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Newest first across public DOJ and U.S. Attorney press releases.
Thursday 26 September 2024
Sacred Heart Rehabilitation Center Agrees to Consent Decree and $1,000,000 Penalty for Alleged Controlled Substances Act ViolationsRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Chief U.S. District Court Judge Hala Y. Jarbou has entered a consent decree against Sacred Heart Rehabilitation Center, Inc. (Sacred Heart), a behavioral health and addiction treatment services network, as well as its president and chief executive officer, Paula Nelson, and medical director, Janis Romanik, D.O. The court order imposes certain monitoring and compliance obligations on the defendants as well as a $1,000,000 civil penalty and resolves the United States’ allegations that the defendants violated certain dispensing and recordkeeping requirements of the Controlled Substances Act (CSA).
“Now more than ever, Michigan addiction treatment centers like Sacred Heart play a critical role in treating and healing communities plagued by the opioid epidemic and other forms of addiction,” said U.S. Attorney Mark Totten. “But as this resolution demonstrates, it is crucial that these organizations and their officers handle controlled substances in a way that maintains the integrity of these services and ensures patient safety. The goal of this consent decree is to provide the necessary support and oversight to ensure that Sacred Heart can continue to provide necessary addiction treatment services, but in a safe and compliant manner.”
In its complaint, the United States alleged that a Drug Enforcement Administration (DEA) inspection discovered multiple violations of the CSA at a Sacred Heart treatment facility in Berrien Center named Serenity Hills Recovery & Wellness Center (Serenity Hills). The United States alleged that Serenity Hills staff routinely dispensed controlled substances to treat patients presenting with addiction withdrawal symptoms before a qualified healthcare practitioner evaluated or examined those patients. In many instances, patients spent days on a regimen of controlled substances without being seen by a qualified healthcare practitioner.
The United States also alleged that Serenity Hills failed to maintain accurate records of the controlled substances dispensed to patients, and that the facility neglected to take a biennial inventory of controlled substances and did not file a timely report of the theft or loss of missing controlled substances. The United States alleged that these recordkeeping violations followed a history of similar violations at other Sacred Heart facilities over the last twelve years.
Under the terms of the consent decree, Sacred Heart has agreed to review and revise its controlled substance policies and procedures and to hire an independent monitor to inspect Sacred Heart’s facilities for compliance with the CSA and share the findings of those inspections with Sacred Heart and the DEA. Following this monitoring period, the defendants will enter a probationary period during which future violations may result in payment of liquidated damages.
“When rehabilitation and treatment centers do not live up to their obligations, our office will vigorously pursue the violations,” said Orville Green, Special Agent in Charge of the Detroit Field Division of DEA. “Careless behavior and failure to adhere to the provisions of the CSA, allows for substances to be diverted and sold without accountability.”
The resolution obtained in this case was the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and DEA’s Diversion Group in the Grand Rapids District Office. Assistant United States Attorney Andrew J. Hull prosecuted this case with assistance from DEA Field Counsel Stacy M. Race.
The complaint and consent decree in this case can be found on the Court’s online docket under United States v. Sacred Heart Rehabilitation Center, Inc., et al., No. 1:24-cv-995 (W.D. Mich.).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Rock Island, Illinois Man Sentenced to 84 Months in Federal Prison for Firearms ChargeRead the Press Release
DAVENPORT, Iowa – A Rock Island man was sentenced September 24, 2024, to 84 months in federal prison for possessing a firearm as a felon.
According to public court documents, in July 2023, Daryel Deanthony Shears, 20, was a passenger in a vehicle stopped by officers with the Davenport Police Department. Shears was arrested on his outstanding state warrant for not returning to a residential facility in October 2021. In the vehicle, law enforcement located a loaded, stolen handgun. The Iowa Department of Criminal Investigations (DCI) Criminalistics Laboratory located Shears DNA profile on the handgun. Shears was convicted for previous felony state crimes in Iowa and was therefore prohibited from possessing firearms.
After completing his term of imprisonment, Shears will be required to serve a three-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department.
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.
Rochester man sentenced for stealing mail using stolen postal keyRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Legend Terrance Davis, 21, of Rochester, NY, who was convicted of possession of United States Postal Service key and theft of mail, was sentenced to serve three years’ probation to include six months home detention, and 50 hours of community service, by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that in October 2023, Davis unlawfully possessed a United States Postal Service key, which had been stolen from a mail carrier. On October 1 and October 2, 2023, Davis, and others, used the stolen key to steal mail from mailboxes near the Brighton Station Post Office on N. Winton Road, near the Greece Post Office on Latta Road, and near the Jefferson Road Post Office on Jefferson Road, all in Rochester, NY.
The sentencing is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Ketty Larco-Ward and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
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Rochester man pleads guilty to purchases made on illicit online marketplaceRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney Trini E. Ross announced today that Brandon Hall, 23, of Rochester, NY, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to possessing 15 or more unauthorized access devices with intent to defraud, which carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that since August 2018, the FBI has been investigating an illicit online marketplace known as Genesis Market, whose operators compile stolen data, such as computer and mobile device identifiers, email addresses, usernames, and passwords, from malware-infected computers around the globe and package it for sale on the market. Purchases made through Genesis Market are conducted using virtual currency, such as bitcoin.
Between November 2019, and February 2021, Hall deposited approximately $224.50 worth of bitcoin in a Genesis account that he had created, using an account he maintained at Coinbase to fund these transactions. Hall used the funds he deposited in his Genesis account to 12 packages containing approximately 1,146 unauthorized access devices.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia and the Rochester Police Department, under the direction of Chief David Smith.
Sentencing is scheduled for January 16, 2024, before Judge Geraci.
Richmond County man sentenced to federal prison for threatening to blow up Social Security officeRead the Press Release
AUGUSTA, GA: A Richmond County man was sentenced to federal prison for threatening to blow up Augusta’s Social Security office.
Keyon Tishaye Dickens, 39, of Augusta, was sentenced to 36 months in prison after pleading guilty to Using a Telephone to Make a Threat to Injure a Person or Damage a Building by Explosives, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge J. Randal Hall also ordered Dickens to serve three years of supervised release upon completion of his prison term.
There is no parole in the federal system.
“Threats of violence against workers and customers of any facility are completely unacceptable,” said U.S. Attorney Steinberg. “We commend our law enforcement partners for ensuring the safety of those in the Social Security office and assisting in holding Keyon Dickens accountable for his actions.”
As described in court documents and testimony, Dickens received a notice in September 2023 that he had been receiving overpayments to his Supplemental Security Income (SSI) and that the Social Security Administration intended to recoup the funds from future SSI checks. In response, Dickens called the Social Security Administration office in Augusta and said, “I’m going to shoot the office up and I’m going to blow it up. I haven’t decided yet what I’m going to do.”
Carrying a backpack, Dickens later visited the Social Security office and showed the security guard a note that read “I have a bomb.” The officer notified the Richmond County Sheriff’s Office, and the building was locked down and evacuated. No bomb was found, and Richmond County deputies took Dickens into custody.
“Americans should not have to fear for their lives simply for doing their jobs or going about their daily errands,” said Supervisory Senior Resident Agent Matthew Ploskunak of FBI Atlanta’s Augusta Resident Agency. “Thanks to the quick response by our local law enforcement partners, this case was investigated thoroughly and quickly brought to a successful conclusion.”
“This case underscores our unwavering commitment to public safety and the serious consequences of making threats of violence,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “The actions taken by our local law enforcement not only prevented potential harm but also reaffirmed our collective responsibility to protect our communities from such reckless behavior.”
“Keyon Dickens’ malicious actions are criminal and intolerable. This sentence demonstrates that threats to Social Security employees and offices are felonious and will not be ignored. We will continue to aggressively respond to threats, investigate the perpetrators and seek prosecution,” said Michelle L. Anderson, Acting SSA Inspector General. “I am thankful that there was no harm to SSA employees. I appreciate the immediate response from the security officers in the local SSA office, the Richmond County Sheriff’s Office, the FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter and I thank the U.S. Attorney’s Office for prosecuting this case.”
The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Social Security Administration Office of the Inspector General, and the Richmond County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney George J.C. Jacobs III.
Remarks of United States Attorney Todd Gee Announcing the Justice Department’s Findings of Civil Rights Violations by the Lexington, Mississippi, Police Department and City of LexingtonRead the Press Release
Thank you, Assistant Attorney General Clarke. The findings we announce today are a result of an extremely productive partnership between the U.S. Attorney’s Office for the Southern District of Mississippi and the Civil Rights Division that has made a real difference in Mississippi over many years, going back to that successful effort in 1964 to prevent a voting rights activist in Holmes County from being imprisoned for false charges.
Lexington, Mississippi, is a small town of about 1200 residents located in Holmes County, Mississippi, one of the poorest counties in the state and in the nation. With a median household income of roughly $39,000—about half the national average—many residents are barely getting by.
Despite this poverty, our investigation found that Lexington’s police department funds its very existence by imposing and collecting fines for petty offenses allegedly committed by the City’s low-income residents and the few people passing through this small town about 15 miles from the nearest interstate.
The City and its police department raise these funds by first imposing fines at nearly every available opportunity, sometimes for minor violations. For example, one man was fined $224.25 for public profanity and had to pay $140 before the Lexington police department would release him from custody.
Then the City collects those fines through unlawful means. Specifically, without making the required assessment of whether a person has the ability to pay, Lexington police unlawfully arrest, jail, and continue to detain people until they come up with the money to pay the fines they owe.
Our investigation found one woman who came to the police station to give a statement in a murder investigation was arrested for her old fines.
Another man was arrested for trespassing. He spent five days in jail until he could pay $200 toward an old fine. That wasn’t good enough. Lexington jailed him for five more days until he paid a $50 processing fee.
In effect, Lexington has turned the jail into the kind of debtors’ prisons Charles Dickens described in his novels written in the 1800s. Only this is happening in Mississippi in 2024.
This scheme bears fruit for the City and its police force, and a bitter harvest for its residents. The police department takes up a large percentage of the City’s expenditures—almost 40% in 2022—but that is still not enough to pay for the approximately 10 officers. The police used this unconstitutional scheme to collect fines that funded almost a quarter of the department’s budget. Yet people still owe Lexington over $1.7 million in fines. That’s about $1,400 for every man, woman, and child in town.
And the Lexington police department’s unconstitutional policing does not just end with how it collects fines. Our investigation found that Lexington police use excessive force and conduct unlawful stops, searches, and arrests.
The City also arrested and fined people for using profanity, which the Supreme Court clearly held unconstitutional over 50 years ago. In one instance, Lexington police arrested a young man for profanity even after he reminded the officers that he had freedom of speech. Adding insult to injury, the arresting officer used the same profanity while making the arrest.
We even found occasions when residents were held in custody for unlawful “investigative holds” without being charged with any crime. Detaining innocent people for “investigation” is common in authoritarian regimes, but it is not legal in the United States.
In one such unconstitutional “investigative hold,” two Lexington police officers—one of them in a leadership position—held an African-American woman in jail for almost two days without filing any charge and tried to coerce her into sex in exchange for her freedom.
Worse yet, we found that unconstitutional abuses happen disproportionately to African-Americans, who make up about 75 percent of Lexington’s population. And this trend has only gotten worse in recent years. For example, our investigation found that in 2019, Black people were 2.5 times more likely to be arrested by Lexington police than white people. But by 2022, Black people were 12 times more likely to be arrested. In 2023, Black people were 17.6 times more likely to be arrested than white people.
These findings are troubling. As I said when this investigation was first launched, all of us in Mississippi and throughout the nation want to feel safe in our homes and in public. But we want that safety to be obtained fairly and legally, not through illegal force or abuse of power.
It is no excuse that Lexington is a small town and has limited funds. The Constitution applies in every place in America, no matter how small or poor. Lexington’s police force must be funded legally, and its officers must follow the law and treat people fairly.
