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Thursday 3 October 2024
Billings woman admits to meth trafficking, straw purchase of gunRead the Press Release
BILLINGS — A Billings woman accused of trafficking methamphetamine and of buying a firearm for a juvenile in which the gun was used in a burglary admitted charges today, U.S. Attorney Jesse Laslovich said.
The defendant, Ali Sage Hausmann, 25, pleaded guilty to possession with intent to distribute meth and to false statement during a firearms transaction. Hausmann faces a mandatory minimum of five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the drug charge and a maximum of 10 years in prison, $250,000 fine, and three years of supervised release on the firearm charge.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Feb. 5, 2025. Hausmann was released pending further proceedings.
The government alleged in court documents that on May 9, 2022, Hausmann purchased a Beretta 9mm semi-automatic pistol in Billings. Hausmann was accompanied by a juvenile, identified as H., and her boyfriend. Hausmann filled out an ATF Form 4473 and indicated she was the actual purchaser of the firearm. The next day, H. burglarized a home in Billings with the Beretta 9mm. Another juvenile who participated in the burglary told law enforcement that H. was in possession of a Beretta 9mm pistol. The other juvenile indicated that the firearm was purchased for H. by a female, known to him as Ali, the day prior to the burglary. Hausmann’s boyfriend confirmed to law enforcement that Hausmann purchased the Beretta 9mm for H. On May 25, 2022, Hausmann pawned the Beretta pistol.
During the investigation into the firearm purchase, law enforcement learned that Hausmann was selling drugs. Information from Hausmann’s Facebook account indicated she sold and purchased meth, and that she bought the firearm for H. In December, law enforcement served a search warrant on Hausmann’s residence and located a small amount of meth in her room and a different firearm in her purse. Hausmann admitted to selling drugs.
The U.S. Attorney’s Office is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted, and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
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BLM Activist Sentenced to Prison for Wire Fraud and Money LaunderingRead the Press Release
TOLEDO, Ohio - Sir Maejor Page, 35, of Toledo, has been sentenced to 42 months in prison by U.S. District Judge Jeffrey Helmick after a jury convicted him of wire fraud and money laundering for defrauding donors of more than $450,000 that they collectively gave to his nonprofit “Black Lives Matter of Greater Atlanta” (BLM of Greater Atlanta) based on Page’s false representations. He was also ordered to pay a $400 special assessment fee.
Page continued to collect donations to his purported social justice charity through the organization’s Facebook page even after its tax-exempt status was revoked for failure to submit IRS Form 990 for three consecutive years. He regularly posted content to Facebook about social and racial issues to give his nonprofit the appearance of legitimacy, despite no longer being tax-exempt. He also used Facebook to message privately with users, and he falsely represented that their donations would be used to “fight for George Floyd” and the “movement.” As a result, approximately 18,000 people donated to the BLM of Greater Atlanta charity through its Facebook account, which Page administered.
Page used the donations to BLM for his own personal benefit. He purchased entertainment, hotel rooms, clothing, firearms, and a property that he intended to use as his personal residence. He attempted to conceal the purchase of the property by using the name “Hi Frequency Ohio” and asked the seller to sign a nondisclosure agreement that would have prevented the seller from listing Page as the actual buyer.
“Mr. Page took advantage of a cause meant to fight social injustices, using it instead to line his own pockets with thousands of dollars of donations,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “People donate their hard-earned money to support causes they believe in, and when a fraudster like Page comes along and tries to get away with a fake charity scheme, it hurts legitimate nonprofit organizations that rely on the generosity of others to advance their missions and make positive change in the world. This Office will hold accountable those who try to profit by scamming unsuspecting people out of their money like Page did here.”
"The FBI will aggressively investigate individuals, like Sir Maejor Page, who engage in fraudulent charity schemes at the expense of the American public,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “Page is a calculating criminal who willingly conspired to steal hundreds of thousands of dollars through the trusting public. Today’s sentence holds him accountable and demonstrates that the FBI will steadfastly pursue perpetrators who target American citizens.”
This case was investigated by the FBI Cleveland Division and prosecuted by Assistant U.S. Attorneys Gene Crawford and Rob Melching.
Armed Career Criminal Sentenced to 15 Years in Federal Prison for Being A Felon in Possession of A FirearmRead the Press Release
LITTLE ROCK—Marcus Venson, a multi-convicted felon, will spend the next 15 years in federal prison for being a felon in possession of a firearm. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down on Wednesday, October 2, 2024, by Chief United States District Judge Kristine G. Baker.
On August 24, 2023, Venson, 45, of Little Rock, pleaded guilty to being a felon in possession of a firearm. Chief Judge Baker also sentenced Venson to three years supervised release. Venson was indicted on November 2, 2022, in a second superseding indictment, on one count of being a felon in possession of a firearm.
An investigation revealed that on March 18, 2018, the Little Rock Police Department responded to a call of a theft that just occurred at a residence. The caller at the scene advised officers that a person drove to a nearby residence and entered the residence. Officers located Venson’s car outside and discovered he was inside the residence and carrying a television toward the front door. Venson, who was ordered to put the television down and show his hands, stated, “I’m just trying to steal stuff.” At this time, officers observed a silver firearm in Venson’s pocket, but Venson stated he did not have a firearm, while at the same time touching the firearm. Venson was placed into custody after officers ordered him to come out of the residence. During a search of Venson, officers recovered a firearm, ammunition, and phencyclidine (PCP).
Venson is classified as an armed career criminal offender due to his violent criminal history that includes convictions for aggravated assault, terroristic threatening, residential burglary, and battery in the second degree. There is no parole in the federal system.
The investigation was conducted by the Little Rock Police Department. The case was prosecuted by Assistant United States Attorneys Jordan Crews and John Ray White.
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Additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
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Wednesday 2 October 2024
법무부와 콜로라도 사법부, 영어 능력이 제한된 개인을 위한 법원의 언어 접근성 개선Read the Press Release
법무부는 오늘 콜로라도 사법부가 주 법원 시스템과 상호 작용하는 제한된 영어 능력(LEP)을 가진 사람들이 의미 있는 언어 접근을 보장하기 위해 중요한 조치를 취했다고 발표했습니다.
2023년 7월, 법원이 1964년 민권법 제6조(Title VI)에 따라 LEP를 갖춘 개인에게 필요한 언어 서비스를 제공하지 않는다는 불만을 접수한 후 법무부 민권부는 콜로라도 사법부와 합의했습니다. 제6조는 연방 재정 지원을 받는 사람들의 인종, 피부색 및 국적을 바탕으로 차별을 금지합니다.
법무부의 조사에 따라 콜로라도 사법부는 불만 사항에서 제기된 우려 사항을 해결하기 위해 이미 취한 사전 조치를 확인하고 부서와 협력하여 언어 접근 프로그램을 다양하게 개선했습니다.
법무부 민권부의 Kristen Clarke 법무차관보는 "법정 안팎에서 정확하고 시기적절하게 통역 서비스를 제공하는 것은 모든 법원 사용자가 사법부에 동등하게 접근할 수 있도록 보장하는 데 가장 중요합니다. 콜로라도 사법부가 취한 조치는 강력한 언어 접근 프로그램을 구축하기 위한 진정한 의지를 보여주는 모델입니다."라고 말했습니다.
법무부가 콜로라도 사법부와 협력하기 시작한 해에 법원은 새로운 언어 접근 코디네이터를 고용하고, 언어 접근 금융 정책국을 개정하고, 통역사를 위한 새로운 스케줄링 시스템을 만들기 시작했으며, 헤드셋과 아이패드를 포함한 법원 통역에 사용할 새로운 장비를 구입하고, 법원 직원과 통역사를 교육하고, 기타 주요 개선 사항을 구현했습니다.
부서는 계속해서 이러한 변경 사항 실행을 모니터하고 대중들의 피드백도 받을 것입니다. 차별적 관행에 대한 불만은 민권부 웹사이트(civilrights.justice.gov)를 통해 신고할 수 있습니다.
민권부에 대한 더 많은 정보는 웹사이트(www.justice.gov/crt)에서 이용 가능합니다. www.lep.gov에서 제한된 영어 능력과 제6조에 대한 정보를 확인할 수 있으며, 법원별 정보는 www.lep.gov/state-courts에서 확인할 수 있습니다.
司法部和科羅拉多州司法機構改善英語能力有限人士在法院的無障礙語言使用情況Read the Press Release
司法部今日宣佈，科羅拉多州司法機構已採取重大措施，確保使用州法院系統的英語能力有限 (LEP) 人士能以有意義的方式無障礙地使用他們的語言。
司法部民權司於 2023 年 7 月收到投訴，指法院未有按照 1964 年《民權法案》第六章下的規定，向英語能力有限的人士提供所需的語言服務。其後，民權司就此事宜與科羅拉多州司法機構聯絡。《民權法案》第六章禁止接受聯邦財務援助的實體因個人的種族、膚色和國籍而作出歧視。
為回應司法部的查詢，科羅拉多州司法機構現已採取積極措施，以解決該投訴提出的問題，並與該部門合作，進一步改善其無障礙語言使用計劃。
司法部民權司助理檢察長 Kristen Clarke 表示：「在法庭內外提供準確及時的口譯服務，能確保所有法庭使用者都能平等地獲得司法保護。“科羅拉多州司法機構所採取的行動堪稱典範，更顯示出他們積極履行建立一個強大的無障礙語言使用計劃的承諾。”
司法部已與科羅拉多州司法機構合作一年。該法院目前已聘請了一名新的語言使用協調員，也修訂了語言使用辦公室的財務政策，更開始為口譯員建立新的排班系統。此外，他們也購置了適用於法院口譯的新設備（包括耳機和 iPad）和對法院工作人員和口譯員進行培訓，也落實了其他重要的改善措施。
司法部會繼續跟進和監測這些改善措施的落實情況，並歡迎公眾提出相關意見。您可以透過民權司網站civilrights.justice.gov舉報或投訴任何歧視性行爲。
有關民權司的更多資訊，請前往 www.justice.gov/crt。 有關英語能力有限和《民權法案》第六章的資訊，請瀏覽 www.lep.gov，而有關法院的特定資訊，請前往 www.lep.gov/state-courts。
司法部和科罗拉多州司法机构改善英语水平有限的个人在法庭上的语言使用Read the Press Release
司法部今天宣布，科罗拉多州司法机构已采取重要措施，确保英语水平有限 (LEP) 与州法院系统互动的人能够获得有意义的语言服务。
2023 年 7 月，司法部民权司收到科罗拉多州司法机构的投诉，称法院没有按照 1964 年《民权法案》第六章的要求向 LEP 个人提供所需的语言服务。《民权法案》第六章禁止接受联邦财政援助的实体基于种族、肤色和民族血统做出歧视行为。
为了回应该部门的询问，科罗拉多州司法机构确定了 已经采取的积极措施解决投诉中提出的问题，并与该司合作对其语言访问计划进行了各种其他改进。
“在法庭内外提供准确、及时的口译服务对于确保所有法庭使用者都能平等诉诸司法至关重要，”司法部民权司助理司法部长克里斯汀·克拉克说。“科罗拉多州司法机构采取的行动堪称典范，体现了对建立强大的语言准入计划的真正承诺。”
自司法部开始与科罗拉多州司法机构合作以来，法院聘请了一位新的语言协调员；修订了语言使用办公室的财务政策；开始为口译员创建新的排班系统；购买了用于法庭口译的新设备，包括耳机和 iPad；培训了法庭工作人员和口译员；并实施了其他重要改进。
该部门将继续监督这些改革的实施，并欢迎公众提供反馈意见。有关歧视性做法的投诉可通过民权部门的网站进行举报：civilrights.justice.gov
有关民权部门的更多信息，请访问其网站： www.justice.gov/crt. 有关英语水平有限和第六章的信息，请访问： www.lep.gov, 关于法院的信息可以在以下网址找到：www.lep.gov/state-courts.
የፍትህ ዲፓርትመንት እና የኮሎራዶ የህግ ተርጓሚ በፍርድ ቤት ውስጥ ውስን የሆነ የእንግሊዘኛ ቋንቋ ችሎታ ያላቸውን ሰዎች የቋንቋ ተደራሽነት አሻሽለዋል።Read the Press Release
የኮሎራዶ የህግ ተርጓሚ አካላት ውስን የሆነ የእንግሊዘኛ ቋንቋ ችሎታ ያላቸው ሰዎች (LEP) እና የፍርድ ቤት ጉዳይ ያላቸው ሰዎች ትርጉም ያለው የቋንቋ ተደራሽነት እንዲኖራቸው ትልቅ እርምጃ መውሰዳቸውን የህግ ክፍል በዛሬው እለት አሳውቋል።
ጁላይ 2023 ላይ የዲፓርትመንቱ የሲቪል መብቶች ክፍል የኮሎራዶ ህግ ተርጓሚን ያገኘ ሲሆን ይህም የሆነው ፍርድ ቤቶች ውስን የሆነ የእንግሊዘኛ ቋንቋ ችሎታ ላላቸው ሰዎች በሲቪል መብቶች አዋጅ 1964 (ርእስ VI) መሰረት አስፈላጊ የሆነ የቋንቋ አገልግሎት ካለማቅረባቸው ጋር በተያያዘ ቅሬታ ከተቀበለ በኋላ ነው። ርእስ VI በዘር፣ ቀለም እና የፌደራል ፋይናንስ ድጋፍን ለሚቀበሉ በብሄራዊ መገኛ መሰረት ማግለልን ይከለክላል።
ክፍሉ ባቀረበው የምርመራ ጥያቄ መሰረት የኮሎራዶ የህግ ተርጓሚ የተነሱትን ቅሬታዎች በሚመለከት ቀድመው የተወሰዱ እርምጃዎችን የለየ ሲሆን ከቋንቋ ተደራሽነት ፕሮግራም ጋር በተያያዘ ተጨማሪ የተለያዩ ማሻሻያዎችን ለማድረግ ከክፍሉ ጋር ስራ ሰርቷል።
“ትክክለኛ እና ጊዜውን የጠበቀ የማስተርጎም አገልግሎት በፍርድ ቤት ውስጥ ማቅረብ ሁሉም የፍርድ ቤት ተጠቃሚዎች እኩል የሆነ የፍትህ ተደራሽነት እንዲኖራቸው የሚያደርግ ቁልፍ ነገር ነው” ሲሉ የፍትህ ክፍሉ የሲቪል መብቶች ምክትል አቃቤ ህግ ክሪስቲን ክላርክ ተናግረዋል። “በኮሎራዶ የህግ ተርጓሚ የተወሰዱት እርምጃዎች ለሌሎች ምሳሌ የሚሆኑ ሲሆን ጠንካራ የሆነ የቋንቋ ተደራሽነትን ለማቅረብ ያለውን እውነተኛ ቁርጠኝነትን የሚያሳይ ነው።"
DOJ ከኮሎራዶ የህግ ተርጓሚ ጋር መስራት ከጀመረበት አመት ጀምሮ ፍርድ ቤቱ አዲስ የቋንቋ ተደራሽነት አስተባባሪን ቀጥሯል፣ የቋንቋ ተደራሽነት ፋይናንስ ፖሊሲን ከልሷል፣ አዲስ የቀጠሮ ስርአትን ለአስተርጓሚዎች ዘርግቷል፣ የጆሮ ማዳመጫ እና አይፓዶችን ጨምሮ ለፍርድ ቤት ማስተርጎም አገልግሎት እንዲሆን አዳዲስ መሳሪያዎችን ገዝቷል፣ የፍርድ ቤት ሰራተኞችን እና አስተርጓሚዎችን አሰልጥኗል እና ሌሎች ቁልፍ የሆኑ ማሻሻያዎችን ተግብሯል።
ክፍሉ የእነዚህን ለውጦች መተግበር መቆጣጠር ይቀጥላል እና ከህዝቡ ደግሞ ግብረመልሶችን ይቀበላል። ከማግለል ጋር ግንኙነት ያላቸው ቅሬታዎች በሲቪል መብቶች ክፍል ድረገጽ civilrights.justice.gov በኩል መቅረብ ይችላሉ።
ስለ ሲቪል መብቶች ክፍል ተጨማሪ መረጃ በ www.justice.gov/crtይገኛል። ውስን የሆነ የቋንቋ ችሎታ መረጃ እና ርእስ VI www.lep.gov ላይ የሚገኝ ሲሆን ከፍርድ ቤቶች ጋር ግንኙነት ያለው መረጃ ደግሞ www.lep.gov/state-courts ላይ ይገኛል።
وزارة العدل والقضاء في كولورادو يحسنان توفير الخدمات اللغوية في المحاكم للأفراد ذوي الكفاءة المحدودة في اللغة الإنجليزيةRead the Press Release
أعلنت وزارة العدل اليوم أن القضاء في كولورادو اتخذ خطوات مهمة لضمان إتاحة هامة للخدمات اللغوية للأشخاص ذوي الكفاءة المحدودة في اللغة الإنجليزية (LEP) الذين يتعاملون مع نظام المحكمة بالولاية.
