner, SAMEER SUHAIL, 47, of Chicago. Ahmed, Suhail, and the hospital’s former Chief Transformation Officer, HEATHER BERGDAHL, 37, of Houston, Texas, were originally indicted earlier this year on fraud, embezzlement, and money laundering counts. The charges accused them of causing the hospital to issue payments to purported vendor companies for goods and services that they knew had not been provided. Many of the purported vendor companies were created by Suhail and Ahmed under various names to conceal their association with the fraudulent payments, the charges alleged. Bergdahl allegedly opened bank accounts in the names of two legitimate hospital vendors and caused the hospital to deposit fraudulent payments into those accounts.
The second superseding indictment, which was returned Thursday in U.S. District Court in Chicago, renews the prior charges against Ahmed, Suhail, and Bergdahl, adds Miller as a defendant, and includes new tax charges against Ahmed for allegedly underreporting income in his individual tax returns. The newly returned indictment alleges that from 2018 to 2021, Suhail paid Miller and Ahmed a share of $19 million in payments that he received from the hospital, in return for Miller and Ahmed steering those contracts and business to him. The payments to Miller and Ahmed were in addition to the millions of dollars in fraudulent payments charged in the prior indictment.
Arraignments on the second superseding indictment have not yet been scheduled.
The second superseding indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General, and Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation in Chicago. The government is represented by Assistant U.S. Attorneys Sheri H. Mecklenburg and Kelly L. Guzman.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
ahmed_et_al_second_superseding_indictment.pdfFormer Accounting Chief at Now-Shuttered Girardi Keese Law Firm Pleads Guilty to Embezzling Money from Clients and the Firm ItselfRead the Press Release
LOS ANGELES – The former longtime head of the accounting department at the now-shuttered Los Angeles plaintiffs’ personal injury law firm Girardi Keese pleaded guilty today to enabling the embezzlement of tens millions of dollars from the firm’s injured clients and to embezzling money from Girardi Keese itself.
Christopher Kazuo Kamon, 51, formerly of Encino and Palos Verdes and who was residing in The Bahamas at the time of his November 2022 arrest, pleaded guilty to two counts of wire fraud.
According to his plea agreement, from 2004 until December 2020, Kamon was the head of the accounting department at Girardi Keese, a plaintiffs’ personal injury law firm based in downtown Los Angeles. In this position, Kamon worked closely with Thomas Vincent Girardi, 85, formerly a resident of Pasadena but who now resides in Seal Beach, as well as other senior lawyers at the law firm.
In December 2020, Girardi Keese’s creditors forced the once-prominent law firm into bankruptcy proceedings. The law firm dissolved in January 2021 and the State Bar of California disbarred Girardi in July 2022. On August 27, a federal jury in Los Angeles found Girardi guilty of four counts of wire fraud. Girardi’s sentencing hearing is scheduled for December 6.
In addition to supervising the law firm’s accounting department, Kamon oversaw facilitating payment of the law firm’s expenses. Kamon had a duty to keep accurate books and records of Girardi Keese, including accounting of money held in its attorney-client trust accounts. Typically, Girardi determined and directed which clients would be paid, how much they would be paid, when they would be paid, and signed all outgoing checks to clients. Kamon had signatory authority on additional Girardi Keese bank accounts.
From at least 2010 until December 2020, Girardi and Kamon schemed to defraud Girardi Keese clients out of their settlement money, using the misappropriated funds to pay the law firm’s payroll, the law firm’s credit card bills, and to pay Girardi and Kamon’s personal expenses.
Specifically, one victim – a Girardi Keese client who suffered severe burns all over his body when a natural gas pipeline exploded in San Bruno, California, in September 2010 – had a $53 million settlement negotiated. This deal was negotiated and agreed to without the client’s prior approval. Per the terms of the settlement, $25 million was invested into an annuity. The remaining $28 million was wired into a Girardi Keese client trust account in January 2013. Girardi, assisted by Kamon, misappropriated, and embezzled that client’s settlement money and used the funds to pay other Girardi Keese expenses and liabilities unrelated to this client, including payments to other law firm clients whose own settlement funds previously had been misappropriated by Girardi and others.
To prevent the victim from discovering Girardi’s embezzlement, Girardi lied to the client by saying the funds had been transferred into a separate interest-bearing account. In fact, no such transfers had been made and no such interest-bearing account containing these funds existed.
Girardi and Kamon sent lulling payments to the victim as purported “interest payments” deriving from the purported interest-bearing account. In July 2019, they sent the victim a $2.5 million check, purportedly as disbursement of the victim’s settlement funds. In fact, Girardi and Kamon knew these settlement proceeds belonged to other Girardi Keese clients. Girardi already had spent the victim’s settlement funds through disbursements unrelated to the victim’s case.
In a separate criminal case, Kamon admitted to running a years-long scheme in which he embezzled Girardi Keese funds for his personal enrichment. From at least 2013 to December 2020, Kamon utilized co-schemers to pose as “vendors” who were providing goods and services to the law firm. Kamon caused the supposed vendors to issue fraudulent invoices to Girardi Keese for goods and services that they purportedly provided to the law firm.
Kamon caused Girardi Keese to pay the amounts due on the fraudulent invoices. In fact, the law firm was paying the “vendors” for Kamon’s personal benefit, including for construction projects at his homes in Palos Verdes and Encino.
According to evidence presented at the recent trial of Tom Girardi, part of Kamon’s scheme involved payments to a female companion amounting to hundreds of thousands of dollars, including a monthly stipend of $20,000, out of the Girardi Keese operating accounts despite the woman having no employment relationship with Girardi Keese.
United States District Judge Josephine L. Staton scheduled a January 31, 2025, sentencing hearing, at which time Kamon will face a statutory maximum sentence of 20 years in federal prison on each count. Kamon has been in federal custody since December 2022.
Kamon – along with Girardi and David R. Lira, Girardi’s son-in-law, and a former Girardi Keese lawyer – also faces federal fraud charges in Chicago. Trial in that case is scheduled for March 3, 2025.
IRS Criminal Investigation and the FBI investigated this matter.
Assistant United States Attorneys Ali Moghaddas of the Corporate and Securities Fraud Strike Force and Scott Paetty of the Major Frauds Section are prosecuting this case.
Felon Sentenced for Possession of Firearms and FentanylRead the Press Release
TULSA, Okla. – U.S. District Judge John D. Russell sentenced Joseph McKinley Phillips, 34, of Tulsa, for Possession of Fentanyl with Intent to Distribute and Felon in Possession of a Firearm and Ammunition. Judge Russell ordered Phillips to 188 months imprisonment, followed by five years of supervised release.
According to court documents, in Dec. 2023, Tulsa Police officers approached Phillips, and he took off running. After officers caught and detained Phillips, they found he had two loaded handguns and more than 40 grams of fentanyl.
Data shows that only two milligrams of fentanyl can be a lethal dose. Seven out of ten contraband pills seized and tested by the DEA contained fentanyl.
Phillips will remain in custody pending transfer to the U.S. Bureau of Prisons.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tulsa Police Department investigated the case. Assistant U.S. Attorneys Adam McConney and Kenneth Elmore prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about PSN, please visit Justice.gov/PSN.
Federal Jury Finds Brooklyn Park Felon Guilty of Possession of Fentanyl, Firearm Following Deadly Vehicle CrashRead the Press Release
ST. PAUL, Minn. – A federal jury found Derrick John Thompson guilty of illegal possession of a firearm and fentanyl following a deadly vehicle crash that killed five victims, announced U.S. Attorney Andrew M. Luger.
Following a five-day trial in U.S. District Court before Judge Jeffrey M. Bryan, Thompson, 28, was found guilty of one count of possessing with intent to distribute fentanyl, one count of possessing a firearm as a felon, and one count of carrying a firearm during and in relation to a drug trafficking crime. A sentencing hearing will be scheduled at a later date.
According to evidence presented at trial, on June 16, 2023, a trooper with the Minnesota State Patrol observed a black Cadillac Escalade speeding north on I-35W, traveling at 95 miles per hour in a 55 miles per hour speed zone. The trooper observed the driver, later identified as Thompson, abruptly cut across four lanes of traffic to exit the freeway at the Lake Street exit. The trooper began following the SUV but did not activate the emergency lights or sirens because the trooper did not want to attempt a traffic stop on city streets given the Escalade’s dangerous driving. At the intersection of 2nd Avenue South and East Lake Street, Thompson sped through a red light at the intersection without stopping or slowing. The SUV struck at full speed the driver’s side of a Honda Civic that was traveling lawfully through the intersection. All five occupants of the Honda Civic, four adult females and one juvenile female, were killed. When law enforcement responded to the scene of the crash, witnesses told officers where Thompson fled. Officers found Thompson, wearing clothing that matched the description given by witnesses, sitting on the curb outside of a nearby restaurant. Officers detained Thompson, who was later transported to Hennepin County Medical Center for evaluation.