Let me add that as the Department has conducted this investigation, we have heard troubling accounts that many of the unlawful policing practices used in Lexington may also be applied in other small towns in Mississippi. I urge every police chief, mayor, sheriff, and public official involved in law enforcement in Mississippi—and indeed in this nation—to read the Department’s report. Gone are the days when rural isolation and remoteness could conceal the injustice of unconstitutional policing. Make changes now if your agency is policing in these same unlawful ways.
The City of Lexington cooperated in the Department’s investigation, and we hope that same cooperation continues as we move to the next step of negotiating ways the City can bring its policing practices into compliance with the law. Good police work is done legally and fairly every day in many places in America and in Mississippi. The residents of small towns in Mississippi, like Lexington, deserve the same.
Thank you.
Raleigh Man Sentenced for Transporting and Possessing Child PornographyRead the Press Release
WILMINGTON, N.C. – A Raleigh man was sentenced to eight years in prison followed by 20 years of supervised release for transporting and possessing child pornography after more than 1,000 images were found on his digital devices.
According to court documents and other information presented in court, Nico Aaron Lowers, 24 was investigated by the Raleigh Police Department and the Department of Homeland Security after receiving a lead from Chesapeake, Virginia. Law enforcement in Virginia received a cybertip from the National Center for Missing and Exploited Children regarding a Google user uploading child pornography. The information in the cybertip led law enforcement to search Lowers’ parents’ residence in Virginia. Finding no contraband on any digital device, Lowers’ parents mentioned their adult son had recently moved to Raleigh.
Officers from the Raleigh Police Department and agents from Homeland Security located Lowers in Raleigh and asked him about the investigation that had taken place in Virginia. Lowers denied having any knowledge of child pornography and consented to a search of his cellular device. Within the deleted files in his cell phone, law enforcement found multiple child pornography videos depicting the rape and torture of an infant. Based upon that finding, law enforcement executed a search warrant at his Raleigh residence and seized other digital devices.
Once all his digital devices were forensically examined, law enforcement found over 1,000 images and 36 videos that depicted child sexual abuse material. Lowers admitted to downloading child sexual abuse material and admitted to bringing a flash drive that contained child sexual abuse material to North Carolina from Virginia. Lowers’ collection of images and videos included very young children, infants, and toddlers, as well as images depicting sadistic and masochistic conduct.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. Chief U.S. District Judge Richard E. Myers II presided over the sentencing. The Raleigh Police Department and the Department of Homeland Security investigated the case and Assistant U.S. Attorney Charity Wilson 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 CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
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. 5:22-CR-178-M.
Previously convicted felon sentenced to 14 years in prison for trafficking fentanyl and cocaine and illegally possessing firearmsRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 14 years in prison for possession with intent to distribute para-fluorofentanyl, fentanyl, and cocaine and being a felon in possession of firearms.
According to court documents, from January 2021 to May 2021, Richmond Police (RPD) detectives observed Tycota Rich Slater, 37, engaged in what appeared to be drug trafficking activities and made two controlled purchases of narcotics from Slater.
On Aug. 31, 2021, detectives searched Slater’s residence in Chesterfield County. Detectives recovered two firearms, ammunition, and 743 grams of para-fluorofentanyl, as well as a press, a scale, and other items used for packaging illegal narcotics for distribution. In Slater's car, which was parked at the residence, agents recovered a firearm with an extended magazine along with federal court paperwork and $9,700 in drug-trafficking proceeds.
On Oct. 26, 2023, RPD narcotics detectives with the assistance of agents of the Drug Enforcement Administration, searched Slater's residence in Richmond. The detectives and agents recovered a firearm, two press machines, three cellphones, and $71,144 in drug-trafficking proceeds, as well as a money counting machine, a vacuum sealer and bags, digital scales, and ammunition. Two of Slater’s vehicles were also searched, leading to the recovery of 500 grams of fentanyl, three kilograms of cocaine, and two more firearms.
Detectives searched Slater's storage unit in Henrico County and recovered additional cocaine and four more firearms.
Slater was convicted previously of possession with intent to distribute cocaine, domestic violence, possession of a firearm by a convicted felon, and other crimes. As a convicted felon, Slater cannot legally possess firearms or ammunition.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; James VanVliet, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Jason S. Miyares, Attorney General of Virginia; and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorney Olivia L. Norman and Special Assistant U.S. Attorney Ellen Hubbard, an Assistant Attorney General with the Virginia Attorney General’s Office, prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-162.
Plymouth Man Indicted for His Role in International Conspiracy to Traffic Counterfeit Computer Network DevicesRead the Press Release
MINNEAPOLIS – A Plymouth man has been indicted for engaging in an international counterfeit access device fraud scheme, announced First Assistant U.S. Attorney Lisa D. Kirkpatrick.
According to court documents, Benjamin Paley, 75,who co-owned and operated GEN8 Services, Inc., an information technology business based in Plymouth, and his co-conspirators Wade Huber, 59, and David Rosenblatt, 68, engaged in an international counterfeiting scheme spanning Minnesota, North Carolina, and Ukraine, among other locations, to use and traffic in counterfeit access devices.
According to court documents, Brocade Communications Systems, Inc., a global technology company headquartered in San Jose, California, manufactured and sold computer networking products, including equipment commonly known in the technology sector as a “Brocade switch.” Brocade switches are networking hardware that allow multiple devices to connect to a computer network. Switches are used to maintain computer networks across a wide variety of industries and sectors, including businesses, universities, hospitals, and government agencies. To use a Brocade switch, customers are required to purchase a license and pay a licensing fee to Brocade, which range between $1,400 to over $100,000. Counterfeiters use programs that create counterfeit software license keys to “crack the code” and generate illegitimate license key strings that are indistinguishable from Brocade’s legitimate licensing tools. Counterfeit license keys are illicitly sold on the black market for a fraction of the price of a legitimate license transaction.
According to court documents, from 2014 through April 2022, Paley, Huber, Rosenblatt, and others used and trafficked in counterfeit license keys obtained with the intent to defraud Brocade and others to make money for themselves by fraudulently selling license keys at a heavily discounted rate. As part of the scheme, Rosenblatt and Huber routinely communicated with and obtained information from clients and prospective customers who wanted to purchase switches and license keys. Paley used that information to procure counterfeit license keys that enabled additional ports or functionality on the switches to be accessible to their clients. In total, Paley possessed and sold at least 3,637 counterfeit license keys for switches at amounts substantially below the market rate for legitimate license key sales, resulting in millions of dollars in financial losses to Brocade.
Paley is charged with one count of conspiracy to commit access device fraud and three counts of access device fraud. He is scheduled to make his initial appearances in U.S. District Court before Magistrate Judge Douglas L. Micko on October 10, 2024.
On November 30, 2023, and January 5, 2024, Huber and Rosenblatt, respectively, pleaded guilty before Judge John R. Tunheim to one count each of conspiracy to commit access device fraud. They will be sentenced at a later date.
This case is the result of an investigation conducted by the FBI.
The case is being prosecuted by Assistant U.S. Attorney Matthew S. Ebert for the District of Minnesota, Assistant Deputy Chief Adrienne Rose, and Trial Attorney Bryce Rosenbower of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Pennsylvania Man Sentenced to 78 Months in Prison for $4.8 Million Cares Act Loan Fraud SchemeRead the Press Release
TRENTON, N.J. – A Pennsylvania man was sentenced today to 78 months in prison for his role in a scheme to fraudulently obtain over $4.8 million in federal Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) for himself and others, U.S. Attorney Philip R. Sellinger announced.
Darryl Duanne Young, aka “Darryl Duanne Isom Young,” 61, of Kingston, Pennsylvania, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court on Nov. 14, 2023, to an information charging him with one count of conspiracy to commit bank fraud and one count of money laundering. U.S. District Judge Georgette Castner imposed the sentence today in Trenton federal court.
“This defendant admitted taking advantage of government programs that were specifically designed to provide needed financial assistance to Americans during the COVID-19 pandemic,” U.S. Attorney Sellinger said. “Combatting pandemic fraud in all of its forms is a top priority for this office and our law enforcement partners. Together, we will continue to root out those who have exploited the suffering of others to line their own pockets, and bring them to justice.”
“COVID-19 relief funds were meant to assist honest, hardworking Americans during an unprecedented time of hardship in our country, not to aid those trying to enrich their lives through deception,” Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office, said. “Mr. Young’s sentence today reinforces that individuals who defraud our federal programs will be held accountable.”
“This sentencing should serve as a resounding message to anyone who wants to utilize the US Mail to defraud the American taxpayer. Postal Inspectors will continue to aggressively work with our partners in law enforcement and the US Attorney’s Office to hold these types of fraudsters accountable,” stated Christopher A. Nielsen, Inspector in Charge of the Philadelphia Division.
“Mr. Young and his fellow conspirators committed crimes and selfishly profited from the Paycheck Protection Program and the Economic Injury Disaster Loans; Mr. Young exploited Federal assistance programs intended to help those in need during a national crisis. This sentence now holds him accountable for his criminal acts,” said Michelle L. Anderson, Acting Inspector General for the SSA. “I thank our law enforcement partners for working to pursue perpetrators who fraudulently profit from Federal benefit programs. I appreciate the collaboration among the investigating agencies and the work of the U.S. Attorney’s Office for prosecuting this case.”
“Today’s sentencing sends a clear message that those who fraudulently obtained funds from COVID-19 relief programs will be held accountable,” Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) said. “The FDIC OIG remains committed to working with our law enforcement partners to investigate and bring to justice those who participate in fraudulent schemes and threaten to undermine the integrity of our Nation’s banking system.”
“Darryl Duanne Young defrauded the federal government of nearly $5 million in pandemic relief funds for his own personal gain and will now pay the price for his crimes,” said Brian Tucker, Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to hold Mr. Young accountable for his crimes.”
“Young will serve time for selfishly pocketing millions of dollars in emergency funds our government intended to give qualified Americans and small businesses who needed economic assistance in the wake of the COVID-19 pandemic,” said HSI Newark acting Special Agent in Charge Spiros Karabinas. “HSI Newark and our law enforcement partners are committed to ensuring justice is served in cases where individuals perpetrated illicit schemes for personal gain during an unprecedented public health crisis.”
According to documents filed in this case and statements made in court:
Young engaged in a scheme to illegally obtain for himself and his conspirators over $4.8 million in loans authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Young submitted and directed others to submit fraudulent PPP and EIDL loan applications, which fabricated numbers of employees and misrepresented company information, to induce lenders to approve the loan applications that they otherwise would not have approved. Among other things, Young submitted falsified tax documents and bank statements to a victim lender in support of PPP loan applications. Young personally received over $230,000 in PPP loans for businesses he controlled and received a percentage of loan proceeds for assisting in submitting fraudulent applications on behalf of others.
In addition to the prison term, Judge Castner sentenced Young to three years of supervised release and ordered restitution of $5.28 million.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen Philadelphia Division; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Acting Special Agent in Charge Corwin Rattler; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the Board of Governors of the Federal Reserve System - Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Brian Tucker; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano and David E. Dauenheimer of the U.S. Attorney’s Office’s Health Care Fraud Unit in Newark.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of the five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
Pain Doctors Sentenced to 6 ½ Years in $45 Million Healthcare FraudRead the Press Release
Two pain management doctors who pantomimed injections on patients were sentenced today to six and a half years apiece for healthcare fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Drs. Desi Barroga, 51, and Deno Barroga, 51, were indicted in November 2023 and pleaded guilty in May 2024 to one count each of conspiracy to commit healthcare fraud. They were sentenced Thursday by U.S. District Judge Brantley Starr, who ordered them jointly and severally liable for $9,016,883.10 in restitution. Under the terms of their plea agreement, both men were also required to forfeit their medical licenses.
