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Thursday 10 October 2024
South Bend Man Sentenced to 110 Months in PrisonRead the Press Release
SOUTH BEND – Tony Young, 54 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Young was sentenced to 110 months in prison followed by 3 years of supervised release.
According to documents in the case, in March and April 2024, law enforcement was investigating drug activity at a Mishawaka residence, which included the sale of methamphetamine by Young. A search warrant of the residence resulted in the recovery of a loaded stolen revolver. Young, who has a number of prior felony convictions, was prohibited from possessing the firearm in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration with assistance from the Mishawaka Police Department and the Indiana State Police. The case was prosecuted by Assistant United States Attorney Joel Gabrielse.
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.
Somerset County Man Admits Federal Hate Crime in Connection with Breaking into Center for Islamic Life at Rutgers University and Destroying PropertyRead the Press Release
Video Statement:
https://youtu.be/eBEn8v-pD10
NEWARK, N.J. – A Somerset County, New Jersey, man admitted committing a federal hate crime for breaking into the Center for Islamic Life (CILRU) at Rutgers University in New Brunswick and destroying property, U.S. Attorney Philip R. Sellinger for the District of New Jersey, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, and New Jersey State Attorney General Matthew J. Platkin announced today.
Jacob Beacher, 24, of North Plainfield, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court on Oct. 9, 2024, to an information charging him with damage to religious property.
“The free exercise of religion is a fundamental right of all Americans. Jacob Beacher admitted he intentionally broke into the Center for Islamic Life during the holy Eid-al-Fitr holiday and damaged and destroyed religious artifacts because of the Islamic faith of those associated with the facility. This office will not tolerate the use of force or threats to intimidate people and put them in fear of worshipping as they see fit.”
U.S. Attorney Philip R. Sellinger
“This defendant is being held accountable for Islamophobic-fueled acts of hate, interfering with the religious freedom of university students and staff during a sacred holiday for those of the Islamic faith,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department stands ready, along with our state and local partners, to hold accountable people who use force, or threats of violence, in order to intimidate people from exercising their religious beliefs. Islamophobic hate crimes have no place in our society today. We will continue to enforce the laws that make it safe for people of all faiths to engage in religious observance, including at educational institutions.”
“When we learned of this vandalism back in April, we immediately engaged with our law enforcement partners and Rutgers University,” FBI Newark Acting Special Agent in Charge Nelson I. Delgado said. “Within days, we tracked down and arrested Beacher. We want our actions and the speed with which we responded to illustrate our commitment and resolve to protect houses of worship in New Jersey. We all have the right to practice whatever religion we choose, without fear of hate marring the physical and spiritual place where we do it.”
According to documents filed in this case and statements made in court:
On April 10, 2024, during the Eid-al-Fitr holiday, Beacher broke into the CILRU around 2:41 a.m., where he damaged the CILRU’s property, including several religious artifacts, such as Turbah prayer stones, which are clay stones on which Muslims prostrate during prayer, and numerous other items that contained holy language from the Qur’an, Islam’s sacred scripture. Beacher also stole a Palestinian flag and a charity box belonging to the CILRU. He caused damage and destruction of property in excess of $5,000.
The charge of damage to religious property carries a maximum potential penalty of three years in prison and a fine of up to $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Feb. 11, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, Branchburg Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; prosecutors and detectives from the New Jersey Attorney General’s Office, under the direction of Attorney General Matthew J. Platkin; detectives from the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; the Rutgers University Police Department-New Brunswick Division, under the leadership of Chief of University Police Kenneth Cop; and the New Jersey Regional Computer Forensics Laboratory.
The government is represented by Assistant U.S. Attorney Benjamin Levin, Chief of the General Crimes Unit, and R. Joseph Gribko, Deputy Chief of the Civil Rights Division, with assistance from the National Security Unit for the District of New Jersey, as well by Trial Attorney Daniel Grunert of the Justice Department’s Civil Rights Division.
beacher.information.pdfSimpson County Sheriff’s Deputy Indicted for Using Excessive Force Against a Handcuffed ArresteeRead the Press Release
Jackson, Miss. – A Simpson County Sheriff’s Deputy appeared for an arraignment today following an Indictment filed in Jackson on criminal charges related to his use of excessive force against an arrestee.
According to court documents, Adrian Durr, 43, of Magee, used excessive force against an arrestee in the custody of the Simpson County Sheriff’s Office. The Indictment alleges that while the arrestee was handcuffed to a bench that was bolted to the floor and shackled with leg irons on his ankles, Durr struck the arrestee in the head with the handgrip of his taser. After striking the arrestee with his taser, Durr kicked the arrestee in the head rendering him unconscious. At all times, the arrestee was handcuffed and hobbled with leg irons on his ankles.
“Law enforcement officers in Mississippi and throughout the nation are required to take care of the safety and welfare of the people they arrest,” said U.S. Attorney Todd Gee. “Unlawful physical assaults on arrestees are federal crimes that the Justice Department will prosecute.”
“Our citizens deserve credible law enforcement to safeguard the community from crime,” said FBI Special Agent in Charge Robert A. Eikhoff. “The actions of Mr. Durr significantly deprived the citizens of that protection and eroded the trust earned each day by honest law enforcement officers throughout the nation. The FBI is committed to aggressively investigating those who misuse their authority and violate individual’s rights in the execution of their sworn duties.”
Durr is charged by Indictment with Deprivation of Civil Rights Under Color of Law. If convicted, he faces a maximum penalty of 10 years in prison.
U.S. Attorney Todd W. Gee and Special Agent in Charge Robert A. Eikhoff of the Federal Bureau of Investigation made the announcement.
The Federal Bureau of Investigation is investigating the case.
Assistant U.S. Attorney Samuel Goff is prosecuting the case.
Seventeen Individuals Indicted Alleging A Sophisticated Nationwide Money Laundering Scheme Originating with Violent Crime in Baltimore CityRead the Press Release
Baltimore, Maryland – 17 individuals were indicted yesterday in a Drug Enforcement Administration and Department of Homeland Security investigation involving a sophisticated money laundering scheme and illegal marijuana distribution network resulting in the seizure of over $6,000,000 and over 2,000 pounds of marijuana in illegal proceeds to date.
The investigation – which was undertaken by the Drug Enforcement Administration-Washington Division and Department of Homeland Security-Baltimore Field Office (“HSI”), with support from DEA offices in New Jersey, New York, Washington, and Oregon - began in March 2023 with two separate non-fatal shootings of one individual in Baltimore, Maryland, that has subsequently revealed a sprawling network of individuals laundering millions of dollars generated from the illegal distribution of massive quantities of marijuana. That network includes large-scale launderers operating a Chinese Money Laundering Organization (MLO) in New York city, and drug traffickers operating in Maryland, sending large quantities of bulk cash proceeds from Maryland to other states, including New York, New Jersey, and Oregon to obtain further shipments of marijuana and to conceal the source of the proceeds.
The Indictment charges the following individuals in count one with Conspiracy to Engage in Money Laundering, and in count two with Conspiracy to Distribute Controlled Substances: Qihai Tao; Michael Micklos; Can Xu; Praveen Morgan; Michael Tilmon, III; Emanuel Dukes; Steven Mack; William Brown, III; Malik Bridgers; David Hilliard; Derian Green; Huayi Zhong; Zebin Liu; Chunbing Qin; Peng Huang; Isaac Huynh, and Li Chen. The maximum penalty for Conspiracy to Engage in Money Laundering is twenty years imprisonment and up to a $500,000 fine. The maximum penalty for Conspiracy to Distribute Controlled Substances, as charged in the indictment, is up to twenty years imprisonment and up to $1,000,000, per defendant. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Additionally, Michael Tilmon III, and Steven Mack are charged in one count each with Possession of a Firearm by a Prohibited Person. The maximum penalty for this offense is up to fifteen years imprisonment, and up to a $250,000 fine.
“When violence erupts in our communities, we will track it down to its core. This investigation demonstrates how organized international money laundering drives gun violence and illegal drug trafficking,” said Erek L. Barron, U.S. Attorney for the District of Maryland. “Through the coordinated efforts of our OCDETF Strike Force and law enforcement partners, our highest priority is protecting the nation’s safety and security.”
“This investigation is a clear example of how we use DEA’s collective resources to identify money laundering schemes and drug distribution networks in order to disrupt and dismantle their operations,” emphasized Jarod Forget, Special Agent in Charge of DEA Washington Division. “The increasingly dynamic and complex nature of the illicit drug trade demands enhanced cooperation with local, state and federal partners that reflects the reality of a globalized supply chain for illegal drugs and its transnational money laundering activities. We will pursue all enablers of these illicit activities by denying the criminal networks of their ill-gotten proceeds and interrupt their ability to transfer working capital to fund their range of illicit activities.”
“This investigation stands as a compelling example of the remarkable outcomes achieved when law enforcement agencies collaborate toward a common objective,” said Special Agent in Charge Michael McCarthy of HSI Baltimore. “What began as an inquiry into two seemingly unrelated shootings in Baltimore evolved into a comprehensive investigation that exposed a vast criminal enterprise engaged in drug trafficking and the laundering of millions of dollars. This nefarious network extended its reach from Maryland to New York and beyond, infiltrating multiple communities. HSI remains resolute in its commitment to safeguarding Maryland’s neighborhoods by working in close coordination with our law enforcement partners to dismantle and disrupt such criminal organizations.”
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty at some later criminal proceedings.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Baltimore Strike Force is to identify, disrupt, and dismantle violent drug trafficking, money laundering, and transnational criminal organizations to reduce drug-related and/or gang violence in the Baltimore metropolitan and surrounding areas. The Baltimore Strike Force is comprised of agents and officers from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Homeland Security, the United States Marshals Service, the United States Secret Service, United States Postal Inspection Service, the Maryland State Police, the Baltimore Police Department, the Baltimore Sheriff’s Office, the Baltimore County Police Department, the Maryland Transportation Authority, and the Maryland Department of Public Safety and Correctional Services. The prosecution is being led by the Office of the United States Attorney for the District of Maryland.
U.S. Attorney Barron commended the DEA-Baltimore Field Office, the HSI-Baltimore Field Office, Baltimore County Police Department, Maryland Department of Public Safety and Correctional Services, and Maryland State Police. Mr. Barron thanked the U.S. Attorney’s Office for the Eastern District of New York, the Southern District of New York, the District of New Jersey, the Western District of Washington, the District of Oregon, and the Eastern District of Texas for their vital cooperation in this investigation. Mr. Barron also thanked Assistant U.S. Attorneys Alex Kalim, Alex Levin, and James Wallner, 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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Seventeen Individuals Indicted Alleging A Sophisticated Nationwide Money Laundering Scheme Originating with Violent Crime in Baltimore CityRead the Press Release
Baltimore, Maryland – 17 individuals were indicted yesterday in a Drug Enforcement Administration and Department of Homeland Security investigation involving a sophisticated money laundering scheme and illegal marijuana distribution network resulting in the seizure of over $6,000,000 and over 2000 pounds of marijuana in illegal proceeds to date.
The investigation – which was undertaken by the Drug Enforcement Administration-Baltimore Field Office and Department of Homeland Security-Baltimore Field Office (“HSI”), with support from DEA offices in New Jersey, New York, Washington, and Oregon - began in March 2023 with two separate non-fatal shootings of one individual in Baltimore, Maryland, that has subsequently revealed a sprawling network of individuals laundering millions of dollars generated from the illegal distribution of massive quantities of marijuana. That network includes large-scale launderers operating a Chinese Money Laundering Organization (MLO) in New York city, and drug traffickers operating in Maryland, sending large quantities of bulk cash proceeds from Maryland to other states, including New York, New Jersey, and Oregon to obtain further shipments of marijuana and to conceal the source of the proceeds.
The Indictment charges the following individuals in count one with Conspiracy to Engage in Money Laundering, and in count two with Conspiracy to Distribute Controlled Substances: Qihai Tao; Michael Micklos; Can Xu; Praveen Morgan; Michael Tilmon, III; Emanuel Dukes; Steven Mack; William Brown, III; Malik Bridgers; David Hilliard; Derian Green; Huayi Zhong; Zebin Liu; Chunbing Qin; Peng Huang; Isaac Huynh, and Li Chen. The maximum penalty for Conspiracy to Engage in Money Laundering is twenty years imprisonment and up to a $500,000 fine. The maximum penalty for Conspiracy to Distribute Controlled Substances, as charged in the indictment, is up to twenty years imprisonment and up to $1,000,000, per defendant. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Additionally, Michael Tilmon III, and Steven Mack are charged in one count each with Possession of a Firearm by a Prohibited Person. The maximum penalty for this offense is up to fifteen years imprisonment, and up to a $250,000 fine.
“When violence erupts in our communities, we will track it down to its core. This investigation demonstrates how organized international money laundering drives gun violence and illegal drug trafficking,” said Erek L. Barron, U.S. Attorney for the District of Maryland. “Through the coordinated efforts of our OCDETF Strike Force and law enforcement partners, our highest priority is protecting the nation’s safety and security.”
“This investigation is a clear example of how we use DEA’s collective resources to identify money laundering schemes and drug distribution networks in order to disrupt and dismantle their operations,” emphasized Jarod Forget, Special Agent in Charge of DEA Washington Division. “The increasingly dynamic and complex nature of the illicit drug trade demands enhanced cooperation with local, state and federal partners that reflects the reality of a globalized supply chain for illegal drugs and its transnational money laundering activities. We will pursue all enablers of these illicit activities by denying the criminal networks of their ill-gotten proceeds and interrupt their ability to transfer working capital to fund their range of illicit activities.”
“This investigation stands as a compelling example of the remarkable outcomes achieved when law enforcement agencies collaborate toward a common objective,” said Special Agent in Charge Michael McCarthy of HSI Baltimore. “What began as an inquiry into two seemingly unrelated shootings in Baltimore evolved into a comprehensive investigation that exposed a vast criminal enterprise engaged in drug trafficking and the laundering of millions of dollars. This nefarious network extended its reach from Maryland to New York and beyond, infiltrating multiple communities. HSI remains resolute in its commitment to safeguarding Maryland’s neighborhoods by working in close coordination with our law enforcement partners to dismantle and disrupt such criminal organizations.”
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty at some later criminal proceedings.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Baltimore Strike Force is to identify, disrupt, and dismantle violent drug trafficking, money laundering, and transnational criminal organizations to reduce drug-related and/or gang violence in the Baltimore metropolitan and surrounding areas. The Baltimore Strike Force is comprised of agents and officers from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Homeland Security, the United States Marshals Service, the United States Secret Service, United States Postal Inspection Service, the Maryland State Police, the Baltimore Police Department, the Baltimore Sheriff’s Office, the Baltimore County Police Department, the Maryland Transportation Authority, and the Maryland Department of Public Safety and Correctional Services. The prosecution is being led by the Office of the United States Attorney for the District of Maryland.