According to evidence presented at trial, an officer found at the scene a Hertz rental record for the Cadillac Escalade indicating that Thompson rented the vehicle from a Hertz located at the Minneapolis-St. Paul Airport approximately 30 minutes before the crash. After obtaining a warrant to search the vehicle, officers found a black leather bag on the front passenger side floor that contained a loaded Glock pistol with an extended magazine, as well as three baggies containing more than 2,000 blue “M-Box 30” fentanyl pills, a baggie containing an additional 14 grams of fentanyl powder, a baggie containing 35 grams of cocaine, and a digital scale. Subsequent testing determined that Thompson’s DNA was present on the firearm, the fentanyl powder, and the cocaine. A search of Thompson’s phone found dozens of texts indicating fentanyl deals.
Because Thompson has multiple prior felony convictions, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the Minnesota State Patrol, the Minnesota Bureau of Criminal Apprehension, and the Minneapolis–St. Paul Airport Police Department, in coordination with the Hennepin County Attorney’s Office.
Assistant U.S. Attorneys Thomas Calhoun-Lopez and Ruth S. Shnider tried the case.
Executives of Immigration Services Company Charged in Scheme to Submit Fraudulent Asylum ApplicationsRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Dongquan “Derek” Jin and Yimin “Kelly” Lu with aiding and abetting false statements on asylum applications, announced United States Attorney Ismail J. Ramsey, U.S. Department of State Diplomatic Security Service (DSS) San Francisco Field Office Special Agent in Charge William Chang, and Homeland Security Investigations (HSI) San Francisco Special Agent in Charge Tatum King.
According to an indictment filed Aug. 20, 2024, and unsealed Sept. 19, 2024, Jin and Lu operated Gospel Immigration Service, Inc., a Newark, Calif., corporation that held itself out as providing individuals with assistance in applying for immigration documents and benefits, including asylum.
The indictment alleges that Jin and Lu were listed as the application preparers on more than 200 asylum applications submitted to U.S. Citizenship and Immigration Services (USCIS) between 2013 and 2024. Jin and Lu allegedly provided their clients with sample personal statements describing persecution for use in the clients’ own asylum applications. According to the indictment, it was Jin’s and Lu’s practice to review and edit clients’ personal statements and, in doing so, Jin and Lu would include false and embellished details they believed would increase the clients’ chances of being granted asylum.
The indictment further alleges that, before their clients had their asylum interviews with USCIS, Jin and Lu would instruct their clients to memorize false details in their applications and would also facilitate interview training sessions to increase the odds of a favorable determination. Jin and Lu charged clients at least $5,000 for their assistance and would pressure clients for bonuses, or “red envelopes,” once their clients’ applications were approved.
Defendants are next scheduled to appear in federal court on Oct. 16, 2024, before the Hon. Charles R. Breyer, Senior U.S. District Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Jin and Lu each face a maximum sentence of 10 years’ imprisonment and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorneys Jared S. Buszin and E. Wistar Wilson are prosecuting the case, with assistance from Tina Rosenbaum. The prosecution is the result of an investigation led by the U.S. Treasury Inspector General for Tax Administration and DSS representatives to the Document and Benefit Fraud Task Force (DBFTF), overseen by HSI. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent benefit and immigration documents. USCIS’s Office of Fraud Detection and National Security provided significant assistance with the investigation.
Dongquan Derek Jin Indictment
Elmore County Man Sentenced to 165 Months in Prison Following Federal Drug ConvictionRead the Press Release
MONTGOMERY, AL – Today, Acting United States Attorney Kevin Davidson announced the sentencing of a Millbrook, Alabama man for possession of cocaine and marijuana with intent to distribute the illegal drugs. On October 10, 2024, a federal judge sentenced 44-year-old Derrick Andrea White to 165 months in prison. In addition, the judge ordered that White serve three years of supervised release following his prison term. Federal inmates are not eligible for parole.
According to the plea agreement and other court records, on March 18, 2023, an Alabama state trooper attempted to stop a vehicle in the city of Wetumpka after observing a vehicle violation. The driver, later identified as White, refused to stop. A pursuit ensued and the trooper observed White throwing objects out of his car window. The vehicle pursuit ended once White reached a dead end and exited the car. White then fled on foot but was apprehended after a short chase. Investigators recovered the items discarded by White during the pursuit. The items were eventually determined to be packages of cocaine and marijuana. During his plea hearing on July 9, 2024, White admitted to possessing the illegal drugs because he intended to distribute them.
The Federal Bureau of Investigation and Alabama Law Enforcement Agency investigated this case, with assistance from the Drug Enforcement Administration and other agencies. Assistant United States Attorneys Justin L. Jones and Eric M. Counts prosecuted the case.
District Teen Sentenced to More Than Nine Years in Prison for Several Armed Robberies in July of 2023Read the Press Release
WASHINGTON – Jahmius Brown, 19, of Washington, D.C., was sentenced today to more than nine years – or 115 months – in prison for his role in a series of armed robberies that took place on July 23, 2023, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Superior Court Judge Heidi M. Pasichow sentenced Brown to serve 40 months in prison for a robbery charge and 75 months for an armed robbery charge to be served consecutively for a total of 115 months. Judge Pasichow also ordered Brown to serve three years of supervised release.
Co-defendant Ricky Bronson, 18, of Washington, D.C., will be sentenced at a later date.
Brown and Bronson both previously pleaded guilty to one count of armed robbery and one count of robbery in January of 2024. In exchange for their guilty plea, the government agreed not to pursue charges for two additional armed robberies that were alleged to have been part of defendants’ crime spree.
According to the government's evidence, the first robbery occurred at the intersection of 2nd and Bryant Streets, NW, as the first victim was walking down the 100 block of Bryant Street, NW, and observed one of the defendants standing on the corner and a blue sedan parked nearby. As the victim walked down the street, they were suddenly cut off by Brown, who told the victim to stop and then demanded that the victim hand over any valuables. Bronson exited the blue sedan, armed with a firearm, and the victim proceeded to hand over an iPhone and provided the defendants the password to it, per the defendants' demand. Both defendants then re-entered the blue sedan and fled the scene.
MPD later responded to 1331 D Street, NE for another report of an armed robbery. At this scene, detectives interviewed the victim, who stated that they were standing at the rear of a vehicle when another vehicle, a blue sedan, approached the victim from behind. The victim was first approached by Brown, who grabbed the victim's shoulder and said, "Don't scream." Co-defendant Bronson then approached the victim and pressed a gun into their stomach, to which the victim told both men to "Take whatever you want."
Bronson took the victim's cell phone and ordered the victim to unlock it. Brown then grabbed the victim's keys out of their pocket. Both defendants then fled the scene in the blue sedan. Six minutes later, officers responded to a call for an armed robbery in the 1000 block of F Street, NE. There, the victim told officers that they were walking down F Street when they heard a speeding vehicle and observed a blue sedan stop nearby. The victim observed two men get out of the vehicle, and one of them demanded that the victim, "Give me what you got," while the other man pulled out a gun and pointed it at the victim. The victim gave the defendants a cell phone and wallet, and both men fled the scene in the blue sedan.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also commended the work of Assistant U.S. Attorneys Tamara Rubb and Jacqueline Yarbro.
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Defendant Pleads Guilty to 2022 Murder that Happened in Northeast D.C.Read the Press Release
WASHINGTON – Chanos Monroe, aka Chanos Gillis, 41, of District Heights, MD, pleaded guilty today to charges of voluntary manslaughter and unlawful possession of a firearm – prior felony conviction, for the 2022 murder of Keith Sistare, 52, at a BP gas station along Benning Rd. Northeast, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Monroe has been in custody since his arrest on June 25, 2024. His guilty plea, which was contingent upon the Court’s approval, called for an agreed-upon 14-year prison sentence, to be followed by five years of supervised release.
According to a proffer of facts submitted at the plea hearing, Monroe and an unidentified male chased down the Mr. Sistare after he attempted to get into the driver’s seat of Mr. Monroe’s vehicle which was left idling outside the BP gas station store. Monroe’s fiancé was still in the front seat at the time. Surveillance video shows Mr. Monroe repeatedly stomping on Mr. Sistare’s head while he was lying prone on the ground. Mr. Monroe then went back to his vehicle and got a handgun, but his fiancé convinced him to come back to their car with the gun. Mr. Sistare died, on September 11, 2022, as a result of his injuries.
This case is being investigated by officers, detectives, and other personnel of the Metropolitan Police Department.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia.
Court Sentences Two Fentanyl Traffickers from India to 46 Months ImprisonmentRead the Press Release
MOBILE, AL – On October 11, 2024, 2024, United States District Court Judge Kristi K. DuBose sentenced Sundar Chebiam and Roshan Landge each to 46 months imprisonment for Conspiracy to Possess with the Intent to Distribute Fentanyl. Both men are from India and are illegally in the United States.
Documents filed with the court established that on February 1, 2023, US Customs and Border Protection Officers at JFK Airport in New York intercepted a suspicious package coming from India via England. The package was addressed to a gas station on Schillinger Road in Mobile. Further investigation revealed the package contained 10,000 Tapentadol pills, which are a DEA Schedule II pharmaceutical drug.
Homeland Security Investigators, along with Mobile County Sheriff’s Office (MCSO) deputies, made a controlled delivery of the package to the gas station. At that time Chebiam stated the package was for him and he accepted the package. Chebiam was then arrested and he confessed that an individual in India mails packages of prescription pills to the gas station and once he receives the packages he is paid to re-package and mail smaller amounts of pills to various addresses in the United States.