“These doctors exploited drug users’ vulnerabilities, requiring them to submit to monthly visits in exchange for controlled substance prescriptions, then billing their insurance providers for services the patients did not need nor receive. In a bizarre attempt to cover up their crimes, the defendants feigned giving injections without actually piercing the patients’ skin,” said U.S. Attorney Leigha Simonton. “Not only did they defraud their patients’ insurers, they facilitated their patients’ addictions. Their actions are antithetical to the practice of medicine, and the U.S. Attorney’s Office is proud to hold them accountable for their crimes.”
“Deno and Desi Barroga conspired to fraudulently bill private insurance companies, which included Employee Retirement Income Security Act of 1974 covered plans, tens of millions of dollars for services not rendered. Among other things, both doctors falsely represented to insurance companies that patients received over eighty injections during the office visits, when, in fact, the patients received few or no injections at all. This sentencing reflects the Office of Inspector General’s commitment to working with the U.S. Department of Labor’s (DOL) Employee Benefits Security Administration and our law enforcement partners to investigate and bring to justice those who engage in fraud against employee benefit programs,” said Casey J. Howard, Special Agent in Charge, Central Region, U.S. Department of Labor - Office of Inspector General.
According to court documents, the twin brothers admitted that they conspired to defraud Blue Cross Blue Shield, Cigna, and United Healthcare by submitting claims for corticosteroid injections that were never administered.
As part of the conspiracy, the Barrogas required patients to submit to monthly office visits. This allowed patients to continue receiving highly addictive Schedule II controlled substances – including hydrocodone, oxycodone, and morphine – while allowing the defendants to bill patients’ insurance companies for expensive services they never provided.
The Barrogas reported to insurance that they performed as many as 80 corticosteroid injections per patient per visit. In reality, the majority of these injections were never administered. In many instances, the doctor simply placed a needle on the patient’s body without actually piercing the skin to mimic giving an injection.
They defendants created fake medical records, which were often cut and pasted, or cloned, from patient to patient with little to no variation. They also instructed patients to include false statements pertaining to the injections and other treatments in the record.
In plea papers, the brothers admitted that they billed insurers at least $45 million and were paid at least $9 million as part of the scheme.
The U.S. Department of Labor’s Office of Inspector General, the U.S Department of Labor’s Employee Benefits Security Administration, U.S Office of Personnel Management’s Office of the Inspector General, the Drug Enforcement Administration’s Dallas Field Division Diversion Group, and the Texas Department of Insurance – Fraud Unit – Austin and Fort Worth Field Offices conducted the investigation. Assistant U.S. Attorney Renee Hunter is prosecuting the case. Assistant U.S. Attorney Dimitri Rocha assisted with forfeiture.
Owner of Online Luxury Baby Boutique Sentenced to 90 Months for Defrauding Covid-19 Relief ProgramsRead the Press Release
DENVER - The United States Attorney’s Office for the District of Colorado announces that Shambrica Washington, 39, now a resident of Parker, Texas, was sentenced to 90 months in prison to be followed by three years of supervised release, and restitution of $542,924.45 after being found guilty by a federal jury on 31 counts including wire fraud, bank fraud, money laundering, and false claims offenses.
According to facts established at trial, Washington obtained loans from the Small Business Administration for two Economic Injury Disaster Loans (EIDL) and from JP Morgan Chase for two Paycheck Protection Program (PPP) loans for a total of $485,749.00 between March of 2020 and July of 2020. During that time, Washington obtained the loans under two business names. One was “Tiny Toes and Tiaras,” which was an online luxury baby boutique based in Colorado Springs. To obtain the fraudulent loans, Washington misrepresented how many people were employed by her businesses and the businesses’ wages, revenues, and costs of operation. She used the funds to purchase a car, a custom-built home, pay for elective surgery, and pay credit card debt and other bills. She then applied for millions of dollars in additional loans, grants, and tax credits, including by applying for advance tax credits from the Internal Revenue Service and a $6 million grant through a Small Business Administration program intended for shuttered concert venues.
“People who steal taxpayer dollars for personal benefit can and will pay the price,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “Our office has and will continue to find people who have abused Covid-19 funds and prosecute them to the fullest extent of the law.”
“Shambrica Washington fraudulently obtained PPP and EIDL designated to provide Americans financial relief during the COVID-19 pandemic,” said Tom Demeo, Acting Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “Washington’s sentence demonstrates the federal government's commitment to holding individuals accountable who defrauded critical programs that served to provide aid for families and small businesses.”
United States District Court Judge William J. Martinez presided over the trial. IRS Criminal Investigation and the FBI Denver Field Office conducted the investigation. Assistant United States Attorneys Craig Fansler and Taylor Glogiewicz handled the prosecution.
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.
On July 11, 2023, the Attorney General selected the District of Colorado’s U.S. Attorney’s Office to head one of five national COVID-19 Fraud Strike Force Teams. The Department of Justice 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 https://www.justice.gov/opa/pr/justice-department-announces-results-nationwide-covid-19-fraud-enforcement-action.
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.
Owner of Brick Construction Business Admits Failure to Collect and Pay over TaxesRead the Press Release
TRENTON, N.J. – An Ocean County man today admitted failing to collect and pay over employee taxes, U.S. Attorney Philip R. Sellinger announced.
Gerard Artz, 44, of Brick, New Jersey pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court to an information charging him with one count of failure to collect and pay over taxes.
According to documents filed in this case and statements made in court:
Artz owned and operated a construction company in Brick, New Jersey, and New York City. Beginning around 2016, Artz’s company, under his direction, withheld employment taxes from the company’s employees’ paychecks and did not remit those employment taxes to the IRS. From 2016 to 2020, Artz and his company failed to collect and pay over $937,943 in employment taxes owed by his company.
The count of failure to collect and pay over taxes carries a maximum penalty of five years in prison and a $250,000 fine. As part of his plea agreement, Artz has agreed to pay the government restitution of $937,943. Sentencing is scheduled for Feb. 5, 2024.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Eric Suggs of the Criminal Division in Trenton.
artz.information.pdfNew York City Mayor Eric Adams Charged with Bribery and Campaign Finance OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the unsealing of an Indictment charging ERIC ADAMS, the Mayor of New York City, with bribery, campaign finance, and conspiracy offenses. The case is assigned to U.S. District Judge Dale E. Ho.
U.S. Attorney Damian Williams said: “As alleged, Mayor Adams abused his position as this City’s highest elected official, and before that as Brooklyn Borough President, to take bribes and solicit illegal campaign contributions. By allegedly taking improper and illegal benefits from foreign nationals—including to allow a Manhattan skyscraper to open without a fire inspection—Adams put the interests of his benefactors, including a foreign official, above those of his constituents. This Office and our partners at the FBI and DOI will continue to pursue corruption anywhere in this City, especially when that corruption takes the form of illegal foreign influence on our democratic system.”
FBI Assistant Director James E. Dennehy said: “Today’s indictment serves as a sobering moment but also sends a powerful message to every elected official in this country: public service is a profound responsibility, and it should be a noble calling. When that’s perverted by greed and dishonesty, it robs us of our trust. This is a reminder that no one is above the law or beyond reproach.”
DOI Commissioner Jocelyn E. Strauber said: “The indictment unsealed today alleges that Mayor Adams abused his power and position for nearly a decade, obtaining personal benefits and illegal campaign contributions from foreign nationals, and others, giving them undue influence over him. As charged, this illegal conduct compromised his integrity as an elected official and New Yorkers expect better. I thank the U.S. Attorney’s Office for the Southern District of New York and the FBI for their commitment to partner with DOI to root out corruption in City government.”
As alleged in the Indictment:[1]
For nearly a decade, ADAMS has used his prominent positions in New York City government to obtain illegal campaign contributions and luxury travel. ADAMS solicited and accepted these benefits from foreign nationals, businessmen, and others. ADAMS then pressured the New York City Fire Department to facilitate the opening of a foreign government’s Manhattan skyscraper that had not passed a fire inspection. To conceal this criminal conduct, ADAMS took steps to hide his receipt of improper benefits from the public and law enforcement.
In 2014, ADAMS was elected Brooklyn Borough President. Thereafter, ADAMS sought and accepted improper valuable benefits, such as luxury international travel, including from wealthy foreign businesspeople and at least one Turkish government official seeking to gain influence over him. By 2018, ADAMS—who had by then made known his plans to run for Mayor of New York City—not only accepted, but sought illegal campaign contributions to his 2021 mayoral campaign from foreign nationals, as well as other things of value. As ADAMS’s prominence and power grew, his foreign-national benefactors sought to cash-in on their corrupt relationships with him, particularly when it became clear that ADAMS would become New York City’s mayor in 2021. ADAMS agreed, providing favorable treatment in exchange for the illicit benefits he received. After his inauguration as Mayor of New York City, ADAMS soon began preparing for his next election, including by planning to solicit more illegal contributions and granting requests from those who supported his 2021 mayoral campaign with such donations.
ADAMS sought and accepted illegal campaign contributions in the form of “nominee” or “straw” contributions, meaning that the true contributors conveyed their money through nominal donors, who falsely certified they were contributing their own money. By smuggling their contributions to ADAMS through U.S.-based straw donors, ADAMS’s overseas contributors defeated federal laws that serve to prevent foreign influence on U.S. elections. Wealthy individuals evaded laws designed to limit their power over elected officials by restricting the amount any one person can donate to a candidate. And businesses circumvented New York City’s ban on corporate contributions by funneling their donations through multiple employees, frustrating a law which seeks to reduce corporate power in politics. ADAMS increased his fundraising by accepting these concealed, illegal donations—at the cost of giving his secret patrons the undue influence over him that the law tries to prevent.
ADAMS compounded his gains from the straw contributions by using them to defraud New York City and steal public funds. New York City has a matching funds program that matches small-dollar contributions from individual City residents with up to eight times their amount in public funds, to give New Yorkers a greater voice in elections. ADAMS’s campaigns applied for matching funds based on known straw donations, fraudulently obtaining as much as $2,000 in public funds for each illegal contribution. ADAMS and those working at his direction falsely certified compliance with applicable campaign finance regulations despite ADAMS’s repeated acceptance of straw donations, relying on the concealed nature of these illegal contributions to falsely portray his campaigns as law-abiding. As a result of those false certifications, ADAMS’s 2021 mayoral campaign received more than $10,000,000 in public funds.
ADAMS also sought and received other improper benefits from some of the same co-conspirators who funneled straw donations to his campaigns. In particular, a senior official in the Turkish diplomatic establishment (the “Turkish Official”), who facilitated many straw donations to ADAMS, also arranged for ADAMS and his companions to receive free or discounted travel on Turkey’s national airline (the “Turkish Airline”), which is owned in significant part by the Turkish Government, to destinations including France, China, Sri Lanka, India, Hungary, and Turkey itself. The Turkish Official and other Turkish nationals further arranged for ADAMS and his companions to receive, among other things, free rooms at opulent hotels, free meals at high-end restaurants, and free luxurious entertainment—while in Turkey.
ADAMS and others working at his direction repeatedly took steps to shield his solicitation and acceptance of these benefits from public scrutiny. ADAMS did not disclose the travel benefits he had obtained in annual financial disclosures he was required to file as a New York City employee. Sometimes, ADAMS agreed to pay a nominal fee, to create the appearance of having paid for travel that was heavily discounted. Other times, ADAMS created and instructed others to create fake paper trails, falsely suggesting that he had paid, or planned to pay, for travel benefits that were actually free. And ADAMS deleted messages with others involved in his misconduct, including, in one instance, assuring a co-conspirator in writing that he “always” deleted her messages.