U.S. Attorney Barron commended the DEA-Baltimore Field Office, the HSI-Baltimore Field Office, Baltimore County Police Department, Maryland Department of Public Safety and Correctional Services, and Maryland State Police. Mr. Barron thanked the U.S. Attorney’s Office for the Eastern District of New York, the Southern District of New York, the District of New Jersey, the Western District of Washington, the District of Oregon, and the Eastern District of Texas for their vital cooperation in this investigation. Mr. Barron also thanked Assistant U.S. Attorneys Alex Kalim, Alex Levin, and James Wallner, 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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Readout of Principal Deputy Associate Attorney General Benjamin C. Mizer’s Participation in OECD Global Roundtable on Equal Access to JusticeRead the Press Release
Principal Deputy Associate Attorney General (PDASG) Benjamin C. Mizer traveled to Ottawa, Canada, on Oct. 8-9, to represent the United States at the Organization for Economic Cooperation and Development (OCED) Global Roundtable on Equal Access to Justice. The roundtables are a forum for the exchange of practices and lessons learned and provide an opportunity for policymakers to share experiences on improving access to justice for all, including from the perspective of people and businesses. PDASG Mizer provided remarks on behalf of the United States at the OECD Roundtable’s High-Level Dialogue.
On the sidelines of the dialogue, PDASG Mizer met with a range of stakeholders, including representatives from ministries of justice and civil society organizations from around the world. During the roundtable, the Office for Access to Justice moderated a workshop with Department of Justice Canada on people-centered approaches to administrative justice and participated in panel discussion on inclusive justice strategies.
High-Level Dialogue at the Organization for Economic Cooperation and Development (OCED) Global Roundtable on Equal Access to Justice.Providence Man Sentenced for Trafficking MethamphetamineRead the Press Release
PROVIDENCE, RI – A Providence man who participated in a conspiracy to possess and distribute large quantities of methamphetamine has been sentenced to six years in federal prison, announced United States Attorney Zachary A. Cunha.
Charles Bersch, 40, was sentenced today by U.S. District Court Judge Mary S. McElroy to 72 months of incarceration to be followed by three years of supervised release. Bersch pleaded guilty on February 5, 2024, to a charge of conspiracy to distribute and conspiracy to possess with intent to distribute five grams or more of methamphetamine, as well as a charge of possession with intent to distribute five grams or more of methamphetamine.
According to information presented to the court, in May 2022, a member of the FBI Safe Streets Task Force was conducting surveillance outside a Cranston residence as part of an ongoing FBI investigation. While outside the residence, the task force officer saw Bersch and another person, Peter Walkovich, 30, of Pepperrell, MA, arrive by car and enter the building. The task force officer had developed information that Walkovich was in possession of a significant quantity of methamphetamine.
After several minutes, Bersch and Walkovich left the residence with two other individuals and the four men drove off in the car that Bersch and Walkovich arrived in. An officer stopped the car a short distance from the residence. After making observations of suspicious behavior by Walkovich, the officer searched the care and found three backpacks , including one carried from the Cranston residence by Walkovich. Each backpack contained large quantities of methamphetamine. One of the backpacks contained $7,000 in cash. Four thousand dollars was also found inside the vehicle’s spare tire compartment. Lab tests later determined that all of the meth seized was between 97% and 100% pure.
Walkovich pleaded guilty on July 20, 2023, to conspiracy to distribute and to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. He was sentenced on September 6, 2023, to 48 months of incarceration to be followed by three years of supervised release.
The cases were prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The matter was investigated by the FBI Safe Streets Task Force, consisting of agents and law enforcement officers from the FBI, Rhode Island State Police, the Cranston, Woonsocket, Pawtucket, West Warwick, and Central Falls Police Departments, and the U.S. Marshals Service.
U.S. Attorney Cunha thanks the DEA for providing lab testing that determined the weight and the purity of the drugs seized.
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Protestor Federally Charged with Assault on Officers During the July 24 Demonstration in Washington D.C.Read the Press Release
WASHINGTON – Zachary Kam, 24, of Chicago, IL, was arrested this morning in connection with a federal criminal complaint charging him with assault on two law enforcement officers during a demonstration at Columbus Circle in front of Union Station in Washington, D.C., on July 24, 2024.
The charges were announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Sanjay Virmani of the FBI Washington Field Office Counterterrorism Division, and Chief Jessica M. E. Taylor of the National Park Service’s United States Park Police (USPP).
Kam will make his initial appearance this afternoon in the U.S. District Court for the Northern District of Illinois. He is charged with two counts of assaulting, resisting, opposing, intimidating, interfering, or impeding certain officers or employees.
“Assaulting a federal officer during the course of a protest is not constitutionally protected speech, it is a federal crime,” said U.S. Attorney Graves. “Tens of thousands of people peacefully protest in our Capital every year. It is a federal crime to punch, push, grab, or shove a federal officer. The relatively few who engage in such conduct during a protest should expect to be federally charged.”
According to court documents, on July 24, 2024, an organization was granted a permit to demonstrate in the area of Columbus Circle, located at Massachusetts Ave. NE, and E St. NE, directly in front of Union Station. From about 3 p.m. until 5 p.m., demonstrators who had gathered in Columbus Circle pulled down flags affixed to the flagpoles; burned flags and objects; sprayed graffiti on multiple statutes and structures; and interfered with law enforcement’s ability to place individuals under arrest.
On July 24, 2024, at approximately 3 p.m., USPP officers were attempting to arrest an individual for pulling down a flag from a flagpole in Columbus Circle. The individual fled and USPP officers caught up with him in the crowd.
As USPP officers were effecting that arrest, Kam approached USPP Officer L.I. from behind, grabbed the top of the officer’s vest, pulled the officer to the ground, and dragged the officer several feet. The assault was captured in multiple videos and photos, later shared on Twitter and other platforms, as well as USPP body-worn camera. Kam then dashed into the crowd, but other police were unable to catch him.
Less than a minute later, Kam returned, grabbed another officer by his vest and pulled that officer to the ground. The second assault was also captured on multiple open-source videos that were later posted to various internet platforms. After the second assault, the attacker again disappeared into the crowd.
At the time of the assaults, Kam was wearing a red and blue hat, gray t-shirt, a tan camouflage vest, blue jeans, and black shoes. USPP Officers who were stationed in an observation post near Columbus Circle broadcasted Kam’s description over police radio. At 7:13 p.m., USPP Officers near John Marshall Park, which is located on the 400 Block of C Street Northwest, spotted an individual that matched the individual’s description, who was later identified as Zachary Kam.
After being stopped by USPP, Kam was placed under arrest and charged in the Superior Court for the District of Columbia with assaulting a police officer.
This case is being investigated by the USPP’s Intelligence and Counterterrorism Unit and the FBI Washington Field Office, with assistance from the FBI Chicago Field Office. It is being prosecuted by Assistant U.S. Attorney Sarah Martin.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Owner of Sumner Wholesale Auto Group and a Co-Conspirator Charged in Scheme to Defraud Ford Motor CompanyRead the Press Release
NASHVILLE – John Alan Nebel, 39, of Gallatin, Tennessee, and Joshua David Nichols, 52, of Nashville, Tennessee, have been charged with conspiring to defraud Ford Motor Company by selling old fuel injectors in boxes falsely labeled with Ford markings to make it appear as though those parts were eligible for a rebate from Ford, announced Acting United States Attorney Thomas J. Jaworski for the Middle District of Tennessee.
According to court documents, Nebel was a founder and co-owner of Sumner Wholesale Auto Group LLC, which operated under the name SWAG Performance & Off-Road LLC in Hendersonville, Tennessee, during the time of the conspiracy. SWAG has relocated to Cotton Town, Tennessee. Nichols was an independent contractor working for SWAG.
Ford offered a rebate program through which customers who bought a genuine Ford replacement fuel injector, which cost approximately $300, could return their old fuel injector (“core”) and receive $180 from Ford. Instead of selling genuine Ford cores to SWAG’s customers, Nebel, Nichols and their co-conspirators bought old, used cores for $35 to $45, packaged them using fake labels, decals and logos so that they appeared to be cores that were associated with the purchase of new replacement parts, and then sold them to SWAG customers for $95 to $170 each, knowing that SWAG’s customers would make rebate claims to Ford for the full $180 rebate.
If convicted, Nebel and Nichols face up to 20 years in federal prison and a maximum fine of $250,000 each.
This case is being investigated by Homeland Security Investigations. Assistant U.S. Attorney Stephanie N. Toussaint is prosecuting the case.
An indictment or information is merely an allegation. The defendants are presumed innocent until convicted.
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Ohio Man Sentenced for Creating and Distributing Videos Depicting Monkey Torture and MutilationRead the Press Release
An Ohio man was sentenced today to 54 months in prison and three years of supervised release in connection with his involvement with online groups dedicated to creating and distributing videos depicting acts of extreme violence and sexual abuse against monkeys.
According to court documents, Ronald P. Bedra, of Etna, conspired with others to create and distribute videos depicting acts of sadistic violence against baby and adult monkeys. The conspirators used encrypted chat applications to direct money to individuals in Indonesia willing to commit the requested acts of torture on camera. Bedra also mailed a thumb drive containing 64 videos of monkey torture to a co-conspirator in Wisconsin.
According to a statement of facts signed by defendant Bedra, the videos in question included depictions of monkeys having their digits and limbs severed and monkeys being forcibly sodomized with a heated screwdriver. Bedra pleaded guilty in April.
“Defendant Ronald Bedra commissioned grotesque videos of torture of juvenile and baby monkeys,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Such appalling conduct has no place in our society. The Justice Department stands ready to prosecute individuals engaging in this activity to the fullest extent of the law.”
“We will punish participants of sadistic conspiracies like this one no matter their role in the crime,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “As this case shows, even if you do not commit the torture firsthand, you will be held accountable for promoting this obscene animal abuse.”
“The torture of animals in this case is disturbing, cruel and illegal,” said Special Agent in Charge Elena Iatarola of FBI’s Cincinnati Field Office. “The FBI and our partners will continue to work to protect defenseless animals and investigate those who intentionally harm them.”
“Today’s sentencing underscores the U.S. Fish and Wildlife Service’s unwavering commitment to combating the exploitation of wildlife in any form,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service’s Office of Law Enforcement. “These monstrous crimes are indefensible. This case serves as a stark reminder that those who harm animals protected under federal and international laws and treaties will face serious consequences. We continue to work diligently with our partners to identify and prosecute individuals engaged in these cruel activities to the fullest extent of the law.”
The FBI and U.S. Fish and Wildlife Service investigated the case. Homeland Security Investigations provided critical assistance.
Trial Attorney Mark Romley and Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Nicole Pakiz for the Southern District of Ohio are prosecuting the case.
New York Man Charged with Attempted Sexual Exploitation of A Minor and Enticement of A Minor to Engage in Illegal Sexual ActivityRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Darnell Henry, age 42, of Bronx, New York, was indicted by a federal grand jury for attempted sexual exploitation of a minor and enticement of a minor to engage in illegal sexual activity.
According to U.S. Attorney Gerard M. Karam, the indictment charges Henry with attempted sexual exploitation of child who had not obtained the age of 18-years-old, between May 9, 2024 and May 25, 2024, in Adams County. The indictment further charges Henry with enticement of a minor to engage in illegal sexual activity between May 9, 2024 and June 2, 2024.
The case was investigated by the Pennsylvania State Police, the New York City Police Department, and the Federal Bureau of Investigation. Assistant United States Attorney K. Wesley Mishoe is prosecuting the case.
The 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.
The maximum penalty upon conviction for the charged offense is life imprisonment, a lifetime term of supervised release following imprisonment, a fine, a statutory assessment, and a special assessment. A sentence following a finding of guilt is imposed by a court after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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New Jersey Man Pleads Guilty to Federal Hate Crime for Breaking into Center for Islamic Life at Rutgers University and Destroying PropertyRead the Press Release
A New Jersey man pleaded guilty yesterday to a federal hate crime for breaking into the Center for Islamic Life at Rutgers University (CILRU) in New Brunswick, New Jersey, and destroying property.
“This defendant is being held accountable for Islamophobic-fueled acts of hate, interfering with the religious freedom of university students and staff during a sacred holiday for those of the Islamic faith,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department stands ready, along with our state and local partners, to hold accountable people who use force, or threats of violence, in order to intimidate people from exercising their religious beliefs. Islamophobic hate crimes have no place in our society today. We will continue to enforce the laws that make it safe for people of all faiths to engage in religious observance, including at educational institutions.”
“The free exercise of religion is a fundamental right of all Americans,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Jacob Beacher admitted he intentionally broke into the Center for Islamic Life during the holy Eid-al-Fitr holiday and damaged and destroyed religious artifacts because of the Islamic faith of those associated with the facility. This office will not tolerate the use of force or threats to intimidate people and put them in fear of worshipping as they see fit.”
“When we learned of this vandalism back in April, we immediately engaged with our law enforcement partners and Rutgers University,” said Acting Special Agent in Charge Nelson I. Delgado of the FBI Newark Field Office. “Within days, we tracked down and arrested Beacher. We want our actions and the speed with which we responded to illustrate our commitment and resolve to protect houses of worship in New Jersey. We all have the right to practice whatever religion we choose, without fear of hate marring the physical and spiritual place where we do it.”
According to court documents, on or about April 10, at approximately 2:39 a.m., during the Eid- al-Fitr holiday, video surveillance footage showed Jacob Beacher, 24, walking toward the rear door of the CILRU. Soon after, at approximately 2:41 a.m., an intruder, later determined to be Beacher, forcibly entered the CILRU through its back door. Specifically, Beacher broke a glass pane on the door, pushed through a piece of plexiglass that was affixed to the interior side of the door and then manually opened the door from the inside by reaching through the broken glass to unlatch a deadbolt lock.
Once inside the CILRU, Beacher damaged the CILRU’s property, including several religious artifacts, such as Turbah prayer stones and numerous items that contained holy language from the Qur’an, Islam’s sacred scripture. Beacher also stole a Palestinian flag and at least one charity box belonging to the CILRU.
A sentencing hearing will be scheduled for a later date. Beacher faces a maximum penalty of three years in prison. A federal district court judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors.
The FBI Newark Field Office, Branchburg Resident Agency, New Jersey Attorney General’s Office, Middlesex County Prosecutor’s Office, Rutgers University Police Department-New Brunswick Division and New Jersey Regional Computer Forensics Laboratory investigated the case.
Assistant U.S. Attorneys Benjamin Levin and R. Joseph Gribko for the District of New Jersey and Trial Attorney Daniel Grunert of the Justice Department’s Civil Rights Division are prosecuting the case.
New Jersey Construction Company Owner Pleads Guilty to Tax EvasionRead the Press Release
A New Jersey man pleaded guilty today to tax evasion for evading employment tax penalties assessed against him.
According to court documents and statements made in court, Joseph Caravella, of Randolph, owned several masonry companies in New Jersey. From 2008 to 2016, the IRS assessed approximately $650,000 in Trust Fund Recovery penalties against Caravella for causing three masonry businesses that he owned to not pay their federal employment taxes. From around March 2008 through in or around April 2019, Caravella sought to evade the payment of these penalties by placing companies that he controlled in the names of nominee owners and avoiding using a bank account in his own name to prevent the IRS from levying the funds. Also during that time, Caravella continued to cause his businesses not to pay employment taxes, resulting in an additional loss of $1.2 million to the IRS.