في يوليو/تموز 2023، تعاقد قسم الحقوق المدنية التابع للوزارة مع القضاء في كولورادو بعد تلقي شكاوى تفيد بأن المحاكم لم تقدم الخدمات اللغوية اللازمة للأفراد ذوي الكفاءة المحدودة في اللغة الإنجليزية كما هو مطلوب بموجب الباب السادس من قانون الحقوق المدنية لعام 1964 (الباب السادس). يحظر الباب السادس التمييز على أساس العرق واللون والأصل القومي من قبل المتلقين للمساعدات المالية الفيدرالية.
حدد القضاء في كولورادو، ردًا على استفسار الوزارة، خطوات استباقية تم اتخاذها بالفعل لمعالجة المخاوف التي أثيرت في الشكوى وعمل مع القسم لإجراء مجموعة متنوعة من التحسينات الأخرى على برنامج إتاحة الولوج للغة.
"صرحت مساعدة المدعي العام كريستين كلارك من قسم الحقوق المدنية بوزارة العدل: "إن توفير خدمات الترجمة الدقيقة وفي الوقت المناسب داخل قاعة المحكمة وخارجها أمر بالغ الأهمية لضمان تكافئ اللجوء إلى العدالة لجميع مَن يترددون على المحكمة". "تشكل الإجراءات التي اتخذتها السلطة القضائية في كولورادو نموذجًا وتُظهر التزامًا حقيقيًا ببناء برنامج قوي لإتاحة الولوج للغة".
قامت المحكمة في العام الذي مرّ، منذ أن بدأت وزارة العدل العمل مع السلطة القضائية في كولورادو، بتعيين منسق جديد لإتاحة الخدمات اللغوية؛ ومراجعة السياسة المالية لمكتب إتاحة الخدمات اللغوية؛ وبدأت في إنشاء نظام جدولة جديد للمترجمين؛ وشراء معدات جديدة لاستخدامها في الترجمة في المحكمة بما في ذلك سماعات الرأس وأجهزة iPad؛ وتدريب موظفي المحكمة والمترجمين؛ وتنفيذ تحسينات رئيسية أخرى.
سوف تستمر الوزارة في مراقبة تنفيذ هذه التغييرات، وترحب بملاحظات عامة الناس. يمكن الإبلاغ عن الشكاوى المتعلقة بالممارسات التمييزية من خلال موقع قسم الحقوق المدنية عبر الإنترنت على civilrights.justice.gov
تتوفر المزيد من المعلومات حول قسم الحقوق المدنية على موقعه عبر الإنترنت على www.justice.gov/crt. تتوفر معلومات حول الكفاءة المحدودة للغة الإنجليزية والباب السادس على الموقع www.lep.gov، ويمكن العثور على معلومات خاصة بالمحاكم على الموقع www.lep.gov/state-courts.
Министерство юстиции и судебные органы штата Колорадо упрощают доступ к судебной системе для лиц с ограниченным владением английским языкомRead the Press Release
Сегодня Министерство юстиции объявило о том, что судебные органы штата Колорадо предприняли серьезные меры для обеспечения полноценного языкового доступа к судебной системе штата для лиц с ограниченным владением английским языком (LEP).
В июле 2023 года Отдел по гражданским правам при Министерстве юстиции обратился в судебные органы штата Колорадо, получив несколько жалоб относительно того, что суды не предоставляют необходимые языковые услуги лицам с ограниченным владением английским языком, как того требует Раздел VI Закона о гражданских правах 1964 года (Раздел VI). Раздел VI запрещает дискриминацию по признаку расы, цвета кожи и национального происхождения в отношении лиц, получающих федеральную финансовую помощь.
В ответ на прошение министерства судебные органы штата Колорадо утвердили превентивные меры, которые уже предпринимались ранее для урегулирования вопросов, поднятых в поданных жалобах, а также доработали программу языкового доступа, согласуя свои действия с Отделом по гражданским правам.
«Предоставление качественных и своевременных услуг устного перевода в зале суда и за его пределами имеет первостепенное значение для обеспечения равного доступа к системе правосудия для всех участников судебного процесса», — заявила помощник генерального прокурора Кристен Кларк из Отдела по гражданским правам при Министерстве юстиции. «Меры, предпринятые судебными органами Колорадо, являются образцовыми и демонстрируют твердое намерение создать эффективную программу, гарантирующую комплексный языковой доступ».
За год, прошедший с тех пор, как Министерство юстиции начало сотрудничать с судебными органами штата Колорадо, суд назначил нового координатора по языковому доступу; пересмотрел финансовую политику Управления языкового доступа; приступил к созданию новой системы планирования для переводчиков; закупил новое оборудование для использования при судебном переводе, в том числе гарнитуру и iPad; провел обучение для сотрудников суда и переводчиков; а также провел иные немаловажные доработки.
Министерство продолжит следить за внедрением этих изменений и будет радо обратной связи от общественности. Жалобы на дискриминационные действия можно подавать через веб-сайт Отдела по гражданским правам по адресу civilrights.justice.gov
Более подробную информацию о работе Отдела по гражданским правам читайте на сайте по адресу www.justice.gov/crt. Информация об ограниченном владении английским языком и содержание Раздела VI доступны на сайте www.lep.gov, а информация в отношении судов доступна на сайте www.lep.gov/state-courts.
Young man sent to prison for attempted murder-for-hire plotRead the Press Release
LAREDO, Texas – A 23-year-old Mexican national residing in Houston has been sentenced following his conviction of murder-for-hire using interstate and foreign commerce facilities, announced U.S. Attorney Alamdar S. Hamdani.
Alejandro Cardona-Rodriguez pleaded guilty May 11, 2023.
U.S. District Judge Diana Saldana has now ordered Cardona-Rodriguez to serve the statutory maximum of 10 years in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard about his assaultive conduct against another inmate while pending sentencing. In handing down the sentence, the court noted his continued propensity for violence and the seriousness of the offense that involved negotiating with someone to kill another human being.
Cardona-Rodriguez came to the attention of law enforcement around January 2023. He had been in communication with someone via Facebook as well as WhatsApp text and voice messages negotiating a fee for the murder of one of his ex-girlfriend’s boyfriends. He also provided the location and photos of where the potential victim could be found.
At the time of his plea, Cardona-Rodriguez admitted to using interstate and foreign facilities with the intent to commit murder and promise or agreement to pay for the murder.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and the Laredo Police Department conducted the investigation. Assistant U.S. Attorneys Mary Ellen Smyth and Mike Makens prosecuted the case.
Young Houstonians admit to carjacking in failed smuggling attemptRead the Press Release
CORPUS CHRISTI, Texas – A second man has now pleaded guilty to carjacking a McAllen resident, announced U.S. Attorney Alamdar S. Hamdani.
Jesus Rodriguez, 19, entered his plea Sept. 23, admitting he had recruited Christian Hardy, 18, to accompany him from Houston to the Rio Grande Valley to smuggle two people because he didn’t have a driver’s license. He also claimed the vehicle they were driving had mechanical problems, and they needed to steal a car. Hardy has now also admitted to his role in the crime.
While in McAllen May 19, Rodriguez and Hardy approached a male victim outside his car at a Stripes gas station near a mechanic shop. Rodriguez asked to use the victim’s phone, while Hardy got into the driver’s seat.
The victim attempted to stop the theft and jumped into the passenger side, pushed Hardy out of the vehicle and managed to move into the driver seat. However, Rodriguez then got into the passenger seat, pointed a firearm at the victim and said the vehicle was not worth his life.
The victim got out of the car, at which time both men fled. Rodriguez still had the victim’s phone, which he later tossed out of the vehicle so the victim would not be able to call authorities. Hardy and Rodriguez then picked up two non-U.S. citizens from a stash house in McAllen and proceeded to the Falfurrias Border Patrol Checkpoint.
After witnessing nervous behavior, law enforcement referred them to secondary inspection where they found the two undocumented people hiding in the trunk of the vehicle.
Upon their arresting Hardy and Rodriguez, authorities discovered a firearm in Rodriguez’s waistband. The investigation also led to the discovery that the car Hardy was driving had been stolen out of Hidalgo County.
U.S. District Judge Nelva Gonzalez Ramos will impose sentencing Jan. 28, 2025. At that time, the pair face up to 15 years in federal prison.
Hardy was permitted to remain on bond pending that hearing, while Rodriguez is in custody.
Homeland Security investigations conducted the investigation with assistance from the Edinburg Police Department. Assistant U.S. Attorney Joel Dunn is prosecuting the case.
Yankton, South Dakota Woman Sentenced for Escape from Federal CustodyRead the Press Release
United States Attorney Susan Lehr announced that Jordon Whipple, age 30, of Yankton, South Dakota, was sentenced on October 2, 2024, in federal court in Omaha, Nebraska for escape from federal custody. United States District Judge Brian C. Buescher sentenced Whipple to 6 months’ imprisonment, consecutive to her previously imposed sentence, which she had yet to complete when she escaped from custody. There is no parole in the federal system. After Whipple’s release from prison, she will begin a 1-year term of supervised release.
In September 2022, Whipple was sentenced to the Bureau of Prisons for a term of 41 months following her conviction for involuntary manslaughter. On November 21, 2023, Whipple was transferred to a Residential Reentry Center (RRC) in Omaha to complete her federal sentence, which was set to expire on May 12, 2024. On April 13, 2024, Whipple left the RRC without permission or authorization while she was still in the custody of the Attorney General or his designee. Whipple was placed in escape status until she was arrested June 11, 2024.
This case was investigated by the United States Marshal Service.
Yakima Man Who Violated No-Contact Order Pleads Guilty to Illegally Possessing FirearmsRead the Press Release
Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Benjamin Cliett, pleaded guilty to one charge of Person Subject to a Court Order in Possession of Firearms. United States District Judge Mary K. Dimke accepted Cliett’s guilty plea and scheduled a sentencing hearing for March 4, 2025, in Yakima, Washington.
According to the plea agreement, testimony from an earlier trial, and other court filings, on July 23, 2022, officers with the Yakima Police Department (YPD) were dispatched to Cliett’s residence in Yakima. Dispatch told the YPD that neighbors had called to report screaming and other loud noises coming from the residence. YPD also observed groceries spoiling in the sun. When YPD knocked on the front door, all noises stopped from inside the residence.
Aware that Cliett had a no-contact order protecting his intimate partner and fearing that a domestic violence incident was occurring inside, YPD entered the residence. YPD conducted a protective sweep of the residence and found Cliett hiding in a dog kennel in the back yard. Cliett was arrested for violating the no-contact order. While conducting the sweep, YPD observed a tall gun safe in Cliett’s bedroom.
The gun safe was forcibly opened and found to contain more than 14 firearms. Cliett’s residence was also found to contain more than two dozen ammunition magazines as well as hundreds of rounds of ammunition. Cliett had previously declared under penalty of perjury before the City of Yakima Municipal Court that he did not have any firearms in his possession.
In October 2022, U.S. Attorney Waldref announced her office’s Safe Homes, Safe Community Initiative to prevent domestic violence homicides and prevent abusers who have previously been convicted of domestic violence offenses from having access to firearms. Partnering with the Yakima Police Department, Yakima County Prosecutor’s Office, Spokane Police Department, and Spokane County Prosecutor’s Office, and domestic violence prevention advocates, the U.S. Attorney’s Office focuses enforcement on individuals identified as repeat domestic violence abusers who unlawfully possess firearms.
“The unlawful possession of firearms by domestic violence abusers is too often deadly for victims of intimate partner violence and lethal for law enforcement officers responding to emergency calls. In this case, Mr. Cliett possessed more than a dozen firearms he knew he should not have and that he did not disclose when the Yakima Municipal Court issued a no-contact order for his partner,” stated U.S. Attorney Waldref. “My Office’s Safe Home Safe Community Initiative focuses on curbing gun violence by removing firearms unlawfully possessed by individuals with a track record of violent crime and domestic violence – these efforts protect victims, law enforcement, and the entire community.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Yakima Police Department. It is being prosecuted by Assistant United States Attorney Michael J. Ellis.
Wichita brothers plead guilty to defrauding the governmentRead the Press Release
WICHITA, KAN. – Two Kansas men pleaded guilty to taking part in a scheme to defraud a federal healthcare program.
According to court documents, Todd Eck, 60, of Wichita, and Bradley Eck, 56, of Wichita, both pleaded guilty to one count of conspiracy to defraud the United States.
From January 2017 to April 2019, Todd Eck and Bradley Eck utilized four healthcare related companies they created to enroll to receive Medicare reimbursements for billed medical procedures. The U.S. Department of Health and Human Services is responsible for the Medicare Program, a federal healthcare benefits program.
The Ecks concealed their ownership and control of the businesses on the Medicare enrollment form and omitted background information about themselves. Each omission was material to determine if Todd Eck and Bradley Eck were eligible to enroll, thus, all billing reimbursements made by Medicare to the Ecks were fraudulent.
Brad Eck’s license to practice chiropractic medicine was revoked by the Kansas Board of Healing Arts in 2013 for gross negligence, professional incompetency, and dishonesty.
Todd Eck had his license to practice chiropractic medicine revoked by the Kansas Board of Healing Arts in 2018 for violation of an order, fraud during license renewal, practicing medicine without a license, fraudulent medical records, and failure to maintain records.
As part of the plea agreement, the Eck brothers must pay $3.4 million in restitution.
Todd Eck and Bradley Eck are scheduled to be sentenced on January 13, 2025. The brothers face a maximum penalty of five years in prison.
The U.S. Department of Defense- Defense Criminal Investigative Service and Defense Contract Audit Agency, the U.S. Department of Health and Human Services – Office of Inspector General, and IRS-Criminal Investigation are investigating the case.
Assistant U.S. Attorney Aaron Smith is prosecuting the case.
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Vice President of Asphalt Paving Company Pleads Guilty to Bid RiggingRead the Press Release
A senior executive of a Michigan asphalt paving company pleaded guilty today for his role in two separate conspiracies to rig bids for asphalt paving services contracts in Michigan.
According to court documents, David A. Coppola, vice president of Taylor-based Al’s Asphalt Paving Company Inc. (Al’s Asphalt), conspired with Asphalt Specialists LLC (ASI), F. Allied Construction Company Inc. (Allied) and employees from those companies to rig their bids. Coppola participated in the two conspiracies from March 2013 through November 2018, and from June 2013 through June 2019, respectively.
Today’s guilty plea is the ninth in the Antitrust Division’s ongoing investigation into collusion in the Michigan asphalt paving industry. Coppola’s employer, Al’s Asphalt, and its president pleaded guilty in January, and, in 2023, Allied and two of its executives pleaded guilty, as did ASI and two of its former executives. On July 31, Al’s Asphalt was sentenced to pay a fine of $795,661.31.
In both charged conspiracies, the co-conspirators coordinated each other’s bid prices so that the agreed-upon losing company submitted intentionally non-competitive bids. These bids gave customers the false impression of competition when, in fact, the co-conspirators had already decided who would win the contracts.
“Americans expect and deserve the benefits of competitive markets — including for vital aspects of our transportation infrastructure like asphalt paving services,” said Director of Criminal Enforcement Emma M. Burnham of the Justice Department’s Antitrust Division. “The division and our law enforcement partners will continue to hold accountable executives who seek to profit at the expense of consumers.”
“The Department of Transportation Office of Inspector General (DOT OIG) continues to work closely with our law enforcement partners and the Justice Department’s Antitrust Division to target individuals who knowingly participate in bid rigging and other anti-competitive activities,” said Acting Special Agent in Charge Anthony Licari of DOT OIG’s Midwestern Region. “Today’s guilty plea shows our commitment to bringing to justice those who engage in illegal and unfair practices that adversely impact transportation projects.”
“Activities related to bid-rigging and collusion do not promote an environment conducive to open competition which harms the consumer,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service (USPS) Office of Inspector General. “The guilty plea in this case represents a win for all law enforcement agencies who investigate those who engage in this type of harmful conduct to ensure that justice is served.”
Coppola pleaded guilty to two counts of violating Section One of the Sherman Act. Coppola faces a maximum penalty of 10 years in prison and a $1 million fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s Chicago Office and Offices of Inspectors General for the DOT and USPS investigated the case, as part of an ongoing operation investigating bid rigging and other anticompetitive conduct in the asphalt paving services industry.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258 or visit www.justice.gov/atr/report-violations.