In September 2021, the Turkish Official told ADAMS that it was his turn to repay the Turkish Official, by pressuring the New York City Fire Department (“FDNY”) to facilitate the opening of a new Turkish consular building—a 36-story skyscraper—without a fire inspection, in time for a high-profile visit by Turkey’s president. At the time, the building would have failed an FDNY inspection. In exchange for free travel and other travel-related bribes in 2021 and 2022 arranged by the Turkish Official, ADAMS did as instructed. Because of ADAMS’s pressure on the FDNY, the FDNY official responsible for the FDNY’s assessment of the skyscraper’s fire safety was told that he would lose his job if he failed to acquiesce, and, after ADAMS intervened, the skyscraper opened as requested by the Turkish Official.
If you believe you have information related to bribery, fraud, or any other illegal conduct by ADAMS or any other New York City employees, please contact DOI at [email protected] or (212) 825-2828. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at [email protected].
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ADAMS, 64, of Brooklyn, New York, is charged with one count of conspiracy to receive campaign contributions from foreign nationals and commit wire fraud and bribery, which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; two counts of soliciting campaign contributions from foreign nationals, which each carry a maximum sentence of five years in prison; and one count of soliciting and accepting a bribe, which carries a maximum sentence of 10 years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of the FBI and DOI.
The prosecution of this case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Hagan Scotten, Celia V. Cohen, Andrew Rohrbach, and Derek Wikstrom are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
A link to the Indictment is here.
[1] As the introductory phrase signifies, the entirety of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
New Orleans Man Pleads Guilty to Being Felon in Possession of FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on Wednesday, September 18, 2024, TRAVIS JORDAN, (“JORDAN”), age 39, a resident of Orleans Parish, pled guilty to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). JORDAN faces up to 15 years of imprisonment, a fine of up to $250,000, up to 3 years of supervised release, and a mandatory special assessment fee of $100.00.
On February 18, 2024, attempted to enter the Saint Bar in Orleans Parish, but was refused due to intoxication. JORDAN became angry and started an altercation with a bar employee. While doing so, a firearm fell from JORDAN’s waistband. JORDAN tried to reach for the firearm, but another bar employee kicked the gun away, took possession of it and placed the gun inside the bar. A third employee restrained JORDAN until police arrived.
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.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. The case is being prosecuted by AssistantUnited States Attorney Inga Petrovich of the Violent Crime Unit.
New Jersey Business Owner Admits Wire Fraud Conspiracy, Wire FraudRead the Press Release
NEWARK, N.J. – A New Jersey business owner today admitted his role in a fraud scheme involving COVID funds, fraudulent tax filings and a fraudulent loan application, U.S. Attorney Philip R. Sellinger announced.
Richard Fadraga, aka “Ricardo Fadraga,” 53, of Elizabeth, New Jersey, pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark federal court to an information charging him with one count of wire fraud conspiracy and two counts of wire fraud.
According to documents filed in this case and statements made in court:
In June 2020, Fadraga and a conspirator who was in the business of preparing tax returns submitted a fraudulent application for an Economic Injury Disaster Loan (EIDL), which resulted the Small Business Administration (SBA) paying $110,000 in COVID-19 related proceeds. In July 2020, Fadraga and the conspirator submitted another fraudulent EIDL application, which resulted in the SBA paying $131,200 in COVID-19 related proceeds. The July 2020 application was submitted under another person’s name to conceal the involvement of Fadraga and his conspirator, but law enforcement was subsequently able to link the July 2020 application back the two conspirators.
At the urging of his conspirator, Fadraga also obtained an Employer Identification Number (EIN) and Electronic Filer Identification Number (EFIN) using Fadraga’s personal identifying information. His conspirator then used the EIN and EFIN to submit federal tax returns on behalf of other people that contained false information. The fraudulent EIN was associated with tax returns that received more than $195,000 in federal refunds for tax year 2023, and the fraudulent EFIN was associated with tax returns that received more than $595,000 in federal refunds for tax year 2023, including tax refunds totaling more than $100,000 in the names (including variations of the names) of the conspirator and the conspirator’s associates.
Fadraga also fraudulently applied for a bank loan in connection with the purchase of property in Florida. When the lender requested additional information, Fadraga sent bank statements to his conspirator, who then altered those bank statements to make it appear as if Fadraga’s bank account contained more money than it really did.
Each count of wire fraud conspiracy and wire fraud carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 fine, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. Sentencing is scheduled for Feb. 10, 2025.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division in Newark.
fadraga.information.pdfNew Britain Man Pleads Guilty to Child Exploitation OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOSHUA GLAESER, 36, of New Britain, pleaded guilty today before U.S. District Judge Omar A. Williams in Hartford to possession of child pornography.
According to court documents and statements made in court, in the summer of 2022, a Connecticut State Police detective investigating child exploitation offenses identified an IP address at Glaeser’s New Britain residence that was being used in the distribution of child pornography. In 2012, Glaeser was convicted in state court of possession of child pornography and was sentenced to 10 years of imprisonment, execution suspended after two years, followed by 10 years of probation, which Glaeser was currently serving.
On December 9, 2022, HSI special agents executed a court authorized search warrant at Glaeser’s residence and seized his Chromebook, tablet, smartphone and storage cards. Analysis of the seized items revealed more 3,000 images and videos of child pornography, including images depicting the sexual abuse of children, including infants and toddlers. The investigation also revealed that Glaeser used a peer-to-peer file sharing network to distribute child pornography to other users.
At sentencing, which is not scheduled, Glaeser faces a mandatory minimum term of imprisonment of 10 years and maximum term of imprisonment of 20 years. The penalties in this matter are enhanced because of Glaeser’s prior state conviction for possessing child pornography.
Glaeser has been detained since December 9, 2022.
This matter is being investigated by Homeland Security Investigations (HSI) and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Montgomery Man Found Guilty of Conspiring to Bring Cocaine into Alabama from TexasRead the Press Release
Montgomery, Alabama – On September 25, 2024, a federal jury convicted 45-year-old Vanshun Traywick, a resident of Montgomery, Alabama, on federal drug conspiracy charges, announced Acting United States Attorney Kevin Davidson.
According to court records and evidence presented during Traywick’s trial, in 2020, law enforcement began an investigation related to a suspected drug-trafficking operation bringing cocaine from Texas to Montgomery. The investigation revealed that Traywick ordered kilogram quantities of cocaine from a co-conspirator, 45-year-old Michael Golden, from Houston, Texas. The cocaine would be delivered to Montgomery by another co-conspirator, Rufus Flanagan, 56, also from Houston. On October 20, 2020, law enforcement in Montgomery conducted a traffic stop of a semi-truck driven by Flanagan. Upon searching the vehicle, officers found a bag with approximately one kilogram of cocaine inside. In addition to arranging for the purchase of large quantities of cocaine from Golden, the investigation also revealed that, on October 13, 2020, Traywick purchased two ounces of cocaine from another co-conspirator, 51-year-old Deneco Nettles, also from Montgomery. The jury found Traywick guilty on two counts of conspiracy to distribute cocaine.
Following his conviction, Traywick faces a sentence between 5 and 40 years in federal prison. Earlier this year, Golden, Flanagan, and Nettles all pleaded guilty to federal drug conspiracy charges. On June 18, 2024, Nettles received a sentence of 18 months in prison. Golden’s sentencing hearing is scheduled for December 3, 2024. Flanagan’s sentencing hearing is scheduled for December 5, 2024. A sentencing hearing for Traywick will be scheduled in the coming months.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The Drug Enforcement Administration, Alabama Law Enforcement Agency, and Montgomery Police Department investigated this case. Assistant United States Attorneys Mark E. Andreu, Justin L. Jones, and B. Chelsea Wilson are prosecuting the case.
Missoula meth, fentanyl trafficker sentenced to more than six years in prisonRead the Press Release
MISSOULA — A Missoula woman who admitted conspiring to traffic methamphetamine and fentanyl was sentenced on Wednesday to six and one-half years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said today.
The defendant, Robin Marie Holcomb, 42, pleaded guilty in May to conspiracy to possess with intent to distribute controlled substances.
U.S. District Judge Donald W. Molloy presided.
The government alleged in court documents that from May 2022 to September 2023, Holcomb and others distributed meth and fentanyl in the Missoula area. Law enforcement served a search warrant on a hotel where Holcomb was staying and located meth and 99 fentanyl pills. Holcomb attempted to call her sister to have her remove cash and drugs from Holcomb’s vehicle. Law enforcement searched the vehicle and located $20,520 cash, 794 grams, which is approximately one and three-quarters pound, of meth and 5,013 fentanyl pills.
The U.S. Attorney’s Office prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and Missoula High Intensity Drug Trafficking Area Task Force 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.
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Marijuana Trafficker Sentenced to PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DELROY ANDERSON, also known as “Max,” 57, formerly of Stamford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 13 months of imprisonment, followed by three years of supervised release, for leading a money laundering conspiracy related to his large-scale trafficking of marijuana. Anderson also must serve the first six months of his supervised release in home detention.
According to court documents and statements made in court, for approximately five years, Anderson conspired with others to launder proceeds from a marijuana trafficking operation by paying for marijuana cultivation, package shipping, electricity, and air travel expenses with the proceeds. He also deposited the drug trafficking proceeds into multiple bank accounts opened in the name of Maximillion Enterprises Inc., and structured deposits to evade reporting requirements under federal law. Between 2015 and 2019, Anderson operated marijuana cultivation farms in Santa Rosa, California, and Willits, California, and he employed others to grow, harvest, package, and ship the marijuana for distribution in Connecticut, Virginia, New York, and elsewhere.
In February 2020, Anderson and his co-conspirators, Kelvin Jackson and Stephanie Atkinson, were charged by indictment with various money laundering offenses. On February 18, 2022, Anderson, who had been released on bond pending trial, was scheduled to appear before Judge Dooley for a guilty plea proceeding. He failed to appear for that court proceeding and ceased contact with his attorney and the U.S. Probation Office.
On November 8, 2023, the U.S. Marshals Service located and arrested Anderson in Dallas, Texas. He has been detained since his arrest. On July 1, 2024, he pleaded guilty to conspiracy to launder monetary instruments.
Anderson has forfeited his interest in multiple bank accounts associated with the charged conspiracy.
Jackson, of Bristol, Virginia, and Atkinson, of Stamford, previously pleaded guilty to the same charge and await sentencing.
This matter has been investigated by the Drug Enforcement Administration with the assistance of the U.S. Marshals Service, the Stamford Police Department, and the Sonoma County (Calif.) Sheriff’s Office.
This case is being prosecuted by Assistant U.S. Attorneys David T. Huang and Jocelyn Courtney Kaoutzanis through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Memphis Man Charged with Firearms OffenseRead the Press Release
KNOXVILLE, Tenn. - On September 18, 2024, a federal grand jury in Knoxville, TN, returned a one-count indictment against Antonio Fontaine, 47, of Memphis, TN. According to the indictment, the defendant is charged with being a felon in possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g)(1), stemming from offense conduct on September 11, 2024.
Fontaine had his initial appearance on September 26, 2024, before the Honorable Jill E. McCook, United States Magistrate Judge, and entered a plea of not guilty. This case has been set for trial on January 14, 2025, before the Honorable Katherine A. Crytzer, United States District Judge, in the Eastern District of Tennessee at Knoxville.
If convicted, Fontaine faces a prison term of up to 15 years and other penalties.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
This indictment is the result of an investigation led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with significant support from the Knoxville Police Department.
Assistant U.S. Attorney Michael Gilmore will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Long Island Man Convicted at Trial of Participating in Multimillion-Dollar Cryptocurrency-Related CrimesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that EUGENE WILLIAM AUSTIN, JR., a/k/a “Hugh Austin” (“AUSTIN”) was convicted Tuesday, September 24, 2024, of three criminal counts stemming from his participation in a conspiracy to commit wire fraud, money laundering, and the interstate transportation of stolen property. The defendant and his son, BRANDON AUSTIN (“BRANDON”), were responsible for defrauding numerous victims across the country of millions of dollars. AUSTIN was convicted after a jury trial before U.S. District Judge P. Kevin Castel. The defendant’s son, BRANDON, previously pled guilty to conspiracy to commit money laundering and was sentenced principally to 4 years in prison.