In total, Carvalla caused a tax loss to the IRS of $1,885,519.39.
Caravella is scheduled to be sentenced on March 18. He faces a maximum penalty of five years in prison, a period of supervised release, restitution and monetary penalties. A federal judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey made the announcement.
IRS Criminal Investigation are investigating the case.
Trial Attorneys Kenneth Vert and Evan Mulbry of the Tax Division and Assistant U.S. Attorney Shontae Gray for the District of New Jersey are prosecuting the case.
McAlester Resident Sentenced for Sexual Exploitation of A ChildRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Amanda Lynn Howerton, age 41, of McAlester, Oklahoma, was sentenced to 210 months in prison for one count of Sexual Exploitation of a Child.
The charges arose from an investigation by the Federal Bureau of Investigation and the Choctaw Nation Lighthorse Police.
On February 5, 2024, Howerton pleaded guilty to the charge. According to investigators, on January 22, 2023, Howerton produced a visual depiction of the sexual abuse of a child, then sold that image on the internet.
“The defendant exploited the innocence of a child by taking sexually suggestive photographs for personal financial gain. This is not only an abhorrent violation of the law, but morally reprehensible and will not be tolerated by the FBI,” said FBI Oklahoma City Special Agent in Charge Doug Goodwater. “This sentencing delivers a clear message that the FBI will work tirelessly with our partners to ensure those who harm children will face consequences.”
“The defendant’s acts—producing and selling depictions of child sexual abuse for personal gain—were despicable and heartless,” said United States Attorney Christopher J. Wilson. “Although the sentence handed down will not erase the trauma of such betrayal, it is most certainly deserved.”
The Honorable Ronald A. White, U.S. Chief District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Howerton will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Morgan Muzljakovich represented 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.justice.gov/psc.
We encourage anyone who suspects or has information regarding child sexual exploitation, trafficking of minors, sextortion, child pornography, or any other means of child exploitation to immediately contact law enforcement. You can file a report on the National Center for Missing & Exploited Children (NCMEC)'s website at www.cybertipline.com, call 1-800-843-5678, contact the FBI at 1-800-CALL-FBI (1-800-225-5324), or call 877-4-HSI TIP.
Maryland Man Indicted for $35 Million Bank Fraud SchemeRead the Press Release
MINNEAPOLIS – A Maryland man has been indicted for his role in a $35 million bank fraud conspiracy, announced U.S. Attorney Andrew M. Luger.
According to court documents, from September 2020 through October 2021, Karl Reid Selle, 38, of Bowie, Maryland, conspired with Matthew Thomas Onofrio to devise and execute a scheme to defraud federally-insured banks and credit unions in Minnesota, Wisconsin, and elsewhere. As part of the scheme, Onofrio, who operated a business entity called Northwoods Management LLC, marketed a program for investors to acquire commercial real estate located in various states. Onofrio, or his business entity, would cause false information to be submitted to lenders financing investors’ real estate purchases and in some cases altered purchase agreements to support higher appraisals of the properties. The indictment also alleges that part of the scheme was to withhold information from the lenders, including the fact that Onofrio made loans to investors to help them purchase the properties and that the loans constituted liabilities that should be disclosed in a loan application.
The indictment charges Selle with one count of conspiracy to commit bank fraud. He made his initial appearance in U.S. District Court on October 8, 2024, before Magistrate Judge Douglas L. Micko.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Robert M. Lewis is prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Marion Woman Charged with Wire FraudRead the Press Release
Megan Middaugh, age 38, from Marion, Iowa, has been charged with five counts of wire fraud. The charges are contained in an Indictment filed today in United States District Court in Cedar Rapids.
The Indictment alleges that, beginning in about January 2020, and continuing until June 2023, Middaugh devised a scheme to defraud and to obtain the funds of a dependent person. Middaugh used and misappropriated funds and assets from a dependent person’s bank accounts. Middaugh had access to the bank accounts as a conservator and trustee. She used the misappropriated funds for her own purposes and not for the benefit of the dependent person. This included the alleged use of approximately $52,000 for online games through the gaming platform, Skillz, Inc. The Indictment alleges five transfers of amounts between $100 and $500 to Skillz, Inc. between January 30, 2020, and January 22, 2021.
If convicted on all charges, Middaugh faces a possible maximum sentence of 100 years’ imprisonment, a $1,250,000 fine, and three years of supervised release following any imprisonment.
Middaugh’s first appearance in federal court in Cedar Rapids for arraignment is set for October 21, 2024.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Kyndra Lundquist and was investigated by Marion Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-0089.
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Magellan Diagnostics Sentenced for Concealing Malfunction in Lead Testing DevicesRead the Press Release
BOSTON –Magellan Diagnostics, Inc., a medical device company headquartered in Billerica, Mass., was sentenced yesterday in federal court in Boston for criminal charges related to the concealment of a device malfunction that produced inaccurately low lead test results for tens of thousands of children and other patients.
Magellan has been ordered to pay a $21.8 million fine, $10.9 million in forfeiture and a minimum of $9.3 million to compensate patient victims. Magellan pleaded guilty to two counts of introducing a misbranded medical device into interstate commerce. Magellan was charged criminally on May 21, 2024
“Keeping the people of Massachusetts safe takes a variety of forms. In the case of Magellan Diagnostics, it means protecting children who may have been exposed to dangerous levels of lead that can lead to serious health consequences. This company has admitted that it left lead blood level monitoring devices in pediatricians’ offices that it knew were providing inaccurately low readings, putting thousands of kids at risk of not having their elevated lead levels accurately diagnosed. In addition to holding the company accountable, this criminal sentence requires the company to undertake an extensive effort to identify and compensate victims.”
“Medical device makers have an obligation to provide truthful information to protect patients. By deliberately concealing and consistently misleading consumers and the FDA about device malfunctions, Magellan acted with gross disregard for its responsibility to comply with FDA requirements and put patients at risk,” said Fernando McMillian, Special Agent in Charge, FDA Office of Criminal Investigations, New York Field Office. “We will continue to thoroughly investigate those whose actions undermine the integrity of the FDA regulatory process which exists to protect consumer health.”
“It’s absolutely appalling that Magellan Diagnostics was more concerned about its bottom line than it was about coming clean to their customers and the FDA about a serious malfunction in its lead testing devices that we believe unnecessarily endangered the health of incredibly vulnerable victims,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “When you’re not feeling well, and you’re trying to find out why, the last thing you should have to worry about is whether the diagnostic test you’re relying on lives up to its manufacturer’s claims. The FBI is grateful to see that the victims affected by Magellan’s actions in this case are one step closer to being compensated.”
“Magellan concealed a serious flaw in its lead testing devices while ignoring the well-being of patients and knowingly providing inaccurate results of lead levels in the blood,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “This type of egregious conduct, which only sought to benefit the corporate bottom line, can erode the public’s trust in our nation’s health care system. Today’s sentencing should send a clear message that any company engaging in such dangerous activity will be held accountable.”
Magellan’s LeadCare Ultra and LeadCare II devices detected lead levels and lead poisoning in the blood of children and adults using either venous (blood draws through the arm) or fingerstick samples. LeadCare II, which was predominantly used to test fingerstick samples, accounted for more than half of all blood lead tests conducted in the United States from 2013 through 2017. LeadCare Ultra was predominantly used to test venous samples.
According to court documents, Magellan failed to timely notify the FDA about a serious malfunction that caused the company’s LeadCare devices to produce inaccurate blood lead level results when used to test venous blood samples. Magellan also changed the user instructions for the LeadCare devices without prior FDA notice or approval.
Magellan first learned that a malfunction in its LeadCare Ultra device could cause inaccurate lead test results – specifically, lead test results that were falsely low – during the FDA clearance process in June 2013. Magellan, however, released LeadCare Ultra to the market in late 2013 without informing customers or the FDA of the malfunction. In August 2014, LeadCare Ultra customers independently discovered the malfunction and complained about inaccurate results. FDA regulations required the company to file a medical device report about the malfunction within 30 days, but Magellan did not do so.
In November 2014, Magellan sent a letter to its LeadCare Ultra customers advising them of the malfunction and recommending that they wait 24 hours before running their tests. This contradicted the instructions for use approved by the FDA. Magellan did not, however, report the malfunction to the FDA or advise the FDA of its change to the instructions until April 2015, nearly 21 months after Magellan discovered the malfunction and almost 8 months after customers discovered the malfunction on their own. In August 2015, Magellan changed the label instructions for the LeadCare Ultra device to require users to wait 24 hours before using the device to test blood samples, rather than testing the samples immediately. FDA regulations required the company to provide advance notice of the label change and file necessary reports of device correction, but Magellan did neither.
Magellan’s testing in 2013 also indicated that the same malfunction affected the LeadCare II device when it was used to test venous samples. Magellan, however, did not notify the FDA about the LeadCare II malfunction until November 2016.
The FDA ultimately found that the LeadCare devices could not accurately test venous samples, leading to a recall of all LeadCare devices using venous samples and a warning to the public not to use LeadCare Ultra, LeadCare II or LeadCare Plus for testing venous blood samples because of the malfunction and a recommendation that doctors retest certain patients.
According to the Centers for Disease Control and Prevention, there is no safe level of lead in the blood. Lead exposure may cause irreversible lifelong physical and mental health problems. Young children and pregnant women are most vulnerable to lead exposure, especially those from low-income households and those who live in housing built before 1978 because those homes are more likely to contain lead-based paint and have fixtures containing lead.
As part of the criminal resolution, Magellan has agreed to compensate patients who were demonstrably harmed for the economic damages they suffered as a result of the malfunction in Magellan’s blood lead testing devices. If you or a family member believe you received an inaccurate blood lead test result from a LeadCare device between 2013–2017, please complete the questionnaire located on the FBI’s website at www.fbi.gov/MagellanCaseInquiry. Information about the status of the case is located on the U.S. Attorney’s Office website: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/magellan-diagnostics-inc.
Acting U.S. Attorney Levy; FDA SAC McMillan; FBI SAC Cohen; and HHS-OIG SAC Coviello made the announcement today. Assistant U.S. Attorneys James Herbert, Kelly Lawrence and Leslie Wright of the Health Care Fraud Unit prosecuted the case.
Lynn Man Charged with Threatening an Elected OfficialRead the Press Release
BOSTON – A Lynn man was arrested and charged for allegedly making threats to an elected official.
Justin David Gaglio, 50, was charged by criminal complaint with one count of transmitting interstate threats. Gaglio was arrested on Sept. 27, 2024 made an initial appearance in federal court in Boston later that day. The defendant remains in federal custody following a detention hearing held on Sept. 30, 2024, as the Court took the matter of detention under advisement.
According to the charging document, beginning in or around January 2023, Gaglio began contacting the victim via online submissions through the victim’s website. Between January 2023 and September 2024, Gaglio allegedly submitted over 80 separate messages to the victim via the website – sometimes sending multiple messages within minutes of each other.
It is further alleged that, on or about Sept. 8, 2024, Gaglio submitted a contact request to the victim’s website in which he threatened to murder the victim and their family.
The charge of transmitting interstate threats carries a maximum penalty of five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the United States Capital Police, the Massachusetts State Police and the Lynn and Salem Police Departments. Assistant U.S. Attorney Alathea E. Porter of the National Security Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Los Angeles County Man Sentenced for Identity Theft OffensesRead the Press Release
FRESNO, Calif. — Sean Lamont Wyatt, 47, of Los Angeles County, was sentenced Wednesday to two years and six months in prison for committing identity theft and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in June 2021, 27 pages of victims’ personally identifiable information were found in Wyatt’s assigned inmate bunk at the federal prison in Atwater. Investigation revealed that while Wyatt was incarcerated, he used a contraband phone to call victims’ banks and creditors. In the phone calls, Wyatt used the victims’ names, dates of birth, addresses, and social security numbers to falsely identity himself and to add himself as an authorized user on the victims’ accounts. Wyatt did this to boost his own credit and then to apply for new credit lines.
This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant United States Attorney Brittany M. Gunter prosecuted the case.
Licking County man sentenced to more than 4 years in prison for conspiracy crime involving videos of monkey torture & mutilationRead the Press Release
COLUMBUS, Ohio – A Licking County man was sentenced in U.S. District Court today to 54 months in prison for conspiring to create and distribute videos depicting acts of extreme violence and sexual abuse against monkeys. The sentence imposed by U.S. District Judge Edmund A. Sargus, Jr. is an upward variance from the sentencing guidelines in this case.
Ronald P. Bedra, 42, of Etna, pleaded guilty in April to conspiring to create and distribute “animal crush” videos and to distributing the videos.
According to court documents, Bedra conspired with others to create and distribute videos depicting acts of sadistic violence against baby and adult monkeys. The conspirators used encrypted chat applications to direct money to individuals in Indonesia willing to commit the requested acts of torture on camera. Bedra also mailed a thumb drive containing 64 videos of monkey torture to a co-conspirator in Wisconsin.
The videos included depictions of monkeys having their digits and limbs severed and monkeys being forcibly sodomized with a heated screwdriver.
“We will punish participants of sadistic conspiracies like this one no matter their role in the crime,” said U.S. Attorney Kenneth L. Parker of the Southern District of Ohio. “As this case shows, even if you do not commit the torture firsthand, you will be held accountable for promoting this obscene animal abuse.”
“Defendant Ronald Bedra commissioned grotesque videos of torture of juvenile and baby monkeys,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Such appalling conduct has no place in our society. The Justice Department stands ready to prosecute individuals engaging in this activity to the fullest extent of the law.”
“Today’s sentencing underscores the U.S. Fish and Wildlife Service’s unwavering commitment to combating the exploitation of wildlife in any form,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service’s Office of Law Enforcement. “These monstrous crimes are indefensible. This case serves as a stark reminder that those who harm animals protected under federal and international laws and treaties will face serious consequences. We continue to work diligently with our partners to identify and prosecute individuals engaged in these cruel activities to the fullest extent of the law.”
The U.S. Fish and Wildlife Service, the FBI and HSI investigated the case.
Trial Attorney Mark Romley and Senior Trial Attorney Adam Cullman of the Environmental and Natural Resource Division’s Environmental Crimes Section and Assistant U.S. Attorney Nicole Pakiz for the Southern District of Ohio are prosecuting the case.
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Lehigh County Man Sentenced to 10 Years in Prison for Trafficking MethamphetamineRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Sterling Crumblin, age 34, of Lehigh County, Pennsylvania, was sentenced on October 10, 2024, by U.S. District Court Judge Jennifer P. Wilson to 10 years in prison for trafficking methamphetamine.
According to United States Attorney Gerard M. Karam, Crumblin was sentenced for his possession with the intent to distribute methamphetamine. Crumblin received the ten-year mandatory minimum sentence for trafficking over 500 grams of methamphetamine.