Chebiam also advised agents he had more pills at his residence, which he shared with the co-defendant, Roshan Landge. MCSO deputies then went to the residence. When they arrived they realized Landge had been tipped off about Chebiam’s arrest at the gas station, as Landge was caught by deputies in the act of taking pills out of the house and loading the trunk of his car with the drugs to hide them from law enforcement. Numerous drugs were recovered from the trunk of the vehicle to include approximately 416.98 grams of fentanyl pills. Landge confessed to participating in the same drug distribution scheme as Chebiam.
The case was investigated by the US Customs and Border Protection, the Department of Homeland Security, Homeland Security Investigations and the Mobile County Sheriff's Office. The case was prosecuted by Assistant United States Attorney George F. May.
Connecticut U.S. Attorney’s Office Celebrates Annual U.S. Attorney’s AwardsRead the Press Release
The United States Attorney’s Office annual law enforcement awards ceremony was celebrated yesterday in New Haven. The ceremony at the City of New Haven’s aldermanic chambers recognized approximately 160 individuals for their investigative work and other contributions to significant federal criminal prosecutions, civil cases, and community engagement efforts in Connecticut. The majority of recipients are members of federal, state, and local law enforcement agencies, including 16 municipal police departments in Connecticut and Massachusetts.
“This celebration recognizes the many valuable contributions of law enforcement professionals from police departments in cities and towns across Connecticut, those employed by state and federal agencies, and other dedicated individuals who regularly and actively join us in achieving the Office’s mission,” said U.S. Attorney Vanessa Roberts Avery. “That singular mission is to do justice – do the right and just thing, in every circumstance. It requires us to always stand firm in furtherance of our three primary and co-equal priorities: upholding the rule of law, safeguarding civil rights, and doing all we can to keep our residents and our communities safe. We know that our law enforcement collaborations have been, and continue to be, essential to achieving that goal, and we thank each recipient for their invaluable commitment. We are stronger and safer because of them.”
In addition to criminal and civil case awards that recognized investigators of violent crime, drug trafficking, national security, child exploitation, public corruption, financial fraud, health care fraud, and other matters, U.S. Attorney Avery presented three special awards during the ceremony.
The U.S. Attorney’s Award for Outstanding Investigator was presented to FBI New Haven Supervisory Special Agent Wendy Bowersox for her persistence and dedication that led to many federal and state prosecutions of dangerous human traffickers, and her empathy in interacting with trafficking victims, many of whom are often suspicious of law enforcement and fearful, and traumatized by the sexual, physical, and mental abuse they have suffered. Agent Bowersox was recently promoted to the position of profiler at the FBI’s Behavioral Analysis Unit in Quantico, Virginia.
The U.S. Attorney’s Outstanding Community Award was presented to DEA Special Agent Jonah Mazzacane and several individuals who have lost family members to overdose, who have presented to thousands of students across Connecticut about the dangers of fentanyl, other opioids, and counterfeit pills, through the U.S. Attorney’s Office’s HEAT program.
The U.S. Attorney’s Outstanding Partnership Award was presented to members of the FBI, Connecticut State Police, State’s Attorneys, and Assistant State’s Attorneys, who participate in United Against Hate events across the state. UAH helps raise community awareness about hate crimes, hate incidents, and discrimination, and is building bridges between law enforcement and community, ethnic, and religious groups, particularly those with members who have been reluctant to contact law enforcement for help.
U.S. Attorney Avery also recognized members of the FBI, ATF, Bridgeport Police Department, and the U.S. Attorney’s Office, who recently won an Executive Office for United States Attorneys (EOUSA) Award for Superior Performance by a Litigative Team for their investigation and prosecution of 47 members and associates of three Bridgeport gangs who terrorized city residents from 2015 to 2022. The investigation solved eight murders and approximately 20 attempted murders.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 68 Assistant U.S. Attorneys and 57 staff members at offices in New Haven, Bridgeport, and Hartford.
For more information about the U.S. Attorney’s Office for the District of Connecticut, please visit www.justice.gov/ct.
California Home Health Agency and Owner Settle False Claims Act Allegations Relating to Improper Paycheck Protection Program LoanRead the Press Release
Allstar Health Providers Inc., a California home health agency, and its owner, Maria Chua, have agreed to pay $399,990 to the United States to resolve allegations that they violated the False Claims Act when they knowingly received and retained more than one Paycheck Protection Program (PPP) loan prior to Dec. 31, 2020, in violation of PPP rules.
The PPP, an emergency loan program established by Congress in March 2020 under the Coronavirus Aid, Relief and Economic Security (CARES) Act and administered by the Small Business Administration (SBA), was intended to support small businesses struggling to pay employees and other business expenses during the COVID-19 pandemic. A borrower applying for a PPP loan was required to make multiple certifications relating to its eligibility and compliance with program rules. Among other things, PPP loan applicants in 2020 were required to certify that they would not receive more than one PPP loan prior to Dec. 31, 2020.
The United States alleged that Chua submitted two PPP loan applications on behalf of Allstar Health Providers in May 2020, and in both applications, she certified that the company would not receive more than one loan prior to Dec. 31, 2020. Despite these certifications, the United States alleged that Allstar Health Providers received two PPP loans in 2020, and thereafter knowingly and improperly retained the second, duplicate loan. According to the United States, Allstar Health Providers failed to repay the duplicate loan, which resulted in a loss to the SBA when it purchased the loan guaranty on the duplicate loan.
“PPP loans were intended to provide critical relief to small businesses,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to pursuing those who knowingly violated the requirements of the PPP or other COVID-19 assistance programs and obtained relief funds to which they were not entitled.”
“When an individual violates the False Claims Act by fraudulently receiving and retaining PPP loans, taxpayers lose,” said U.S. Attorney Martin Estrada for the Central District of California. “Those who violate the law by fraudulently receiving and retaining PPP loans will be held accountable.”
“This is another excellent example of the success of the combined investigative efforts of the Small Business Administration and the Department of Justice in aggressively pursuing instances of misconduct and recovering funds from those who choose to commit fraudulent acts against SBA’s COVID-relief programs,” said General Counsel Therese Meers of SBA.
The settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by J. Bryan Quesenberry. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Quesenberry v. 2 Evil Geniuses et al., No. 20-cv-8495 (C.D. Cal.). Mr. Quesenberry will receive a total of approximately $60,000 in connection with this settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California, with assistance from the SBA’s Office of General Counsel and Office of the Inspector General.
Trial Attorney Jared S. Wiesner of the Civil Division and Assistant U.S. Attorney Frank Kortum for the Central District of California handled the matter.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
CEO of Nigerian Airline and Co-Defendant Indicted for Obstruction of JusticeRead the Press Release
ATLANTA – Allen Onyema, the Chairman, CEO, and founder of Air Peace, a Nigerian airline, has been charged in a superseding indictment with obstruction of justice for submitting false documents to the government in an effort to end an investigation of him that resulted in earlier charges of bank fraud and money laundering. Ejiroghene Eghagha, the airline’s Chief of Administration and Finance, was also charged for participating in the obstruction scheme, as well as in the earlier bank fraud counts.
“After allegedly using his airline company as a cover to commit fraud on the United States’ banking system, Onyema, along with his co-defendant, allegedly committed additional crimes of fraud in a failed attempt to derail the government’s investigation of his conduct,” said U.S. Attorney Ryan K. Buchanan. “The diligence of our federal investigative partners revealed the defendants’ alleged obstruction scheme, making it possible for the defendants to be held accountable for their aggravated conduct of attempting to impede a federal investigation.”
“These cases represent the continued commitment of the Drug Enforcement Administration to identify and hold accountable those who engaged in fraud and money laundering,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.
“Allegedly, Onyema and his accomplices fraudulently used the U.S. banking system in an effort to hide the source of their ill-gotten money,” said Assistant Special Agent in Charge Lisa Fontanette, Internal Revenue Service - Criminal Investigation Atlanta Field Office. “Today’s superseding indictment is indicative of the dedication IRS-CI special agents and our law enforcement partners have, as part of the Organized Crime Drug Enforcement Task Forces, to neutralize threats to the United States from criminal organizations.”
“The charges announced today demonstrate the criticality of diligence and truth in criminal justice proceedings,” said Steven N. Schrank, Acting Special Agent in Charge, Homeland Security Investigations Atlanta that covers Georgia and Alabama. “HSI and our partners are committed to pursuing those who seek to exploit our nation’s financial system and any efforts to cover up illegal activity.”
According to U.S. Attorney Buchanan, the superseding indictment, and other information presented in court: Onyema, a Nigerian citizen and businessman, is the CEO and Chairman of Air Peace, a Nigerian airline founded in 2013. Between 2010 and 2018, Onyema travelled frequently to Atlanta, where he opened several personal and business bank accounts. More than $44.9 million was allegedly transferred into his Atlanta-based accounts from foreign sources.