U.S. Attorney’s Office for District of New Jersey and Department of Justice’s Civil Rights Division Reach Proposed Consent Decree with New Jersey to Resolve Claims of Unconstitutional Conditions in New Jersey’s State-Run Veterans HomesRead the Press Release
Link to video statement:
https://youtu.be/pl3o8-n5p6w
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the Department of Justice’s Civil Rights Division today filed a complaint against the state of New Jersey and joined with the state in filing a proposed consent decree to address findings of unconstitutional conditions at the New Jersey Veterans Memorial Homes at Menlo Park and Paramus.
The proposed consent decree, which must still be approved by the court, would resolve the department’s claims that New Jersey violates the Constitution by failing to keep the residents of its Veterans Homes safe from harm and an unreasonable risk of harm. The proposed consent decree requires the state to meet specific standards of clinical care, to overhaul its infection control and emergency operations practices and to implement measures for improved leadership and accountability. The proposed consent decree also asks the court to appoint an independent monitor who will oversee and assess the state’s compliance with the terms of the proposed consent decree.
“Our veterans, who have sacrificed so much, should never have been subject to deficient care. This consent decree provides a detailed roadmap and expert oversight to ensure they are protected, so that they and their families can rely on the veterans homes. We look forward to working with the state and the independent monitor to implement this decree and ensure that every resident of the veterans homes lives with the safety and dignity that they so richly deserve.”
U.S. Attorney Philip R. Sellinger
“Our veterans deserve to receive appropriate care, as required by law, and their families deserve to have confidence that their loved ones’ needs will be met,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement requires the state to deliver that care and have the oversight in place to provide families that confidence. The Justice Department will work diligently with the state to ensure the reforms are properly implemented.”
The U.S. Attorney’s Office for the District of New Jersey and the Civil Rights Division initiated the investigation into the Veterans Homes in October 2020 under the Civil Rights of Institutionalized Persons Act (CRIPA). CRIPA authorizes the department to take action to address a pattern or practice of deprivation of federal rights of individuals in the custody of state or local governments.
In September 2023, the department notified the state that it found reasonable cause to believe the residents of the New Jersey Veterans Memorial Homes at Menlo Park and Paramus face unreasonable harm and risk of harm due to inadequate infection control practices and inadequate medical care. The department also identified the remedial measures necessary to address those unlawful conditions. Specifically, the department concluded that the state failed to provide the residents of its Veterans Homes with conditions of reasonable care and safety, in violation of the 14th Amendment.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of New Jersey is available on its website at www.justice.gov/usao-nj/civil-rights-enforcement.
The government is represented by Assistant U.S. Attorneys Susan Millenky and Thandiwe Boylan of the U.S. Attorney’s Civil Rights Division; Michael Campion, Chief of the Civil Rights Division; Caroline Sadlowski, Executive Assistant U.S. Attorney; and attorneys from the Special Litigation Section of the Justice Department’s Civil Rights Division.
veterans.consentdecree.pdf veterans.complaint.pdfU.S. Attorney’s Office for the District of Maryland Secures Agreement with Maryland Department of State Police to Resolve Allegations of Race and Gender Discrimination in State Trooper Hiring ProcessRead the Press Release
Washington – The U.S. Attorney’s Office for the District of Maryland announced today that it has reached a settlement agreement with the Maryland Department of State Police (MDSP) to resolve the United States’ claims that MDSP’s hiring process for state troopers violates Title VII of the Civil Rights Act. Specifically, the United States alleges that MDSP uses a written test that discriminates against Black candidates and a physical fitness test that discriminates against female candidates. The agreement must still be approved by a federal judge.
The settlement agreement resolves a civil pattern and practice investigation the U.S. Attorney’s Office opened on July 15, 2022. As part of the investigation, the U.S. Attorney’s Office conducted an in-depth review of MDSP’s hiring practices, the composition of its sworn personnel, applicant data, and information received from the Maryland State Police, and concluded the State’s written and physical fitness tests do not meaningfully distinguish between applicants who can and cannot perform the position of Trooper. These tests also had the effect of disqualifying Black and female applicants from the hiring process at significantly disproportionate rates. The U.S. Attorney’s Office thus concluded that these tests violate Title VII.
“This settlement agreement is a reflection of our continued mission to protect the civil rights of all Marylanders, including those of our sworn law enforcement officers,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Law enforcement agencies have a responsibility to protect all citizens equally. We are pleased that MDSP is committed to ensuring that its hiring processes will not discriminate on the basis of race or gender.”
“Equal employment opportunities in law enforcement are not just a core civil right but essential to ensuring that those who serve reflect the rich racial and gender diversity of the communities they are sworn to protect,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The underrepresentation of Blacks and women in law enforcement undermines public safety and runs contrary to the principle of equal opportunity which is central in our job market. This agreement requires the Maryland Department of State Police to institute meaningful reforms, remove unlawful barriers in its hiring process, and provide restitution and relief to those already harmed, ensuring that all qualified applicants have a fair chance to serve. The Justice Department will continue working to ensure equal access to employment opportunities for all Americans.”
The complaint, filed today in the District of Maryland, alleges that MDSP’s use of a written test called the Police Officer Selection Test (POST) disproportionately excludes Black candidates, and its use of a physical fitness test called the Functional Fitness Assessment Test (FFAT) disproportionately excludes female candidates, from employment as troopers. The United States alleges that MDSP’s uses of the POST and the FFAT are not job related or consistent with business necessity, and thus, violate Title VII.
Under the terms of the consent decree, MDSP will:
- Adopt written and physical fitness tests that do not discriminate in violation of Title VII;
- Provide data to the United States on the administration of the new tests to ensure compliance;
- Pay $2.75 million in back pay to applicants who were disqualified by MDSP’s use of the challenged tests; and
- Hire up to 25 applicants who were unfairly disqualified by those tests and who successfully complete MDSP’s new trooper screening and selection process.
Title VII is a federal statute that prohibits employment discrimination based on race, sex, color, national origin, and religion. Title VII prohibits not only intentional discrimination but also employment practices that result in a disparate impact on a protected group, unless such practices are job related and consistent with business necessity.
You can learn more about the contents of the agreement from this fact sheet.
The full and fair enforcement of Title VII is a top priority of the U.S. Attorney’s Office for the District of Maryland. More information about the U.S. Attorney’s Office for the District of Maryland can be found at https://www.justice.gov/usao-mdand more information about the Office’s Civil Rights and Special Victims Section can be found at https://www.justice.gov/usao-md/civil-rights.
This matter is being handled by Assistant United States Attorneys Kimberly Phillips and Sarah Marquardt for the District of Maryland and Senior Trial Attorneys Emily Given and Cheyenne N. Chambers of the Civil Rights Division’s Employment Litigation Section.
U.S. Attorney’s Office Announces over $6.2 Million in Justice Department Grants to Tribal Communities and Organizations in ArizonaRead the Press Release
PHOENIX, Ariz. – United States Attorney Gary M. Restaino today announced $6,285,698 in Department of Justice (DOJ) grants to tribal communities and organizations in the District of Arizona. The grants were awarded by the Department’s Office of Justice Programs to prevent and reduce crime and by the Office on Violence Against Women (OVW) to bolster coordinated community responses aimed at bringing an end to domestic violence.
Specifically, the following organizations received funding:
- Salt River Pima-Maricopa Indian Community awarded $1,250,000 under OVW Violence Against Women Tribal Special Assistant U.S. Attorney Initiative.
- San Carlos Apache Tribal Council awarded $963,000 under Byrne Discretionary Community Project Grants Program.
- Gila River Indian Community awarded $873,094 under Adult Treatment Court Program.
- Tuba City Regional Health Care Corporation awarded $610,000 under OVW Tribal Sexual Assault Services Program.
- Southwest Indigenous Women’s Coalition awarded $414,147 under OVW Grants to Tribal Domestic Violence and Sexual Assault Coalitions.
- Hopi-Tewa Women’s Coalition to End Abuse awarded $414,147 under OVW Grants to Tribal Domestic Violence and Sexual Assault Coalitions.
- San Carlos Apache Tribal Council awarded $315,724 under OVC Tribal Victim Services Set-Aside Formula Program.
- Hopi Tribe awarded $315,724 under OVC Tribal Victim Services Set-Aside Formula Program.
- Gila River Indian Community awarded $282,632 under OVC Tribal Victim Services Set-Aside Formula Program.
- Salt River Pima-Maricopa Indian Community awarded $282,632 under OVC Tribal Victim Services Set-Aside Formula Program.
- White Mountain Apache Tribe awarded $250,000 under SMART Support for Adam Walsh Act Implementation Grant Program.
- Yavapai Apache Nation awarded $229,973 under OVC Tribal Victim Services Set-Aside Formula Program.
- Pascua Yaqui Tribe awarded $66,071 under OVW Special Tribal Criminal Jurisdiction Reimbursement Program.
- Salt River Pima-Maricopa Indican Community awarded $18,554 under OVW Special Tribal Criminal Jurisdiction Reimbursement Program.
The U.S. Attorney’s office will hold its annual Tribal Listening Conference in November, during which it convenes with its law enforcement and sovereign tribal partners to listen to, engage with, and educate one another. While the issues covered by these grants are long-standing challenges in tribal communities, the Tribal Listening Conference will provide an opportunity for all of the stakeholders to rededicate themselves to preventing crime and violence in the affected communities.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime; advance equity and fairness in the administration of justice; assist victims; and uphold the rule of law. More information about OJP and its program offices – the Bureau of Justice Assistance, Bureau of Justice Statistics, National Institute of Justice, Office of Juvenile Justice and Delinquency Prevention, Office for Victims of Crime, and SMART Office – can be found at www.ojp.gov. More information about the Office of Violence Against Women, along with the recent grants, can be found at www.justice.gov/ovw.
RELEASE NUMBER: 2024-133_OJP Grant Awards
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.U.S. Attorney Steinberg cautions against disaster fraud in the wake of Hurricane HeleneRead the Press Release
SAVANNAH, GA: Southern District of Georgia U.S. Attorney Jill E. Steinberg reminds residents to be wary of disaster-related fraud in the wake of Hurricane Helene’s destructive path.
“Like moths to a flame, scam artists and profit-chasing individuals too often prey on vulnerable victims of natural disasters, such as those devastated by Hurricane Helene,” said U.S. Attorney Steinberg. “Vigilance is the first defense against fraudsters who would compound the misery of a natural disaster by stealing from those in desperate need of assistance in recovery, and our office stands ready to assist in holding accountable individuals who would take advantage of disaster victims.”
President Joe Biden has approved a major disaster declaration for Georgia, ordering federal aid to supplement state and local recovery efforts in the areas affected by Hurricane Helene. Of the 43 counties in the Southern District of Georgia, 30 are included in the disaster declaration.
Established in 2005 after Hurricane Katrina, the National Center for Disaster Fraud (NCDF) is a partnership of the U.S. Department of Justice and law enforcement and regulatory agencies that coordinates detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of fraud.
Of more than 200,000 disaster fraud complaints submitted to the NCDF, here are some examples of common complaints:
- Fake charities soliciting donations either using the names of well-known charities or appearing to be related to the disaster.
- Scammers impersonating government officials, offering disaster relief in exchange for personal information or money.
- Individuals posing as insurance provider representatives to collect payments or personal information.
- Fraudsters promising expedient home repairs requiring upfront or partial payment.
- Price-gouging for goods and services needed by victims of disaster.
Take these measures to protect yourself from disaster fraud:
- Donate only to well-known charities after verifying them through trusted sources.
- Do not respond to unsolicited requests for donations via email, phone, or text, and do not click on links in unsolicited messages.
- Do not assume that online or social media charity solicitations are legitimate.
- Use credit cards or checks for donations. Don’t send cash, or use wire transfers or mobile payment apps.
- Remember that government agencies and legitimate organizations will never ask for money or personal information via phone or email.
- Beware of contractors who knock on your door or make unsolicited contact, and/or make promises that sound too good to be true.
- Cautiously rely on recommendations from family and friends.
- Do not be forced into making repair decisions by a high-pressure contractor.
Protect yourself and your neighbors. To report disaster-related fraud, contact the NCDF at (866) 720-5721 or online at www.justice.gov/DisasterComplaintForm.
U.S. Attorney Announces Criminal Charges in Multi-Year Fraud Scheme in the Market for Carbon CreditsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of charges against KENNETH NEWCOMBE and TRIDIP GOSWAMI in connection with a scheme to commit fraud in the carbon markets, which resulted in their company, CQC Impact Investors LLC (“CQC”), fraudulently obtaining carbon credits worth tens of millions of dollars and fraudulently securing an investment of over $100 million.
Also announced today was the decision not to bring criminal charges against CQC, despite the alleged conduct of NEWCOMBE and GOSWAMI, in light of CQC’s voluntary and timely self-disclosure of misconduct, full and proactive cooperation, timely and appropriate remediation, and agreement to cancel or void certain VCUs.
Also unsealed today is the guilty plea of Jason Steele in connection with his participation in the conduct. Steele pled guilty pursuant to an Information before U.S. District Judge Margaret M. Garnett. Steele is cooperating with the Government.
U.S. Attorney Damian Williams said: “As alleged, Kenneth Newcombe and Tridip Goswami, among others, engaged in a multi-year scheme to fraudulently obtain carbon credits by using manipulated and misleading data. They then sold those credits to unsuspecting buyers in the multi-billion-dollar global market for carbon credits. The alleged actions of the defendants and their co-conspirators risked undermining the integrity of that market, which is an important part of the fight against climate change. Protecting the sanctity and integrity of the financial markets continues to be a cornerstone initiative for this Office, and we will continue to be vigilant in rooting out fraud in the market for carbon credits.”
According to the allegations contained in the Indictment:
The market for carbon credits emerged from an effort to reduce greenhouse gas emissions. While most carbon credits are created through, and trade in compliance markets, there is also a voluntary carbon market. Voluntary markets revolve around companies and entities that voluntarily set goals to reduce or offset their carbon emissions, often to align with goals from employees or shareholders. In voluntary markets, the credits are issued by non-governmental organizations, using standards for measuring emission reductions that they develop based on input from market participants, rather than on mandates from governments. The non-governmental organizations issue voluntary carbon credits to project developers that run projects that reduce emissions or remove greenhouse gases from the atmosphere.
CQC was a for-profit company that ran projects to generate carbon credits—including a type of credit known as a voluntary carbon unit (“VCU”)—by reducing emissions of greenhouse gases. CQC profited by selling VCUs it obtained, often to companies seeking to offset the impact of greenhouse gases they emit in the course of operating their businesses.
One type of project that CQC ran to obtain VCUs involved installing cookstoves in rural Africa and Southeast Asia, among other places (collectively, the “Cookstove Projects”). The cookstoves, if installed and used properly, were more efficient than the preexisting cooking methods many people in those regions used. To obtain VCUs from its Cookstove Projects, CQC collected data through surveys about, among other things, how much fuel people saved by using CQC’s cookstoves, as opposed to the preexisting cooking methods, and the number of CQC’s stoves that were installed and operational. That data went into a formula that an issuer of VCUs (“Issuer-1”) used to calculate the emission reductions CQC had achieved and to determine how many VCUs to issue to CQC.
From at least in or about 2021, through 2023, NEWCOMBE, the CEO of CQC, and GOSWAMI, the Head of CQC’s Carbon & Sustainability Accounting Team (“CSAT”), along with others at CQC, including Jason Steele, the company’s Chief Operating Officer, submitted false and misleading data to Issuer-1, tricking Issuer-1 into giving CQC VCUs for emission reductions that, according to Issuer-1’s methodology for calculating such reductions, had not in fact been achieved.
Members of the conspiracy manipulated data to make it appear as if certain of the Cookstove Projects were far more successful in reducing carbon emissions than was actually the case. For example, in or about August 2021, CQC received survey data for two projects in Malawi and two in Zambia. GOSWAMI reported to NEWCOMBE and Steele that the survey data reflected emission reductions that were only approximately half of what CQC had anticipated. NEWCOMBE responded by writing that “[t]his is a disaster for us.” NEWCOMBE, GOSWAMI, and Steele exchanged emails about possible solutions, and GOSWAMI ultimately informed them that the “[o]nly option left” was “to ‘revise’ the survey results.” Ultimately, NEWCOMBE, GOSWAMI, and Steele agreed to manipulate the survey data for the Malawi and Zambia projects and enlist a person from outside CQC to fill out fraudulent survey forms to reflect the manipulated numbers. CQC sent the manipulated survey data to Issuer-1 when claiming VCUs for the Malawi and Zambia Projects.