Crumblin previously entered a guilty plea where he admitted that on November 15, 2021, Pennsylvania State Police conducted a traffic stop on Crumblin’s vehicle while he was driving through Dauphin County, Pennsylvania. Troopers secured a search warrant for Crumblin’s vehicle and ultimately discovered more than a kilogram of methamphetamine and a stolen handgun.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and Pennsylvania State Police. Assistant U.S. Attorney Stephen W. Dukes is prosecuting the case.
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Kern County Man Sentenced to 7 Years in Prison for Receiving Child PornographyRead the Press Release
FRESNO, Calif. — Christopher Patterson, 43, of Bakersfield, was sentenced Wednesday to seven years in prison for receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between July 2018 and November 2018, Patterson used an SD card to knowingly receive more than 600 files containing visual depictions of children, some under the age of twelve, engaging in sexually explicit conduct.
This case was the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Brittany M. Gunter prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Justice Department Secures over $6.5M from Citadel Federal Credit Union to Address Redlining of Black and Hispanic CommunitiesRead the Press Release
The Justice Department announced today that Citadel Federal Credit Union (Citadel) has agreed to pay over $6.5 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black and Hispanic neighborhoods in and around Philadelphia. This landmark agreement is the Justice Department’s first redlining settlement with a credit union, making this a historic achievement for the Combating Redlining Initiative.
Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of residents in those communities.
“This redlining settlement marks the Justice Department’s very first resolution involving a credit union, making clear our intent to hold all types of lenders accountable for their role in modern-day redlining,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “There are well over 4,600 credit unions across America, all subject to federal laws that prohibit redlining and lending discrimination. Redlining and other forms of lending discrimination harm communities of color and families by denying them an equal opportunity to access credit, attain the dream of homeownership and build generational wealth. This settlement will expand investment in Black and Hispanic communities, particularly in Philadelphia, and increase opportunities for homeownership and financial stability. Residents of communities harmed by unlawful redlining will finally be able to access credit services from Citadel in their own neighborhoods, including at the new branches required by the settlement.”
“For generations, Philadelphia’s communities of color have lacked equal access to the credit needed for homeownership. We know that redlining has a devastating impact on a family’s finances and future, and results in economic and other inequalities that plague our communities for decades,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “We also know the transformational change that can occur when credit is made available to underserved residents, and particularly when lenders, like Citadel, establish branch locations in these neighborhoods.”
The Justice Department’s complaint, which was filed today in the Eastern District of Pennsylvania, alleges that, from at least 2017 through 2021, Citadel failed to provide mortgage lending services to majority-Black and Hispanic neighborhoods in and around Philadelphia and discouraged people seeking credit in those communities from obtaining home loans. Citadel’s home mortgage lending was focused disproportionately on white areas around Greater Philadelphia. Peer lenders generated mortgage applications in predominately Black and Hispanic neighborhoods at nearly three times the rate of Citadel and originated mortgage loans in these areas at more than three times the rate of Citadel.
The complaint further alleges that Citadel’s branches are located almost exclusively in majority-White neighborhoods, with no branches in Philadelphia, which contains more than 75% of the majority-Black and Hispanic neighborhoods and 34% of the total population in Citadel’s market area.
Under the proposed consent order, which is subject to court approval, Citadel has agreed to invest $6.52 million to increase credit opportunities for communities of color in and around Philadelphia. Specifically, Citadel will:
- Invest at least $6 million in a loan subsidy fund to increase access to home mortgage, home improvement and home refinance loans for residents of majority-Black and Hispanic neighborhoods in Philadelphia;
- Spend at least $250,000 on community partnerships to provide services related to credit, consumer financial education, homeownership and foreclosure prevention for residents of predominantly Black and Hispanic neighborhoods in Citadel’s market area;
- Spend at least $270,000 for advertising, outreach, consumer financial education and credit counseling focused on predominantly Black and Hispanic neighborhoods in Philadelphia;
- Open three new branches in predominantly Black and Hispanic neighborhoods in Philadelphia; and
- Hire a community lending officer who will oversee the continued development of lending in communities of color.
Citadel also agreed to retain independent consultants to enhance its fair lending program and better meet the communities’ needs for mortgage credit. The credit union will conduct a community credit needs assessment, evaluate its fair lending compliance management systems, and conduct staff trainings.
With assets of approximately $6 billion, Citadel is headquartered in Pennsylvania and operates 24 branches in its market area of Greater Philadelphia, which includes Bucks, Chester, Delaware, Lancaster, Montgomery and Philadelphia Counties. Citadel is the second largest credit union in the region and has over 263,000 members. Citadel cooperated with the Justice Department’s investigation.
In October 2021, Attorney General Merrick B. Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since 2021, the department has announced 14 redlining resolutions and secured over $144 million in relief for communities of color that have been the victims of lending discrimination across the country. In March, Assistant Attorney General Clarke presented remarks to America’s Credit Unions’ Governmental Affairs Conference regarding the unique issues raised by redlining in the credit union industry.
A copy of the complaint and information about the Justice Department’s fair lending enforcement work can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
Justice Department Reaches Agreement with Citadel Federal Credit Union to Resolve First-Ever Redlining Action Against a Credit UnionRead the Press Release
PHILADELPHIA, PA – The United States Department of Justice announced today that Citadel Federal Credit Union (Citadel) has agreed to resolve allegations that it engaged in a pattern and practice of lending discrimination by “redlining” predominantly Black and Hispanic neighborhoods in and around Philadelphia. If approved by the court, this redlining resolution would be the Justice Department’s first involving a credit union.
“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in certain communities or zip codes because of the race, color, or national origin of persons residing there. Under a proposed consent order filed today in federal court in conjunction with a complaint, Citadel has agreed to invest over $6.5 million to increase credit opportunities in neighborhoods of color in the Philadelphia metropolitan area. The proposed consent order also requires Citadel to establish three new branches in Black and Hispanic neighborhoods in Philadelphia over the course of five years.
In its complaint, the United States alleges that from at least 2017 through 2021, Citadel provided mortgage lending services to majority-Black and Hispanic neighborhoods in and around Philadelphia at rates far below that of comparable lenders. During the same time frame, peer lenders generated mortgage applications in predominantly Black and Hispanic neighborhoods at nearly three times the rate of Citadel and originated mortgage loans in those neighborhoods over three times as often.
The United States alleges that Citadel disproportionately focused its outreach, marketing, and home mortgage lending on the predominately White suburbs in the Greater Philadelphia region. All but one of Citadel’s full-service branches are in majority-White neighborhoods, and no branches are in Philadelphia, which contains over 75% of the majority-Black and Hispanic neighborhoods and 34% of the total population in Citadel’s market area.
Under the proposed consent order, Citadel agrees to invest at least $6 million in a loan subsidy fund to increase access to home mortgage, home improvement, and home refinance loans for residents of majority-Black and Hispanic neighborhoods in Philadelphia. Citadel will spend an additional $250,000 on community partnerships to provide credit, consumer finance, homeownership, and foreclosure prevention services to the residents of these areas, and at least $270,000 on advertising, consumer financial education, and credit counseling. Citadel will also open three new branches in predominantly Black and Hispanic neighborhoods in Philadelphia and will hire a community lending officer to oversee the continued development of lending in communities of color.
According to United States Attorney Jacqueline C. Romero, the proposed resolution presents a tremendous opportunity for long-underserved Philadelphia residents. “For generations, Philadelphia’s communities of color have lacked equal access to the credit needed for homeownership. We know that redlining has a devastating impact on a family’s finances and future, and results in economic and other inequalities that plague our communities for decades,” said Romero. “We also know the transformational change that can occur when credit is made available to underserved residents, and particularly when lenders, like Citadel, establish branch locations in these neighborhoods.”
“This redlining settlement marks the Justice Department’s very first resolution involving a credit union, making clear our intent to hold all types of lenders accountable for their role in modern-day redlining,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “There are well over 4,600 credit unions across America, all subject to federal laws that prohibit redlining and lending discrimination. Redlining and other forms of lending discrimination harm communities of color and families by denying them an equal opportunity to access credit, attain the dream of homeownership and build generational wealth. This settlement will expand investment in Black and Hispanic communities, particularly in Philadelphia, and increase opportunities for homeownership and financial stability. Residents of communities harmed by unlawful redlining will finally be able to access credit services from Citadel in their own neighborhoods, including at the new branches required by the settlement.”
The settlement is part of the U.S. Attorney General’s Combating Redlining Initiative, announced in October 2021 and aimed at coordinating agencies’ enforcement efforts to address this persistent form of discrimination. The Initiative expands the Justice Department’s reach by strengthening partnerships with U.S. Attorney’s Offices and other federal and state agencies across the country. Since 2021, the department has announced 14 redlining resolutions and secured over $144 million in relief for communities of color that have been the victims of lending discrimination across the country.
Assistant U.S. Attorney Bryan C. Hughes, Assistant U.S. Attorney Paul Kaufman (now with the District of New Jersey), Deputy Civil Chief for Civil Rights Lauren DeBruicker, and former Investigator Jeffrey Braun handled this matter for the U.S. Attorney’s Office for the Eastern District of Pennsylvania, in collaboration with attorneys from the Justice Department’s Civil Rights Division. Citadel cooperated with the Justice Department’s investigation and worked with the department to resolve the redlining allegations.
Information about the Justice Department’s fair lending enforcement work can be found here. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
Justice Department Files Suit for Unpaid Duties and Penalties for Alleged Misclassification and Failure to Pay Duties on Imported Chinese Solar PanelsRead the Press Release
The Justice Department has filed a civil lawsuit against Paul Bakhoum, who was the Vice President for Operations for Ecosolargy Inc., a California Corporation that imported Chinese-manufactured solar panels into the United States. The lawsuit alleges that Mr. Bakhoum made false statements to customs officials and, as a result, avoided paying harmonized tariff schedule (HTS), antidumping and countervailing duties owed on the imported solar panels.
At the time merchandise is entered into the United States, the importer is responsible for providing all information necessary to enable Customs and Border Protection (CBP) to assess the applicable duties owed on the goods, including any HTS, antidumping and countervailing duties applicable to the merchandise. The HTS sets duties based on the category of the product (for example, solar cells), while antidumping and countervailing duties are trade remedies that help protect domestic industries from unfair trade practices by foreign businesses and countries, such as government subsidies or below market sales.
The United States’ complaint contends that Bakhoum caused Ecosolargy to falsely classify solar panels imported from China as LED lights. In particular, the United States alleges that Bakhoum negligently misrepresented to CBP the imported solar panels’ HTS code and value and failed to identify both the proper antidumping duty and countervailing duty rates applicable to the panels.
“The Justice Department is committed to pursuing those who evade customs duties or otherwise engage in unfair trade practices that harm U.S. manufacturers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to employ all of our available tools to ensure that U.S. manufacturers are competing on a level playing field.”
“CBP takes its trade mission of protecting the U.S. economy very seriously as we strive to maintain fair trade and preserve American jobs from predatory practices,” said Executive Director Susan Thomas of CBP’s Cargo and Conveyance Security, Office of Field Operations. “These civil penalties should serve as a warning to those who attempt to do harm to our economy and American businesses.”
The complaint seeks the recovery of almost $300,000 in import duties and almost $800,000 in civil penalties.
CBP’s Electronics Center of Excellence and Expertise investigated the case. CBP and Homeland Security Investigations are the agencies responsible for enforcing U.S. laws related to the importation of merchandise into the United States, including the collection of duties and assessment of penalties.
Trial Counsel Daniel Hoffman of the Civil Division’s Commercial Litigation Branch, National Courts Section, handled the case.
The case, which is filed in the Court of International Trade, is captioned United States v. Paul Bakhoum No. 24-00188.
To combat trade fraud, including avoidance of import duties, the Justice Department created a Trade Fraud Task Force. The Task Force partners with CBP and other law enforcement agencies to ensure compliance with United States trade laws.
The claims in the complaint are allegations only. There has been no determination of liability.
Justice Department Concurs with Federal Trade Commission’s Changes to Premerger Notification Form Used in Merger ReviewRead the Press Release
The Justice Department’s Antitrust Division announced today its concurrence with the Federal Trade Commission (FTC)’s unanimous vote to finalize changes to the premerger notification form and associated instructions, as well as to the premerger notification rules implementing the Hart-Scott-Rodino (HSR) Act.
The final rule, which was adopted after a rigorous public comment process, marks the first large-scale material update to the HSR form since it was first established in 1978. The rule will address critical gaps in the information available to the Justice Department and the FTC (the Agencies) when they review merger filings, making the Agencies’ initial review more efficient and effective. In response to public comment on the proposed rule, the final rule contains many changes aimed at reducing the burden on parties while still improving the information the Agencies receive to help streamline initial merger review.
“Access to better information at the beginning of the merger review process ensures that the antitrust agencies can devote our resources to the most important issues and reduces the burden on filers, third parties, and other market participants,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “I’m grateful to the Commissioners who have worked diligently to evaluate the public comments to develop the excellent rule.”
Under the HSR Act, parties to certain mergers and acquisitions are required to submit premerger notification forms that disclose certain information about their proposed deal and business operations. The Agencies use this information to conduct a premerger assessment in the short time allowed under the HSR Act, typically 30 days, to determine which transactions may violate the antitrust laws, and thus require additional review.
The requests added to the HSR form reflect the dramatic changes over the past four decades in global markets and in how mergers and acquisitions are conducted. These additions include:
- Requiring parties to submit transaction-related documents prepared by or for the supervisory leader of the deal team;
- Requiring parties to describe their principal categories of products and services as reflected in the parties’ ordinary course business documents;
- Requiring disclosure of additional information about the buyer’s officers, directors, and investors, including those with management rights over the firm; and
- Ensuring the Agencies have access to translations of all documents submitted in a language other than English.
This additional information will enable the Agencies to streamline their initial reviews and make decisions more quickly. In some circumstances, it will allow the Agencies to evaluate a merger without opening a preliminary investigation or seeking additional information through a second request. In this way, the final rule complements the FTC’s decision to lift its temporary suspension on early termination of HSR filings. When additional information is necessary to review a merger, the final rule will enable the Agencies to issue more targeted requests, reducing the time and effort required to respond. Under the prior form, the Agencies routinely had to rely on third parties, many of whom were small businesses, to fill in informational gaps. By helping to fill some of these gaps, the final rule can alleviate the burden on third parties as well.
The new information required by the final rule is already within the possession of the filing parties. The rule was carefully structured to provide the Agencies with important additional factual and documentary information that is readily available to the merging parties. Moreover, the Agencies carefully reviewed the hundreds of public comments filed in response to the proposed rule and made substantial changes to reduce the burden on merging parties. The final rule differs from the proposed rule in many ways, including among other things, eliminating the requirements to:
- Submit preliminary drafts of deal-related documents;
- Collect and produce ordinary course documents from people who report directly to the CEO;
- Provide information about employees’ commuting zones and occupation classifications;
- Report prior acquisitions that are more than five years old or involve entities with less than $10 million in sales or revenue; and
- Certify that the filer took steps to preserve documents.
These changes eliminated substantial costs to filing parties while ensuring that the Agencies will receive the additional information they require to more effectively and efficiently review merger filings.
The final rule will be effective 90 days after it is published in the Federal Register.