Beginning in approximately May 2016, Onyema, together with Eghagha, allegedly used a series of export letters of credit to cause banks to transfer more than $20 million into Atlanta-based bank accounts controlled by Onyema. The letters of credit were purportedly to fund the purchase of five separate Boeing 737 passenger planes by Air Peace and were supported by documents such as purchase agreements, bills of sale, and appraisals. The documents purported to show that Air Peace was purchasing the aircraft from Springfield Aviation Company LLC, a business registered in Georgia.
However, the supporting documents were allegedly fake – Springfield Aviation Company LLC was owned by Onyema and managed on his behalf by a person with no connection to the aviation business, and Springfield Aviation never owned the aircraft. The company that allegedly drafted the appraisals did not exist. Eghagha allegedly participated in this scheme as well, directing the Springfield Aviation manager to sign and send false documents to banks and even using the manager’s identity to further the fraud. After Onyema received the money in the United States, he allegedly laundered over $16 million of the proceeds of the fraud by transferring it to other accounts.
In May 2019, upon discovering that he was under investigation in the Northern District of Georgia for bank fraud, Onyema and Eghagha allegedly directed the Springfield Aviation manager to sign a key business contract, but also specifically told her to not date the document. In October 2019, Onyema allegedly caused his attorneys to present that same contract, now falsely dated as being signed on May 5, 2016 (prior to the bank fraud that began in 2016), to the government in an effort to stop the investigation and unfreeze his bank accounts.
Allen Ifechukwu Athan Onyema, 61, of Lagos, Nigeria, and Ejiroghene Eghagha, 42, of Lagos, Nigeria, were indicted on November 19, 2019, on one count of conspiracy to commit bank fraud, three counts of bank fraud, one count of conspiracy to commit credit application fraud, and three counts of credit application fraud. Additionally, Onyema was charged with 27 counts of money laundering, and Eghagha was charged with one count of aggravated identity theft. On October 8, 2024, they were both charged in a superseding indictment alleging an additional count of obstruction of justice and one count of conspiracy to obstruct justice. The case is criminal action number 1:19-CR-464.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
The Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Federal Aviation Administration, Department of Commerce, and Department of Treasury are investigating this case.
Assistant U.S. Attorneys Garrett L. Bradford and Christopher J. Huber are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Baton Rouge Man Sentenced to 18 Months in Federal Prison for EscapeRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge John W. deGravelles sentenced Deshawn Henderson, age 26, of Baton Rouge, Louisiana, to 18 months in federal prison following his conviction for escape. The Court further sentenced Henderson to serve three years of supervised release following his term of imprisonment.
According to admissions made as part of his guilty plea, in 2022, Henderson was sentenced to 50 months in federal prison following his conviction for possession of firearms by a convicted felon. In February 2024, prior to completing his sentence, Henderson was assigned to City of Faith Residential Reentry Center, a community corrections facility located in Baton Rouge, Louisiana, to serve the remainder of his federal sentence. On the evening of April 1, 2024, employees at City of Faith directed Henderson to submit to a urinalysis and a breath analysis. While he was being escorted to a security trailer at the facility to be tested, he became irate and began to damage the interior of the security trailer. Shortly thereafter, the defendant exited the facility without permission and did not return. Henderson’s whereabouts remained unknown for about 14 days, when he surrendered to the U.S. Marshals Service on the evening of April 15, 2024.
This case was investigated by the U.S. Marshals Service and was prosecuted by Assistant United States Attorney Stephen R. Vick, Jr.
Arraignment Held for Four Charged in Connection with a September 2023 Murder in a Southwest Apartment BuildingRead the Press Release
WASHINGTON – Keyshawn Lavender, 23, Deandre Sams, 28, Raymond Mathis, 37, of Washington, D.C., and Deandre Christian, 30, of Fort Washington, MD, were arraigned in Superior Court today on a superseding indictment charging Lavender, Sams, and Mathis with conspiracy to commit robbery, first degree felony murder while armed, and related charges for the September 5, 2023 murder of 32-year-old Matthew Miller. Christian was arraigned on an assault with intent to kill charge for shooting from the balcony of an apartment building.
The superseding indictment was announced by United States Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department. All four defendants were arraigned before Superior Court Judge Anthony Epstein.
According to the superseding indictment, Lavender, Mathis, and Sams conspired to rob and shoot Matthew Miller inside an apartment at 222 M Street, Southwest, Washington, D.C. Christian is charged for an alleged retaliatory shooting immediately after the murder.
The defendants entered pleas of not guilty and remain held pending trial. Lavender, Sams, and Mathis are scheduled for trial on September 8, 2025; a trial date for Christian has not yet been set.
In announcing the charge, U.S. Attorney Graves commended the work of those investigating the case from the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Sarah Prins.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
2024-09-18_superseding_indictment_docketed_9-20.pdfAnnual Awards Ceremony Recognizes Outstanding Contributions from Western Pennsylvania Law Enforcement Officers and ProsecutorsRead the Press Release
PITTSBURGH, Pa. - The Law Enforcement Agency Directors (LEAD) of Western Pennsylvania recognized more than three dozen area law enforcement officers and prosecutors during its 26th Annual LEAD Awards Ceremony, announced United States Attorney Eric G. Olshan. Comprising the Western Pennsylvania heads of federal, state, and local law enforcement agencies, LEAD bestows awards annually as a way of recognizing outstanding performance from law enforcement agents and officers, as well as prosecutors.
Notable among the LEAD Awards presented were:
• The Lifetime Service Award was presented to (Retired) Supervisory Special Agent Louis “Lou” Weiers for his outstanding service with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Weiers began his career with the ATF in January 1991 as a Special Agent with the Pittsburgh field office’s Arson/Explosives group, also serving as a member of the National Response Team from 1998 until 2005. Weiers was promoted to Resident Agent in Charge of the Pittsburgh Firearms Trafficking and Violent Crime group in March 2005, and was among the longest tenured supervisory investigators within the ATF upon his September 2024 retirement. Among the many investigations on which he worked during his career, Weiers served as the first-line supervisor at the 2018 Tree of Life shooting in Pittsburgh, where his group led the ATF response and firearms investigation with the Federal Bureau of Investigation (FBI); represented ATF at the September 11, 2001, Flight 93 crash site in Shanksville, Pennsylvania; and was involved in the 2014 48-day manhunt for Eric Frein, who killed a Pennsylvania State Trooper and critically injured another during an attack at a State Police barracks. Weiers also served in several acting Assistant Special Agent in Charge details within the Philadelphia Field Division throughout the decades.
• The Courage Under Hostile Fire Award was presented to Pittsburgh Bureau of Police Officer Craig Claflin, who, as the first officer on the scene of a domestic dispute call at a Kincaid Street residence in Pittsburgh’s Garfield neighborhood in July 2024, was immediately fired upon by the assailant. Officer Claflin quickly neutralized, disarmed, and detained the assailant, saving lives and preventing injuries to neighboring civilians and fellow law enforcement officers.
• An individual LEAD award was presented to Assistant U.S. Attorney Katherine Jordan of the U.S. Attorney’s Office. AUSA Jordan’s work has consistently involved the handling of both complex, long-term investigations and prosecutions of violent individuals and drug traffickers. During the past year, her cases included multiple long-term drug trafficking investigations conducted by FBI’s Greater Pittsburgh Safe Streets Task Force—one of which was a Title-III wiretap investigation—as well as a long-term Drug Enforcement Administration investigation into a large-scale drug trafficking organization, the latter of which included the execution of multiple search warrants in late-June 2024 that ultimately resulted in the seizure of nearly 120 kilograms of cocaine, over $1.2 million in cash, and eight firearms, in addition to the charging of numerous individuals. In September 2024, shortly after the takedown of her FBI Title-III investigation, AUSA Jordan secured a guilty verdict in the jury trial of local large-scale drug trafficker Leon Ford Sr., whom Jordan and her team of investigators had indicted and successfully convicted of conspiracy to distribute five kilograms or more of cocaine and 400 grams or more of fentanyl, as well as possession with intent to distribute 400 grams or more of fentanyl.
• Several individuals from the ATF, along with Assistant U.S. Attorney Maureen Sheehan-Balchon of the U.S. Attorney’s Office, received a team award for outstanding performance for their seven-month investigation and prosecution of a complex illegal firearms manufacturing and distribution network out of Altoona, Pennsylvania. The criminal conspiracy involved the manufacture and sale of untraceable ghost guns, AR-15 style rifles, and “hit kits” containing a Polymer 80 privately made firearm with no serial number, a threaded barrel to attach an included silencer, subsonic ammunition, and latex gloves.
• Members of the Mt. Lebanon Police Department, Allegheny County Police Department, Allegheny County Sheriff’s Office, and FBI received a team award for their investigation of a series of crimes involving the sexual exploitation of children.
• Corporals and troopers from Pennsylvania State Police Troops B and D Forensic Services Units were honored with a team award for their processing of a particularly complex Pittsburgh crime scene.
• Two U.S. Postal Inspection Service officials received individual LEAD awards for their roles in helping to uncover and disrupt criminal operations in separate investigations involving, in one case, a California-to-Western Pennsylvania drug trafficking network, and, in the other, a games of chance theft ring. Officers and agents from organizations including the Allegheny County Sheriff’s Office, ATF, FBI, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, and Pennsylvania State Police also received individual awards for their performance in a variety of incidents and investigations involving firearms, narcotics, sexual exploitation of minors, tax evasion, and public safety.