U.S. Attorney Damian Williams said: “A unanimous jury has found that Hugh Austin engaged in a yearslong fraud and money laundering scheme. Austin’s scheming caused millions of dollars of losses. Austin even conspired with his own son to rip off his victims. Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, Austin’s crime spree has come to an end, and he will be held accountable for his conduct.”
As reflected in the Indictment, public filings, and the evidence presented at trial:
AUSTIN participated in a scheme with his son BRANDON and others to steal money from entrepreneurs, investors, and other victims by fraudulently offering to, among other things: serve as a broker for sales of large quantities of cryptocurrency; provide short-term investments in cryptocurrency for purportedly high returns; and secure investors for startups and other small businesses from their purported network of high-net-worth individuals. AUSTIN also frequently sought personal loans from friends and acquaintances in connection with AUSTIN’s purported cryptocurrency and investment businesses, falsely promising to pay lenders back with interest. In each instance, investors and lenders lost their money, and AUSTIN and BRANDON frequently spent investors’ funds on personal expenses, including airline travel, luxury hotels, restaurants, shopping, transfers of money to relatives, as well as nominal payments to victims to prolong the scheme. Over the course of the scheme, AUSTIN and BRANDON have caused millions of dollars in losses to numerous victims all over the country. Below are several examples of victims defrauded by AUSTIN and BRANDON.
- In or about August 2018, AUSTIN and BRANDON fraudulently induced a California-based investment firm to send an interstate wire transfer of approximately $5 million to a Manhattan-based attorney for the purported purchase of cryptocurrency, which was never provided to the victim.
- In or about September 2018, AUSTIN and BRANDON fraudulently induced a cryptocurrency start-up company to send an interstate wire transfer of approximately $100,000 as a short-term loan for a purported cryptocurrency transaction; instead of using the funds as promised, AUSTIN and BRANDON used the money to fund their lifestyle.
- In or about June 2020, AUSTIN and BRANDON laundered approximately $567,000 that had been sent via an interstate wire transfer to the trust account of a New York-based real estate attorney for a purported cryptocurrency transaction.
- In or about October 2021, AUSTIN and BRANDON stole approximately $528,000 that had been sent via an interstate wire transfer to the bank account of a Manhattan-based company for the purported purchase of Bitcoin.
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AUSTIN, 62, of Port Jefferson, New York, was convicted by a jury of one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 year in prison; one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to receive stolen property, which carries a maximum sentence of five years in prison. AUSTIN will be sentenced before Judge Castel on February 20, 2025.
The maximum potential sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Andrew Chan, Steven Kochevar, Matthew Weinberg, and Olga I. Zverovich are in charge of the prosecution, with assistance from Paralegal Specialists Chanel-Ashley Foster, Frank Mastroianni, and Christine Woods.
Lexington Men Plead Guilty to Conspiracy to Commit Wire Fraud and Mail FraudRead the Press Release
COLUMBIA, S.C. — Kenneth J. Brown, 45, and Nicholas R. Shepard, 45, of Lexington pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud for their involvement in a business email compromise and romance scam scheme.
Evidence obtained in the investigation revealed that Brown and Shepard coordinated with others to receive checks from victims of the business email compromises and romance scams through the United States mail to their business, Golden Eagle Precious Metals Exchange, based in Irmo. After receiving the checks, Brown and Shepard deposited them into their business account and then converted the money into cryptocurrency.
Brown and Shepard face a maximum penalty of 20 years in federal prison. They also face a fine of up to $250,000, restitution, and three years of supervision to follow the term of imprisonment. United States District Judge Joseph F. Anderson, Jr. accepted the guilty pleas and will sentence Brown and Shepard after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.
This case was investigated by the United States Secret Service, the United States Postal Inspection Service, the Lexington County Sheriff’s Department, and the Richland County Sheriff’s Department. Assistant U.S. Attorneys Scott Matthews and Winston Holliday are prosecuting the case.
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Lexington Man Convicted of Fraudulently Obtaining COVID Relief Loans and COVID Relief Rental AssistanceRead the Press Release
LEXINGTON, Ky. – A Lexington man, Vonnie McDaniels, 35, was found guilty on Wednesday, by a federal jury sitting in Lexington, of four counts of wire fraud, for fraudulently applying for three Small Business Administration (SBA) Covid-19 relief loans and for fraudulently applying to the Lexington Fayette Urban County Government’s (LFUCG) federally funded Housing Stabilization Program (HSP), a tenant rent relief program; two counts of aggravated identity theft for submitting tenant rent relief applications, pretending to be his tenants; six counts of money laundering; and two counts of committing an offense while on conditions of release. He was convicted following a three-day trial.
According to the evidence at trial, McDaniels submitted a materially false application to the SBA, to obtain an Economic Injury Disaster Loan (EDIL), for one business, fraudulently obtaining a $100,000 loan. The Defendant also submitted three materially false Payment Protection Program (PPP) applications, for the same business and for another business that was no longer in operation at the time of the pandemic. Two of the three PPP applications were eventually funded, and McDaniels obtained $93,231. McDaniels also inflated numbers on his applications to increase the loan amount and uploaded fraudulent tax documents to support his numbers. In 2020, he obtained a total of $193,231 in disaster relief funds from the SBA. The theft was discovered by law enforcement when preparing for an earlier trial, back in June 2021, when McDaniels was previously convicted of bank fraud and aggravated identity theft.
McDaniels used the SBA loan proceeds to pay off personal credit cards and loans, free up home equity lines of credit, purchase a new property in South Carolina, and pay his unlawfully obtained mortgage, which had been the subject of his June 2021 bank fraud trial.
In 2021, McDaniels also submitted a materially false application to LFUCG’s HSP for tenant rent relief for two properties. McDaniels uploaded fraudulent leases, vastly inflating the monthly rent amount and pretended to be his two tenants when he submitted the tenant portions of the application. McDaniels solicited personal identifying information from his tenants, told his tenants about the rent relief program, and informed his tenants that they did not qualify. Then, he fraudulently obtained $45,000 in Covid rental relief assistance, while he continued to make his tenants pay their monthly rent. He committed these offenses while subject to conditions of release, following his prior conviction.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Kathy Enstrom, Special Agent in Charge, Office of Inspector General, Federal Deposit Insurance Corporation, jointly announced the jury’s verdict.
The investigation was conducted by the Federal Deposit Insurance Corporation – Office of Inspector General. Assistant U.S. Attorneys Brittany Dunn-Pirio and Andrea Mattingly Williams are representing the United States in the case.
McDaniels is scheduled to appear for sentencing on January 24, 2025. He faces up to 20 years in prison, and a mandatory minimum sentence of two years for aggravated identity theft. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence. McDaniels also faces potential fines, a forfeiture money judgment, and a judgment of restitution, as ordered by the Court.
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.
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Leader in 2012 Benghazi Attack that Killed U.S. Ambassador Stevens and 3 Other Americans Is Resentenced to 28 YearsRead the Press Release
WASHINGTON -- Ahmed Abu Khatallah, aka Ahmed Mukatallah, 53, a Libyan national, was resentenced today to 28 years in prison on federal terrorism charges and other offenses stemming from the Sept. 11, 2012, terrorist attack on the U.S. Special Mission in Benghazi, Libya. Ambassador J. Christopher Stevens and U.S. government personnel Sean Smith, Tyrone Woods, and Glen Doherty died in the attack at the Mission and the nearby Annex in Benghazi.
The announcement was made by Assistant Attorney General for National Security Matthew G. Olsen, U.S. Attorney for the District of Columbia Matthew M. Graves, Assistant Director David J. Scott of the FBI’s Counterterrorism Division, and Assistant Director in Charge James E. Dennehy of the FBI’s New York Field Office.
On June 15, 2014, Khatallah was captured in Libya and brought to the United States to face trial in the U.S. District Court for the District of Columbia.
On Nov. 28, 2017, at his original sentencing, Khatallah was sentenced to 22 years in federal prison after a federal jury found him guilty of one count of conspiracy to provide material support or resources to terrorists, one count of providing material support or resources to terrorists, one count of maliciously destroying and injuring dwellings and property and placing lives in jeopardy within the special maritime and territorial jurisdiction of the United States, and one count of using and carrying a semiautomatic assault rifle during a crime of violence.
Khatallah appealed his conviction, and the government cross-appealed the sentence imposed. On July 26, 2022, the D.C. Circuit affirmed the conviction, but, having found that the defendant’s “sentence [was] substantively unreasonably low in light of the gravity of his crimes of terrorism” the court reversed the sentence and remanded for resentencing.
U.S. District Court Judge Christopher Cooper today resentenced Khatallah to 28 years.
According to the government’s evidence, Khatallah was a leader of an extremist militia named Ubaydah bin Jarrah, which operated outside the law, and in the months prior to the attacks, he sought to incite violence by his and other militia groups against the presence of the United States in Libya. In early September 2012, he and other members of his group mobilized for an attack by stockpiling truckloads of weaponry.
On the night of Sept. 11, 2012, according to the government’s evidence, Khatallah directed his group to carry out the violence, striking first at the U.S. Special Mission in Benghazi. A group of men, armed with AK-47 rifles, grenades, and other weapons, swept into the Mission compound, setting fires and breaking into buildings. During that violence, Ambassador Stevens and Mr. Smith valiantly tried to protect themselves when the attackers stormed into a villa, but they were fatally overcome by thick, black smoke when the attackers set a fire. A State Department employee, who tried to guide them to safety, was injured.
Before, during and after the attack, Khatallah maintained contact with his group in a series of cellphone calls. Also, according to the government’s evidence, for much of the attack, he positioned himself on the perimeter of the compound and kept others, including emergency responders, from getting to the scene. The government’s evidence also showed that Khatallah made calls to leaders of other militia groups warning them not to interfere with the attack.
Following the attack at the Mission, in the early hours of Sept. 12, 2012, the violence continued at a nearby CIA Annex, first with gunfire and then with a precision mortar attack. Mr. Woods and Mr. Doherty died in the mortar attack, and a State Department employee and U.S. government security specialist were seriously wounded.
This case was investigated by the FBI New York Field Office’s Joint Terrorism Task Force with substantial assistance from various other government agencies, including the two victim agencies, the CIA and the Department of State.
This latest proceeding in the case was handled by Assistant U.S. Attorney John Crabb, Jr., and Special Assistant U.S. Attorney Michael C. DiLorenzo. Assistance also was provided by Trial Attorney Joseph Kaster of the National Security Division’s Counterterrorism Section and Victim/Witness Advocate Yvonne Bryant of the U.S. Attorney’s Office for the District of Columbia.
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Le Mars Man Sentenced to Federal Prison for Meth and Firearm ConvictionsRead the Press Release
Timothy Mullally, 49, from Le Mars, Iowa, was sentenced September 25, 2024 to 66 months’ imprisonment. Mullally pled guilty on May 16, 2024, in federal court in Sioux City to one count of conspiracy to distribute methamphetamine and one count of prohibited person in possession of firearms.
At the plea and sentencing hearings evidence showed that between January 2022 through September 2022, Mullally and others distributed more than two kilograms of methamphetamine. Evidence showed that on two occasions in August and September 2022 Mullally distributed more than 800 grams of pure methamphetamine to an individual cooperating with law enforcement. During investigation of this matter, law enforcement and United States Postal Inspection Service interdicted a three-pound package of methamphetamine coming from California to Mullally’s house in September 2022. During the investigation, including search warrants at Mullally’s properties and vehicles, law enforcement seized $5,830 and two firearms. Mullally admitted to being a regular user of methamphetamine, and thereby was prohibited from possessing firearms.
Sentencing was held before United States District Court Judge Leonard T. Strand. Mullally was sentenced to 66 months’ imprisonment, $1,000 fine, and must serve a three-year term of supervised release following imprisonment. There is no parole in the federal system. Mullally remains in the custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4083. Follow us on Twitter @USAO_NDIA.