Jury Returns Guilty Verdict Against District Man on First-Degree Murder While Armed for 2020 ShootingRead the Press Release
WASHINGTON – A jury sitting in Superior Court today found Dennis Chase, 32, of Washington, D.C., guilty of first-degree murder while armed, possession of a firearm during a crime of violence, and unlawful possession of a firearm in the December 2020 shooting death of Anthony Orr. The verdict was announced by U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD). Sentencing is scheduled for January 10, 2024.
According to the government’s evidence, the defendant drove around the Washington Highlands neighborhood with the victim, Anthony Orr, sitting in the passenger seat. As the defendant slowly drove down Xenia St SE, he raised a gun to Mr. Orr’s head and fired one lethal shot. The defendant pushed Mr. Orr out of the car and sped off. The defendant drove 30 miles North of the District to the woods of Severn, Maryland, where he doused the car in diesel exhaust fluid and attempted to light it on fire. The defendant then hiked through the woods until he found a random home, where he stripped down and hid his clothes and other evidence in the back shed, knocked on the back door, and asked for help. The homeowner called 911, and Anne Arundel County Police arrested the defendant on an unrelated warrant. MPD Homicide Detectives later charged defendant for the murder of Mr. Orr. The defendant claimed he acted in self-defense.
This case was investigated by the Metropolitan Police Department and Assistant United States Attorney Peter Roman. It was prosecuted and tried by Assistant United States Attorneys Wes Faulkner and Andrea Antonelli.
Jury Convicts Omaha Man for Selling Fentanyl that Resulted in the Death of a Four-Year OldRead the Press Release
United States Attorney Susan Lehr announced Michael Reis, age 29, of Omaha, Nebraska was convicted by a jury on October 9, 2024, in federal court in Omaha for distributing fentanyl that resulted in the death of 4-year-old. United States District Judge Brian C. Buescher presided over the trial.
On March 12, 2022, Douglas County Sheriff’s Office (DCSO) Deputies were dispatched to the Aspen Grove apartment complex for an unresponsive 4-year-old. Upon arrival, deputies began CPR until an ambulance could take the child to Children’s Hospital and Medical Center. The child was later pronounced dead due to fentanyl toxicity.
DCSO crime scene investigators, laboratory technicians, and fentanyl overdose investigators assisted in the investigation. Michael Reis was eventually identified as a person of interest. On March 27, 2022, Reis was arrested on an outstanding warrant. A search warrant was executed on Reis’s phone which detailed an extensive history of selling pills to the child’s mother. Messages found in Reis’s phone from March 12, 2022, showed that Reis delivered a pill to the child’s mother and that Reis received digital payment from her.
In addition to the testimony by DCSO investigators, Dr. Robert Bowen and Dr. Suzanne Haney testified extensively on the child’s cause of death . Dr. Bowen is the Douglas County Coroner’s physician assistant (pathologist) and Dr. Haney is both the Medical Director of Project Harmony and Chief Physician of Child Abuse Pediatrics at Children’s and the University of Nebraska Medical Center.
“I am immensely proud of the team efforts of our DCSO Deputies and our local and federal partners in law enforcement, as well as the U.S. Attorney’s Office, to bring justice to [this child],” said Douglas County Sheriff Aaron Hanson. “Fentanyl and fentanyl dealers are a true scourge in our community. Those who deal and recklessly possess fentanyl should know that there is no room for them in a safe civil society and that they will be pursued and prosecuted to the fullest extent of the law.”
Sentencing is set for January 9, 2024. The penalties for distributing fentanyl resulting in death include a mandatory minimum term of imprisonment of 20 years. There is no maximum sentence.
Michael Reis has a second federal case in which he pled guilty to sex trafficking of a minor. Sentencing for that matter is set for December 5, 2024. The penalties for sex trafficking a minor include a mandatory minimum term of imprisonment of 10 years. The maximum sentence is life.
This case was investigated by the Douglas County Sheriff’s Office and the Drug Enforcement Administration.
Jerome Man Convicted of Possession with Intent to Distribute Methamphetamine Sentenced to 7 Years in Federal PrisonRead the Press Release
BOISE – Jason Earl Wright, 49, of Jerome, was sentenced to 84 months in federal prison for possession with intent to distribute methamphetamine, U.S. Attorney Josh Hurwit announced today.
According to court records, Wright was involved in a drug trafficking organization spanning Idaho and Oregon, though his conduct was limited to the Idaho arm of this organization. Wright was found with a total of more than one and a quarter pounds of methamphetamine, two firearms, and a small amount of cocaine between the dates of June 28, 2023 and February 7, 2024. When he was arrested after his federal indictment, he was in possession of a loaded handgun, two loaded magazines, more than an ounce of methamphetamine, two cell phones, two scales, small plastic baggies, and two drug ledgers.
Senior U.S. District Judge B. Lynn Winmill also ordered Wright to pay a $500 fine and to serve four years of supervised release following his prison sentence.
U.S. Attorney Hurwit commended the work of the Drug Enforcement Administration, the Nampa Police Department Special Investigations Unit, the Meridian Police Department, the Boise Police Department, the Oregon State Police High Desert Drug Task Force, and the U.S. Marshals Service, which led to the charges and arrest. Assistant U.S. Attorney David Morse and former Special Assistant U.S. Attorney Marie Chong prosecuted this case.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the Oregon-Idaho High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is an Office of National Drug Control Policy (ONDCP) sponsored counterdrug grant program that coordinates with and provides funding resources to multi-agency drug enforcement initiatives, including the Special Assistant U.S. Attorney position.
The High Desert Drug Task Force is a multi-jurisdictional narcotics task force that identifies, disrupts, and dismantles local, multi-state, and international drug trafficking organizations using an intelligence-driven, multi-agency prosecutor-supported approach. They are supported by the Oregon-Idaho High-Intensity Drug Trafficking Area (HIDTA).
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Ithaca Man Sentenced to Serve 24 Months in Federal Prison for Pandemic Loan FraudRead the Press Release
SYRACUSE, NEW YORK – Ejembi Onah, age 61, of Ithaca, New York, was sentenced to serve 24 months in federal prison yesterday following trial convictions for two counts of wire fraud and three counts of transacting in criminally derived property for fraudulently obtaining two Paycheck Program (PPP) loans during the pandemic, receiving over $140,000 in loan proceeds, and spending those proceeds, among other things, in three separate transactions each exceeding $10,000.
United States Attorney Carla B. Freedman; Thomas Fattorusso, Executive Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (IRS-CI); and Erin Keegan, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
PPP loans were United States Small Business Administration (SBA)-guaranteed, forgivable loans authorized in the Coronavirus Aid Relief, Economic Security (CARES) Act, which was enacted in March 2020 to provide emergency financial assistance to Americans suffering adverse economic effects from the COVID-19 pandemic.
The government’s evidence at Onah’s October 2023 non-jury trial established that Onah submitted two fraudulent PPP loan applications to two different lenders in June 2020. Each application included false information about the payroll and number of employees at Onah’s company, which he claimed was engaged in a seasonal nanotechnology business and were supported by falsified tax returns. Onah spent the more than $140,000 he received to, among other things, pay back rent at his personal residence, lease a luxury car, and pay for his daily living expenses.
United States District Judge David N. Hurd also ordered that Onah serve a two-year term of supervised release following his release from prison and pay $218,983.32 in restitution to his victims.
IRS-CI and HSI investigated the case. Assistant United States Attorneys Michael D. Gadarian and Joshua R. Rosenthal 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, 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.
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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Harrison County Man Sentenced for Methamphetamine ChargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Todd Eugene Haynes, age 49, of Clarksburg, West Virginia, was sentenced today to 10 years in federal prison for the distribution of methamphetamine.
According to court documents and statements made in court, Haynes sold more than 100 grams of methamphetamine in Harrison County.
Haynes has a criminal history that includes robbery, battery, domestic assault, stalking, and drug possession. He will serve five years of supervised release following his prison sentence.
Assistant U.S. Attorney Brandon Flower prosecuted the case on behalf of the government.
The Greater Harrison Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Generic Pharmaceutical Company Pays $25 Million to Resolve False Claims Act Liability for Price-Fixing of Generic DrugsRead the Press Release
PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that Teva Pharmaceuticals USA, Inc., a generic pharmaceutical manufacturer located in Parsippany, New Jersey, has agreed to pay $25 million to resolve its alleged liability under the False Claims Act for conspiring to fix prices and allocate markets for two generic drugs. This settlement is one part of an overall resolution, for a total payment of $450 million, based on Teva’s ability to pay, of allegations of this and another kickback arrangement.
The government alleged that, between May 1, 2013 and December 31, 2015, Teva paid and received compensation prohibited by the Anti-Kickback Statute through arrangements on price, supply, and allocation of customers with other pharmaceutical manufacturers for two generic drugs manufactured by Teva, pravastatin and tobramycin. Pravastatin is widely used to treat high cholesterol and triglyceride levels, and tobramycin is an antibiotic.
“Kickback arrangements by pharmaceutical companies escalate the costs for critical drugs used by our citizens and federal health care programs,” said U.S. Attorney Romero. “My office is proud to work with the rest of the Department of Justice and our investigative partners to enforce federal laws prohibiting kickback arrangements. We will continue to take action to lower the drug costs for our country and its health care programs supporting senior citizens, our military service members, and others.”
“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 Department of Justice’s Civil Division. “The Department is committed to pursuing all those who engage in kickback violations, including drug manufacturers, to ensure that these federal health care programs continue to serve the interests of taxpayers and program beneficiaries.”
“Conspiring to raise prices on generic medications is illegal and could prevent patients from being able to afford their needed prescription drugs. Americans have the right to purchase generic drugs set by fair and open competition, not collusion,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to investigate allegations of health care fraud that put the public and the Medicare program at risk.”
“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General, seeks to protect the integrity of TRICARE, the healthcare system for U.S. military members and their dependents,” said Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “When pharmaceutical corporations artificially inflate prices, they place an unnecessary financial burden on the TRICARE program. The settlement agreement announced today demonstrates our commitment to partner with investigative agencies and the Department of Justice, including the Civil Division and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, to combat healthcare fraud.”
The Anti-Kickback Statute prohibits companies from receiving or making payments in return for arranging the sale or purchase of items such as drugs for which payment may be made by a federal health care program. These provisions are designed to ensure that the supply and price of health care items are not compromised by improper financial incentives. This settlement reflects the important role of the False Claims Act to ensure that the United States is fully compensated when it is the victim of kickbacks paid to further anticompetitive conduct.
Teva previously entered into a deferred prosecution agreement with the Department’s Antitrust Division to resolve related criminal charges. Teva agreed to pay a criminal penalty of $225 million based on its ability to pay and admitted to agreeing with competitors to refrain from submitting bids and offers to sell drugs to certain customers. The civil settlement payment announced today is in addition to the criminal penalty paid by the company.
This civil settlement is the seventh resolution arising from the Department’s investigation of price fixing by generic drug manufacturers and was handled by the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Commercial Litigation Branch (Fraud Section) of the Department of Justice’s Civil Division, with support from HHS-OIG, the Defense Health Agency Program Integrity Office, DCIS, and the Office of Inspector General for the Department of Veterans Affairs.
The investigation and resolution of this matter illustrate the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Assistant U.S. Attorneys Landon Y. Jones III, Rebecca S. Melley, and Anthony D. Scicchitano of the U.S. Attorney’s Office, along with Senior Trial Counsel Jennifer L. Cihon and Senior Litigation Counsel Laurie A. Oberembt of the Civil Division.
Except for those facts admitted to by Teva in the deferred prosecution agreement, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
Former Tacoma, Washington, attorney indicted for embezzling more than half million from client’s trust accountRead the Press Release
Seattle – A former Tacoma lawyer is indicted for twelve counts of wire fraud for his embezzlement from a vulnerable client’s trust account, announced U.S. Attorney Tessa M. Gorman. Colby Parks, 65, allegedly stole more than $570,000 from a client who had been awarded about$1.66 million due to significant permanent injuries she suffered in a motorcycle accident. Parks will make his initial appearance at 2:00 today.
According to the indictment, in 2010 Parks became the trustee for a living trust designed to pay the victim’s expenses after she was severely injured as a passenger on a motorcycle. Initially, the victim’s trust account contained approximately $1.66 million. However, over the first seven years that Parks was the trustee, he siphoned the funds in such large amounts that only $20,000 was left. In 2018, Parks had the victim take out a reverse mortgage on her home and twice used the proceeds to fund the trust account. He continued to make transfers from the account for his own use. Records from the account show that Parks repeatedly transferred funds to his own bank accounts and then, on the same day or soon thereafter, Parks would make a payment for a personal credit card for the same amount as the transfer.
By the end of 2019, the victim’s accounts held only $15. She was forced to sell her home. And even then, Parks diverted proceeds from the sale by claiming the victim owed him money he had advanced to her.
According to the indictment, Parks repeatedly told the defendant she was spending too much money, when in fact, the amount that the victim received as cash disbursements was a fraction of the amount that Parks secretly siphoned for himself.
According to the indictment, when Washington State’s Adult Protective Services investigated Parks’ representation of the victim, Parks initially claimed he was only paid a flat rate of $24,000 per year. After Adult Protective Services requested supporting documentation, Parks revised his statement and said he was paid varying amounts that averaged over $54,000 per year. However, the indictment alleges that Parks, in fact, collected well over $80,000 per year from the victim.
The Washington State Bar also investigated the matter, and Parks resigned his law license instead of discipline, which could have been disbarment.
Wire fraud is punishable by up to 20 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Cindy Chang.
Former Pharmaceutical Executive Sentenced for Falsifying Financial DocumentationRead the Press Release
DETROIT - A Northville man was sentenced Tuesday to one year and one day in prison, followed by two years of supervised release, for providing a financial institution with false documentation in connection with a bank loan, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Detroit Field Division
Theodore Toloff, 65, entered his guilty plea in January before United States District Judge David M. Lawson.
According to court records, Toloff served as the Chief Financial Officer of the Frank W. Kerr Company (“Kerr”), a now-defunct pharmaceutical wholesaler that was based in Novi, Michigan. Kerr had a revolving credit agreement with two large financial institutions under which the company borrowed funds up to $60 million pursuant to a calculation dependent on the company’s eligible accounts receivable and inventory. Toloff admitted that he submitted false documentation to the financial institutions that included $18 million in ineligible accounts receivable and that Kerr borrowed additional funds after this false documentation was submitted. The Court found that Toloff’s criminal conduct caused Kerr’s lenders to sustain a loss of $1.3 million, which Toloff was also ordered to pay back to the lenders as restitution.
“Corporate executives should be held to the same standard of honesty as anyone else when they interact with lending institutions,” stated United States Attorney Dawn N. Ison. “When individuals lie to lenders, those lies cause loans to become more difficult and more expensive for honest consumers and businesses to access. My office is committed to ensuring that those who engage in dishonest financial crimes are held accountable.”
"The defendant admitted to providing false documents to a financial institution, undermining the laws and integrity of our financial systems, said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. "The FBI works tirelessly with our law enforcement partners and regulatory agencies to investigate those who commit financial crimes. If you believe you have information related to financial crimes, I urge the public to submit tips on alleged crimes such as those detailed in this case to 1-800-CALLFBI (1-800-225-5324) or online at tips.fbi.gov."