LEAD is composed of the following law enforcement agencies: Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Investigation; U.S. Attorney’s Office, Western District of Pennsylvania; Homeland Security Investigations; Internal Revenue Service - Criminal Investigation; U.S. Department of Homeland Security, Transportation Security Administration; U.S. Department of Defense - Defense Criminal Investigative Service; U.S. Department of Housing and Urban Development; U.S. Marshals Service; U.S. Postal Service Office of Inspector General; U.S. Postal Inspection Service; U.S. Probation & Pretrial Services; United States Secret Service; U.S. Social Security Administration – Office of Inspector General; U.S. Department of State – Diplomatic Security Service; U.S. Department of Transportation, Federal Air Marshal Service; U.S. Department of Transportation - Office of Inspector General; U.S. Department of Veterans Administration - Office of Inspector General; U.S. Department of Labor - Office of Inspector General; U.S. Department of Agriculture - Office of Inspector General; U.S. Department of Homeland Security – Federal Protective Service; U.S. Food and Drug Administration – Office of Criminal Investigations; Pennsylvania Office of Attorney General; Pennsylvania State Police; Pennsylvania Board of Probation and Parole; Western Pennsylvania Chiefs of Police Association; Allegheny County Police Department; Allegheny County Sheriff’s Office; Allegheny County District Attorney’s Office; Allegheny County Chiefs of Police Association; Allegheny County Housing Authority Police Department; Port Authority of Allegheny County Police Department; Washington County District Attorney’s Office; Westmoreland County District Attorney’s Office; Pittsburgh Bureau of Police; Mt. Lebanon Police Department; Carnegie Mellon University Police Department, and University of Pittsburgh Department of Public Safety.
Thursday 10 October 2024
Wagoner Resident Sentenced for Illegal Possession of Explosive Devices and MachinegunRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brock Lucas Shields, age 59, of Wagoner, Oklahoma, was sentenced to a term of three years’ probation for one count of Engaging in the Business of Manufacturing and Dealing in Explosive Materials without a License, and three years’ probation for one count of Illegal Possession of a Machinegun. The terms are set to be served concurrently, with the first six months to be served under house arrest.
The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On November 9, 2023, Shields pleaded guilty to the charges. According to investigators, on December 16, 2022, ATF and TFO agents executed a federal search warrant on Shields’ Wagoner residence and discovered Shields in possession of 132 illegal flash powder explosive devices and raw materials for manufacturing devices. At the time of the search, Shields did not possess a federal explosives license to import, manufacture, or distribute explosive materials. Agents conducting the search also discovered two machine guns, one 7.62x39mm caliber firearm modified for full automatic firing with a single trigger pull, and one 5.56mm caliber firearm modified for full automatic firing with a single trigger pull.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.
Assistant U.S. Attorney Lewis Reagan represented the United States.
Utah Fraudster Sentenced for Selling 120,000 Fake COVID-19 Vaccination Record CardsRead the Press Release
SALT LAKE CITY, Utah – The lead defendant in a scheme that manufactured, sold and distributed 120,000 counterfeit COVID-19 vaccination record cards was sentenced today.
Nicholas Frank Sciotto, 34, of Salt Lake City, was sentenced by U.S. District Court Judge Tena Campbell to 12 months’ imprisonment, three years supervised release, and ordered by the court to pay a $40,000 fine, after he admitted in July 2024 that he conspired to defraud the U.S. Department of Health and Human Services and the Center for Disease Control and Prevention (CDC) by selling and distributing counterfeit COVID-19 vaccination record cards. In turn, Sciotto obtained over approximately $400,000 in profits.
U.S. Dept. of Health and Human Services-OIGAccording to court documents and statements made at Sciotto’s sentencing hearing, between March 2021 and September 2021, Sciotto promoted, manufactured, sold, and distributed illegal and counterfeit COVID-19 vaccination record cards across the country. He also sold the COVID-19 vaccination record cards wholesale to several coconspirators, including Kyle Blake Burbage, 33, of Goose Creek, South Carolina. Together, the coconspirators enabled numerous people to use fake vaccination record cards to masquerade as being vaccinated, so they could evade public health and safety protocols across the nation. Sciotto engaged in this scheme–without regard for any public health consequences or risks that he exposed individuals to during the pandemic, without their knowledge or consent, and he undermined the CDC’s COVID-19 vaccination program and other governmental health and safety regulations and protocols at significant profit.
U.S. Dept. of Health and Human Services-OIGOn Facebook, Sciotto sold each card for $10 with a 10 card minimum per order, plus $5 for shipping and directed buyers to a mobile payment service to complete the transaction. In furtherance of the crime, Sciotto made a fake badge and identified himself as a volunteer with a major COVID-19 testing company in Utah to trick a print shop worker into believing Sciotto worked for a hospital and was authorized to print out thousands of copies of COVID-19 vaccination record cards.
United States Attorney Trina A. Higgins for the District of Utah made the announcement.
The case was investigated jointly by the U.S Department of Health and Human Services – Office of Inspector General (HHS-OIG) and the FBI Salt Lake City Field Office.
Assistant United States Attorney Todd C. Bouton and Special Assistant United States Attorney Sachi J. Jepson of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney’s Office Reaches Settlement with Inland Northwest Behavioral Health to Ensure Compliance with the Americans with Disabilities ActRead the Press Release
Spokane, WA – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Inland Northwest Behavioral Health has agreed to take remedial measures over the next two years and pay ten thousand dollars in compensatory damages to resolve alleged violations of Title III of the Americans with Disability Act (ADA).
A former patient of Inland Northwest Behavioral Health alleged that he was required to provide documentation of a service animal in violation of the ADA’s requirements, that he was not allowed to conduct visitation indoors with the service animal, and that he was segregated from other patients of Inland Northwest Behavioral Health while utilizing the service animal.
Inland Northwest Behavioral Health fully and promptly cooperated with the investigation and agreed to take concrete remedial measures to comply with the ADA.
Under the terms of the settlement, Inland Northwest Behavioral Health is required to pay $10,000 in compensatory damages to the individual with disabilities. The settlement further requires Inland Northwest Behavioral Health to undertake the following:
- Implement and utilize a written Title III ADA service animal policy
- Require annual employee training addressing the requirements of the ADA
- Conspicuously post notices to patients and employees at the facility that service animals are welcome
- Submit reports to the United States Attorney’s Office every twelve months for the next two years certifying full compliance with all remedial terms of the agreement and self-reporting any allegations of violations of the ADA so they can be fully investigated.
“The Americans with Disabilities Act provides individuals many protections, including the use of service animals. This agreement compels Inland Northwest Behavioral Health to take steps to make sure this right is protected for individuals in the future.” stated U.S. Attorney Waldref. “My office will continue to protect the civil rights of all citizens in our district.”
The settlement was the result of a complaint filed on ADA.gov and the resulting investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington. The public is encouraged to report suspected ADA violations at ADA.gov, or individuals can report suspected ADA violations directly to the U.S. Attorney’s Office at [email protected] or by calling the Civil Rights Complaint Line at (509) 835-6306. The full settlement agreement, including the required Service Animal Policy, is available at the bottom of this page.
Assistant United States Attorney Jacob E. Brooks of the Eastern District of Washington handled the matter on behalf of the United States.
settlement_agreement_sept_2024_v.1.pdfTwo Former Arkansas Sheriff’s Deputies Sentenced to Prison for Federal Civil Rights OffencesRead the Press Release
FORT SMITH - Two former Crawford County, Arkansas, sheriff’s deputies, have been sentenced
to federal prison for federal civil rights offenses for using unlawful force on a man they arrested.
The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings, which took
place in the United States District Court in Fort Smith.
Today, Zackary King, age 28, was sentenced to 12 months, in federal prison followed by one year
of supervised release for Deprivation of Rights Under Color of Law. On October 9, 2024, Levi
White, age 33, was sentenced to 63 months, in federal prison followed by two years of supervised
release for Deprivation of Rights Under Color of Law.
According to court documents, White, King, and a third officer approached a man identified as R.W.
in a gas station parking lot on August 21, 2022, during their investigation into a person threatening
a store attendant. R.W. lunged at White and tackled him, then all three officers quickly subdued
R.W. and pinned him to the ground. After R.W. was pinned to the ground and no longer fighting the
officers, King kicked R.W. in the back and struck R.W. once in the midsection with his fist. At
approximately the same time, White punched R.W. at least nine times in the head, then lifted R.W.’s
head and slammed it into the pavement. The third officer did not strike R.W. R.W. suffered head
injuries from the assault.
U.S. Attorney Clay Fowlkes of the Western District of Arkansas made the announcement.
The FBI Little Rock Field Office, Arkansas State Police, and ARKTrust Task Force investigated the
case.Assistant U.S. Attorneys Dustin Roberts and Devon Still for the Western District of Arkansas and
Special Litigation Counsel Michael J. Songer and Trial Attorney Lia Rettammel of the Civil Rights
Division prosecuted the case.