KC Tax Preparer Sentenced for Wire Fraud, False Tax ReturnsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., tax preparer was sentenced in federal court today for a nearly $1 million wire fraud scheme in which he filed federal income tax returns for his clients that contained false information.
Ebens Louis-Loradin, 45, was sentenced by U.S. District Judge Brian C. Wimes to 20 months in federal prison without parole. The court also ordered Louis-Loradin to pay $722,121 in restitution.
On March 27, 2024, Louis-Loradin pleaded guilty to one count of wire fraud and 10 counts of aiding in the preparation of false tax returns. According to court documents, Louis-Loradin prepared and filed 154 fraudulent tax returns that inflated his clients’ refunds by a total of nearly $1 million and thereby boosted the fees he charged them.
Louis-Loradin, who has been a tax preparer since 2012, admitted that he engaged in a scheme to defraud the IRS and obtain money by preparing and electronically filing federal tax returns containing false items over a seven-year period from 2013 to 2020. Louis-Loradin claimed items on his clients’ federal tax returns that his clients were not entitled to claim, including dependents, inflated income tax withholding amounts, credits for child and dependent care expenses, American opportunity credits, earned income credits, itemized deductions, and business losses. These false claims had the effect of reducing his clients’ taxable income and increasing his clients’ tax credit eligibility.
Louis-Loradin’s fraud scheme resulted in a total loss of $953,873 to the United States. Many of his clients, who told investigators they weren’t aware of the false items he placed on their tax returns, have been paying back the Internal Revenue Service for the refund overpayments caused by Louis-Loradin’s fraud scheme.
According to court documents, Louis-Loradin failed to file personal federal income tax returns for tax years 2016, 2017, and 2018. He also fraudulently utilized multiple identities, including those of children, in the commission of his fraud scheme. Specificallym Louis-Loradin utilized the identity of at least seven minors to claim them as dependents on various clients’ tax returns.
According to court documents, Louis-Loradin was in Haiti when he was indicted in July 2021. He traveled to Florida in May 2023 and was arrested.
This case was prosecuted by Assistant U.S. Attorney Nicholas P. Heberle. It was investigated by IRS-Criminal Investigations.
Justice Department Finds Civil Rights Violations by the City of Lexington, Mississippi, and the Lexington Police DepartmentRead the Press Release
WASHINGTON – Following a comprehensive investigation, the Justice Department announced today that the City of Lexington, Mississippi (City), and Lexington Police Department (LPD) engage in a pattern or practice of conduct that deprives people of their rights under the U.S. Constitution and federal law. Lexington is a town of approximately 1,200 people, located about an hour outside of Jackson, Mississippi.
Specifically, the Justice Department finds that LPD unlawfully
- Arrests, jails and detains people who cannot pay fines or fees, without assessing their ability to pay;
- Uses excessive force;
- Conducts stops, searches and arrests without probable cause, including jailing people on illegal “investigative holds” and arresting people solely because they owe outstanding fines;
- Imposes money bail without justification or assessment of ability to pay;
- Jails people without prompt access to court;
- Violates the rights of people engaged in free speech and expression, including by retaliating against people who criticize the police;
- Discriminates against Black people; and
- Operates under an unconstitutional conflict of interest because LPD’s funding depends on the money it raises through its enforcement.
“Today’s findings show that the Lexington Police Department abandoned its sacred position of trust in the community by routinely violating the constitutional rights of those it was sworn to protect,” said Attorney General Merrick B. Garland. “The Justice Department’s investigation uncovered that Lexington police officers have engaged in a pattern or practice of discriminating against the city’s Black residents, used excessive force, and retaliated against those who criticize them. Additionally, Lexington’s approach to fines and fees — including unlawfully arresting, jailing, and detaining people based on their failure to pay money without assessing if they can afford to do so — has been devastating for its residents. Being poor is not a crime, but practices like these amount to punishing people for poverty. People in that community deserve better, and the Justice Department is committed to working with them, the City, and the Police Department to make the City safer for all its citizens.”
“Public safety depends on public confidence in our justice system,” said Deputy Attorney General Lisa Monaco. “The Lexington Police Department’s incarceration of individuals because they could not afford to pay fines — as detailed in today’s findings report — undermined that confidence and violated the civil rights of Lexington residents. I’m grateful to the Civil Rights Division for its thorough investigation and continued work to address these findings.”
“Lexington is a small, rural community but its police department has had a heavy hand in people’s lives, wreaking havoc through use of excessive force, racially discriminatory policing, retaliation, and more. In every corner of our country, police officers must respect people’s constitutional rights and treat people with dignity,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “After an extensive review, we found that police officers in Lexington routinely make illegal arrests, use brutal and unnecessary force, and punish people for their poverty — including by jailing people who cannot afford to pay fines or money bail. For too long, the Lexington Police Department has been playing by its own rules and operating with impunity — it’s time for this to end. Our findings report furthers the Justice Department’s commitment to ensuring fairness and the rule of law.”
“Police have the authority to enforce the law, not to act as debt collectors for the City, extracting payments from the poor with threats of jail,” said U.S. Attorney Todd Gee for the Southern District of Mississippi. “No matter how large or small, every police department has an obligation to follow the Constitution.”
Based on the department’s investigation, over the past two years, LPD has made nearly one arrest for every four people in town, primarily for low-level offenses and traffic violations. That is more than 10 times the per capita arrest rate for Mississippi as a whole. Many of these arrests were for non-criminal conduct, like owing outstanding fines and using profanity. Most of those arrested are Black people. In 2023, Black people were 17.6 times more likely to be arrested by LPD than white people were.
When making low-level arrests, LPD uses tactics normally reserved for serious offenses. For example, LPD officers broke down a Black man’s door to arrest him for swearing at a public official. In another case, while attempting to arrest a man for having a tinted windshield, officers followed the man’s car to his house, forced their way into his home, and tased him for 15 seconds. On the same day the Justice Department opened the investigation, LPD officers chased a man accused only of disturbing a business and tased him nine times.
LPD’s enforcement strategy has put hundreds of people in debt to the police department. In a town of about 1,200 people, the total sum of outstanding fines owed to LPD is more than $1.7 million.
The department also found that LPD lacks any meaningful accountability system and that people experiencing poverty who are accused of crimes in Lexington regularly lack access to counsel, both of which allow LPD’s misconduct to continue unchecked.
The Justice Department opened its investigation on Nov. 8, 2023. Career attorneys and staff in the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the Southern District of Mississippi conducted the investigation. The team was assisted in this investigation by experts in law enforcement practices. The team conducted an extensive review of LPD’s records, including hundreds of arrest reports and municipal court records and hundreds of hours of body-worn camera footage. The team also interviewed City and LPD leadership and line officers, accompanied officers on ride-alongs, observed the Lexington Municipal Court, and met with dozens of community members.
In February, while the investigation was ongoing, the department issued a letter to the City of Lexington raising significant concerns regarding their practice of jailing people for unpaid fines without first assessing whether they can afford to pay them.
The City and LPD cooperated fully with the investigation. The City and LPD have committed to working cooperatively with the department to address the violations identified in the department’s findings.
The department conducted this investigation pursuant to 34 U.S.C. § 12601 (Section 12601), which prohibits law enforcement officers from engaging in a pattern or practice of conduct that deprives people of rights protected by the Constitution or federal law. Section 12601 authorizes the Attorney General to file a lawsuit in federal court seeking court-ordered remedies to eliminate a pattern or practice of unlawful conduct.
This investigation reflects the Justice Department’s efforts to ensure constitutional policing and to combat unlawful practices with respect to fines and fees. The department previously addressed policing for profit in its findings on the Ferguson Police Department in Missouri in 2015. The consent decree that followed has resulted in the dismissal of about 63,000 citations and a reduction of over $1 million in fines and fees. In July 2022, the department filed a Statement of Interest in Coleman v. Brookside, explaining that judges, prosecutors, and police violate the Constitution when they are motivated by profit rather than justice. And in April 2023, the department issued a Dear Colleague Letter containing updated guidance on fines and fees for state and local courts.
The department will be conducting outreach to members of the Lexington community for input on remedies to address the department’s findings. Individuals may submit recommendations to [email protected].
The Justice Department will hold a public community meeting on Sept. 26 at 6:00 p.m. CT at St. Paul C.O.G.I.C. Fellowship Hall, 17214 Highway 17 South, Lexington, MS 39095. Members of the public are encouraged to attend.
Additional information about the Justice Department’s Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the Southern District of Mississippi is available at www.justice.gov/usao-sdms. Information specific to the Civil Rights Division’s Police Reform Work can be found at www.justice.gov/crt/file/922421/download.
Justice Department Finds Civil Rights Violations by the City of Lexington, Mississippi, and the Lexington Police DepartmentRead the Press Release
Note: View the findings report here.
Following a comprehensive investigation, the Justice Department announced today that the City of Lexington, Mississippi (City), and Lexington Police Department (LPD) engage in a pattern or practice of conduct that deprives people of their rights under the U.S. Constitution and federal law. Lexington is a town of approximately 1,200 people, located about an hour outside of Jackson, Mississippi.
Specifically, the Justice Department finds that LPD unlawfully
- Arrests, jails and detains people who cannot pay fines or fees, without assessing their ability to pay;
- Uses excessive force;
- Conducts stops, searches and arrests without probable cause, including jailing people on illegal “investigative holds” and arresting people solely because they owe outstanding fines;
- Imposes money bail without justification or assessment of ability to pay;
- Jails people without prompt access to court;
- Violates the rights of people engaged in free speech and expression, including by retaliating against people who criticize the police;
- Discriminates against Black people; and
- Operates under an unconstitutional conflict of interest because LPD’s funding depends on the money it raises through its enforcement.
“Today’s findings show that the Lexington Police Department abandoned its sacred position of trust in the community by routinely violating the constitutional rights of those it was sworn to protect,” said Attorney General Merrick B. Garland. “The Justice Department’s investigation uncovered that Lexington police officers have engaged in a pattern or practice of discriminating against the city’s Black residents, used excessive force, and retaliated against those who criticize them. Additionally, Lexington’s approach to fines and fees — including unlawfully arresting, jailing, and detaining people based on their failure to pay money without assessing if they can afford to do so — has been devastating for its residents. Being poor is not a crime, but practices like these amount to punishing people for poverty. People in that community deserve better, and the Justice Department is committed to working with them, the City, and the Police Department to make the City safer for all its citizens.”
“Public safety depends on public confidence in our justice system,” said Deputy Attorney General Lisa Monaco. “The Lexington Police Department’s incarceration of individuals because they could not afford to pay fines — as detailed in today’s findings report — undermined that confidence and violated the civil rights of Lexington residents. I’m grateful to the Civil Rights Division for its thorough investigation and continued work to address these findings.”
“Lexington is a small, rural community but its police department has had a heavy hand in people’s lives, wreaking havoc through use of excessive force, racially discriminatory policing, retaliation, and more. In every corner of our country, police officers must respect people’s constitutional rights and treat people with dignity,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “After an extensive review, we found that police officers in Lexington routinely make illegal arrests, use brutal and unnecessary force, and punish people for their poverty — including by jailing people who cannot afford to pay fines or money bail. For too long, the Lexington Police Department has been playing by its own rules and operating with impunity — it’s time for this to end. Our findings report furthers the Justice Department’s commitment to ensuring fairness and the rule of law.”
“Police have the authority to enforce the law, not to act as debt collectors for the City, extracting payments from the poor with threats of jail,” said U.S. Attorney Todd Gee for the Southern District of Mississippi. “No matter how large or small, every police department has an obligation to follow the Constitution.”