NEWCOMBE, GOSWAMI, and Steele also fraudulently obtained VCUs from Issuer-1 by providing false and misleading information about the number of operational stoves in CQC’s projects. Issuer-1’s methodology for calculating emission reductions was designed to ensure that project developers, such as CQC, would receive VCUs only for stoves that were operational and in use.
Beginning in or around 2020, NEWCOMBE set a new direction for CQC and decided to rapidly and aggressively increase the size of CQC’s Cookstove Projects. CQC’s rapid growth caused significant problems for the quality of its Cookstove Projects. To meet the targets set by NEWCOMBE, CQC had to rely on partners that did poor work installing stoves; installed stoves in locations that were outside of a project’s scope (e.g., installing stoves in a suburban area, instead of a rural area, because it was easier to meet targets in more populated areas); and sometime claimed to install stoves that they never installed. These logistical issues posed a meaningful problem for the number of VCUs that the company’s projects might generate—if stoves were not installed properly, or at all, it was likely that surveys would show low levels of stoves in operation, which could reduce the number of stoves for which CQC could claim VCUs.
Rather than writing off and not claiming credits for stoves that were missing, broken, or not installed in correct locations, NEWCOMBE, GOSWAMI, and Steele conspired to conceal from Issuer-1 the true extent of problems with CQC’s Cookstove Projects. One way in which the members of the conspiracy concealed these issues and manipulated survey data about the number of stoves in use was by instituting a practice of having CQC employees rebuild or fix stoves in samples that were missing or broken, then reporting those stoves as operational.
Through this fraud scheme, CQC received millions more VCUs than it otherwise would have, which were worth tens of millions of dollars at then-prevailing prices for VCUs. CQC sold VCUs it had fraudulently obtained to unsuspecting purchasers, who thought they were purchasing VCUs that reflected emission reductions calculated in accordance with Issuer-1’s methodology.
Relying on data about those fraudulently obtained VCUs, NEWCOMBE and others at CQC also deceived an investor (“Investor-1”) into agreeing to invest up to $250 million in CQC. The agreement included Investor-1 purchasing some of NEWCOMBE’s shares in CQC for more than $16 million.
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NEWCOMBE, 77, of Santa Barbara, California, and GOSWAMI, who resides in India, are charged with wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; commodities fraud conspiracy, which carries a maximum sentence of five years in prison; and commodities fraud, which carries a maximum sentence of 10 years in prison. NEWCOMBE is also charged with securities fraud conspiracy, which carries a maximum sentence of five years in prison, and securities fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Steele, 47, of Arlington, Virginia, pled guilty earlier today to a three-count Information, which charged him with wire fraud conspiracy, commodities fraud conspiracy, and securities fraud conspiracy for his participation in the fraud scheme. A sentencing date has not yet been scheduled.
The Office of the United States Attorney for the Southern District of New York has declined prosecution of CQC in connection with the scheme to fraudulently inflate the number of VCUs issued to CQC projects. This decision reflects a careful weighing of factors set forth in the United States Attorneys’ Offices Voluntary Self-Disclosure Policy, https://www.justice.gov/usao-sdny/press-release/file/1569411/dl, and the Principles of Federal Prosecution of Business Organizations, Justice Manual (“J.M.”) § 9-28.300. Those factors include, among others: the voluntary and timely self-disclosure of the misconduct by CQC—specifically, CQC truthfully and completely disclosed all criminal conduct in which officers, employees, and agents of CQC had been engaged promptly after becoming aware of it, which misconduct had not previously been made public and was not already known to the Office or to any component of the Department of Justice; CQC’s full and proactive cooperation in this matter (including its provision of all known relevant facts about the misconduct and information about all of the individuals involved in the misconduct) and agreement to continue to cooperate with the Office’s ongoing investigation and any prosecution that might result in the future from the investigation; CQC’s timely and appropriate remediation, including terminating employees involved in the misconduct and instituting appropriate compliance measures to deter and detect similar misconduct in the future; and CQC’s agreement to cancel or void a number of VCUs equal to the number of VCUs that CQC improperly obtained through the fraudulent scheme.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams further thanked the Commodity Futures Trading Commission and the Securities and Exchange Commission, each of which today filed parallel civil actions.
The case is being prosecuted by the Office’s Securities and Commodities Fraud Task Force and Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Thomas Burnett, Nicholas W. Chiuchiolo, and Kevin Mead are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
A link to the declination letter is here.
Two defendants await sentencing after pleading guilty in shooting, armed carjacking during drug dealRead the Press Release
SAVANNAH, GA: Two Chatham County men await sentencing after pleading guilty to charges stemming from an armed carjacking in Savannah, while investigators are seeking the third defendant in the case.
Brandon McCall Williams, a/k/a “Doughboy,” 33, of Savannah, awaits sentencing after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, Methamphetamine and Heroin; Carjacking Resulting in Serious Bodily Injury; and Conspiracy to Use a Firearm During and in Relation to a Crime of Violence and a Drug Trafficking Crime, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia.
At the start of his trial on Sept. 23, Robert Moss, a/k/a “Fat Boy,” 33, of Savannah, agreed to plead guilty to Possession of a Firearm by a Convicted Felon, and also awaits sentencing. Williams faces up to 65 years in prison, while Moss faces up to 10 years. There is no parole in the federal system.
“This violent crime exemplifies the dangers of drugs, guns and gangs to our communities,” said U.S. Attorney Steinberg. “Our law enforcement partners need the public’s assistance in apprehending the fugitive in this case, and delivering justice for the wounded victim.”
As described in court documents and testimony, a drug dealer – identified as M.M. – met the defendants in the parking lot of a Savannah apartment complex in October 2021 to sell them large amounts methamphetamine and heroin. Instead, the three men robbed M.M. at gunpoint, taking his bag containing drugs, cash and a firearm, and then shot M.M. in the buttocks when he escaped.
The defendants then stole M.M.’s vehicle and fled, leaving behind a pickup that had been rented by Williams. Port Wentworth police recovered Williams’ personally owned car with the bag and drugs in it after a brief car chase from which Williams escaped. Williams and Moss later were located and taken into custody.
Also indicted in the case was Graylyn Simmons, a/k/a “Shake,” a/k/a “Crane,” 28, of Savannah. Anyone with information on Simmons is asked to contact the FBI at 800-Call FBI (800-225-5324).
The indictment naming Simmons includes only charges. He is considered innocent unless and until proven guilty.
U.S. District Court Judge Lisa Godbey Wood will schedule sentencing for Williams and Moss upon completion of presentence investigations by U.S. Probation Services.
“Williams and Moss participated in a violent act to profit off illegal drugs,” said FBI Atlanta Assistant Special Agent in Charge Brian Ozden. “We work alongside our federal, state, and local partners to work hand in hand to disrupt and ultimately triumph over the shadow of drug trafficking, making our communities safer places to live.”
“This investigation showcases the unwavering commitment of law enforcement to rid our streets of violent offenders,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. “Through close collaboration and relentless pursuit, we will continue to dismantle criminal networks and protect the citizens of Savannah from those who seek to bring chaos and violence.”
This case is being investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Savannah Police Department, and prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys Bradley R. Thompson and Frank M. Pennington II.
Two Luzerne County Brothers Indicted on Drug Trafficking ChargesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Akilees Kadeem Hobson, age 26, of Edwardsville, Pennsylvania, and Armand Kierran Hobson, age 27 of Plymouth, Pennsylvania, were indicted yesterday by a federal grand jury on drug trafficking charges.
According to United States Attorney Gerard M. Karam, the indictment alleges that in August and September 2024, Akilees Hobson distributed cocaine and fentanyl over a dozen times in Luzerne County. The indictment further alleges that on September 12, 2024, Armand Hobson assisted Akilees with the distribution of fentanyl. It is also alleged that on September 25, 2024, Akilees Hobson possessed with intent to distribute fentanyl and cocaine and Armand Hobson possessed with intent to distribute fentanyl and marijuana.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Luzerne County Drug Task Force. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for this offense is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Two KC Men Sentenced in Scheme to Steal Firearms from VehiclesRead the Press Release
KANSAS CITY, Mo. – Two Kansas City, Mo., men were sentenced in federal court today for their roles in the thefts of more than 100 firearms from numerous vehicles in the Westport entertainment district and elsewhere in the metropolitan area, which were later sold on social media accounts.
Rayquan Duane Pettaway, 25, and Roy Rushing, 27, were sentenced in separate appearances before U.S. District Judge Greg Kays. Pettaway was sentenced to 11 years and eight months in federal prison without parole; the court ordered the federal sentence be served consecutively to Pettaway’s sentence in two unrelated cases in Cass County, Mo., and Harris County, Texas. Rushing was sentenced to nine years and two months in federal prison without parole; the court ordered the federal sentence be served consecutively to Rushing’s sentence in two unrelated cases in Jackson County, Mo., and Cass County. The court also ordered Pettaway and Rushing to pay $1,500 in restitution, for which all of the defendants in this case are jointly and severally liable.
On Oct. 26, 2023, Pettaway pleaded guilty to his role in the conspiracy to receive, possess, and dispose of stolen firearms and to one count of being a felon in possession of a firearm.
Pettaway admitted that he participated in a conspiracy to break into vehicles and steal firearms and other items. Conspirators used social media to advertise the stolen firearms for sale, which included sales to individuals who were prohibited by law from possessing firearms. According to court documents, Pettaway and his co-conspirators stole more than 100 firearms obtained from vehicle break-ins from June 18 to Nov. 19, 2021.
Pettaway also admitted that he was in possession of a Glock 9mm handgun and a Glock .40-caliber handgun when he was arrested on July 11, 2021.
Police patrol cars converged on a location in the Westport entertainment district when officers saw Pettaway and co-defendant Drevion Hooker, 22, of Kansas City, Mo., acting suspiciously. Hooker attempted to flee on foot but was detained. Pettaway fled in a silver Chevrolet Impala at a high rate of speed. Investigators attempted to follow and eventually located the Impala south of 39th Street and Central Street. Pettaway fled from the vehicle — which had sustained damage — and was apprehended. Officers found the Glock 9mm handgun on the floorboard of the driver’s seat and the Glock .40-caliber handgun in the front passenger’s seat of the vehicle.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Pettaway has a felony conviction for felony assault and unlawful use of a weapon.
On July 26, 2023, Rushing pleaded guilty to possessing stolen firearms. Rushing admitted he was in possession of a Radical Firearms AR-type rifle, a Glock .40-caliber handgun, and a Glock .45-caliber handgun, all of which had been reported as stolen, on Nov. 4, 2021. Federal agents found seven firearms, including the three stolen firearms, when they executed a search warrant at Rushing’s residence.
Hooker was sentenced on Sept. 4, 2024, to seven years and one month in federal prison without parole.
Co-defendant Bobby Lamb, 22, was sentenced on July 27, 2024, to 11 years in federal prison without parole after pleading guilty to his role in the conspiracy and to possessing marijuana with the intent to distribute, possessing a firearm in furtherance of a drug-trafficking crime, and possessing a stolen firearm.
The final defendant in this case, Treyon Bloodsoe, 22, of Kansas City, Mo., is scheduled to be sentenced on Thursday, Oct. 3. Bloodsoe pleaded guilty on Oct. 26, 2023, to his role in the conspiracy and to possessing a stolen firearm.
This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Two Armed Robbers Sentenced After Carjacking and RobberyRead the Press Release
TULSA, Okla. – Today, U.S. District Judge Gregory K. Frizzell sentenced Ray Alexander Villalba, 22, from Goodyear, Arizona, for Carjacking, Carrying, Obstructing, Delaying, and Affecting Commerce by Robbery and two counts of Using a Firearm During and in Relation to a Crime of Violence. Judge Frizzell ordered Villalba to 220 months imprisonment, followed by four years of supervised release.
Villalba’s codefendant, Elijah Paul Titone, 26, of Sand Springs, was sentenced in August for the same counts. Titone was ordered to 190 months imprisonment, followed by three years of supervised release for his involvement.
On December 4, 2022, Villalba was messaging a male victim through a dating application and agreed to meet up. Upon arrival, the victim’s vehicle was rushed by two armed individuals, Villalba and Titone. They entered the victim's vehicle and zip-tied him. Villalba drove the vehicle away as Titone sat in the backseat with his gun pointed at the victim. Villalba threatened to kill the victim if he did not cooperate with their demands. They drove to several banks, attempting to withdraw funds from the victim's checking account, and left him on the side of the road.
During a second incident on December 6th, Villalba and Titone broke into a home in Broken Arrow. Armed, they demand money and weed. Villalba struck the victim in the eye with his gun, causing the victim to lose sight.
Villalba and Titone will remain in custody pending transfer to the U.S. Bureau of Prisons.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Broken Arrow Police Department, and the Tulsa Police Department investigated the case. Assistant U.S. Attorney Kenneth Elmore and John Brasher prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about PSN, please visit Justice.gov/PSN.
Three Sentenced for Robbing Armored Car Driver of Cash, GunRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Wednesday sentenced the last of three men who robbed an armored car driver of cash and a firearm in Overland, Missouri in 2023.
Judge Pitlyk sentenced Phillip Keith Smith, 65, to 11 years in prison. Herman Leon Woods, 31, was sentenced last week to 42 months. David C. Greenwade, 62, received a 20-year sentence in July.
All three admitted participating in the robbery in the 9400 block of Midland Avenue in Overland, Missouri on April 14, 2023. The armored car driver was making a cash drop at a store when two men wearing black clothing, ski masks and body armor arrived in a black Jeep. One robber, who has not yet been identified, approached the driver and said, “Don’t die over this money.” The robber pointed his handgun at the driver when the driver didn’t immediately turn over his gun.
The driver handed over his firearm and then ran into the store for help. Smith, who was armed with a short-barreled rifle, and the other robber took a bag containing $2,000 and a duffel bag containing empty bank bags.
Greenwade was driving the Jeep and planned the robbery. Woods, Greenwade’s nephew, owned the Jeep and allowed it to be used for the robbery and for practice runs.
Woods and Greenwade each pleaded guilty to one count of robbery. Smith pleaded guilty to robbery and one count of use of a firearm during a crime of violence.
In a separate case, Smith pleaded guilty to a money laundering charge and Greenwade pleaded guilty to a drug conspiracy charge, a money laundering conspiracy charge and money laundering. Both men admitted helping to sell illegal drugs and launder the proceeds.
The case was investigated by the FBI and the Overland Police Department. Assistant U.S. Attorney Torrie J. Schneider prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Three Plead Guilty to Possession with Intent to Spend Counterfeit Currency on the Choctaw Indian ReservationRead the Press Release
Jackson, MS – Three defendants pled guilty to possession with intent to spend counterfeit currency in the Pearl River Community of the Mississippi Band of Choctaw Indians.
According to court documents, in March of 2024, Christopher Nolan, 39, Astra High, 43, both of Philadelphia, and Bailey Gonzales, 25, of Pascagoula, possessed with intent to spend counterfeit currency in the Pearl River Community of the Mississippi Band of Choctaw Indians.
Gonzales and High pled guilty in U.S. District Court today. Nolan pled guilty on September 12, 2024.
The three defendants are scheduled to be sentenced on February 4, 2025, and they each face a maximum penalty of twenty years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd Gee and Special Agent in Charge Patrick Davis of the U.S. Secret Service made the announcement.
The case was investigated by the U.S. Secret Service with assistance from the Choctaw Police Department.
Assistant U.S. Attorneys Kevin J. Payne and Brian K. Burns prosecuted the case.
Three Individuals Charged in Gun Trafficking CaseRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Naquann Simmons, age 30, of New York, New York, Eva Kelly Smith, age 31, of Scranton, Pennsylvania, and Eugene David Deininger, age 50, of Hanover Township, Pennsylvania, were indicted yesterday by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney Gerard M. Karam, the indictment alleges that on September 22, 2022, Simmons and Kelly went to a gun store in Wilkes-Barre Township, Luzerne County and provided false information on an application where two firearms were obtained. The indictment further alleges that on that same date Simmons possessed a firearm in furtherance of drug trafficking. It is further alleged that on August 15, 2023, Simmons and Deininger went to a gun store in Plains Township, Luzerne County and provided false information on an application for two firearms.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Luzerne County District Attorney’s Office. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
The maximum penalty under federal law for this offense is lifetime imprisonment for Simmons and 10 years imprisonment for Smith and Deininger, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Three Big Game Guides Indicted for Conspiracy and Lacey Act ViolationsRead the Press Release
POCATELLO – A federal grand jury sitting in Pocatello returned a thirteen-count indictment on August 27, 2024, charging Chad Michael Kulow, 44, and Andrea May Major, 44, both of Kuna, Idaho, along with LaVoy Linton Eborn, 47, of Paris, Idaho, with conspiracy to violate the Lacey Act and additional Lacey Act violations, U.S. Attorney Josh Hurwit announced today.