Related court documents may be found on the Public Access to Electronic Records website at
www.pacer.gov.Three Maryland Individuals Charged for Leading Roles in International Organized Theft RingRead the Press Release
Greenbelt, Maryland – On October 7, 2024, Sindy Paola Hernandez, age 38, of Hyattsville, Maryland, Johnsie Steven Reina Hernandez, age 20, of Hyattsville, Maryland, and Edwin Gonzalez Rodriguez, age 30, of Hyattsville, Maryland, were charged by criminal complaint with conspiracy to commit interstate transportation of stolen goods. The charges involve a large-scale organized retail theft ring, wherein conspirators stole cosmetic and other products from various retail establishments and provided them to Hernandez, Reina Hernandez, and Gonzalez Rodriguez. As outlined in the affidavit in support of the complaint, it is alleged that these individuals then shipped the stolen products to other countries, including Honduras.
The charges are announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Michael S. McCarthy of Homeland Security Investigations (HSI); Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation (IRS-CI); and Chief Marc R. Yamada of the Montgomery County Police Department (MCPD).
According to the affidavit in support of the criminal complaint, in November 2022, retail investigators including Target, Ulta Beauty, CVS, and Walmart began an investigation after large-scale thefts occurred targeting premium skincare products, vitamins, and cold/cough medicine. The investigation revealed that the thefts were committed by various individuals referred to as “boosters.” The boosters frequently indicated that they were selling the stolen products to Hernandez, who resided in Prince George’s County. In turn, Hernandez, Reina Hernandez, and Gonzalez Rodriguez would store and sort the products at their residences and storage units, and then ship the stolen products to Honduras.
A complaint is not a finding of guilt. All defendants charged by complaint are presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Attorney Barron commended HSI, the IRS, MCPD, and the various retail establishments, for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Kelly O. Hayes and Dawn Williams, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Three Assistant U.S. Trustees Appointed for U.S. Trustee Program Offices in Missouri, Ohio and WashingtonRead the Press Release
The Justice Department’s Executive Office for U.S. Trustees announced today the appointment of three Assistant U.S. Trustees to offices in Missouri, Ohio and Washington.
Jill Parsons was appointed in September as the Assistant U.S. Trustee for the Kansas City office, which serves the Western District of Missouri (Region 13). Before joining the U.S. Trustee Program (USTP), Parsons served as a chapter 7 panel trustee since 2009 and practiced bankruptcy law, representing both creditors and debtors in Kansas City for over 20 years. Parsons received her bachelor’s degree in English from Weber State University and her law degree with honors from the University of Missouri-Kansas City.
Angela Abreu was appointed in August as the Assistant U.S. Trustee for the Cleveland office, which serves the Northern District of Ohio (Region 9). Abreu joined the USTP after several years in private practice specializing in creditors’ rights and chapter 7 bankruptcy practice. Most recently, Abreu was a corporate vice president and loss mitigation manager at a regional bank. Abreu received her bachelor’s degree in psychology and general administration of justice from Saint Vincent College and her law degree cum laude from Duquesne University.
Hilary Mohr was appointed in August as the Assistant U.S. Trustee for the Seattle office, which serves the Western District of Washington and the District of Alaska (Region 18). Mohr joined the USTP as a trial attorney in the Seattle office in January 2016 after working as a partner at a Seattle law firm focused primarily on creditors’ rights litigation and bankruptcy matters. Mohr received her bachelor’s degree in political science from University of Washington, worked in the nonprofit sector and received a law degree summa cum laude from Seattle University.
The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.
Theology Professor Charged with Possessing Pornographic Images of ToddlersRead the Press Release
A theology professor who allegedly stored pornographic images of children on his work computer has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Charles Kilby Bellinger, 62, a professor of theology and librarian at the Brite Divinity School at Texas Christian University, was charged via criminal complaint with possession of child pornography and arrested on Oct. 4.
The federal investigation began after TCU’s IT staff reported they had detected pornographic images with concerning file names, including “infant” and “toddler,” on Dr. Bellinger’s work computer.
On a hard drive and an SD card removed from Dr. Bellinger’s office, investigators found multiple sexually explicit images of pre-pubescent minors.
At a detention hearing on Thursday, an agent testified that law enforcement also seized multiple encrypted devices from a locked safe in his office. Forensic investigation of those devices is ongoing.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Dr. Bellinger is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison.
The U.S. Secret Service and the Fort Worth Police Department’s Internet Crimes Against Children Unit conducted the investigation with the Texas Christian University Campus Police. Assistant U.S. Attorney Aisha Saleem is prosecuting the case.
Teva Pharmaceuticals Agrees to Pay $425 Million to Resolve Kickback AllegationsRead the Press Release
BOSTON – Teva Pharmaceuticals USA, Inc. and Teva Neuroscience, Inc. (collectively Teva) have agreed to pay $425 million to resolve allegations that Teva paid kickbacks via two co-pay assistance foundations in violation of the Anti-Kickback Statute (AKS) and False Claims Act.
The government’s complaint, filed in 2020, alleged that from 2006 to 2017, Teva manipulated the co-pay foundation assistance system by conspiring with multiple third parties, including a specialty pharmacy and two allegedly independent co-pay assistance foundations, to direct its supposed charitable payments specifically to patients taking its own multiple sclerosis drug, Copaxone. At the same time, Teva steadily raised Copaxone’s price by thousands of dollars. The United States alleges that this conduct violated the AKS and caused the submission of false claims to Medicare. The settlement was reached after the government’s review of Teva’s financial disclosures concerning its financial condition.
This settlement is the latest in a string of enforcement actions against pharmaceutical companies that allegedly used third-party foundations as conduits to pay kickbacks. Since 2017, the United States Attorney’s Office in Massachusetts has collected over $1.4 billion from this enforcement initiative. The U.S. Attorney’s Office has also settled with four of the third-party foundations that participated in this conduct and a specialty pharmacy. Today’s resolution with Teva is the largest co-pay assistance settlement to date.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary is often required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The AKS prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
“For far too long, Teva gamed the charitable foundation process by paying kickbacks through two foundations, and with the aid of a specialty pharmacy. Those kickbacks undermined the purpose of the Medicare co-pay system and violated the Anti-Kickback Statute,” said Acting United States Attorney Joshua S. Levy. “This Office has taken the leading role in cracking down on these highly lucrative schemes that drive up the cost of essential drugs by bringing multiple enforcement actions that have returned more than $1 billion to the Medicare system. We will continue to pursue these actions to ensure that all pharmaceutical companies play by the rules and to protect the American taxpayers.
“Kickbacks designed to induce referrals or purchases of healthcare goods or services distort physician and patient decision-making, thwart competition and bypass controls put in place to protect federal health care programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing those who engage in kickback violations, including drug manufacturers, to ensure that federal health care programs continue to serve the interests of taxpayers and program beneficiaries.”
“Pharmaceutical companies that disguise kickbacks as charitable donations to subsidize co-pays for their own drugs undermine a critical safeguard against the excessive inflation of drug prices. The costs of these schemes are ultimately passed on to consumers and taxpayers,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Such conduct cannot be tolerated within our health care system, and we will continue to vigorously pursue such allegations.”
“Today’s record-breaking settlement with Teva Pharmaceuticals is a victory for the public and highlights the FBI’s commitment to safeguarding the financial integrity of the Medicare program,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Pharmaceutical companies that look to bolster their drug prices by paying illegal kickbacks – whether directly or indirectly – undermine taxpayer funded healthcare programs and compromise patient care. The FBI will continue to pursue these investigations until pharmaceutical companies stop engaging in this conduct.”
Acting U.S. Attorney Levy, Principal Deputy AAG Boynton, HHS-OIG SAC Coviello and FBI SAC Cohen made the announcement today. The matter was handled by Assistant U.S. Attorney Abraham R. George, Chief of the Civil Division; Assistant U.S. Attorneys Diane Seol and Evan Panich of the U.S. Attorney’s Office for the District of Massachusetts; and Trial Attorneys Douglas Rosenthal and Nelson Wagner of the Justice Department’s Civil Division.
The civil action in Massachusetts is captioned United States v. Teva Pharmaceuticals USA, Inc., et al., No. 20-cv-11548 (D. Mass.).
TD Bank Pleads Guilty to Bank Secrecy Act and Money Laundering Conspiracy Violations in $1.8B ResolutionRead the Press Release
NEWARK, N.J. – TD Bank, N.A. (TDBNA), the 10th largest bank in the United States, and its parent company TD Bank US Holding Company (TDBUSH) (together with TDBNA, “TD Bank”) pleaded guilty today and agreed to pay over $1.8 billion in penalties to resolve the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s investigation into violations of the Bank Secrecy Act (BSA) and money laundering.
TDBNA pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to conspiring to fail to maintain an anti-money laundering (AML) program that complies with the BSA, fail to file accurate Currency Transaction Reports (CTRs), and launder money. TDBUSH pleaded guilty to causing TDBNA to fail to maintain an AML program that complies with the BSA and to fail to file accurate CTRs.
TD Bank’s guilty pleas are part of a coordinated resolution with the Board of Governors of the Federal Reserve System (FRB), as well as the Treasury Department’s Office of the Comptroller of the Currency (OCC) and Financial Crimes Enforcement Network (FinCEN).