The case was prosecuted by Assistant U.S. Attorney Andrew J. Yahkind. The investigation was conducted by the Federal Bureau of investigation.
Former Health Care Manager Sentenced to Prison for Embezzlement SchemeRead the Press Release
MACON, Ga. – The former office manager of a Middle Georgia chiropractic office was sentenced to serve more than five years in prison after a federal jury found her guilty of committing bank fraud and other federal crimes in an embezzlement scheme that cost an established spinal center more than $200,000 in losses and resulted in its closure.
Emiliya Radford, 33, of Warner Robins, Georgia, was sentenced to serve 66 months in prison to be followed by three years of supervised release by U.S. District Judge Marc Treadwell on Oct. 9. In addition, Radford will pay $298,042.72 in restitution to Dr. James C. Smith on behalf of Smith Spinal Care Center. Radford was found guilty of one count each of bank fraud, wire fraud and federal program theft following approximately one hour of deliberations by a federal jury on June 27. There is no parole in the federal system.
“Financial crime can be life-changing for its victims; here, it forced a business’s closure and burdened innocent people with debt and other troubles,” said U.S. Attorney Peter D. Leary. “FBI and our other federal, state and local law enforcement partners will work to protect small businesses from financial crimes and hold fraudsters accountable.”
“Radford violated the trust of the company that hired her and elevated her to a position of leadership,” said Robert Gibbs, Supervisory Senior Resident Agent of FBI Atlanta's Macon office. “Because of her selfishness and greed, she has not only thrown away her career, but crippled a business and took away jobs from numerous victims. She will now serve a well-deserved prison sentence.”
According to court documents and evidence submitted at trial, Radford’s company, Cyber Pinecone, was hired in Sept. 2019 under a one-year contract to perform marketing work for Smith Spinal Care Center (SSCC) in Warner Robins. In May 2020, Radford was hired as Office Manager at the business, and her new salary included marketing work. Radford was given signatory authority over the SSCC bank account and was responsible for issuing and signing all biweekly payroll checks, including her own.
Radford collected her salary as office manager and, without authorization of SSCC, continued to write and endorse checks to her business, Cyber Pinecone, for extensive marketing work totaling more than $200,000. In addition, she gave herself an unauthorized pay raise and used money from the SSCC bank account to purchase $11,015.67 worth of items from the Apple store that she shipped to her residence. When Radford quit on Dec. 19, 2022, none of the Apple items could be located at SSCC, but some were found inside her home when federal agents executed a search warrant on May 4, 2023. A portion of the embezzled funds came from COVID-19 Federal Economic Disaster Loans (EIDL) directed to aid the business.
The case was investigated by FBI.
Assistant U.S. Attorney Elizabeth Howard prosecuted the case for the Government.
Former Certified Public Accountant Pleads Guilty to Tax EvasionRead the Press Release
DETROIT – A Walled Lake resident and former Certified Public Accountant pleaded guilty today to evading approximately $318,000 in federal income taxes, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Special Agent in Charge Charles Miller of the Internal Revenue Service-Criminal Investigations Detroit Field Office.
Paul Kozowicz, 75, pleaded guilty to one count of tax evasion. Kozowicz’s guilty plea arose out a scheme that, according to court papers, resulted in his intentional failure to report over 1.1 million dollars in taxable income to the Internal Revenue Service over a nine-year period.
According to the plea agreement, between approximately 2002 and 2011, Kozowicz worked as a full-time salaried employee providing accounting and financial services for a law firm in Birmingham, Michigan. In 2011, that firm reorganized, and Kozowicz became a part-time employee of the firm, making approximately 20% of his previous salary. To replace his lost income, Kozowicz became an independent contractor and provided accounting and consulting services to several other businesses.
Kozowicz formed a corporation called “FACS, Inc.,” which purported to be the entity that provided these accounting and consulting services. Kozowicz opened a bank account in the name of FACS, and Kozowicz’s customers deposited their payments for Kozowicz’s services into that account. However, Kozowicz did not declare any of the income he earned using the name FACS on any individual or corporate tax return between 2011 and 2019. Moreover, Kozowicz did not maintain any corporate books or records for FACS, nor did he observe or respect any other corporate formalities such as the State of Michigan’s annual corporate filing requirements.
In addition, according to the plea agreement, Kozowicz treated the monies deposited in the FACS account as his own, and used those monies freely for personal expenses and needs. Yet on his personal federal income tax returns the only income Kozowicz declared was his reduced law-firm salary and certain taxable social security receipts. FACS never filed a corporate tax return. Kozowicz further admitted that between 2011 and 2019, he earned approximately $1.15 million in unreported income through FACS and evaded payment of approximately $318,243 in tax due and owing on that income.
“Paul Kozowicz chose to enrich himself at the expense of the public by willfully concealing over a million dollars in taxable income from the IRS. As a financial professional, Kozowicz knew better. My office takes seriously anyone who evades their obligation to pay taxes, and today’s conviction reflects our commitment to identify and prosecute such offenders,” stated U.S. Attorney Ison.
“The license to run a business is not a license to avoid paying taxes,” said IRS Criminal Investigation, Detroit Field Office, Special Agent in Charge Charles Miller. “Paul Kozowicz's blatant fraud, hiding income, and having his shell business pay his purely personal expenses, cheated all Americans, since we all pay our fair share for the government services and protections that we enjoy. CI remains dedicated to holding those accountable that refuse to play by the rules.”
Sentencing is set for January 21, 2025 before United States District Judge Stephen J. Murphy III. Kozowicz faces a maximum sentence of five years imprisonment. He will be obligated to pay restitution of $318,243 to the IRS after sentencing.
The case is being prosecuted by Assistant United States Attorney John K. Neal. The investigation is being conducted by the Internal Revenue Service-Criminal Investigations Office.
Former Arkansas Sheriff’s Deputies Sentenced for Federal Civil Rights Violations for Violently Assaulting Subdued ManRead the Press Release
Two former Crawford County, Arkansas, sheriff’s deputies were sentenced for using unlawful force on a man they arrested. Levi White, 34, was sentenced yesterday to 63 months in prison, and Zackary King, 28, was sentenced today to 12 months in prison.
Each defendant pleaded guilty to one count of deprivation of rights under color of law for a retaliatory assault on R.W., a 26-year-old man. On Aug. 21, 2022, White, King and a third officer approached R.W. in a gas station parking lot 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, White punched R.W. at least nine times in the head, then lifted R.W.’s head and slammed it into the pavement. King kicked R.W. in the back and struck R.W. once in the midsection with his fist. Following the announcement of a federal investigation into the assault, White obstructed the investigation by wiping all data from his county-issued cell phone and selectively deleting text messages about the incident from his personal phone. White asked King if King was also going to wipe his cell phone, but King declined to do so.
“Punching a man in the head, slamming their head repeatedly on the concrete pavement, kicking them in the back and striking them in the midsection — this kind of gratuitous and unjustified violence at the hands of law enforcement runs contrary to the oath that officers take in our country to protect and serve,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendants swore an oath to uphold the law, then violated that oath and abused their power as law enforcement officers by assaulting a person in their custody. At the time of the assaults, three officers had already subdued the victim, and further force was unnecessary and unlawful. White added fuel to the fire by taking steps to obstruct the investigation into the violent assault. The Justice Department will continue to vigorously prosecute officers who abuse their authority and violate the rights of people in their custody.”
“Levi White and Zackary King’s sentencings prove that no law enforcement officer is above the law,” said Special Agent in Charge Alicia D. Corder of the FBI Little Rock Field Office. “FBI Little Rock, alongside our trusted partners at Arkansas State Police, will continue to investigate potential abuses of power and civil rights violations throughout our state. We encourage anyone who has information about abusive or corrupt law enforcement to contact the FBI’s ArkTrust Task Force immediately.”
The FBI Little Rock Field Office and Arkansas State Police 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 Attorneys Lia Rettammel and Anna Gotfryd of the Justice Department’s Civil Rights Division prosecuted this case.
Federal jury convicts retired DEA agent of conspiracy to defraud the United States and conspiracy to distribute controlled substancesRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal jury has convicted retired Drug Enforcement Administration Special Agent Joseph Bongiovanni, 60, of Tonawanda, NY, of one count of conspiracy to defraud the United States, one count of conspiracy to distribute a controlled substance, four counts of obstruction of justice, and one count of false statement to law enforcement. The charges carry a maximum penalty of 20 year in prison and a $250,000 fine.
“The prosecution of law enforcement officers and public officials are the most difficult cases that are undertaken by prosecutors,” stated U.S. Attorney Ross. “However, these verdicts show that no one is above the law, not even a federal agent.”
FBI Special Agent-in-Charge Matthew Miraglia stated, “Federal agents hold a significant amount of authority and trust to keep American people safe. Therefore, when the FBI learns of allegations including bribery, obstruction of justice, and lying to investigators, a rigorous investigation unfolds. Our investigation, re-enforced by the jury’s verdict, found that former DEA agent Joseph Bongiovanni chose greed over integrity. The FBI continues to execute our duties to the highest level of ethical and moral values. We remain steadfast in aggressively investigating and bringing those who misuse their authority to justice.”
“I want to commend the HSI special agents, our law enforcement partners, and the U.S. Attorney’s Office, for the tremendous work and countless hours expended to achieve a successful outcome in this case,” said Erin Keegan, HSI Buffalo Special-Agent-in Charge. “While Bongiovanni’s actions undermined and compromised law enforcement efforts throughout the area, his actions are not, in any way, a reflection of the thousands of DEA agents or law enforcement officers who serve this nation and community with honor and integrity.”
Assistant U.S. Attorneys Joseph M. Tripi, Nicholas T Cooper, and Casey L. Chalbeck, who are handling the case, stated that between 1998 and February 1, 2019, Bongiovanni served as a Special Agent with the Drug Enforcement Administration. From 2001 until his retirement, he was assigned to the Buffalo Resident Office. Bongiovanni used his position as a DEA special agent to defraud the DEA, an agency that is a part of the Department of Justice and the Executive Branch of the United States government, by violating his oath to the United States Constitution and duty to enforce the drug laws of the United States. As a part of his agreement to defraud the United States in violation of his oath and duty, and as part of his agreement to accept bribes, Bongiovanni protected his friends, associates, and individuals he believed were members or associates of Italian Organized Crime in Buffalo, from investigation, arrest, and prosecution. In particular, Bongiovanni provided Michael Masecchia, a former Buffalo School teacher with connections to Italian Organized Crime, and others involved in the distribution of substantial quantities of marijuana, cocaine, and fentanyl pills, by providing law enforcement sensitive information about the existence of investigations, the identities of informants, and about sensitive law enforcement techniques and tactics. As part of his protection and in furtherance of his conspiracy to defraud the DEA, Bongiovanni opened a case file within the DEA, which he then used to obtain to ensure that other state and local law enforcement agencies, and federal agents, would defer the investigation of the individuals that the defendant was protecting to the defendant. Bongiovanni also used the DEA case file to enter information pertaining to drug traffickers he was protecting into deconfliction databases in order to alert himself if any other members of law enforcement were investigating coconspirators Bongiovanni was protecting.
Relatedly, Bongiovanni was convicted of obstruction of justice and making materially false statements to an agent of the United States for preparing false and fraudulent official DEA memoranda, and making false statements to agents investigating Bongiovanni, to conceal his relationship with Peter Gerace Jr., an individual who was under investigation by the DEA, and others for drug trafficking and related offenses.
Michael Masecchia was previously convicted and sentenced to serve seven years in prison. Peter Gerace Jr. is awaiting trial. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The verdict is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; and the Department of Justice Office of the Inspector General, under the direction of Special Agent-in-Charge Ryan T. Geach, Northeast Region. The Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarantino, III, New York Field Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan Miller, New York Field Division, the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia, and the Niagara County Sheriff’s Office, under the direction of Sheriff Michael Filicetti also assisted in the investigation.
Sentencing is scheduled for June 9, 2025, before Judge Lawrence J. Vilardo who presided over the trial of the case.
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El Departamento de Justicia obtiene más de $6.5 millones de la cooperativa de crédito Citadel Federal Credit Union para abordar la exclusión financiera de las comunidades negras e hispanasRead the Press Release
El Departamento de Justicia anunció hoy que Citadel Federal Credit Union (Citadel) ha acordado pagar más de $6.5 millones para resolver las acusaciones de haber incurrido en un patrón o una práctica de discriminación crediticia al practicar la exclusión financiera en barrios de mayoría negra e hispana en Philadelphia y sus alrededores. Este acuerdo histórico es el primer acuerdo sobre la exclusión financiera que el Departamento de Justicia ha conseguido con una cooperativa de crédito, lo que lo convierte en un logro histórico para la Iniciativa para Combatir la Exclusión Financiera.
La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios crediticios a individuos que viven en comunidades de color por motivos de la raza, el color o el origen nacional de los residentes de esas comunidades.
“Este acuerdo sobre la exclusión financiera marca la primera resolución del Departamento de Justicia que involucra una cooperativa de crédito, lo que deja claro nuestra intención de hacer responsables a todos los tipos de prestamistas por su papel en la exclusión financiera moderna,” comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Hay más de 4,600 cooperativas de crédito en los Estados Unidos, cada una de las cuales está sujeta a leyes federales que prohíben la discriminación crediticia y la exclusión financiera. La exclusión financiera y otras formas de discriminación crediticia causan daño a las comunidades de color y a las familias al negarles la igualdad de oportunidades para acceder al crédito, lograr el sueño de ser propietarios de una casa y generar riqueza generacional. Este acuerdo ampliará la inversión en comunidades negras e hispanas, especialmente en Philadelphia, y mejorará las oportunidades de ser propietario de una casa y de alcanzar la estabilidad financiera. Los residentes de comunidades perjudicadas por la exclusión financiera ilegal finalmente podrán acceder a los servicios crediticios de Citadel en sus propios barrios, incluso en las nuevas sucursales requeridas por el acuerdo.”
“Durante generaciones, las comunidades de color de Philadelphia han carecido de acceso igualitario al crédito necesario para ser propietarios de casa. Sabemos que la exclusión financiera tiene un impacto devastador en las finanzas y el futuro de una familia, y resulta en desigualdades económicas y de otro tipo que atormentan a nuestras comunidades durante décadas,” afirmó Jacqueline C. Romero, la Fiscal Federal para el Distrito Este de Pennsylvania. “También somos conscientes del cambio transformador que puede ocurrir cuando el crédito se pone a disposición de los residentes desfavorecidos, y particularmente cuando los prestamistas, como Citadel, establecen sucursales en estos barrios.”