In connection with illegal big game outfitting and guiding, Kulow was indicted on twelve counts including one felony count of conspiracy and eleven counts of felony Lacey Act violations. Major was indicted on seven counts including one felony count of conspiracy and six felony Lacey Act violations. Eborn was indicted on eight counts including one felony count of conspiracy and seven counts of felony Lacey Act violations.
The thirteen-count indictment returned on August 27, 2024, alleges that in late 2021, Kulow, Major, and Eborn were licensed guides in the State of Idaho, employed by a licensed outfitter. During late 2021, Kulow, Major, and Eborn conspired together to commit Lacey Act violations, when they began illegally acting in the capacity of outfitters, by independently booking mountain lion hunting clients, accepting direct payment, and guiding hunts in southeast Idaho and Wyoming, outside of the licensed and federally permitted outfitting service for which they worked. Between December 2021 and February 2022, the defendants unlawfully sold hunts and carried out guiding activities on the Caribou-Targhee National Forest in southeast Idaho and the Bridger-Teton National Forest in western Wyoming. The illegally guided hunts resulted in the kills of at least eleven mountain lions in Idaho, and a Boone and Crockett record mountain lion in western Wyoming. Several Big Game Mortality Reports were falsely submitted to Idaho Fish and Game with inaccurate outfitter business information, and at least three mountain lions were shipped directly to Texas, without having been presented to Idaho Fish and Game for completion of the required Big Game Mortality Reports. Mountain lions killed during the hunts were transported from National Forest land, to or from Idaho, Utah, Wyoming, Montana, Alaska, Texas, and North Carolina, in violation of the federal Lacey Act and multiple Idaho state laws.
Kulow and Major were both arrested on September 24, 2024, and booked with the U.S. Marshals Service in Boise. Eborn was arrested on September 25, 2024, and booked with the U.S. Marshals Service in Pocatello. Major attended her initial court appearance on September 26, 2024, Kulow attended his initial court appearance on September 27, 2024, and Eborn attended his initial court appearance on September 30, 2024. All three defendants appeared before U.S. Magistrate Judge Debora K. Grasham and entered not guilty pleas. A jury trial is scheduled for November 18, 2024, at the federal courthouse in Pocatello, before Senior U.S. District Court Judge B. Lynn Winmill.
The alleged Lacey Act violations are punishable by up to five years in federal prison, a maximum fine of $250,000, and up to three years of supervised release.
This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, the Idaho Department of Fish and Game, and the U.S. Forest Service. Assistant U.S. Attorney Justin Paskett is prosecuting this case.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Texas Man Sentenced to Federal Prison for Role in $800,000 PPP Fraud SchemeRead the Press Release
COLUMBIA, S.C. — Jacob Liticker, 27, of Houston, Texas was sentenced to two years in federal prison after pleading guilty to conspiracy to commit wire fraud.
Liticker was charged in the District of South Carolina for his role in a national fraud scheme related to the Coronavirus Aid, Relief, and Economic Security Act’s Paycheck Protection Program (PPP). During the height of the COVID-19 pandemic, Congress authorized the PPP program to provide emergency economic relief to businesses suffering economic harm during and as a result of the pandemic.
According to evidence presented in court, Liticker led a scheme that submitted 86 fraudulent PPP loan applications for himself and others, many of whom resided in South Carolina. The scheme resulted in more than $870,000 in fraudulent PPP loans being issued to recipients who were not entitled to the pandemic relief funds. Liticker attempted to obtain more – he requested nearly $1.8 million in fraudulent PPP loans.
Liticker drafted PPP loan applications that falsely claimed businesses suffered financial harm as a result of the COVID-19 pandemic, he manufactured false and fraudulent documents submitted with the applications, he submitted the loan applications himself, he tracked the progress of the loans, and he helped co-conspirators obtain full forgiveness for the loans. He did so while having no criminal record and in college studying business. In exchange for his services, Liticker received a portion of the fraudulently obtained funds. During the pendency this case, Liticker also violated his bond, his bond was revoked, and he is now in the custody of the U.S. Marshals.
United States District Judge Mary Geiger Lewis sentenced Liticker to 24 months in federal prison, to be followed by three years of court-ordered supervision and ordered him to pay $807,990.09 in restitution to the Small Business Administration. There is no parole in the federal system.
“Every dollar defrauded from the PPP program represents money stolen from legitimate businesses who needed support during a difficult time in our country,” said Adair Ford Boroughs, U.S. Attorney for the District of South Carolina. “This scheme took advantage of the public’s generosity by stealing almost a million dollars from taxpayers. We thank our law enforcement partners for bringing accountability in this case.”
“Jacob Liticker’s sentencing should stand as a clear warning to those who seek to prey upon and defraud government programs,” said Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “DCIS will vigorously pursue perpetrators who employ Service Members in furtherance of their crimes, as well as Service Members who willingly participate in criminal behavior against the American people, the very people they swore an oath to protect.”
The case was investigated by the Airforce Office of Special Investigations, Department of Defense – Defense Criminal Investigative Service, with assistance from the U.S. Secret Service. Assistant U.S. Attorneys Winston Marosek, who also serves as the Office’s Coronavirus Fraud Coordinator, and Elliott B. Daniels 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.
Texas Man Sentenced to 10 Months for Failing to Register as a Sex OffenderRead the Press Release
United States Attorney Susan T. Lehr announced that Garrett Hannes, age 37, of Houston, Texas, was sentenced on October 2, 2024, in federal court in Omaha, Nebraska for failing to register as a sex offender. United States District Judge Brian C. Buescher sentenced Hannes to 10 months’ imprisonment. There is no parole in the federal system. After his release from prison, Hannes will be placed on a 5-year term of supervised release.
On June 29, 2021, Hannes was convicted of felony possession of child pornography in the 268th Judicial District of Fort Bend County, Texas. The conviction carried with it a 6-year period of supervision, and included a condition that he does not reside in any household with children under the age of 18 without approval. Hannes was also required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act (SORNA), a federal law.
In October 2023, Hannes moved from Texas to an apartment in Omaha, Nebraska to reside with a woman and her son. Hannes then moved in with a second woman and her three children at an address in Omaha, Nebraska in December 2023 and again in January 2024. Although Hannes was in contact with his supervising officer in Texas in February 2024 and was instructed to register in Nebraska, Hannes refused to do so.
Among the special conditions of supervision imposed by Judge Buescher are that Hannes has no contact with children under the age of 18, including his own children, and that he does not loiter near schools, parks, and playgrounds and other places primarily used by children under the age of 18, unless approved in advance by his supervising U.S. probation officer.
This case was investigated by the United States Marshals Service.
Texas Hospital CEO to Pay over $5.3M to Settle Kickback Allegations Involving Laboratory TestingRead the Press Release
Former hospital chief executive officer (CEO) Jeffrey Madison, of Georgetown, Texas, has agreed to pay $5,343,630 to resolve allegations under the False Claims Act involving illegal payments to physicians for laboratory referrals in violation of the Anti-Kickback Statute. Madison also has agreed to cooperate with the Justice Department’s investigations of, and litigation against, other participants in the alleged schemes.
“The Justice Department will continue to pursue individuals — including C-suite executives — who commit health care fraud,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Kickbacks to physicians from laboratories or other healthcare providers can undermine healthcare decision-making, subject patients to unnecessary medical services and waste taxpayer funds.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded health care programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlement announced today resolves allegations in a lawsuit alleging that Madison, the former CEO of Little River Healthcare (Little River), a critical access hospital in Rockdale, Texas, caused the submission of false claims for laboratory testing to Medicare, Medicaid and TRICARE from January 2015 to June 2018. Madison allegedly agreed to a kickback scheme in which Little River paid commissions to recruiters who used purported management service organizations (MSOs) to pay kickbacks to doctors to induce their laboratory testing referrals to Little River. The settlement resolves allegations that Madison knowingly signed, and caused others to sign, false certifications in Medicare cost reports regarding Little River’s compliance with the Anti-Kickback Statute, and thereby caused the submission of false claims to federal health care programs.
In addition, the settlement resolves allegations in the same lawsuit that, after defendant Doyce Cartrett Jr., M.D., of Silsbee, Texas, informed Little River of his potential laboratory testing referral volume, Madison agreed to have Little River pay Cartrett $2,000 per month in kickbacks disguised as purported medical director fees from February 2015 to May 2017, to induce Cartrett to shift his laboratory testing referrals to Little River. Madison allegedly agreed for Little River to pay the monthly fees, even though Little River did not receive any genuine medical director services from Dr. Cartrett.
Madison did not contest, and accepted responsibility for, the allegations against him in the United States’ amended complaint. Under the terms of the settlement agreement, Madison was excluded from participating in federal healthcare programs for 25 years. The lawsuit is captioned United States, et al. ex rel. STF LLC v. True Health Diagnostics LLC et al., No. 4:16-cv-547 (EDTX).
“Seeing past a corporate entity and holding individuals responsible for making the decisions to engage marketers to pay providers for their laboratory referrals is what justice requires,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “This settlement is a testament to our continued efforts to combat fraud against our federal healthcare programs and to hold accountable all participants who profited from knowingly violating the laws meant to guard against overutilization of medical services and protect the public fisc.”
“Illegal kickback payments, even when disguised as medical director fees, undermine and corrupt the medical decision-making process,” said Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Both the payer and recipient benefit from these schemes, but it is ultimately the taxpayers who foot the bill. HHS-OIG will continue collaborating with law enforcement and prosecutors to protect the Medicare trust fund that millions of Americans depend on.”
“Our nation’s uniformed military service members and their families should never have to question the integrity of their healthcare providers,” said Acting Special Agent in Charge Ryan Settle of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southwest Field Office. “Medical decisions influenced by greed destroy the fundamental element of trust in patient care. This settlement reinforces the commitment the DCIS shares with our law enforcement partners and the Justice Department to pursue all available remedies against those who conspire to commit fraud against our Military Health System.”
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Texas, with assistance from HHS-OIG and DCIS. The United States has recovered over $52 million relating to conduct involving MSO kickbacks to health care providers, which includes recoveries from 46 physicians.
Trial Attorneys Christopher Terranova and Gavin Thole of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorneys James Gillingham and Betty Young for the Eastern District of Texas handled the case.
The government’s pursuit of this matter illustrates the government’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 1-800-HHS-TIPS (800-447-8477).
Settlement
Tampa Man Indicted for Receiving Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Steven Dennis Mack (40, Tampa) with eight counts of receiving child sexual abuse material. If convicted, Mack faces a minimum mandatory penalty of 5 years, up to 20 years, in federal prison for each count. The indictment also notifies Mack that the United States intends to forfeit a cellphone and laptop, which are alleged to be used to commit the offense.
According to the indictment, on several days in June and December 2023, Mack knowingly received visual depictions of minors being sexually abused.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Air Force Office of Special Investigations Detachment 340 at MacDill Air Force Base and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Ross Roberts.
This is another case 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.
St. Louis Man Admits Being Caught with Guns and Drugs After Fleeing PoliceRead the Press Release
ST. LOUIS – A man from St. Louis on Wednesday admitted being caught with three guns, cocaine base and methamphetamine after fleeing from police.
Perry A. McCoy, 33, pleaded guilty to one count of being a felon in possession of a firearm and one count of possession with the intent to distribute cocaine base. He admitted that on Oct. 24, 2023, St. Louis Metropolitan Police Department officers and detectives arrived in the 6100 block of Sherry Avenue to conduct a court-approved search. Prior to the search, McCoy arrived in a red Dodge Charger, entered the home and then left. Police followed the Charger and another vehicle parked at the home, and saw McCoy conduct a hand-to-hand transaction with someone at a nearby gas station. When officers tried to stop the Charger, McCoy drove away, rolling over spike strips that had been placed in front of the car. McCoy sped off before making a U-turn to avoid another set of spike strips and was “T-boned” by a Toyota Tacoma.
McCoy then fled on foot before being tackled by police. Officers found meth in a fanny pack McCoy discarded during the foot chase. They found three Glock pistols and drugs in the car. In all, McCoy was arrested with drugs including a plastic bag containing 16.10 grams of cocaine base, a plastic bag containing 2.33 grams of meth and a glass jar containing 47.53 grams of tetrahydrocannabinol (THC).
McCoy is scheduled to be sentenced Jan. 15, 2025. The gun charge is punishable by up to 15 years in prison and the drug charge is punishable by up to 20 years in prison.
The St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorney Joshua Jones is prosecuting the case.
St. Charles County Truck Driver Sentenced to 15 Years in Prison for Child Pornography, EnticementRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Wednesday sentenced a man engaged in online sexual activity with three teens across the country to 15 years in prison, followed by a lifetime on supervised release.
Tristin M. Davis, 27, had been communicating with hundreds of people online, Assistant U.S. Attorney Jillian Anderson said in court Wednesday, many of whom appeared to be minors. Three victims have been identified fully by law enforcement. Davis used the screen name “muffinman130020” with the first two victims and “bacontaxi” with the third. They ranged in age from 14 to 16.
Davis initially lied about his age to fool victims in to thinking he was a peer, only later admitting his real age. Davis induced or persuaded victims into engaging in sexually explicit conduct with him online and received child sexual abuse material from all three. Davis engaged in “demeaning, derogatory and subjugating communications” with his victims, Anderson said, including discussions of rape, bondage and violence.
Davis pleaded guilty in April in U.S. District Court in three counts of coercion and enticement of a minor and three counts of receipt of child pornography.
The St. Charles County Police Department investigated the case. Assistant U.S. Attorney Jillian Anderson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Social Media Fentanyl Dealer and Blood Gang Member Sentenced to 12 Years in PrisonRead the Press Release
WILMINGTON, N.C. – A Raleigh fentanyl dealer who used social media platforms to advertise his product was sentenced to 144 months in prison, which includes an enhancement for the defendant’s attempts to intimidate government witnesses. On April 25, 2024, Axel Rodriguez a/k/a “Flash,” age 23, pled guilty to conspiracy and trafficking of fentanyl.
“Drug traffickers are increasingly pushing deadly fake pills through social media. They’ve learned they don’t need to stand on street corners when they can reach kids on their smart phones,” said U.S. Attorney Michael Easley. “Counterfeit Oxycontin, Percocet, and Xanax sold on social media are driving addiction and overdose death. It’s time to get the word out and warn kids of the risks.”
According to court documents and other information presented in court, in March 2023, Rodriguez became the subject of a Federal Bureau of Investigation (FBI) and Raleigh Police Department (RPD) investigation after he was identified as selling fentanyl in the Raleigh area using his Instagram account. Rodriguez regularly used his Instagram account to post pictures of the pills he was selling, as well as guns. Rodriguez would advertise that he was able to sell “K packs” of fentanyl pills, which is slang for 1,000 pills. Investigators reviewed Rodriguez’s Instagram account and observed numerous posts of firearms, gang members with firearms, and fentanyl pills for sale.
The investigation revealed Rodriguez was obtaining thousands of pills at a time and then distributing them in the Raleigh area. Between March and May of 2023, investigators conducted multiple controlled purchases of blue pills marked “M-30” from Rodriguez. For example, on March 13, 2023, investigators purchased 25 pills marked “M30.” The confidential informant reported that he observed four firearms in Rodriguez’s vehicle during that transaction. The pills tested positive for the presence of fentanyl.
On one occasion in April 2023, Rodriguez was observed purchasing as many as 8,000 pills from a dealer. That same day, Rodriguez was observed in possession of four firearms in a townhouse he was using to store fentanyl pills. Later that month, Rodriguez was observed in possession of four firearms in a hotel room where he was selling fentanyl pills. In total, Rodriguez is being held accountable for more than 700 grams of fentanyl and 3.6 grams of heroin.
Rodriguez, a validated member of the Bloods, also used his Instagram account to attempt to intimidate an individual Rodriguez suspected of being a government witness. Specifically, while in custody for the instant offense, Rodriguez directed another individual to post a photo of an individual Rodriguez believed to be a witness against him, along with photos of sealed court documents and an image of a rat.
At sentencing, the Government argued Rodriguez’s posts were clear attempts to intimidate a potential witness and asked that his sentence reflect that. The Court agreed and applied an enhancement for attempted obstruction of justice.
“The sentencing of this dangerous individual is an example of our strong working relationship with our federal partners, especially the FBI. The Raleigh Police Department (RPD) will not tolerate the use of social media as a tool for drug trafficking in our city. Using social media to harm our community with fentanyl and heroin will be met with the collective investigative efforts of Federal, state, and local law enforcement. The RPD is grateful to the FBI and U.S. Attorney Michael Easley for our partnership in making our community safe,” said Chief Estella Patterson.