Based on the department’s investigation, over the past two years, LPD has made nearly one arrest for every four people in town, primarily for low-level offenses and traffic violations. That is more than 10 times the per capita arrest rate for Mississippi as a whole. Many of these arrests were for non-criminal conduct, like owing outstanding fines and using profanity. Most of those arrested are Black people. In 2023, Black people were 17.6 times more likely to be arrested by LPD than white people were.
When making low-level arrests, LPD uses tactics normally reserved for serious offenses. For example, LPD officers broke down a Black man’s door to arrest him for swearing at a public official. In another case, while attempting to arrest a man for having a tinted windshield, officers followed the man’s car to his house, forced their way into his home, and tased him for 15 seconds. On the same day the Justice Department opened the investigation, LPD officers chased a man accused only of disturbing a business and tased him nine times.
LPD’s enforcement strategy has put hundreds of people in debt to the police department. In a town of about 1,200 people, the total sum of outstanding fines owed to LPD is more than $1.7 million.
The department also found that LPD lacks any meaningful accountability system and that people experiencing poverty who are accused of crimes in Lexington regularly lack access to counsel, both of which allow LPD’s misconduct to continue unchecked.
The Justice Department opened its investigation on Nov. 8, 2023. Career attorneys and staff in the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the Southern District of Mississippi conducted the investigation. The team was assisted in this investigation by experts in law enforcement practices. The team conducted an extensive review of LPD’s records, including hundreds of arrest reports and municipal court records and hundreds of hours of body-worn camera footage. The team also interviewed City and LPD leadership and line officers, accompanied officers on ride-alongs, observed the Lexington Municipal Court, and met with dozens of community members.
In February, while the investigation was ongoing, the department issued a letter to the City of Lexington raising significant concerns regarding their practice of jailing people for unpaid fines without first assessing whether they can afford to pay them.
The City and LPD cooperated fully with the investigation. The City and LPD have committed to working cooperatively with the department to address the violations identified in the department’s findings.
The department conducted this investigation pursuant to 34 U.S.C. § 12601 (Section 12601), which prohibits law enforcement officers from engaging in a pattern or practice of conduct that deprives people of rights protected by the Constitution or federal law. Section 12601 authorizes the Attorney General to file a lawsuit in federal court seeking court-ordered remedies to eliminate a pattern or practice of unlawful conduct.
This investigation reflects the Justice Department’s efforts to ensure constitutional policing and to combat unlawful practices with respect to fines and fees. The department previously addressed policing for profit in its findings on the Ferguson Police Department in Missouri in 2015. The consent decree that followed has resulted in the dismissal of about 63,000 citations and a reduction of over $1 million in fines and fees. In July 2022, the department filed a Statement of Interest in Coleman v. Brookside, explaining that judges, prosecutors, and police violate the Constitution when they are motivated by profit rather than justice. And in April 2023, the department issued a Dear Colleague Letter containing updated guidance on fines and fees for state and local courts.
The department will be conducting outreach to members of the Lexington community for input on remedies to address the department’s findings. Individuals may submit recommendations to [email protected].
The Justice Department will hold a public community meeting on Sept. 26 at 6:00 p.m. CT at St. Paul C.O.G.I.C. Fellowship Hall, 17214 Highway 17 South, Lexington, MS 39095. Members of the public are encouraged to attend.
Additional information about the Justice Department’s Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the Southern District of Mississippi is available at www.justice.gov/usao-sdms. Information specific to the Civil Rights Division’s Police Reform Work can be found at www.justice.gov/crt/file/922421/download.
Justice Department Announces New Resources to Improve Firearm Background Checks and Reduce Gun ViolenceRead the Press Release
The Justice Department today announced several actions to improve firearm background checks and reduce gun violence. The Department is releasing model legislation and information that would help states permit the sharing of juvenile criminal history and mental health records with the National Instant Criminal Background Check System (NICS), solely for the purpose of conducting firearm background checks. In addition, the Department is announcing significant new grant funding for gun violence prevention, totaling over $200 million. Finally, the Department is unveiling new resources for law enforcement across the country, including training and funding guidance.
“The Department of Justice is committed to doing everything in its power to combat gun violence and save lives,” said Attorney General Merrick B. Garland. “Today’s actions are a continuation of our efforts to fully implement the Bipartisan Safer Communities Act, to provide critical funding to community violence intervention programs, and to assist our state and local partners as they work day in and day out to drive down gun crime.”
Under the Bipartisan Safer Communities Act of 2022 (BSCA), NICS is required to contact state and local law enforcement entities to determine if a purchaser under 21 years of age is prohibited from purchasing a firearm. However, as part of established juvenile justice and mental health systems, some states and territories have important laws in place which restrict the sharing of juvenile mental health and/or criminal history records, so that youthful mistakes do not follow young people into adulthood.
At the same time, these protections may prevent jurisdictions from providing the FBI with potentially disqualifying juvenile records when an enhanced background check is conducted. The model legislation released today, following in the example of several states that have appropriately and narrowly amended their record-sharing laws, provides a template for states that wish to permit greater information-sharing with NICS for the sole purpose of responding to a federal enhanced background check, thereby advancing public safety. In addition, the Justice Department is also releasing today information on state laws around the country, including whether they permit information-sharing with regard to juvenile records for enhanced background checks.
Additionally, the Justice Department is also announcing two major rounds of grant funding designed to reduce and prevent gun violence. First, the Department is announcing an additional $85 million in funding through the Office of Justice Programs Community Violence Intervention and Prevention Initiative (CVIPI). This funding will help 30 agencies and organizations develop and expand their community violence intervention work, including hospital-based violence intervention, street outreach, and cognitive behavioral therapy, and will support training and technical assistance plus rigorous research to help grow the evidence base for violence intervention models. Second, the Department is announcing over $135 million in formula awards to 48 states under the Byrne State Crisis Intervention Program (Byrne SCIP), which provides funding for the implementation of extreme risk protection order programs, state crisis intervention court proceedings, and related programs/initiatives.
Moreover, the Justice Department is committed to supporting implementation of the recommendations from the Critical Incident Report (CIR) on the mass shooting at Robb Elementary School in Uvalde, Texas. These implementation efforts include a suite of resources to not only support the local community of Uvalde, but also to serve as a resource across the country, particularly for local, rural, and regional agencies serving their communities. Today, the Department’s Community Oriented Policing Services (COPS) office is releasing a Tenets of Training Checklist to assist law enforcement executives and training personnel in enhancing relevant training and a Resource Webpage tailored to the needs of Small and Rural agencies. This fall, DOJ will release a Self-Assessment Tool to help communities assess how well they are implementing the recommendations in the CIR and an Implementation and Resource Guide to identify resources and generally accepted practices and standards in the CIR. Additional resources will be released on a continual basis to continue to support law enforcement agencies and their communities.
The COPS Office Collaborative Reform Initiative Technical Assistance Center (CRI-TAC) is also launching a renewed focus on assisting small and rural law enforcement agencies. Small and rural agencies will continue to have access to the no-cost training and technical assistance that CRI-TAC is known for, but now CRI-TAC will provide training and technical assistance opportunities geared for the unique challenges confronting small and rural policing agencies. Through the Small and Rural Agency Initiative, agencies will be able to participate in training programs addressing areas such as active assailant response, multi-jurisdictional coordination, community partnerships, resource allocation, addressing hate crimes, report writing, duty to intervene, and crash re-construction.
Model Legislation to Remove Barriers to Completing Enhanced Background Checks (PDF)
States’ Legal Ability to Provide Juvenile Information
Individual Sentenced to over 19 years in Prison for Child Exploitation and Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico –Today, Bryan Xavier Pérez Hernández was sentenced by United States District Court Judge María Antongiorgi-Jordan to 235 months (19 years and seven months) in prison, followed by 5 years of supervised release, for production of child exploitation material and drug trafficking charges.
According to court documents, Bryan Xavier Pérez Hernández knowingly used, persuaded, induced, enticed, and coerced 13-year-old female minor G.L.C.C., to engage in sexually explicit conduct for the purpose of producing child exploitation material. On April 18, 2024, Pérez Hernández also pleaded guilty to possession with intent to distribute cocaine, including distribution to a minor.
On August 16, 2024, Melanie Cruz Clivilles, mother of the minor victim was sentenced to four years in prison for lying to a federal law enforcement agent. Cruz Clivilles made a materially false, fictitious, and fraudulent statement and representation by falsely stating to a Task Force Officer of the United States Department of Homeland Security Investigations that she first met Bryan Xavier Pérez Hernández at the hospital on August 4, 2023, where he arrived with defendant’s deceased daughter G.L.C.C. The statement and representation were false because, as she then and there knew, she had met Pérez Hernández at the latest in July of 2023, and had been with him during a meeting on August 3, 2023.
“This sentence concludes a disturbing case in which a 13-year-old girl died at the hands of her adult boyfriend and her complicit mother,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “I commend the prosecution team and our law enforcement partners who worked diligently to ensure that these defendants were held accountable for their crimes.”
“13-year-old Gabriela Cabán Cruz died at the hands of individuals she trusted. As a society we can’t accept inappropriate relationships between minors and adults, we need to report, get involved, most importantly if it involves child neglect,’ said Rebecca González-Ramos, Special Agent in Charge HSI San Juan. “Today we mourn the death of a thirteen-year-old who we failed, let’s stay vigilant and if we see something, say something. As an agency our priority will always be the safety of our minors. This sentencing reflects the commitment HSI and the PRPB have towards child exploitation investigations, a tough investigation worked together to seek justice for Gabriela.”
Homeland Security Investigations and the Puerto Rico Police Bureau investigated the case.
Assistant U.S. Attorney Jenifer Hernández Vega, Chief of the Child Exploitation and Immigration Unit prosecuted the case.
For more information about HSI’s efforts to protect children from sexual predators, visit https://www.ice.gov/topics/iGuardians; and to denounce suspicious activities call 787-729-6969.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Greensboro Clinic Owner Is Sentenced to 52 Months in Prison for Defrauding MedicaidRead the Press Release
CHARLOTTE, N.C. – Aljihad Shabazz, 45, of Kernersville, N.C., was sentenced today to 52 months in prison followed by two years of supervised release for his role in a scheme that defrauded the North Carolina Medicaid Program (Medicaid) of more than $4.7 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Frank D. Whitney also ordered Shabazz to pay $4,711,159.88 in restitution.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Charlotte Field Office (IRS-CI), and North Carolina Attorney General Josh Stein, who oversees the North Carolina Medicaid Division (MID), join U.S. Attorney King in making today’s announcement.
According to court records and the sentencing hearing, Shabazz was the owner and operator of Reign & Inspirations, LLC (R&I), a clinic that provided outpatient behavioral services in Greensboro and surrounding areas. Between 2017 and 2020, Shabazz conspired with other individuals to carry out an extensive health care fraud scheme involving the fraudulent submissions of fake reimbursement claims to Medicaid, for services that were never provided to Medicaid beneficiaries. Court records show that Shabazz obtained the personal identifying information (PII) of Medicaid beneficiaries through community outreach programs, including football and mentoring programs, and misused the beneficiaries’ PII to create and submit hundreds of fraudulent reimbursement claims and to receive payment for services that were never in fact provided by R&I. Over the course of the scheme, Shabazz used the beneficiaries’ PII to submit more than 1,500 fraudulent reimbursement claims to Medicaid, some of which claimed that R&I provided services that exceeded 24 hours in a single day.
Court records show that the reimbursement payments made by Medicaid were deposited in bank accounts under Shabazz’s control. Shabazz used a portion of the fraudulent proceeds to pay kickbacks to his co-conspirators and to cover personal expenses, including to pay for personal travel, luxury items, and timeshares, and to make cash withdrawals.
On June 14, 2023, Shabazz pleaded guilty to health care fraud conspiracy and money laundering conspiracy. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.
In announcing Shabazz’s sentence, Judge Whitney stated that, “There are serious consequences for stealing from government funded programs such as Medicaid and Medicare.”