La demanda del Departamento de Justicia, que se presentó hoy en el Distrito Este de Pennsylvania, alega que, desde al menos el 2017 hasta el 2021, Citadel no proporcionó servicios de préstamos hipotecarios a barrios de mayoría negra e hispana en Philadelphia y sus alrededores, y desalentó a las personas que buscaban crédito en esas comunidades de obtener préstamos hipotecarios. Los préstamos hipotecarios de Citadel se centraron desproporcionadamente en áreas blancas de la zona metropolitana de Philadelphia. Otros prestamistas generaron solicitudes de hipoteca en barrios de mayoría negra e hispana a casi el triple de la tasa de Citadel y originaron préstamos hipotecarios en estas áreas a más del triple de la tasa de Citadel.
Más aún, la demanda alega que las sucursales de Citadel se encuentran casi exclusivamente en barrios de mayoría blanca, sin sucursales en la Ciudad de Philadelphia, que contiene más del 75% de los barrios de mayoría negra e hispana y el 34% de la población total en el área de mercado de Citadel.
En virtud de la orden de consentimiento propuesta, que queda sujeta a la aprobación del tribunal, Citadel ha acordado invertir $6.52 millones para aumentar las oportunidades crediticias para las comunidades de color en Philadelphia. En concreto, Citadel:
- Invertirá al menos $6 millones en un fondo de subsidios para préstamos para aumentar el acceso a préstamos hipotecarios, mejoras en la vivienda y préstamos de refinanciamiento residencial para residentes de barrios de mayoría negra e hispana en Philadelphia y sus alrededores;
- Gastará al menos $250,000 en el desarrollo de asociaciones comunitarias para la prestación de servicios relacionados con el crédito, la educación financiera del consumidor, la adquisición de viviendas y la prevención de ejecuciones hipotecarias para residentes de barrios de mayoría negra e hispana en el área de mercado de Citadel;
- Gastará al menos $270,000 en publicidad, proyección comunitaria, educación financiera al consumidor y asesoramiento de crédito centrado en barrios de mayoría negra e hispana en Philadelphia;
- Abrirá tres sucursales nuevas en barrios de mayoría negra e hispana en Philadelphia; y
- Contratará a un director de préstamos comunitarios que supervisará el desarrollo continuo de préstamos en comunidades de color.
Asimismo, Citadel ha acordado contratar a consultores independientes para mejorar su programa de préstamos justos y satisfacer mejor las necesidades de crédito hipotecario de las comunidades. La cooperativa de crédito llevará a cabo una evaluación de las necesidades crediticias comunitarias, evaluará sus sistemas de gestión de cumplimiento con las leyes de préstamos justos y llevará a cabo capacitaciones del personal.
Con activos de aproximadamente $6 mil millones, Citadel tiene su sede en Pennsylvania y opera 24 sucursales en su área de mercado por la zona metropolitana de Philadelphia, que incluye los condados de Bucks, Chester, Delaware, Lancaster, Montgomery y Philadelphia. Citadel es la segunda cooperativa de crédito más grande de la región y cuenta con más de 263,000 miembros. Citadel cooperó con la investigación del Departamento de Justicia.
En octubre del 2021, el Fiscal General Garland y la Fiscal General Auxiliar Clarke lanzaron la Iniciativa contra la Exclusión Financiera del Departamento de Justicia, un esfuerzo coordinado de aplicación de la ley para abordar esta forma persistente de discriminación contra las comunidades de color. Desde el año 2021, el Departamento ha anunciado 14 casos de exclusión financiera y ha obtenido más de $144 millones por concepto de compensación para comunidades de color que han sido víctimas de discriminación crediticia por todo el país. En marzo, la Fiscal General Auxiliar Clarke presentó comentarios en la Conferencia de Asuntos Gubernamentales de las Cooperativas de Crédito de los Estados Unidos sobre los problemas únicos planteados por la exclusión financiera en la industria de las cooperativas de crédito.
Puede encontrar una copia de la demanda e información sobre la aplicación de las leyes de préstamos justos del Departamento de Justicia en www.justice.gov/fairhousing. Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea.
Dutch National Pleads Guilty to Money LaunderingRead the Press Release
ALBANY, NEW YORK – Xiomara Christian, age 37, of Amsterdam, The Netherlands, pled guilty today to conspiracy to commit money laundering.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
Christian admitted that from May 2017 to November 2018, she and a co-conspirator laundered drug proceeds from Europe and Australia through bank accounts in the Northern District of New York, intending to conceal the true source of the proceeds, and to make it appear as though the money was legally obtained through legitimate business transactions.
On October 4, 2018, Christian delivered €101,950 ($114,816.09 USD) in drug proceeds to an undercover agent with the National Police of The Netherlands in The Netherlands. On October 5, 2018, an undercover agent with the Australian Criminal Intelligence Commission picked up $85,000 AUD ($57,843 USD) in drug proceeds from another co-conspirator in Melbourne, Australia. Christian then had the money wired through a bank account in Latham, New York, and sent to bank accounts in Panama.
At sentencing, scheduled for February 19, 2025, Christian faces up to 20 years in prison and a fine of up to $500,000. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The DEA investigated this case. Assistant United States Attorney Douglas Collyer is prosecuting the case.
Drug Maker Teva Pharmaceuticals Agrees to Pay $450M in False Claims Act Settlement to Resolve Kickback Allegations Relating to Copayments and Price FixingRead the Press Release
Teva Pharmaceuticals USA Inc. (Teva USA) and Teva Neuroscience Inc. (collectively, Teva) have agreed to pay $450 million to resolve two matters that allege Teva violated the Anti-Kickback Statute (AKS) and the False Claims Act (FCA). Teva, headquartered in Parsippany, New Jersey, is the largest generic drug manufacturer in the United States. The settlement amount was based on Teva’s ability to pay.
“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.”
The settlement encompasses two alleged kickback schemes. First, Teva has agreed to resolve allegations in a complaint the United States filed in the District of Massachusetts in August 2020 that Teva violated and conspired to violate the AKS and FCA by paying Medicare patients’ cost sharing obligations (copays) for the multiple sclerosis drug Copaxone from 2006 through 2017, while steadily raising Copaxone’s price. In particular, the United States alleged that Teva coordinated and conspired with multiple third parties, including a specialty pharmacy and two allegedly independent copay assistance foundations, to ensure that purported donations to the foundations were used specifically to cover the copays of Medicare Copaxone patients, which Teva knew was prohibited by the AKS, and that Teva thereby caused the submission of false claims to Medicare.
Second, Teva USA has agreed to resolve separate allegations that it conspired with other generic drug manufacturers to fix prices for pravastatin, a drug widely used to treat high cholesterol and triglyceride levels, as well as two other generic drugs, clotrimazole and tobramycin. Teva USA previously entered into a deferred prosecution agreement with the Justice Department’s Antitrust Division to resolve related criminal charges. Teva USA paid a criminal penalty of $225 million and admitted to conspiring with three other generic drug companies to fix prices on certain generic drugs. Under the civil settlement announced today, Teva agreed to resolve allegations that the benefits it received under its price fixing scheme constituted illegal kickbacks.
Teva will pay collectively $450 million to resolve the two kickback schemes. This payment is in addition to the criminal penalty paid by Teva USA under its deferred prosecution agreement.
“Kickback arrangements by pharmaceutical companies escalate the costs for critical drugs used by our citizens and federal health care programs,” said U.S. Attorney Jacqueline Romero for the Eastern District of Pennsylvania. “My office is proud to work with the rest of the Department of Justice and our investigative partners to enforce federal laws prohibiting kickback arrangements. We will continue to take action to lower the drug costs for our country and its health care programs supporting senior citizens, our military service members and others.”
“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 U.S. Attorney Joshua S. Levy for the District of Massachusetts. “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.
“The Medicare program’s copay structure serves as a safeguard against the artificial inflation of drug prices. When a pharmaceutical company manipulates drug prices through collusion, or disguises kickbacks as charitable donations to subsidize copays for its own drugs, the integrity of the Medicare program is jeopardized,” said Assistant Inspector General for Investigations Adam Globerman of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “This type of conduct is unacceptable, and HHS-OIG remains committed to thoroughly pursuing allegations of price fixing and kickbacks that put the Medicare program at risk.”
“The Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General, seeks to protect the integrity of TRICARE, the healthcare system for U.S. military members and their dependents,” said Special Agent in Charge Patrick J. Hegarty of DCIS Northeast Field Office. “When pharmaceutical corporations artificially inflate prices, they place an unnecessary financial burden on the TRICARE program. The settlement agreement announced today demonstrates our commitment to partner with investigative agencies and the Department of Justice, including the Civil Division and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, to combat healthcare fraud.”
Since 2017, the United States has collected over $1 billion, in addition to today’s settlement, from pharmaceutical companies that allegedly used third-party foundations as conduits to unlawfully pay patient copays. The department has also reached settlements with four foundations and a specialty pharmacy pertaining to those allegations. Today’s resolution with Teva is the largest of these settlements to date. The settlement of Teva’s price fixing conduct is the seventh pertaining to allegations of price fixing involving generic drugs, with total recoveries exceeding $500 million.
The government’s pursuit of these matters illustrates the department’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800‑HHS‑TIPS (800-447-8477).
The resolution of the patient copay matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and U.S. Attorney’s Office for the District of Massachusetts, with investigative support from HHS-OIG and the FBI.
Attorneys Douglas Rosenthal and Nelson Wagner of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Abraham R. George, Diane Seol and Evan Panich for the District of Massachusetts handled the matter.
The civil resolution of the price fixing matter was the result of a coordinated effort between the Fraud Section and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with investigative support from HHS-OIG, the Defense Health Agency Program Integrity Office, DCIS and Office of Inspector General for the Department of Veterans Affairs.
Senior Trial Counsel Jennifer L. Cihon and Senior Litigation Counsel Laurie A. Oberembt of the Civil Division and Assistant U.S. Attorneys Landon Y. Jones III, Rebecca S. Melley and Anthony D. Scicchitano for the Eastern District of Pennsylvania handled the matter. Fraud Section financial analyst Sheryl Paynter provided support for both matters.
The civil action in Massachusetts is captioned United States v. Teva Pharmaceuticals USA, Inc. et al., No. 20-cv-11548 (DMA).
DMA Settlement
EDPA Settlement
Court Prohibits Two Texas Physicians from Prescribing Opioids and Imposes $1.2M in Civil Penalties for Alleged Unlawful Opioid DistributionRead the Press Release
A federal court has prohibited two Dallas-area physicians from prescribing opioids and other controlled substances and imposed a total of $1.2 million in judgments against them in a case alleging the physicians violated the Controlled Substances Act (CSA), the Justice Department announced today.
In a civil complaint filed in 2019 in the Northern District of Texas, the United States alleged that Cesar B. Pena Rodriguez M.D. and Leovares A. Mendez M.D. violated the CSA by issuing prescriptions for opioids and other powerful drugs outside the usual course of professional practice and not for a legitimate medical purpose. The complaint alleged that the defendants issued thousands of prescriptions without apparent regard for patient harm, including prescriptions for a combination of an opioid, a short-acting benzodiazepine, and a muscle relaxer — a dangerous and frequently-abused drug cocktail known as the “trinity.” In an order filed Oct. 8, the court imposed a $291,451 civil penalty judgment against Mendez in addition to a $914,021 civil penalty judgment against Pena Rodriguez entered earlier this year.
“Prescribing opioids for no legitimate purpose betrays the trust placed in our medical professionals and significantly threatens the communities they serve,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to use every available tool to stop doctors who fail to uphold their obligation to prescribe controlled substances lawfully.”
“Doctors are charged with protecting and healing us when we are sick and vulnerable. Instead of healing vulnerable members of our community, these doctors sought to profit off of their addictions,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “The U.S. Attorney’s Office’s Civil Division, in conjunction with our partners in the Consumer Protection Branch, sought immediate injunctive relief to prevent these doctors from prescribing to addicts and have now terminated their ability to ever put their patients at risk in this way again.”
“Peña-Rodríguez and Mendez were distributing deadly controlled substances mix known as the ‘trinity’ outside the course of a legitimate medical need, simply to get rich,” said Special Agent in Charge Eduardo A. Chávez of the Drug Enforcement Administration (DEA) Dallas. “Following our successful criminal prosecution, we issued a trinity of ourselves through not just criminal penalties, but now civil and administrative ones as well. Standards for our medical professionals must stay high because patients deserve a doctor they can trust. We will continue to partner with the U.S. Attorney’s Office to seek all avenues of justice and accountability against all medical providers who violate their code of conduct.”
The defendants agreed to consent judgments to settle the allegations in the complaint. The orders entered by the court permanently prohibit Pena Rodriguez and Mendez from ever again prescribing, dispensing, administering or distributing controlled substances. The orders also bar them from holding DEA registrations or working at, supervising or owning a medical practice where controlled substances are present.
In a separate criminal action, Pena Rodriguez previously pleaded guilty to one count of conspiracy to unlawfully distribute controlled substances. Mendez was found guilty at a jury trial of one count of conspiracy to distribute a controlled substances and six counts of unlawful distribution of controlled substances. Mendez was sentenced to seven years in prison. Dr. Pena Rodriquez was sentenced to two years in prison.
The DEA investigated the case.
Assistant U.S. Attorney Sarah Delaney for the Northern District of Texas and Trial Attorney Scott B. Dahlquist of the Civil Division’s Consumer Protection Branch prosecuted the case.
The claims made in the complaint are allegations that the United States would need to prove by a preponderance of the evidence if the case proceeded to trial.
Controller of Family-Owned Businesses Pleads Guilty to Embezzling $3.4 MillionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHN HICKEY, the former controller and Director of Quality Assurance for a family-owned business in Armonk, New York, pled guilty to one count of wire fraud in connection with his embezzlement of more than $3.4 million from the business.
U.S. Attorney Damian Williams said: “John Hickey embezzled over $3.4 million from a family-owned business, exploiting his position of trust for personal gain. Today’s guilty plea holds Hickey accountable for his illegal conduct and demonstrates our unwavering commitment to pursuing justice for victims of fraud.”
According to the allegations contained in the Information:[1]
HICKEY was a member of the family that owned the group of victim corporations and held minority ownership interest in some of the corporations. The victim corporations manufactured flame retardant fabrics. HICKEY began to work at the victim corporations while he was in college and became the Director of Quality Assurance in or about 2012. HICKEY also served as the controller of some of the victim corporations.
From February 2018 to November 2023, HICKEY embezzled $3,461,292.69 from the victim corporations. He created false invoices that appeared to be from entities with which the vctim corporations did business. He then forged signatures that supposedly approved payment of those invoices and caused the victims' accounting system to print checks payable to him in the amount of the invoices. Once a check was printed, HICKEY changed the payee on the check to match the name on the corresponding false invoice. He used a rubber signature stamp to sign the checks. HICKEY used the proceeds of the above scheme to gamble on sporting events, to attend concerts and sporting events, to improve and repair his home and to go on vacations.
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HICKEY, 34, of Feasterville-Trevose, PA, pleaded guilty to one count of wire fraud, which carries a maximum sentence of twenty years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the sentence will be determined by the court.
Mr. Williams praised the outstanding investigative work of the Special Agents of the United States Attorney's Office for the Southern District of New York.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
[1]As the introductory phrase signifies, the entirety of the text of the Information, and the description of the Information set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Bronx Man Convicted of Robberies and Firearms OffenseRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of JAMES KELLY for robbing two delis in the Bronx, New York, on October 10, 2021 and January 15, 2023, and brandishing a firearm in connection with the 2023 robbery. The jury convicted KELLY today following a four-day trial before U.S. District Judge Gregory H. Woods.