This investigation was part of Organized Crime and Drug Enforcement Task Force Operation (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The FBI and RPD investigated the case and Assistant U.S. Attorney Casey Peaden prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-00295.
Sixty-Eight Defendants Charged in Indictment of Dozens of Members and Associates of California White Supremacist GangRead the Press Release
Federal and local law enforcement today arrested 42 members and associates of the SFV Peckerwoods, a San Fernando Valley, California-based white supremacist street gang, on a 76-count federal grand jury indictment alleging they engaged in a years-long pattern of racketeering activity that included trafficking of drugs — including fentanyl — illegal firearms possession, and COVID-19 benefits and loan fraud.
“The Justice Department has dealt a decisive blow to the San Fernando Valley (SFV) Peckerwoods, a violent white supremacist gang that we charge is responsible for trafficking deadly fentanyl and other drugs, committing robberies, and perpetrating financial fraud to fund both their criminal enterprise and that of the Aryan Brotherhood,” said Attorney General Merrick B. Garland. “With today’s charges and arrests, the Justice Department, together with our state, local, and federal partners has targeted the heart of this gang’s operations, and we will continue to zero in on the criminal enterprises that endanger our communities.”
The indictment unsealed today charges a total of 68 defendants with a score of federal crimes: conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, conspiracy to distribute controlled substances, distribution of controlled substances, bank fraud, conspiracy to commit bank fraud, aggravated identity theft, possession of a firearm in furtherance of a drug trafficking crime, unlawful possession of a firearm and ammunition by a felon, and possession of 15 or more unauthorized access devices.
The defendants arrested today are expected to be arraigned this afternoon in U.S. District Court in downtown Los Angeles.
During the investigation, law enforcement seized large quantities of illegal firearms, and dozens of pounds of fentanyl, methamphetamine, and heroin, according to the indictment.
“The Peckerwoods’ violent white-supremacist ideology and wide-ranging criminal activity pose a grave menace to our community,” said U.S. Attorney Martin Estrada for the Central District of California. “By allegedly engaging in everything from drug-trafficking to firearms offenses to identity theft to COVID fraud, and through their alliance with a neo-Nazi prison gang, the Peckerwoods are a destructive force. In prosecuting the members of the Peckerwoods criminal organization, our office is carrying out its mission to protect the public from the most dangerous threats.”
“This operation, led by our Joint Terrorism Task Force, disrupted a racially motivated violent extremist group who engaged in a wide range of criminal activity,” said Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office. “This case strikes at the heart of our collective mission to rid our communities of the corrosive elements that fuel violence and extremism that greatly impact our way of life. The FBI, along with our federal, state, and local partners, remains strongly committed to working every day to make sure the people of the Southland remain safe.”
“The San Fernando Valley Peckerwoods, the Aryan Brotherhood, and their associates are fused by one thing: hatred,” said Special Agent in Charge Matthew Allen of the Drug Enforcement Administration (DEA) Los Angeles Field Division. “It appears, however, that the business of hate was not enough for them. Driven by greed, they engaged in other crimes, including drug distribution, pushing out deadly fentanyl onto our streets. Operating from corners of the San Fernando Valley, they conducted their crimes within and beyond the 8-1-8 community. Today’s large-scale indictments and arrests reflect our relentless commitment to dismantling criminal organizations that continue to harm our communities.”
According to the indictment that a grand jury returned on Sept. 26, the Peckerwoods is a street gang based in communities in the San Fernando Valley whose members engage in a wide variety of criminal activity, including drug trafficking, violent crime, and fraud. As a white supremacist gang, the Peckerwoods at times takes orders from the Aryan Brotherhood, California’s dominant prison-based white supremacist gang, and maintains an alliance with the Mexican Mafia prison gang, which controls most Latino street gangs in California. The Peckerwoods use Nazi tattoos, graffiti, and iconography to indicate their violent white supremacy extremist ideology. These tattoos and iconography include swastikas, the symbol “88”, used by violent white supremacy extremists as code for “Heil Hitler”, and images of Nazi aircraft.
Members and associates of the gang used social media to share information with each other about their criminal activities and gang rules, to identify gang members in good standing, and to target people who broke the gang’s rules. The social media use included a members-only Facebook group and private, direct messages between the gang’s members and associates.
From at least December 2016 to September, Peckerwoods members conducted and participated in the affairs of their criminal enterprise by engaging in violence and threats of violence to preserve and expand the gang’s criminal operations, which promoted a climate of fear. Members and associates of the gang illegally maintained firearms and ammunition in furtherance of these aims.
To generate revenue for the gang, its members trafficked narcotics, including fentanyl, heroin, and methamphetamine. Specifically, lead defendant Claire Patricia Haviland, 62, of Chatsworth, California, and co-defendants Brian Glenn Ekelund, 53, of Chatsworth, and Brianne Brewer, 38, of North Hollywood, California, maintained and oversaw drug stash houses where large quantities of fentanyl, heroin, methamphetamine, and other drugs were stored prior to distribution. Haviland and Ekelund allegedly mailed illegal drugs to customers and used applications such as Zelle and CashApp to receive money from drug buyers and send money to their drug sources.
They also generated revenue via robberies and financial fraud and participated in identity theft schemes. For example, from at least March 2021 to July 2023, defendants Sean Craig Gluckman, 35, of Encino, California; Maria Anna James, 30, of Canyon Country, California; and others submitted false and fraudulent applications for the Paycheck Protection Program (PPP), which was designed to aid businesses harmed by the economic fallout from the COVID-19 pandemic. The defendants – posing as sole proprietors – signed fraudulent PPP loan applications on behalf of individuals incarcerated in California state prisons and collected a portion of the fraudulently obtained proceeds from co-conspirators as payment for their assistance.
In April 2021, Gluckman submitted an application that falsely stated he was a self-employed “artist/writer” with a gross income of nearly $250,000. Later that month, he obtained a PPP loan in the amount of $20,833. In a separate scheme, Gluckman submitted fraudulent unemployment insurance (UI) applications in the names of other people to the California Employment Development Department (EDD) to fraudulently obtain jobless benefits.
“The proliferation of gang related organized crime deteriorates the core of our society,” said Chief Dominic Choi of the Los Angeles Police Department. “Taking guns out of the hands of gang members and drugs from our streets is just one more step towards reducing this deterioration. Today is yet another example of how local, regional, and federal law enforcement, with a matched dedication, are working together to investigate, apprehend and prosecute criminals.”
“When criminal organizations cross jurisdictional lines, it makes conducting investigations and subsequent prosecutions much more difficult,” said Sheriff Jim Fryhoff of the Ventura County, California, Sheriff’s Office. “Having our federal law enforcement partners involvement in such cases greatly enhances our ability to protect not only the citizens of our county, but also those of our region of the state.”
If convicted, the defendants face a maximum penalty of life in prison.
The FBI, DEA, Los Angeles Police Department, and Ventura County Sheriff’s Office are investigating the case. The Simi Valley Police Department; California Highway Patrol; Glendale Police Department; Burbank Police Department; Redondo Beach Police Department; Beverly Hills Police Department; Los Angeles County Sheriff’s Department; U.S. Marshals Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; Department of Veterans Affairs Police; Department of Labor; Federal Bureau of Prisons; Los Angeles County Probation Department; Los Angeles County Department of Children and Family Services; Pasadena Fire Department; U.S. Customs and Border Protection; and IRS Criminal Investigation provided assistance in the investigation.
Assistant U.S. Attorneys Reema M. El-Amamy, Jeremiah M. Levine, and Alexander Su for the Central District of California are prosecuting this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international 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 www.justice.gov/coronavirus.
On Sept. 15, 2022, the Attorney General selected the U.S. Attorneys’ Offices for the Central and Eastern Districts of California to jointly head one of three national COVID-19 Fraud Strike Force Teams. The Justice Department established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Six People Indicted After Allegedly Robbing an ATM of $200,000Read the Press Release
UPDATE
Upon motion of the United States, the indictment described in the press release below against Keaira Woods, in this case was dismissed on April 2, 2026.
Salt Lake City, Utah – A federal grand jury in Salt Lake City returned an indictment today charging residents from Texas and Louisiana after they allegedly robbed $200,000 from an ATM while it was being serviced by an ATM technician.
According to court documents, Calvin Brantley, 29, Jevaunte Reese, 32, Lashawn Charleswell, 31, and Keaira Woods, 26 all from Houston, Texas, and Tiras Jack, 44, and Harold Oliver, 37 of Baton Rouge, Louisiana, allegedly robbed a Mountain America Credit Union ATM in Taylorsville, Utah.
As alleged in the complaint, on September 11, 2024, Taylorsville Police Department and special agents from the FBI responded to a duress alarm at the Mountain America Credit Union. Upon arrival, law enforcement spoke to an ATM technician who was present during the robbery. The technician is contracted through a company that repairs ATM machines and has access to the cash stored inside. During the service call, multiple males pushed the ATM technician down and one told him to “stay down.” The technician saw the men take the boxes out of the ATM which contained $200,000 in cash, and run and take off in a silver Jeep Grand Cherokee that was parked nearby. During the investigation, police identified a silver Jeep Grand Cherokee with a Colorado license plate and a white Jeep Grand Cherokee with a Florida license plate. Both license plates belonged to rental car companies that had license plates removed from rental vehicles and stolen. Using a GPS tracker on one of the license plates, law enforcement identified the location of one of the white Jeep Grand Cherokee at a rest stop in Paragonah, Utah, and took six people into custody. Additionally, $195,691 was recovered from inside the vehicle.
Brantley, Oliver, Reese, Charleswell, Jack, and Woods are charged with credit union robbery. Brantley, Oliver, Reese and Charleswell are scheduled for their initial appearance on the indictment on October 7, 2024. Jack and Woods are scheduled for their initial appearance on October 8, 2024, in courtroom 7.1 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
The case is being investigated by the Taylorsville Police Department and the FBI Salt Lake City Field Office.
Assistant United States Attorney Carlos A. Esqueda of the U.S. Attorney’s Office for the District of Utah is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Attachments:
keaira_woods.order_granting_leave_of_court_to_file_a_dismissal_of_the_indictment.pdf keaira_woods.motion_for_leave_to_dismiss_the_indictment.pdfSerial Sexual Predator Charged in Five Cold Case RapesRead the Press Release
WASHINGTON – U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department today announced the arrest of Ernesto Mercado, 54, of Arlington, Virginia, in connection with five sexual offenses that occurred in the Georgetown area of the District of Columbia between 2008 and 2012. The arrest is the culmination of work by the Cold Case Sexual Assault Initiative, a joint effort by MPD and the U.S. Attorney’s Office, with support from other law enforcement partners, to reinvestigate, solve, and bring charges in previously unsolved sexual assault cases.
Mercado was arrested last night and is charged by complaint with three counts of first-degree sexual abuse with aggravating circumstances and five counts of second-degree sexual abuse with aggravating circumstances in connection with five previously unsolved, forensically linked home invasion rapes. He had an appearance in the Superior Court of the District of Columbia today. The Honorable Heide L. Herrmann ordered the defendant held pending a preliminary hearing scheduled for October 10, 2024.
Joining in today’s announcement were U.S. Marshal Robert Dixon with D.C. Superior Court, and FBI Acting Special Agent in Charge David Geist of the Washington Field Office Criminal and Cyber Division.
The attacks occurred in the Georgetown area of Northwest Washington, D.C. According to the complaint, evidence testing in all five cases yielded the same unknown male DNA profile which also matched a DNA profile for a separate offense that occurred just off the campus of the University of Maryland in College Park, Maryland.
According to the complaint, in multiple attacks, the complainants were sleeping when Mercado began his assault. They reported being awakened to a stranger who was sexually assaulting them. After the victims woke up, the assailant fled.
“Thanks to DNA evidence from the rape kits of courageous survivors, improvements in DNA technology, and the tireless efforts of our law enforcement partners and our prosecutors, we were able to link these six rapes,” said U.S. Attorney Graves. “Once we had a DNA profile of the suspect, the team used every forensic tool at its disposal, as well as old-fashioned detective work, to identify the person behind this DNA profile. That hard work led to yesterday’s arrest of Ernesto Mercado. This case, and the Cold Case Initiative itself, are a testament to the law enforcement officers, the prosecutors and the advocates who never stop working on behalf of the victims.”
“For the past 16 years, our Sexual Assault Unit detectives have continued to follow-up on leads and connect the cases together – looking for patterns, evidence, and a suspect,” said Chief Pamela A. Smith. “We know that people often want answers right away in cases, but our detectives never gave up and today’s announcement speaks to their unending commitment to bring justice to victims.”
“As yesterday's arrest demonstrates, advancements in technology and collaboration among law enforcement partners can lead to breakthroughs in cases that have previously gone unsolved,” said Acting Special Agent in Charge Geist. “The FBI Washington and Baltimore field offices reaffirm our commitment to seeking justice for victims of heinous crimes no matter how much time passes. We thank our federal and local partners who contributed to this investigation as well as those who work alongside us every day to protect our communities.”
The incidents charged include: a June 26, 2008, sexual assault; a July 10, 2009, sexual assault; a February 28, 2010, sexual assault; an August 29, 2010, sexual assault; and an August 31, 2012, sexual assault, all in the District of Columbia. The defendant was linked to the attacks through DNA testing and other investigative tools.
This is an ongoing investigation. Anyone who was a victim of sexual assault or who may have information related to these or other cases, please call the MPD at 202-727-9099 or text 50411. You can remain anonymous.
This case is being investigated by the Cold Case Sexual Assault Initiative, a collaboration between the Metropolitan Police Department and the U.S. Attorney’s Office. Significant assistance is being provided by the U.S. Marshal’s Service’s Superior Court Unit, the FBI Investigative Genetic Genealogy Team, FBI’s Baltimore and Washington Field Offices, the D.C. Department of Forensic Sciences, and the Arlington County Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Robert Platt and Amy Zubrensky.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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2024 CF1 9884
San Francisco Man Pleads Guilty to Making Threats to Assault and Murder Federal Probation OfficerRead the Press Release
SAN FRANCISCO – Brandon Sims-White pleaded guilty in federal court today to making threats to sexually assault and murder his United States Probation Officer, announced United States Attorney Ismail J. Ramsey and Acting United States Marshal Jay Bieber. Sims-White has remained in federal custody since making these threats and following his arrest in February 2024.
Sims-White, 41, was originally charged in April 2019 with being a felon in possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g)(1). He was arrested in 2019 and remanded to federal custody. Sims-White pleaded guilty in June 2019 and, in September 2019, the Hon. Charles R. Breyer, Senior U.S. District Judge, sentenced him to 30 months of imprisonment.
According to the criminal complaint filed on Apr. 16, 2024, a United States Probation Officer (identified as “Victim-1”) began supervising Sims-White upon his release from federal custody in March 2021. While Sims-White was under federal supervision, Victim-1 sought warrants on multiple occasions for Sims-White’s arrest, alleging violations of his conditions of supervised release. As described in the criminal complaint and other court documents, Sims-White was arrested multiple times while under federal supervision.
In February 2024, Sims-White appeared again for detention proceedings in federal court in San Francisco and was remanded to federal custody pursuant to a detention order. In his plea agreement, Sims-White admitted that after the February 2024 court proceedings, he knowingly and repeatedly made threats to Victim-1. Specifically, Sims-White repeatedly made threats to kill and sexually assault Victim-1, including in the presence of multiple other individuals. Sims-White also admitted that, further to making the threats to Victim-1, he made additional statements of harm regarding other federal officials.
Following the filing of the criminal complaint, Sims-White was indicted by a federal grand jury on June 18, 2024 on one count of Threatening to Assault, Kidnap, or Murder a United States Official, United States Judge, Federal Law Enforcement Officer, or Other Official in violation of 18 U.S.C. § 115(a)(1)(B).
Judge Breyer scheduled Sims-White’s sentencing for Dec. 18, 2024. Sims-White faces a maximum sentence of 10 years in prison under 18 U.S.C. § 115(a)(1)(B). However, any sentence will be imposed by the Court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is being prosecuted by the National Security & Cyber and General Crimes Sections of the United States Attorney’s Office, and is the result of an investigation by the United States Marshals Service.
Russian Man Sentenced for Running an Illegal Money Transmitting BusinessRead the Press Release
Feliks Medvedev, 43, of Buford, Georgia, was sentenced today to three years and 10 months in prison, followed by three years of supervised release, and ordered to pay a $10,000 fine for conducting an unlicensed money transmitting business which transferred over $150 million in Russian money.