“By making its services convenient for criminals, TD Bank became one,” said Attorney General Merrick B. Garland. “Today, TD Bank also became the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures, and the first US bank in history to plead guilty to conspiracy to commit money laundering. TD Bank chose profits over compliance with the law — a decision that is now costing the bank billions of dollars in penalties. Let me be clear: our investigation continues, and no individual involved in TD Bank’s illegal conduct is off limits.”
“TD Bank prioritized growth and convenience over following its legal obligations. As a result of staggering and pervasive failures in oversight, it willfully failed to monitor trillions of dollars of transactions – including those involving ACH transactions, checks, high-risk countries, and peer-to-peer transactions – which allowed hundreds of millions of dollars from money laundering networks to flow through the bank, including for international drug traffickers. The bank was aware of these risks and failed to take steps to protect against them, including for two networks prosecuted in New Jersey and elsewhere – one that dumped piles of cash on the bank’s counters and another that allegedly withdrew amounts from ATMs 40 to 50 times higher than the daily limit for personal accounts.”
U.S. Attorney Philip R. Sellinger
“For years, TD Bank starved its compliance program of the resources needed to obey the law. Today’s historic guilty plea, including the largest penalty ever imposed under the Bank Secrecy Act, offers an unmistakable lesson: crime doesn’t pay — and neither does flouting compliance,” said Deputy Attorney General Lisa Monaco. “Every bank compliance official in America should be reviewing today’s charges as a case study of what not to do. And every bank CEO and board member should be doing the same. Because if the business case for compliance wasn’t clear before — it should be now.”
“For nearly a decade, TD Bank failed to update its anti-money laundering compliance program to address known risks. As bank employees acknowledged in internal communications, these failures made the bank an ‘easy target’ for the ‘bad guys.’ These failures also allowed corrupt bank employees to facilitate a criminal network’s laundering of tens of millions of dollars,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “U.S. financial institutions are the first line of defense against money laundering and illicit finance. When they participate in crime rather than prevent it, we will not hesitate to hold them accountable to the fullest extent of the law.”
According to court documents, between January 2014 and October 2023, TD Bank had long-term, pervasive, and systemic deficiencies in its U.S. AML policies, procedures, and controls but failed to take appropriate remedial action. Instead, senior executives at TD Bank enforced a budget mandate, referred to internally as a “flat cost paradigm,” requiring that TD Bank’s budget not increase year-over-year, despite its profits and risk profile increasing significantly over the same period. Although TD Bank maintained elements of an AML program that appeared adequate on paper, fundamental, widespread flaws in its AML program made TD Bank an “easy target” for perpetrators of financial crime.
Over the last decade, TD Bank’s federal regulators and TD Bank’s own internal audit group repeatedly identified concerns about its transaction monitoring program, a key element of an appropriate AML program necessary to properly detect and report suspicious activities. Nonetheless, from 2014 through 2022, TD Bank’s transaction monitoring program remained effectively static, and did not adapt to address known, glaring deficiencies; emerging money laundering risks; or TD Bank’s new products and services. For years, TD Bank failed to appropriately fund and staff its AML program, opting to postpone and cancel necessary AML projects prioritizing a “flat cost paradigm” and the “customer experience.”
Throughout this time, TD Bank intentionally did not automatically monitor all domestic automated clearinghouse (ACH) transactions, most check activity, and numerous other transaction types, resulting in 92% of total transaction volume going unmonitored from Jan. 1, 2018, to April 12, 2024. This amounted to approximately $18.3 trillion of transaction activity. TD Bank also added no new transaction monitoring scenarios and made no material changes to existing transaction monitoring scenarios from at least 2014 through late 2022; implemented new products and services, like Zelle, without ensuring appropriate transaction monitoring coverage; failed to meaningfully monitor transactions involving high-risk countries; instructed stores to stop filing internal unusual transaction reports on certain suspicious customers; and permitted more than $5 billion in transactional activity to occur in accounts even after the bank decided to close them.
TD Bank’s AML failures made it “convenient” for criminals, in the words of its employees. These failures enabled three money laundering networks to collectively transfer more than $670 million through TD Bank accounts between 2019 and 2023. Between January 2018 and February 2021, one money laundering network processed more than $470 million through the bank through large cash deposits into nominee accounts. The operators of this scheme provided employees gift cards worth more than $57,000 to ensure employees would continue to process their transactions. And even though the operators of this scheme were clearly depositing cash well over $10,000 in suspicious transactions, TD Bank employees did not identify the conductor of the transaction in required reports. In a second scheme between March 2021 and March 2023, a high-risk jewelry business moved nearly $120 million through shell accounts before TD Bank reported the activity. In a third scheme, money laundering networks deposited funds in the United States and quickly withdrew those funds using ATMs in Colombia. Five TD Bank employees conspired with this network and issued dozens of ATM cards for the money launderers, ultimately conspiring in the laundering of approximately $39 million. The Justice Department has charged over two dozen individuals across these schemes, including two bank insiders. TD Bank’s plea agreement requires continued cooperation in ongoing investigations of individuals.
As part of the plea agreement, TD Bank has agreed to forfeit $452,432,302.00 and pay a criminal fine of $1,434,513,478.40, for a total financial penalty of $1,886,945,780.40. TD Bank has also agreed to retain an independent compliance monitor for three years and to remediate and enhance its AML compliance program. TD Bank has separately reached agreements with the FRB, OCC, and FinCEN, and the Justice Department will credit $123.5 million of the forfeiture toward the FRB’s resolution.
The Justice Department reached its resolution with TD Bank based on a number of factors, including the nature, seriousness, and pervasiveness of the offenses, as a result of which TD Bank became the bank of choice for multiple money laundering organizations and criminal actors and processed hundreds of millions of dollars in money laundering transactions. Although TD Bank did not voluntarily disclose its wrongdoing, it received partial credit for its strong cooperation with the Department’s investigation and the ongoing remediation of its AML program. TD Bank did not receive full credit for its cooperation because it failed to timely escalate relevant AML concerns to the Department during the investigation. Accordingly, the total criminal penalty reflects a 20% reduction based on the bank’s partial cooperation and remediation.
IRS Criminal Investigation, Federal Deposit Insurance Corporation Office of Inspector General, and Drug Enforcement Administration investigated the case. The Morristown Police Department, the U.S. Attorney’s Office for the District of Puerto Rico, Homeland Security Investigations, U.S. Customs and Border Protection, and the New York City Police Department provided substantial assistance.
Assistant U.S. Attorneys Mark J. Pesce of the Economic Crimes Unit and Angelica Sinopole for the District of New Jersey’s Health Care Fraud Unit and Trial Attorneys D. Zachary Adams and Chelsea R. Rooney of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) prosecuted the case.
MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system. Since its creation in 2010, the Bank Integrity Unit has prosecuted financial institutions for violations of the BSA, money laundering, sanctions, and other laws, imposing total penalties of over $25 billion.
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.
tdbush.information.pdf tdbna.information.pdfTD Bank Pleads Guilty to Bank Secrecy Act and Money Laundering Conspiracy Violations in $1.8B ResolutionRead the Press Release
WASHINGTON — TD Bank N.A. (TDBNA), the 10th largest bank in the United States, and its parent company TD Bank US Holding Company (TDBUSH) (together with TDBNA, TD Bank) pleaded guilty today and agreed to pay over $1.8 billion in penalties to resolve the Justice Department’s investigation into violations of the Bank Secrecy Act (BSA) and money laundering.
TDBNA pleaded guilty to conspiring to fail to maintain an anti-money laundering (AML) program that complies with the BSA, fail to file accurate Currency Transaction Reports (CTRs), and launder money. TDBUSH pleaded guilty to causing TDBNA to fail to maintain an AML program that complies with the BSA and to fail to file accurate CTRs.
TD Bank’s guilty pleas are part of a coordinated resolution with the Board of Governors of the Federal Reserve Board (FRB), as well as the Treasury Department’s Office of the Comptroller of the Currency (OCC) and Financial Crimes Enforcement Network (FinCEN).
“By making its services convenient for criminals, TD Bank became one,” said Attorney General Merrick B. Garland. “Today, TD Bank also became the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures, and the first US bank in history to plead guilty to conspiracy to commit money laundering. TD Bank chose profits over compliance with the law — a decision that is now costing the bank billions of dollars in penalties. Let me be clear: our investigation continues, and no individual involved in TD Bank’s illegal conduct is off limits.”
“For years, TD Bank starved its compliance program of the resources needed to obey the law. Today’s historic guilty plea, including the largest penalty ever imposed under the Bank Secrecy Act, offers an unmistakable lesson: crime doesn’t pay — and neither does flouting compliance,” said Deputy Attorney General Lisa Monaco. “Every bank compliance official in America should be reviewing today’s charges as a case study of what not to do. And every bank CEO and board member should be doing the same. Because if the business case for compliance wasn’t clear before — it should be now.”
“For nearly a decade, TD Bank failed to update its anti-money laundering compliance program to address known risks. As bank employees acknowledged in internal communications, these failures made the bank an ‘easy target’ for the ‘bad guys.’ These failures also allowed corrupt bank employees to facilitate a criminal network’s laundering of tens of millions of dollars,” said Principal Assistant Attorney General Nicole M. Argentieri, head of the Justice Department's Criminal Division. “U.S. financial institutions are the first line of defense against money laundering and illicit finance. When they participate in crime rather than prevent it, we will not hesitate to hold them accountable to the fullest extent of the law.”