U.S. Attorney Damian Williams said: “James Kelly used a firearm to intimidate and threaten the lives of working New Yorkers, all to steal money from their delis. Today, a unanimous jury of his peers held Kelly accountable for his crimes. We thank our law enforcement partners for their relentless pursuit of justice for the victims and the public."
According to the allegations in the Indictment and the evidence presented during trial and court proceedings:
On October 10, 2021, KELLY entered a deli in the Bronx with his hands in his pocket, purporting to have a gun. He got close to a deli employee working alone in the store, threatened to shoot him, and demanded cash and marijuana. After the deli employee gave KELLY cash, KELLY ordered the deli employee to get down on the ground and said that if the employee moved, he would “shoot the shit” out of the employee. Fifteen months later, on January 15, 2023, KELLY robbed another deli in the Bronx, pointed a gun at two deli employees, again demanded cash and threatened to shoot them, and again ordered them to get on the ground.
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KELLY, 32, of the Bronx, New York, was convicted of two counts of Hobbs Act robbery, each of which carries a maximum sentence of 20 years in prison; and one count of the use, carrying, and possession of a firearm, which was brandished, which carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. KELLY is scheduled to be sentenced by Judge Woods on January 14, 2025.
Mr. Williams praised the outstanding investigative work of the New York City Police Department’s Bronx Violent Crimes Squad and the investigators of the Office.
This case is being supervised by the Office’s General Crimes Unit. Assistant U.S. Attorneys Connie L. Dang, Adam Z. Margulies, Georgia V. Kostopoulos, Katherine Cheng, and David R. Felton are in charge of the prosecution, with the assistance of Paralegal Specialist Olivia Sebade.
Boston Man Sentenced to over 10 Years in Prison for Attempting to Purchase Sex with MinorRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for attempting to pay for sex with a 14-year-old girl.
Dimitri Shawn McKenzie, 29, was sentenced by U.S. Senior District Court Judge William G. Young to 126 months in prison, to be followed by five years of supervised release. In June 2024, McKenzie was convicted following a three-day jury trial of one count of attempted sex trafficking of a child.
“The sad reality is that children are being sold for sex in our communities because of people like Dimitri McKenzie. These men fuel that commercial sex industry and drive demand. 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 have to go after demand – that is the people who are trolling the internet purchasing 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 ten years behind bars,” said Acting United States Attorney Joshua S. Levy.
“It is deeply disturbing to know that people pay to sexually abuse children. McKenzie was ready and willing to pay to sexually assault a child. Thankfully, through our undercover operation, he instead found an HSI special agent and not a real child,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “This sentence reflects the seriousness of his crime and our commitment to protecting children from exploitation and abuse.”
In November 2022, McKenzie responded to an online post purportedly advertising two minor girls – ages 12 and 14 years old – available to perform sex acts in exchange for money in the Boston area. The post was a fictitious advertisement by undercover law enforcement. In subsequent text communications with undercover law enforcement, McKenzie agreed to pay $100 to have sex with the fictitious 14-year-old at a hotel. Upon arriving at the hotel, McKenzie met with undercover law enforcement posing as the purported seller in the hotel parking lot, provided cash in exchange for 20 minutes with the fictitious minor and accepted a hotel room key. McKenzie was immediately taken into custody.
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. Valuable assistance was provided by the Lexington, Waltham, Barnstable, Quincy and Cambridge Police Departments as well as the Massachusetts State Police and the Massachusetts Attorney General’s Office. Assistant U.S. Attorney Torey B. Cummings of the Civil Rights & Human Trafficking Unit and Assistant U.S. Attorney David G. Tobin of the Major Crimes Unit prosecuted the case.
Boston Man Charged in Elder Fraud Conspiracy That Defrauded Elderly Victim of over $400,000Read the Press Release
BOSTON – A South Boston man has been arrested and charged in connection with a scheme that defrauded a 75-year-old man from Berkshire County, Mass., of approximately $420,000.
Urvishkumar Vipulkumar Patel, 21, was charged with conspiracy to commit wire fraud. Patel was arrested on Oct. 7, 2024 and subsequently released by the Court on conditions including GPS monitoring and orders that he remain in Massachusetts.
According to the charging documents, in or around June 2024, the victim received a pop-up message on his computer claiming that his computer was frozen. The message contained a phone number, which the victim believed to be associated with Microsoft, and directed the victim to call for assistance. The victim then called the phone number listed in the pop-up and allegedly spoke with an individual before being transferred to another individual who called himself, “Sam Wilson.”
It is alleged that Wilson claimed to be a federal agent with the U.S. Treasury Department and purported to confirm the victim’s name and address. When the victim stated that was not the correct address, Wilson provided additional addresses until the victim identified his correct address. Wilson then allegedly told the victim that the victim’s name and address were listed as being involved in a money laundering scheme and that the “Treasury” showed a number of houses had been purchased in the United States and Russia in the victim’s name. Wilson allegedly told the victim that he was going to help him get out of this trouble and would speak to a judge but that, in the meantime, the victim needed to safeguard his money from being further implicated in the supposed money laundering scheme. Specifically, Wilson allegedly told the victim he should withdraw cash from his bank and send it to the Treasury Department, where it would be kept in a lock box until the victim was cleared of the scheme. Wilson also allegedly cautioned that the bank would not let the victim withdraw all of his money at once – directing the victim to make the withdrawals in smaller amounts and send it to Wilson at the “Treasury” in installments.
On approximately five separate occasions over the course of three months, the victim withdrew and provided approximately $420,000 in cash to several individuals he believed to be associated with “Sam Wilson.” On each occasion, Wilson asked the victim how much he could withdraw from his bank account, directed the victim to place the cash in a taped box with the victim’s own name and address written on it. Wilson also allegedly told the victim a specific date and time at which he would send a courier for the cash. On each occasion, the courier would pull alongside the curb in front of the victim’s house, lower one of the passenger side windows and provide a prearranged “PIN” passcode to the victim. The victim would then place the box of cash into the courier’s vehicle who would then drive away.
The victim’s sister reported this activity to law enforcement on Oct. 1, 2024. According to the charging documents, on Oct. 7, 2024, Patel served as the courier waiting outside of the victim’s home and was approached by an undercover officer posing as the victim. It is alleged that, after receiving the prearranged “PIN” passcode from Patel, the undercover officer placed the box into Patel’s vehicle and Patel quickly drove away. He was immediately apprehended.
At the time of his arrest, Patel was allegedly driving a rental car and was actively engaged in a WhatsApp call on his cell phone. Patel allegedly told law enforcement that he had been collecting packages for weeks at the direction of another individual in exchange for payment. Patel also allegedly told law enforcement that he would deliver each package to a prearranged location before receiving his payment.
The investigation remains ongoing. Members of the public who believe they are victims of a cybercrime – including elder fraud scams, cryptocurrency scams, romance scams, investment scams, and business email compromise fraud scams – should contact [email protected]. To report elder fraud, please visit the FBI’s IC3 Elder Fraud Complaint Center or contact the dedicated National Elder Fraud Hotline at 833–FRAUD–11 or 833–372–8311 Monday - Friday, 10a.m.- 6p.m. EST.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the North Adams Police Department and the Hampden County Sheriff’s Office. Assistant U.S. Attorney Kaitlin Brown of the Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bakersfield Man Charged with Offenses Involving the Sexual Exploitation of MinorsRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment against Rafael Omero Plata Guerrero, 34, of Bakersfield, today charging him with two counts of sexual exploitation of a minor and one count of receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between April 15, 2024, and Aug. 26, 2024, Guerrero produced visual depictions of two minors engaged in sexually explicit conduct. Using the internet and a laptop, Guerrero also received child pornography between June 1, 2024, and Aug. 27, 2024.
This case is the product of an investigation by Homeland Security Investigations, the U.S. Secret Service, and the Central California Internet Crimes Against Children Task Force. Assistant U.S. Attorney Brittany M. Gunter is prosecuting the case.
If convicted, Guerrero faces a maximum statutory penalty of up to 30 years in prison, with a mandatory minimum of 15 years in prison, and up to a $250,000 fine for each count of sexual exploitation of a minor. If convicted of receipt of child pornography, Guerrero faces a maximum statutory penalty of up to 20 years in prison, with a mandatory minimum of five years in prison, and up to a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
23 Members of a Violent Gang in Aguadilla, Puerto Rico, Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SAN JUAN, Puerto Rico – On September 28, 2024, a federal grand jury in the District of Puerto Rico returned an indictment charging 23 violent gang members from the municipality of Aguadilla with conspiracy to possess with intent to distribute, possession and distribution of controlled substances, and firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation and the Puerto Rico Police Bureau (PRPB) Aguadilla Strike Force were in charge of the investigation of the case. Homeland Security Investigations (HSI) Special Response Team (SRT) and Guaynabo Municipal Police SRT collaborated during the arrests.
“Criminal organizations like the one we dismantled today harm the community with drug trafficking and acts of violence,” said U.S. Attorney Muldrow. “Federal and state authorities will continue to focus our resources to remove violent gang members from the community so law abiding citizens can live in peace.”
“Our successful operation and the indictment of over 20 individuals in this case stand as a resolute testament to the unwavering commitment of our office to combat drug trafficking organizations across our entire area of responsibility,” said Joseph González, Special Agent in Charge of the FBI’s San Juan Field Office. “We know our work is not completed when it comes to the fight against violent gangs and the scourge of illegal drugs, but the public can be assured that we will continue to relentlessly pursue and bring to justice those who seek to profit from the suffering of others.”
The indictment alleges that from 2015 through the present, the drug trafficking organization distributed cocaine base (commonly known as “crack”), cocaine, and marihuana within 1,000 feet of La Montaña Public Housing Project, and other areas nearby the municipality of Aguadilla, all for significant financial gain and profit.
As part of the conspiracy, the defendants established a drug distribution point that would move within different areas inside the public housing project, in order to avoid police detection. While selling narcotics at the drug point, the co‑conspirators used face masks to avoid identification by law enforcement officers and asked potential buyers for a government identification prior to selling the narcotics to detect government agents.
The defendants acted in different roles to further the goals of the drug trafficking conspiracy, to include: leaders, enforcers, runners, sellers, and facilitators. The members of the gang used force, violence, and intimidation to intimidate rival drug trafficking organizations, and to discipline members of their own organization. The defendants charged in the drug trafficking conspiracy are:
[1] Efraín Pellot-Guerra, a.k.a “Fri Fri”
[2] Marcelino Nieves-Flores, a.k.a “Boster”
[3] Luis Abraham Berdecía, a.k.a “Luisito”
[4] Caleb John Arocho-Quiñones, a.k.a “Caleb/John El Vizco/El Gordo”
[5] Rolando Martell-Bartolomey, a.k.a “Chava”
[6] Jose Pellot- Avilés, a.k.a “Carimarcao”
[7] Jesús Manuel Lorenzo, a.k.a “Chino/Gordo”
[8] Mason Maisonet-Cruz
[9] Bryan Snaidel Rodríguez-Nieves
[10] Giordanny Levi González-Molina
[11] Jeremy Khalil Arvelo-Cruz
[12] Héctor Rosado Álvarez, a.k.a “Onix”
[13] Dwight Arvelo-Sánchez
[14] Marc Anthony Rodríguez-Cestero
[15] Carlos Morales-Malavé, a.k.a “Gonzalo”
[16] Santos López-Nieves, a.k.a “Choki”
[17] Julio Valentín-García, a.k.a “Melaza”
[18] Elian Jafred Quiles-Vega, a.k.a “Keko”
[19] Gianny Kid Vega-Molina, a.k.a “Anthony”
[20] Félix Pardo-Hernández
[21] Kevin Vargas-Vega, a.k.a “Flow”
[22] Juan Seín-González
[23] Carlos Manuel Vega-Román
Eight defendants are charged in Count Five with possession of firearms in furtherance of a drug trafficking crime.
The FBI thanks the PRPB Aguadilla Strike Force for their assistance in this investigation.
Assistant U.S. Attorney (AUSA) and Chief of the Gang Section Alberto López-Rocafort, Deputy Chief of the Gang Section, AUSA Teresa Zapata-Valladares, and AUSAs Pedro R. Casablanca, and Héctor Siaca Flores are prosecuting the case. If convicted on the drug charges, the defendants face a minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges in Count Five, the defendants face a minimum sentence of 15 years, and up to life in prison. All defendants charged in the drug conspiracy are facing a narcotics forfeiture allegation of $6,897,500.
An indictment 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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12 Charged with Fentanyl Trafficking in AbileneRead the Press Release
Twelve alleged fentanyl traffickers were arrested in a large-scale drug bust in Abilene, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
The takedown – the second in an operation that previously resulted in the prosecution of 17 drug traffickers arrested during a large-scale bust in late February – involved agents and officers from the Federal Bureau of Investigation’s Dallas Field Office - Abilene Resident Office, the Taylor County Sheriff’s Office, the Abilene Police Department, and the Callahan County Sheriff’s Office.
Those charged in two separate indictments unsealed today include:
- Christopher Thompson, charged with possession with intent to distribute fentanyl
- Marquee Anthony Aboso, aka OC, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
- Kurtney Bernard Jones, aka KP, charged with conspiracy to distribute fentanyl and two counts of possession with intent to distribute fentanyl
- Steven Lattimore, aka PNut, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
- Mckenzee Marie Lane, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
- Maxine Gonzales, charged with conspiracy to distribute and possess with intent to distribute fentanyl
- Tylik Ojur Johnson, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
- Jeremiah Greene, aka Lil Mexico, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
- Paul Eli Snyder, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
- Robert Lee Mason, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
- Glen Edward Lee, Jr., charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
- Christopher Anthony Glaze, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
Over the course of the operation into these individuals, agents seized more than 14,856 fentanyl pills, 45.4 grams of heroin, 2.56 grams of meth, and 15.56 grams of crack cocaine, as well as multiple firearms.
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, some defendants named in these indictments face up to 20 years in federal prison.
Sixteen of the 17 defendants arrested in February’s takedown have already been convicted. Fourteen have already been sentenced to a combined 187 years in federal prison; two pleaded guilty and await sentencing, and one is awaiting trial. The lead defendant, Diana Perez, deemed responsible for more than 109,221 kilograms of drugs, was sentenced Thursday to more than 24 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office - Abilene Resident Agency, the Drug Enforcement Administration's Dallas Field Division - Fort Worth Resident Agency, and the Taylor County Sheriff’s Office conducted the investigation with the assistance of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, & Explosives' Dallas Field Division, and the IRS – Criminal Investigations. The cases are being prosecuted by the West Texas Branch of the U.S. Attorney’s Office for the Northern District of Texas.
This prosecution stems from an Organized Crime Drug Enforcement Task Forces (OCDETF) instigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transitional criminal organizations that threaten the Untied 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. Additional information about the OCDETF program can be found at https://www.justice.gov/OCDETF.