According to the court documents and other information presented in court, Medvedev is a Russian citizen who resides in North Georgia. He registered eight companies in Georgia that were used to transmit more than $150 million in over 1,300 transactions. The companies were purportedly headquartered in Buford and Dacula, Georgia, but they did not have typical business expenses or employees. The money was used, in part, to purchase over $65 million in overseas gold bullion. Medvedev transferred millions of dollars overseas from multiple bank accounts in the United States.
As part of the conspiracy, Medvedev worked with a Russian company and was directed by multiple Russian nationals at that company to make illegal transfers of funds. Subsequent to Medvedev’s indictment, on Sept. 14, 2023, the U.S. Department of the Treasury’s Office of Foreign Assets Control, acting pursuant to Executive Order 14024, sanctioned two of Medvedev’s alleged co-conspirators: Russian national Alexey Chubarov and his company KSK Group. Earlier this year, on Feb. 13, Chubarov, KSK Group and Russian national Lev Solyannikov were separately indicted in the Northern District of Georgia for conspiring with Medvedev.
Medvedev was convicted of the charges on Feb. 7, after he pleaded guilty.
The FBI and the Department of Commerce’s Bureau of Industry and Security are investigating the case.
Assistant U.S. Attorneys Christopher J. Huber and Norman L. Barnett for the Northern District of Georgia are prosecuting the case.
This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
Russian Man Sentenced for Running an Illegal Money Transmitting BusinessRead the Press Release
ATLANTA - Feliks Medvedev has been sentenced to three years, 10 months in prison for conducting an unlicensed money transmitting business which transferred over $150 million in Russian money.
“Medvedev threatened our national and economic security by illegally transferring and laundering illicit Russian money,” said U.S. Attorney Ryan K. Buchanan. “Medvedev’s sentencing is a warning to others that our office is committed to pursuing and prosecuting individuals, both foreign and domestic, who promote the illegal transfer of foreign proceeds.”
“Medvedev used the American banking system to illegally transmit over $150 million,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This sentencing should serve as a notice to others who seek to undermine the security of American financial institutions, the FBI will continuously work to uncover the truth and push those committing criminal acts to be held accountable.”
“Today’s sentencing is a testament to the coordinated efforts between our federal partners effectively targeting illegal financial transactions and money laundering schemes,” said John Johnson, Special Agent in Charge of OEE’s Miami Field Office. “Unlawful use of our financial system undermines the national security and foreign policy of the United States.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Feliks Medvedev is a Russian citizen who resides in North Georgia. He registered eight companies in Georgia that were used to transmit more than $150 million in over 1,300 transactions. The companies were purportedly headquartered in Buford, Georgia, and Dacula, Georgia, but they did not have typical business expenses or employees. The money was used, in part, to purchase over $65 million in overseas gold bullion. Medvedev transferred millions of dollars overseas from multiple bank accounts in the United States.
As part of the conspiracy, Medvedev worked with a Russian company and was directed by multiple Russian nationals at that company to make illegal transfers of funds. Subsequent to Medvedev’s indictment, on September 14, 2023, the U.S. Department of the Treasury’s Office of Foreign Assets Control, acting pursuant to Executive Order 14024, sanctioned two of Medvedev’s alleged co-conspirators: Russian national Alexey Chubarov and his company KSK Group. Earlier this year, on February 13, 2024, Chubarov, KSK Group, and Russian national Lev Solyannikov were separately indicted in the Northern District of Georgia for conspiring with Medvedev.
Feliks Medvedev, 43, of Buford, Georgia, was sentenced by U.S. District Judge Thomas W. Thrash, Jr. to three years, 10 months in prison to be followed by three years of supervised release. He was also ordered to pay a $10,000 fine. Medvedev was convicted of the charges on February 7, 2024, after he pleaded guilty.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case was investigated by the Federal Bureau of Investigation and the U.S. Department of Commerce, Bureau of Industry and Security with valuable assistance from the Georgia Bureau of Investigation.
Assistant U.S. Attorneys Christopher J. Huber and Norman L. Barnett prosecuted the case.
This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Randolph County Man Sentenced for Methamphetamine ChargeRead the Press Release
ELKINS, WEST VIRGINIA – Donald Ray Cantrell, Jr., 48, of Mill Creek, West Virginia, was sentenced to 188 months in federal prison for conspiracy to distribute methamphetamine.
According to court documents and statements made in court, Cantrell was on supervised release after serving time for a drug charge. U.S. Probation officers searched Cantrell’s home during a visit, found a firearm, and arrested him. While incarcerated, Cantrell was recorded on a jail call, asking someone to hide his methamphetamine and cash in his house. Investigators searched Cantrell’s home and seized 220 grams of methamphetamine and $18,219.
Cantrell will serve three years of supervised release following his prison sentence.
The Mountain Region Drug Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the West Virginia State Police investigated.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government.
Chief U.S. District Judge Thomas S. Kleeh presided.
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Previously Extradited Foreign National Sentenced for Role in Multimillion-Dollar Business Email Compromise Schemes Targeting Educational Institutions and Businesses in Texas and North CarolinaRead the Press Release
A dual citizen of Nigeria and the United Kingdom was sentenced yesterday to seven years in prison for his role in a multimillion-dollar business email compromise (BEC) scheme.
According to court documents, Oludayo Kolawole John Adeagbo, 45, conspired with others to participate in multiple cyber-enabled BEC schemes in an attempt to steal more than $3 million from victim entities in Texas, including local government entities, construction companies, and a Houston-area college. Adeagbo and conspirators also defrauded a North Carolina university of more than $1.9 million.
Adeagbo, also known as John Edwards and John Dayo, arrived in the United States in August 2022 after he was extradited from the United Kingdom to face criminal charges filed in Charlotte and in Houston. On April 8, Adeagbo pleaded guilty to one count each of wire fraud and conspiracy to commit wire fraud for his criminal conduct in both cases, following the transfer of the case in the U.S. District Court for the Southern District of Texas to the U.S. District Court for the Western District of North Carolina.
A BEC scheme, also referred to as “cyber-enabled financial fraud,” is a sophisticated scam that often targets individuals, employees, or businesses involved in financial transactions or that regularly perform wire transfer payments. Fraudsters are usually part of larger criminal networks operating in the United States and abroad.
There are many variations of BEC scams. Generally, the schemes involve perpetrators gaining unauthorized access to legitimate email accounts or creating email accounts that closely resemble those of individuals or employees associated with the targeted businesses or involved in business transactions with the victim businesses. The scammers then use the compromised or fake email accounts to send false wiring instructions to the targeted businesses or individuals, to dupe the victims into sending money to bank accounts controlled by perpetrators of the scheme. Generally, the money is quickly transferred to other accounts in the United States or overseas.
The North Carolina BEC Scheme
According to court documents and court proceedings, from Aug. 30, 2016, to Jan. 12, 2017, Adeagbo, his codefendant, Donald Ikenna Echeazu, 42, a dual citizen of Nigeria and the United Kingdom extradited to the United States, and others defrauded a North Carolina university (the University) of more than $1.9 million via a BEC scheme.
Court records show that Adeagbo and his co-conspirators obtained information about significant construction projects occurring throughout the United States, including an ongoing multi-million-dollar project at the victim University. To execute the scheme, Adeagbo, Echeazu, and others registered a domain name similar to that of the legitimate construction company in charge of the University’s project and created an email address that closely resembled that of an employee of the construction company. Using the fake email address, the fraudsters deceived and directed the University to wire a payment of more than $1.9 million to a bank account controlled by an individual working under the direction of Adeagbo and his co-conspirators. Upon receiving the payment, Adeagbo and his co-conspirators laundered the stolen proceeds through a series of financial transactions designed to conceal the fraud.
The Texas BEC Scheme
According to information contained in court documents, from November 2016 until July 2018, Adeagbo conspired with others to participate in multiple cyber-enabled BECs in an attempt to steal more than $3 million from victim entities in Texas, including local government entities, construction companies and a Houston-area college. As with the scheme in North Carolina, Adeagbo and his co-conspirators registered domain names that looked similar to legitimate companies. They then sent emails from those domains pretending to be employees at those companies to clients or customers of the companies they impersonated and deceived those customers into sending wire payments to bank accounts the co-conspirators controlled.
Adeagbo remains in federal custody. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
On May 16, 2023, Echeazu was sentenced to 18 months in prison followed by a year of supervised release and was ordered to pay $655,408.87 in restitution for his role in the conspiracy.
As part of his sentence yesterday, Adeagbo was sentenced to one year of supervised release following his sentence of incarceration and ordered to pay $942,655.03 in restitution for his role in the schemes.
“Oludayo Adeagbo and his coconspirators perpetrated transnational cyber-enabled fraud schemes that targeted schools, government entities, and companies across the United States, and caused millions of dollars in losses,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Adeagbo’s extradition, plea, and sentencing underscore the Criminal Division’s commitment to working with our law enforcement partners to pursue cybercriminals who target American victims, no matter where that pursuit leads. We are especially grateful to the Government of the United Kingdom for its assistance in this case.”
“Adeagbo ran a sophisticated 21st century cyber-criminal operation hiding behind fake email accounts and anonymous internet addresses to steal from the innocent, a crime as old as time itself,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “BEC scams have become an epidemic with individuals and businesses suffering debilitating financial losses, while eroding society’s trust in digital communications and undermining overall economic stability. That’s why prosecutors and agents in two jurisdictions worked tirelessly to identify Adeagbo and reach across the Atlantic to bring him to justice.”
“BEC schemes, like the ones perpetrated by Adeagbo and his co-conspirators, are sophisticated and devastating crimes that target the trust businesses and institutions place in their daily operations,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “By exploiting this trust, fraudsters steal millions of dollars from unsuspecting victims. This case demonstrates the commitment of my office and our law enforcement partners to pursue justice for those impacted by these schemes and to hold cybercriminals accountable, regardless of where they are operating from.”
“Oludayo Adeagbo thought he was pretty slick stealing other people’s money via this scam. His victims, however, strongly disagreed,” said Executive Assistant Director Michael Nordwall of the FBI. “Instead of enjoying the fruits of his illegal labors, Adeagbo will now be spending time in a federal prison. The BEC is one of the fastest growing and most costly scams and the only way to fight it is through cooperation, often international cooperation, and this case is a prime example of partnerships working.”
“Mr. Adeagbo’s multimillion-dollar BEC scheme inflicted substantial financial damage on trusted educational institutions, government municipalities, and innocent businesses within our community,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “In a world increasingly reliant on the digital landscape, yesterday’s sentencing serves as a powerful reminder that cybercrime has real consequences. FBI Houston will continue to investigate, attribute, and impose severe consequences on cyber criminals seeking to harm others through deceit and fraud.”
“As a North Carolina University planned for growth with a new construction project, Adeagbo worked on a scheme to defraud the school by stealing nearly two million dollars of its funding,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “When he and his conspirators first committed this BEC more than seven years ago, they likely never expected to get caught. This federal prison sentence shows the FBI will do everything possible to find and hold international financial fraudsters accountable.”
The FBI’s Houston Cyber Task Force and Charlotte Field Office investigated the case with assistance from the FBI’s Cyber and Criminal Investigative Divisions. The United Kingdom’s National Crime Agency, Metropolitan Police Service, City of London Police, and Crown Prosecution Service also provided substantial assistance. The Justice Department’s Office of International Affairs helped secure the arrest and extradition.
Trial Attorney Brian Mund of the Criminal Division’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Rodolfo Ramirez for the Southern District of Texas, and Assistant U.S. Attorney Graham Billings for the Western District of North Carolina prosecuted the case.
If you suspect you are a victim of a BEC scheme, you can file a complaint online with the FBI’s Internet Complaint Crime Complaint Center (IC3) at bec.ic3.gov. The IC3 staff reviews complaints to detect patterns or other indicators of significant criminal activity for potential criminal prosecution. The FBI provides a variety of resources relating to BEC scams through the IC3, which can be located at www.ic3.gov. For more information on BEC scams, visit www.fbi.gov/scams-and-safety/common-scams-and-crimes/business-email-compromise.
Precision Toxicology Agrees to Pay $27M to Resolve Allegations of Unnecessary Drug Testing and Illegal Remuneration to PhysiciansRead the Press Release
WASHINGTON – Precision Toxicology, doing business as Precision Diagnostics, has agreed to pay $27 million to resolve alleged violations of the False Claims Act and similar state statutes for billing Medicare, Medicaid and other federal health care programs for medically unnecessary urine drug tests, and for providing free items to physicians who agreed to refer expensive laboratory testing business to Precision. Precision, headquartered in San Diego, is one of the nation’s largest urine drug testing laboratories.
“The Justice Department is committed to ensuring that laboratory tests are ordered based on each patient’s medical needs and not just to increase laboratory profits,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will not tolerate practices that unnecessarily increase the costs of federal health care programs and result in the misuse of taxpayer funds.”
In the settlement agreement, the United States alleged that Precision systematically billed federal health care programs for excessive and unnecessary urine drug testing from Jan. 1, 2013, through Dec. 31, 2022. In particular, the United States contended that Precision caused physicians to order excessive numbers of urine drug tests, in part through the promotion of “custom profiles,” which were, in effect, standing orders that caused physicians to order a large number of tests without an individualized assessment of each patient’s needs. This practice violated federal health care program rules limiting payment to services that are reasonable and medically necessary for the treatment and diagnosis of an individual patient’s illness or injury.
The United States also alleged that Precision’s provision of free point of care urine drug test cups to physicians — expressly conditioned on the physicians’ agreement to return the urine specimens to Precision for additional testing — violated the Anti-Kickback Statute. The Anti-Kickback Statute generally prohibits laboratories from giving physicians anything of value in exchange for referrals of tests.
“We aggressively pursue those who defraud these critical healthcare programs and take money meant for needy patients. Taxpayers deserve nothing less, “ said U.S. Attorney Erek L. Barron for the District of Maryland.
“When laboratories ignore medical needs and increase testing for their own profits, the Department of Justice will act to protect the taxpayers and the integrity of our vital federal health programs,” said Acting U.S. Attorney Matthew Kirsch for the District of Colorado.
In connection with the False Claims Act settlement, Precision has also entered into a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG).
“Today’s settlement demonstrates that investigating violations of the False Claims Act is a top priority,” said Special Agent in Charge Maureen R. Dixon of HHS-OIG. “HHS-OIG will continue to work with the Department of Justice to ensure the integrity of federal health care programs.”
Of the settlement amount, $18.2 million will be paid to the United States and the remainder will be paid to the impacted states, including Maryland, Illinois, Minnesota, Virginia, Georgia and Colorado, for the states’ share of Medicaid.
The False Claims Act allegations resolved by this settlement were originally brought in three lawsuits filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. Two of the cases are captioned United States and Maryland ex rel. Hudak v. Precision Toxicology LLC, ELH-18-1510 (DMD) and United States, Illinois and Minnesota ex rel. Buonauro v. Precision Diagnostics LLC et al., ELH-21-3231 (DMD). The third qui tam case against Precision, brought in the District of Colorado, remains partially sealed.
Under the Act, the United States can elect to intervene in an action filed by a whistleblower, as it did here in part. Bryce Hudak will receive $2,743,002 from the federal False Claims Act recovery.
The investigation and resolution of this matter illustrates the government’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 obtained in this matter was the result of a coordinated effort between federal and state partners lead by the Civil Division’s Commercial Litigation Branch, Fraud Section, along with the U.S. Attorneys’ Offices for the Districts of Maryland, Colorado and Connecticut; the Department of Health and Human Services Office of Inspector General and Office of the General Counsel; the Office of Personnel Management Office of Inspector General; the Department of Veteran’s Affairs Office of Inspector General; the Defense Criminal Investigative Service; the Maryland Office of Attorney General; and the National Association of Medicaid Fraud Control Units.
Attorneys Vanessa Reed and Vince Vaccarella of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Roann Nichols for the District of Maryland, David Moskowitz for the District of Colorado and Rick Molot for the District of Connecticut handled the matter, with assistance from Assistant Attorneys General Raja Mishra of the State of Maryland, and Ian Garland of the State of Florida.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement Agreement
Precision Toxicology Agrees to Pay $27M to Resolve Allegations of Unnecessary Drug Testing and Illegal Remuneration to PhysiciansRead the Press Release
Precision Toxicology, doing business as Precision Diagnostics, has agreed to pay $27 million to resolve alleged violations of the False Claims Act and similar state statutes for billing Medicare, Medicaid and other federal health care programs for medically unnecessary urine drug tests, and for providing free items to physicians who agreed to refer expensive laboratory testing business to Precision. Precision, headquartered in San Diego, is one of the nation’s largest urine drug testing laboratories.
“The Justice Department is committed to ensuring that laboratory tests are ordered based on each patient’s medical needs and not just to increase laboratory profits,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will not tolerate practices that unnecessarily increase the costs of federal health care programs and result in the misuse of taxpayer funds.”