“TD Bank prioritized growth and convenience over following its legal obligations,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “As a result of staggering and pervasive failures in oversight, it willfully failed to monitor trillions of dollars of transactions – including those involving ACH transactions, checks, high-risk countries, and peer-to-peer transactions – which allowed hundreds of millions of dollars from money laundering networks to flow through the bank, including for international drug traffickers. The bank was aware of these risks and failed to take steps to protect against them, including for two networks prosecuted in New Jersey and elsewhere – one that dumped piles of cash on the bank’s counters and another that allegedly withdrew amounts from ATMs 40 to 50 times higher than the daily limit for personal accounts.”
According to court documents, between January 2014 and October 2023, TD Bank had long-term, pervasive, and systemic deficiencies in its U.S. AML policies, procedures, and controls but failed to take appropriate remedial action. Instead, senior executives at TD Bank enforced a budget mandate, referred to internally as a “flat cost paradigm,” requiring that TD Bank’s budget not increase year-over-year, despite its profits and risk profile increasing significantly over the same period. Although TD Bank maintained elements of an AML program that appeared adequate on paper, fundamental, widespread flaws in its AML program made TD Bank an “easy target” for perpetrators of financial crime.
Over the last decade, TD Bank’s federal regulators and TD Bank’s own internal audit group repeatedly identified concerns about its transaction monitoring program, a key element of an appropriate AML program necessary to properly detect and report suspicious activities. Nonetheless, from 2014 through 2022, TD Bank’s transaction monitoring program remained effectively static, and did not adapt to address known, glaring deficiencies; emerging money laundering risks; or TD Bank’s new products and services. For years, TD Bank failed to appropriately fund and staff its AML program, opting to postpone and cancel necessary AML projects prioritizing a “flat cost paradigm” and the “customer experience.”
Throughout this time, TD Bank intentionally did not automatically monitor all domestic automated clearinghouse (ACH) transactions, most check activity, and numerous other transaction types, resulting in 92% of total transaction volume going unmonitored from Jan. 1, 2018, to April 12, 2024. This amounted to approximately $18.3 trillion of transaction activity. TD Bank also added no new transaction monitoring scenarios and made no material changes to existing transaction monitoring scenarios from at least 2014 through late 2022; implemented new products and services, like Zelle, without ensuring appropriate transaction monitoring coverage; failed to meaningfully monitor transactions involving high-risk countries; instructed stores to stop filing internal unusual transaction reports on certain suspicious customers; and permitted more than $5 billion in transactional activity to occur in accounts even after the bank decided to close them.
TD Bank’s AML failures made it “convenient” for criminals, in the words of its employees. These failures enabled three money laundering networks to collectively transfer more than $670 million through TD Bank accounts between 2019 and 2023. Between January 2018 and February 2021, one money laundering network processed more than $470 million through the bank through large cash deposits into nominee accounts. The operators of this scheme provided employees gift cards worth more than $57,000 to ensure employees would continue to process their transactions. And even though the operators of this scheme were clearly depositing cash well over $10,000 in suspicious transactions, TD Bank employees did not identify the conductor of the transaction in required reports. In a second scheme between March 2021 and March 2023, a high-risk jewelry business moved nearly $120 million through shell accounts before TD Bank reported the activity. In a third scheme, money laundering networks deposited funds in the United States and quickly withdrew those funds using ATMs in Colombia. Five TD Bank employees conspired with this network and issued dozens of ATM cards for the money launderers, ultimately conspiring in the laundering of approximately $39 million. The Justice Department has charged over two dozen individuals across these schemes, including two bank insiders. TD Bank’s plea agreement requires continued cooperation in ongoing investigations of individuals.
As part of the plea agreement, TD Bank has agreed to forfeit $452,432,302.00 and pay a criminal fine of $1,434,513,478.40, for a total financial penalty of $1,886,945,780.40. TD Bank has also agreed to retain an independent compliance monitor for three years and to remediate and enhance its AML compliance program. TD Bank has separately reached agreements with the FRB, OCC, and FinCEN, and the Justice Department will credit $123.5 million of the forfeiture toward the FRB’s resolution.
The Justice Department reached its resolution with TD Bank based on a number of factors, including the nature, seriousness, and pervasiveness of the offenses, as a result of which TD Bank became the bank of choice for multiple money laundering organizations and criminal actors and processed hundreds of millions of dollars in money laundering transactions. Although TD Bank did not voluntarily disclose its wrongdoing, it received partial credit for its strong cooperation with the Department’s investigation and the ongoing remediation of its AML program. TD Bank did not receive full credit for its cooperation because it failed to timely escalate relevant AML concerns to the Department during the investigation. Accordingly, the total criminal penalty reflects a 20% reduction based on the bank’s partial cooperation and remediation.
IRS Criminal Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and Drug Enforcement Administration investigated the case. The Morristown Police Department, U.S. Attorney’s Office for the District of Puerto Rico, Homeland Security Investigations, U.S. Customs and Border Protection, and New York City Police Department provided substantial assistance.
Trial Attorneys D. Zachary Adams and Chelsea R. Rooney of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Mark J. Pesce and Angelica Sinopole for the District of New Jersey prosecuted the case.
MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system. Since its creation in 2010, the Bank Integrity Unit has prosecuted financial institutions for violations of the BSA, money laundering, sanctions, and other laws, imposing total penalties of over $25 billion.
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 www.justice.gov/OCDETF.
TD Bank US Holding Company Information
TD Bank N.A. Information
TD Bank US Holding Company Plea Agreement and Attachments
TD Bank N.A. Plea Agreement and Attachments
Spokane Man Involved in Robbery of Large Amount of Methamphetamine and Fentanyl Sentenced to Federal PrisonRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Brady Baughman, age 34, of Spokane, Washington, was sentenced after pleading guilty to one count of Robbery Affecting Commerce and one count of Possession with Intent to Distribute 30 Grams or More of Fentanyl. United States District Judge Mary K. Dimke imposed a sentence of 120 months imprisonment to be followed by 5 years of supervised release.
According to court documents and information presented at the sentencing hearing, on February 6, 2022, Baughman went to a stash house in Spokane to buy a large quantity of methamphetamine and fentanyl from a drug trafficking organization operating in Spokane. Baughman presented $12,000.00 of counterfeit U.S. currency to members of the drug trafficking organization. Immediately recognizing that the buy money was counterfeit, the sellers declined the sale. Baughman then robbed drug couriers who were entering the stash house carrying controlled substances inside a kitty litter bucket and a backpack. Baughman then sped off in his vehicle with the stolen drugs.
Members of the drug trafficking organization attempted to find Baughman. They ultimately tracked Baughman near the intersection of Nettleton and Rowan in Spokane and fired several shots at his vehicle during high-speed pursuit. Baughman fled from the vehicle with the kitty litter bucket and backpack.
Immediately thereafter, Spokane Police Department (SPD) located the kitty litter bucket and backpack, abandoned, lying in the parking lot of a business nearby. The kitty litter bucket contained approximately 16 pounds of Methamphetamine. The backpack contained 50,441 fentanyl laced pills.
After an arrest warrant was issued for his involvement with the robbery, on August 12, 2022, SPD located Baughman after an SPD officer observed Baughman driving a motorcycle more than 55 mph in a 30-mph zone. The SPD officer activated his lights and attempted a traffic stop. Baughman refused to pull over, ran several stop signs and traffic lights, and sped off into a residential neighborhood. The SPD officer was required to abandon his pursuit. A few minutes later, Baughman crashed his motorcycle and sustained a serious head injury. Inside a backpack Baughman was carrying, SPD officers found a loaded 9mm pistol and 1,178 fentanyl pills.
When Baughman, who was in the hospital being treated for injuries from the motorcycle crash, became aware he had been indicted and was wanted by law enforcement, he fled the medical center.
After remaining a fugitive for almost a year, on March 28, 2023, Baughman was located and arrested on his outstanding warrants. During a search incident to arrest, officers located a blue bottle with 100 fentanyl laced pills. During a search of the car, SPD found an additional 1,500 fentanyl laced pills.
“The scope of Mr. Baughman’s criminal conduct is shocking. From the robbery of a large amount of deadly drugs, to a high-speed getaway with shots fired, and including a reckless attempt to avoid law enforcement that ended with serious injury, Mr. Baughman’s actions repeatedly put our community in danger,” stated U.S. Attorney Waldref. “I’m grateful for our close partnerships with local and federal law enforcement who work to hold people like Mr. Baughman accountable for their actions and make Eastern Washington safer and stronger.”
“This case is a snapshot of the threats to the community posed by drug traffickers like Mr. Baughman,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “He engaged in reckless and violent behavior, all while trying to poison our community with fentanyl and methamphetamine for his personal gain. I am proud of the efforts of the Drug Enforcement Administration and our partners in safely bringing this case to a conclusion.”
This case was investigated by the Drug Enforcement Administration and the Spokane Police Department. It was prosecuted by Assistant United States Attorney Stephanie Van Marter.
2:22-cr-00072-MKD