In the settlement agreement, the United States alleged that Precision systematically billed federal health care programs for excessive and unnecessary urine drug testing from Jan. 1, 2013, through Dec. 31, 2022. In particular, the United States contended that Precision caused physicians to order excessive numbers of urine drug tests, in part through the promotion of “custom profiles,” which were, in effect, standing orders that caused physicians to order a large number of tests without an individualized assessment of each patient’s needs. This practice violated federal health care program rules limiting payment to services that are reasonable and medically necessary for the treatment and diagnosis of an individual patient’s illness or injury.
The United States also alleged that Precision’s provision of free point of care urine drug test cups to physicians — expressly conditioned on the physicians’ agreement to return the urine specimens to Precision for additional testing — violated the Anti-Kickback Statute. The Anti-Kickback Statute generally prohibits laboratories from giving physicians anything of value in exchange for referrals of tests.
“We aggressively pursue those who defraud these critical healthcare programs and take money meant for needy patients. Taxpayers deserve nothing less, “ said U.S. Attorney Erek L. Barron for the District of Maryland.
“When laboratories ignore medical needs and increase testing for their own profits, the Department of Justice will act to protect the taxpayers and the integrity of our vital federal health programs,” said Acting U.S. Attorney Matthew Kirsch for the District of Colorado.
In connection with the False Claims Act settlement, Precision has also entered into a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG).
“Today’s settlement demonstrates that investigating violations of the False Claims Act is a top priority,” said Special Agent in Charge Maureen R. Dixon of HHS-OIG. “HHS-OIG will continue to work with the Department of Justice to ensure the integrity of federal health care programs.”
Of the settlement amount, $18.2 million will be paid to the United States and the remainder will be paid to the impacted states, including Maryland, Illinois, Minnesota, Virginia, Georgia and Colorado, for the states’ share of Medicaid.
The False Claims Act allegations resolved by this settlement were originally brought in three lawsuits filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. Two of the cases are captioned United States and Maryland ex rel. Hudak v. Precision Toxicology LLC, ELH-18-1510 (DMD) and United States, Illinois and Minnesota ex rel. Buonauro v. Precision Diagnostics LLC et al., ELH-21-3231 (DMD). The third qui tam case against Precision, brought in the District of Colorado, remains partially sealed.
Under the Act, the United States can elect to intervene in an action filed by a whistleblower, as it did here in part. Bryce Hudak will receive $2,743,002 from the federal False Claims Act recovery.
The investigation and resolution of this matter illustrates the government’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 obtained in this matter was the result of a coordinated effort between federal and state partners lead by the Civil Division’s Commercial Litigation Branch, Fraud Section, along with the U.S. Attorneys’ Offices for the Districts of Maryland, Colorado and Connecticut; the Department of Health and Human Services Office of Inspector General and Office of the General Counsel; the Office of Personnel Management Office of Inspector General; the Department of Veteran’s Affairs Office of Inspector General; the Defense Criminal Investigative Service; the Maryland Office of Attorney General; and the National Association of Medicaid Fraud Control Units.
Attorneys Vanessa Reed and Vince Vaccarella of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Roann Nichols for the District of Maryland, David Moskowitz for the District of Colorado and Rick Molot for the District of Connecticut handled the matter, with assistance from Assistant Attorneys General Raja Mishra of the State of Maryland, and Ian Garland of the State of Florida.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
Precision Toxicology Agrees to Pay $27 Million to Resolve Allegations of Unnecessary Drug Testing and Illegal Remuneration to PhysiciansRead the Press Release
Washington - Precision Toxicology, doing business as Precision Diagnostics, has agreed to pay $27 million to resolve alleged violations of the False Claims Act and similar state statutes for billing Medicare, Medicaid and other federal health care programs for medically unnecessary urine drug tests, and for providing free items to physicians who agreed to refer expensive laboratory testing business to Precision. Precision, headquartered in San Diego, is one of the nation’s largest urine drug testing laboratories.
“We aggressively pursue those who defraud these critical healthcare programs and take money meant for needy patients. Taxpayers deserve nothing less, “said U.S. Attorney for the District of Maryland Erek L. Barron.“The Justice Department is committed to ensuring that laboratory tests are ordered based on each patient’s medical needs and not just to increase laboratory profits,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will not tolerate practices that unnecessarily increase the costs of federal health care programs and result in the misuse of taxpayer funds.”
In the settlement agreement, the United States alleged that Precision systematically billed federal health care programs for excessive and unnecessary urine drug testing from January 1, 2013, through December 31, 2022. In particular, the United States contended that Precision caused physicians to order excessive numbers of urine drug tests, in part through the promotion of “custom profiles,” which were, in effect, standing orders that caused physicians to order a large number of tests without an individualized assessment of each patient’s needs. This practice violated federal healthcare program rules limiting payment to services that are reasonable and medically necessary for the treatment and diagnosis of an individual patient’s illness or injury.
The United States also alleged that Precision’s provision of free point of care urine drug test cups to physicians—expressly conditioned on the physicians’ agreement to return the urine specimens to Precision for additional testing—violated the Anti-Kickback Statute. The Anti-Kickback Statute generally prohibits laboratories from giving physicians anything of value in exchange for referrals of tests.
“When laboratories ignore medical needs and increase testing for their own profits, the Department of Justice will act to protect the taxpayers and the integrity of our vital federal health programs,” said Acting U.S. Attorney for the District of Colorado Matthew Kirsch.
In connection with the False Claims Act settlement, Precision has also entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).
“Today’s settlement demonstrates that investigating violations of the False Claims Act is a top priority,” said Maureen R. Dixon, Special Agent in Charge for HHS-OIG. “HHS-OIG will continue to work with the Department of Justice to ensure the integrity of federal health care programs.”
Of the settlement amount, $18.2 million will be paid to the United States and the remainder will be paid to the states of Maryland, Illinois, Minnesota, Virginia, Georgia and Colorado for the states’ share of Medicaid.
The False Claims Act allegations resolved by this settlement were originally brought in three lawsuits filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. Two of the cases are captioned United States and Maryland ex rel. Hudak v. Precision Toxicology, LLC, ELH-18-1510 (D. Md.) and United States, Illinois and Minnesota ex rel. Buonauro v. Precision Diagnostics, LLC et al., ELH-21-3231 (D. Md). The third qui tam case against Precision, brought in the District of Colorado, remains partially sealed.
Under the Act, the United States can elect to intervene in an action filed by a whistleblower, as it did here in part. Bryce Hudak will receive $2,743,002 from the federal False Claims Act recovery.
The investigation and resolution of this matter illustrates 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 resolution obtained in this matter was the result of a coordinated effort between federal and state partners lead by the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; along with the U.S. Attorney’s Offices for the Districts of Maryland, Colorado and Connecticut; the Department of Health and Human Services Office of Inspector General and Office of the General Counsel; the Office of Personnel Management Office of Inspector General; the Department of Veteran’s Affairs Office of Inspector General; the Defense Criminal Investigative Service; the Maryland Office of Attorney General; and the National Association of Medicaid Fraud Control Units.
Attorneys Vanessa Reed and Vince Vaccarella of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Roann Nichols for the District of Maryland, David Moskowitz for the District of Colorado and Rick Molot for the District of Connecticut handled the matter, with assistance from Assistant Attorneys General Raja Mishra of the State of Maryland, and Ian Garland of the State of Florida.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
###
Physical Therapist Sentenced to 12 Years for Child PornographyRead the Press Release
KANSAS CITY, Mo. – A physical therapist who owns a clinic in California was sentenced in federal court today for distributing child pornography.
Esteban E. Manale, 47, of Hacienda Heights, Calif., was sentenced by U.S. Chief District Judge Beth Phillips to 12 years in federal prison without parole.
Manale, the owner of a physical therapy clinic in Bellflower, Calif., pleaded guilty on May 3, 2024, to three counts of distributing child pornography. Manale admitted that on three separate occasions in August 2022 he sent images of child pornography to an undercover FBI task force officer whom he believed to be a Missouri woman he met online through a dating application.
Manale originally contacted a woman in Missouri on a dating application in August 2022. He told her that he worked at a physical therapy clinic primarily dealing with athletes, including minor females who were cheerleaders and volleyball players. He stated that he would get touchy with the athletes and liked to flirt with all of the girls who came to the clinic, and disclosed that he has had sex with patients at the clinic. He indicated that he liked children and had slept with a 13-year-old girl he met at the beach. He talked about his fascination with Ted Bundy, said he wanted to “use a rope to choke a young one,” use “knife play,” and “rape a young virgin girl while her mom watches me” while the mother is tied up.
The Missouri woman contacted law enforcement. An undercover officer assumed her identity and continued to communicate with Manale. In those conversations, Manale told the undercover officer that he had sexual contact with “preteens about 10 times,” defining them as being between 10 and 13 years old, and claimed to also have sexual contact “with older teens and about 20 plus.” In one communication, Manale claimed that he visited malls to “hunt” for young, cute girls over the weekend.
Manale discussed his desire to come to Kansas City to meet the undercover officer’s purported 8-year-old niece and have her record the encounter. He sent images of child pornography to the undercover officer via social media from Aug. 22, 2022, through Nov. 9, 2022.
On Dec. 14, 2022, law enforcement officers executed a search warrant at Manale’s residence and seized three cell phones. Two of the phones were hidden on top of the bathroom vanity, in a small space that was difficult to access. Investigators found 507 images and 154 videos of child pornography on those two cell phones.
This case was prosecuted by Assistant U.S. Attorney Maureen A. Brackett. It was investigated by the FBI, the Kansas City, Mo., Police Department, and the Los Angeles, Calif., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Norwich Man Pleads Guilty to Unlawfully Possessing a Short-Barreled RifleRead the Press Release
SYRACUSE, NEW YORK – Benjamin Wheeler, age 19, of Norwich, New York pled guilty today in federal court in Utica to possession of an unregistered short-barreled rifle, announced United States Attorney Carla B. Freedman, Craig. L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
As part of his guilty plea today, Wheeler admitted that on August 6, 2024, the defendant knowingly possessed a “Spikes Tactical” AR-15 style rifle at his apartment in Norwich, New York, knowing that the firearm had a barrel length of less than sixteen inches. The firearm was not registered to the defendant in the National Firearms Registration and Transfer Record as required by federal law.
Sentencing for his conviction for possession of an unregistered short-barreled rifle is scheduled for February 12, 2025, in Utica, New York, at which time Wheeler faces a maximum sentence of up to 10-years in prison, a fine of up to $250,000.00, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The case is being investigated by the Federal Bureau of Investigation (FBI), the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), New York Police Department (NYPD) and the New York State Police with assistance from the Chenango County Sheriff’s Department. Assistant U.S. Attorney Geoffrey J. L. Brown is prosecuting the case.
Newark Businessman Admits Bribing Former Newark Deputy Mayor and Director of Newark Department of Economic and Housing DevelopmentRead the Press Release
NEWARK, N.J. – A Newark business owner today admitted bribing a former city official in exchange for that official’s assistance in acquiring and redeveloping Newark-owned properties, U.S. Attorney Philip R. Sellinger announced.
Irwin Sablosky, 64, of Springfield, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to two counts of an indictment charging him with honest services fraud and bribery.
“As he admitted in court, Irwin Sablosky provided cash and jewelry to Carmelo Garcia, a former Newark deputy mayor and director of the Newark Department of Economic and Housing Development in exchange for Garcia’s use of his influence to assist Sablosky’s acquisition of various Newark-owned properties for redevelopment, defrauding the people of Newark of their right to the official’s honest services. He corrupted the public official’s independent judgment and violated the public trust for his own financial gain. Our office will continue to work with our law enforcement partners to make sure that the people of New Jersey are protected from public officials whose greed overrides their sworn duty to serve the people and from the individuals who bribe those officials.”
U.S. Attorney Philip R. Sellinger
“By bribing a government official, Mr. Sablosky undermined the best interests of his community and threatened the confidence its citizens have in those that take an oath to serve the public,” Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office, said. “IRS-CI is committed to fostering trust in the legal system and holding bad actors accountable.”
“Irwin Sablosky’s selfish actions and severe abuse of power violated the public trust and risked jeopardizing the integrity of the federal process for fair and honest acquisitions of government owned properties to further his own self interests,” said Special Agent-in-Charge Vicky Vazquez with the U.S. Department of Housing and Urban Development, Office of Inspector General. “HUD OIG remains steadfast in its commitment to working with our prosecutorial, law enforcement, and oversight partners to aggressively pursue individuals who engage in activities that threaten the integrity of HUD programs.”
According to documents filed in the case and statements made in court:
Sablosky admitted bribing Garcia – who was also executive vice president and chief real estate officer of the Newark Community Economic Development Corporation (NCEDC) – in exchange for Garcia’s assistance with the acquisition and redevelopment of city-owned property.
According to documents filed in the case and statements made in court:
From 2017 through April 2019, Sablosky, Frank Valvano Jr., and others provided significant monetary payments and other benefits to Garcia while he was serving as a high-level Newark official, and prior to that, as an executive officer of the NCEDC (now known as Invest Newark), in exchange for Garcia’s use of his official positions and influence within the city of Newark and the NCEDC to advance real estate development matters of interest to Sablosky and Valvano. These matters included obtaining preliminary designation letters for Sablosky and Valvano and securing Newark-approved redevelopment agreements (RDAs) that allowed them to purchase and acquire various Newark-owned properties for redevelopment, and to ensure that Garcia did not use his influence and authority to act against their interests.In addition to cash, Sablosky and Valvano also gifted Garcia jewelry, including multiple high-end watches and chains, from their pawnbroker and jewelry business.
Phone records and text messages obtained by law enforcement show extensive communication between Garcia, Valvano, Sablosky, and others throughout this period of time, including text messages in which Garcia arranged to personally collect cash provided by Sablosky and Valvano. In one instance, in June 2018, Sablosky and Valvano, through an intermediary, supplied Garcia, then the city’s acting deputy mayor and director of the city’s DEHD, $25,000 in cash as part of the stream of bribes provided to Garcia.
The honest services fraud charge in Count 18 of the indictment carries a maximum potential penalty of 20 years in prison. The bribery charge in Count 26 carries a maximum penalty of 10 years in prison. All charges are punishable by a fine of $250,000 or twice the amount of the pecuniary gain from the offense. Sentencing is scheduled for Feb. 20, 2025.
Sablosky originally was charged by indictment in October 2021 with Valvano, 56, of Florham Park, New Jersey, and Garcia, 59, of Hoboken, New Jersey. Garcia previously pleaded guilty to conspiracy to defraud the city of Newark and the NCEDC of Garcia’s honest services, honest services wire fraud, and receiving bribes in connection with the business of a federally funded local government and organization and awaiting sentencing. Valvano’s case is pending before Judge Arleo, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Sellinger credited special agents of the FBI’s Newark Field Office, under the direction of Acting Special Agent in Charge Nelson I. Delgado; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Piovesan, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Vicky Vazquez, with the investigation leading to today’s guilty plea.
The government is represented by Elaine K. Lou, Deputy Chief of the Criminal Division, and Katherine J. Calle and Edeli Rivera of the U.S. Attorney’s Office’s Special Prosecutions Division.
sablosky.indictment.pdfNew York Man Indicted for Bank Fraud and Identity Theft in Connection with Stolen $810,000 Tax Refund CheckRead the Press Release
BOSTON – A Yonkers, N.Y. man was indicted yesterday by a federal grand jury in Boston in connection with a scheme to steal an $810,000 tax refund by impersonating a corporate executive in Connecticut.
Steven Ware, 63, was charged by criminal complaint with one count of bank fraud and two counts of aggravated identity theft. Ware was initially arrested and charged by criminal complaint on Sept. 10, 2024.
According to charging documents, in December 2023, Ware opened bank accounts in the name of a Connecticut investment company and one of its executives at a credit union in Tyngsborough, Mass. When opening the account, Ware allegedly identified himself as the executive – using the executive’s full name, date of birth, Social Security number and other documents.
Shortly after opening the account, it is alleged that Ware returned to the credit union pretending to be the executive and deposited a United States Treasury check payable to the company and the executive for $810,337.
Once the check cleared, a debit card was allegedly used to withdraw money from the account to buy goods at various retailers in New York, New Hampshire and Massachusetts. It is further alleged that Ware returned to the Tyngsborough credit union several times over the following days and weeks pretending to be the executive and wired more than $634,000 of the stolen funds.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million. The charges of aggravated identity theft each provide for a mandatory two years in prison, in addition to any sentence imposed for bank fraud, one year 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; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. Valuable assistance was provided by the Tyngsborough Police Department. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.