The FBI in Charlotte, IRS-CI, and NCDOJ’s Medicaid Investigations Division investigated the case.
Assistant U.S. Attorneys Michael E. Savage and Special Assistant U.S. Attorney Kristina Fleisch with the U.S. Attorney’s Office in Charlotte prosecuted the case.
Fort Wayne Man Sentenced to 360 Months in PrisonRead the Press Release
FORT WAYNE–Henry E. Underwood, 30 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to attempted murder of a federal witness, announced United States Attorney Clifford D. Johnson.
Underwood was sentenced to 360 months in prison followed by 5 years of supervised release. Chief Judge Brady further ordered this sentence to run consecutive to the sentence in Underwood’s other federal case, 1:20-CR-33. In that case, Underwood received a total sentence of 102 months of imprisonment and 3 years of supervised release for illegally possessing a firearm as a convicted felon and for contempt of court.
According to documents in the case, codefendant Tyshon Powell operated a drug stash house in Fort Wayne in 2018, and the FBI’s Fort Wayne Safe Streets Gang Task Force raided this house in March 2018, finding drug trafficking evidence and a firearm. To distance himself from this residence, Powell had paid a person to rent the stash house. In order to keep the renter silent about their arrangement, Powell elicited the help of a fellow gang member as a middleman who in turn recruited Underwood to kill the renter. Underwood agreed to kill the renter/witness to prevent their testimony. On June 1, 2018, Underwood went to the witness’ house and shot at him/her at least three times, hitting their torso, arms, hands, and head. Despite being severely injured, the witness survived.
“This Defendant was the paid gunman for a drug dealer who desired to avoid prison by killing witnesses,” said United States Attorney Clifford D. Johnson. “Both dealer and the gunman are rightfully now long-term residents in federal prison. This prosecution shows that my office will vigorously prosecute all persons who engage in illegal drug distribution and those who attempt to obstruct the workings of our criminal justice system, which relies upon the cooperation of witnesses, by violence and/or threat of violence of witnesses.”
“Rather than face the consequences for his own illegal actions, this defendant tried to permanently silence a potential witness by taking the witness’ life,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “This sentence should serve as a warning to others who would contemplate such violent acts of intimidation that you will be brought to justice.”
This case was investigated by the Federal Bureau of Investigation’s Fort Wayne Safe Streets Gang Task Force, which includes the FBI, the Fort Wayne Police Department, the Indiana State Police, the Allen County Sheriff’s Department, with the assistance of the Fort Wayne Police Department’s Homicide Section and the Indiana State Police Laboratory Division. The case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Stacey R. Speith.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former Tuscaloosa Wealth Manager Charged in Connection with Theft of Client FundsRead the Press Release
BIRMINGHAM, Ala. – A former Tuscaloosa wealth manager has been charged in connection with his theft of more than $500,000 in client funds, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton L. Peeples.
A one-count information filed in U.S. District Court charges Jason Brooks Head, 46, of Tuscaloosa, with bank embezzlement. A plea agreement was filed with the information, indicating that Head has agreed to plead guilty to the charge.
According to the information and plea agreement, Head was a registered stockbroker who worked for Morgan Stanley Wealth Management throughout the relevant period. Beginning in July 2020 and continuing through November 2023, Head withdrew approximately $500,114.81 from the accounts of two of his Morgan Stanley clients without their authorization. Head transferred the funds to accounts he controlled and used for his personal benefit.
The Court will set a date for Head to enter his guilty plea.
The FBI investigated the case. Assistant U.S. Attorneys Brett A. Janich and Ryan S. Rummage are prosecuting the case.
An information contains only charges. A defendant is presumed innocent unless and until proven guilty.
Former Social Security Administration Employee Sentenced for Fraudulent Telework, Emergency Childcare, and Medical Leave SchemesRead the Press Release
INDIANAPOLIS- Christopher Markham, 40, of Westfield, Indiana, has been sentenced to two years of probation and has been ordered to pay $49,255 in restitution after pleading guilty to wire fraud.
According to court documents, Markham was employed by the Social Security Administration and assigned to an office in Anderson, Indiana. Between February 13, 2019, and June 17, 2022, Markham engaged in a scheme by which he made it appear as though he was teleworking full-time for Social Security Administration (SSA) during workdays, when in reality he was earning income working as a home inspector for his personal business. Markham was paid his full federal salary and benefits, while concealing the fact that he was working for his personal business and not for SSA.
Markham routinely performed home inspections for his personal business during the workweek while purporting to “telework” on official SSA time. He concealed the fact that he was not performing SSA work during official work hours by having his wife and his mother access the SSA computer system and send emails to supervisors to make it appear as though he was online and working.
Markham nevertheless sought to be paid in full during this period and submitted 53 fraudulent time reports to SSA’s online timekeeping portal, as well as falsified daily work logs to his supervisors.
Additionally, Markham engaged in other fraud schemes to obtain Emergency Paid Leave by falsely claiming he was required to stay home to take care of his children. In fact, his children were in daycare, and he was again performing work for and earning income from his personal business. He allegedly performed at least 70 home inspections for his personal business while claiming to be providing emergency care for his children.
Finally, on multiple occasions, Markham fraudulently claimed benefits under the Family and Medical Leave Act (“FMLA”) by falsely claiming he was unable to work due to illness—when he was actually doing home inspections for his personal business. Markham even attended an F.C. Tucker retreat promoting his business while claiming he was on FMLA leave.
On June 4 and 5, 2020, Markham was granted administrative leave after claiming that the internet wire to his home had been cut. Markham advised that his internet provider would not be able to send anyone to his home to repair the wire until Friday, June 5, 2020. In reality, his internet provider had no record of a damaged wire, and Markham used the administrative leave to take an unapproved, paid vacation to Gatlinburg, Tennessee.
In total, Markham’s fraudulent conduct caused a loss to the SSA of approximately $49,255, which he has been court ordered to repay. Markham’s failure to perform his duties caused needy members of the public to have their social security benefits delayed, including people with autism, blindness, and end stage cancer.
“Telework and emergency leave policies exist to provide needed flexibility and support to hard-working federal employees—not to supplement the incomes of no-show employees who want to double-dip on the public’s dime while working for a private business,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “The defendant’s conduct was even more egregious because his failure to work harmed Americans who were depending on him to receive the much-needed benefits to which they were entitled. Public service is a public trust, and those who abuse that trust will be held accountable.”
“Christopher Markham abused a position of trust and in doing so performed a disservice to SSA, its beneficiaries, and to the taxpayers. His selfish criminal acts demonstrated greed without regard for those he was employed to serve,” said Michelle L. Anderson, Acting SSA Inspector General. “This sentence holds him accountable for the crimes he committed by pretending to telework, neglecting his assigned work, and falsifying official leave and attendance records. We will continue to work to protect the integrity of SSA, its programs and employees. I thank the U.S. Attorney’s Office for their work in prosecuting this case.”
As employees of the Social Security Administration, we hold ourselves to high standards of integrity and trust,” said Social Security Commissioner Martin O’Malley. “We will continue to refer matters to our OIG for investigation – as we did in this case – when we see an employee potentially violating that.”The Social Security Administration Office of Inspector General investigated this case. The sentence was imposed by U.S. District Court Judge Sarah Evans Barker.
U.S. Attorney Myers thanked Assistant United States Attorney Bradley P. Shepard, who prosecuted this case.
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Former Naples Airport Customs Officer Sentenced to Prison for Stealing Cash from Airline PassengersRead the Press Release
Fort Myers, FL – U.S. District Judge Thomas P. Barber has sentenced William Joseph Timothy (43, Ave Maria) to 12 months in federal prison for stealing cash from arriving airline passengers during the course of his official duties. The Court also ordered Timothy to pay $18,700 in restitution to the victims of his thefts. Timothy entered a guilty plea on June 18, 2024.
According to court documents, between mid-2023 and early-2024, while working asa U.S. Customs and Border Protection (CBP) Officer at the Naples Airport, Timothy stole approximately $18,700 in cash from airline passengers during 17 incidents of theft uncovered by CBP’s Office of Professional Responsibility investigators. Evidence collected during the investigation showed that Timothy was surreptitiously stealing cash from arriving international passengers during border enforcement examinations and currency verifications performed as part of his official duties as an assigned CBP Officer at Naples Airport.
“CBP does not tolerate misconduct within its ranks,” said Carlos C. Martel, Director, U.S. Customs and Border Protection (CBP), Miami and Tampa Field Offices. “CBP’s efforts in this case are a testament to CBP’s commitment to preserving the honor of its overwhelmingly professional workforce, and our core values of vigilance, integrity, and service to country.”
This case was investigated by U.S. Customs and Border Protection’s Office of Professional Responsibility. It was prosecuted by Assistant United States Attorney Simon R. Eth.
Former Connecticut-Based Energy Trader Convicted of International Bribery SchemeRead the Press Release
A federal jury in Bridgeport, Connecticut, convicted a former oil and gas trader today for his role in a nearly eight-year long scheme to bribe Brazilian government officials and to launder money to secure business for two Connecticut-based commodities trading companies.
According to court documents and evidence presented at trial, Glenn Oztemel, 65, of Westport, Connecticut, paid bribes to officials of Petróleo Brasileiro S.A. (Petrobras), the Brazilian state-owned oil and gas company, to obtain lucrative contracts for Arcadia Fuels Ltd. (Arcadia) and Freepoint Commodities LLC (Freepoint).
“Glenn Oztemel paid and laundered more than $1 million in bribes to employees of Brazil’s state-owned oil and gas company to obtain lucrative contracts for his commodities-trading companies in Connecticut,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Bribing public officials to win business undermines the rule of law and creates unfair competition. Today’s verdict reaffirms the Criminal Division’s commitment to combatting foreign corruption that violates U.S. law.”
“Bribery and money laundering are well-established federal crimes,” said U.S. Attorney Vanessa Roberts Avery for the District of Connecticut. “This conviction serves as another warning to anyone involved in the financial industry who seeks to gain an unfair advantage and illegally profit, both here in the U.S. and abroad. This office and our law enforcement partners will continue to keep a watchful eye to ensure that representatives from U.S. businesses operating overseas comply with our nation’s laws.”
“Individuals and companies who collude to thwart free market competition through bribery ultimately erode public trust in the marketplace,” said Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office. “Today’s conviction demonstrates the commitment of the FBI and our partners to investigate anti-competitive behavior and hold accountable those who try to cheat the system for their own benefit and profit.”
The trial evidence showed that, between 2010 and 2018, Oztemel worked as a senior oil and gas trader — first at Arcadia and then at Freepoint. With the assistance of others, Oztemel paid and caused the payment of bribes to Petrobras officials for their assistance in helping Arcadia and Freepoint to obtain and retain fuel oil contracts with Petrobras and by providing Oztemel and others with confidential information regarding Petrobras’ fuel oil business. Oztemel and his co-conspirators caused Arcadia and Freepoint to make corrupt payments — disguised as purported consulting fees and commissions — to a third party intermediary and agent, Eduardo Innecco, 74, knowing that Innecco would pay a portion of those funds to Brazilian officials, including to Houston-based Petrobras trader Rodrigo Berkowitz.
To conceal the scheme, Oztemel, Innecco, and their co-conspirators used coded language like “breakfast” and “freight deviation” to refer to the bribes and communicated using personal email accounts, encrypted messaging applications, disposable phones, and fictitious names like “Spencer Kazisnaf” and “Nikita Maksimov.” In total, Oztemel paid more than $1,000,000 in bribes, which were split between Berkowitz and other Petrobras officials in Brazil. The bribe money moved from the trading companies to shell companies around the world controlled by Innecco, who then made payments to a bank account in Uruguay controlled by Berkowitz’s father.
The jury convicted Oztemel of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), conspiracy to commit money laundering, three counts of violating the FCPA, and two counts of money laundering. He faces a maximum penalty of five years in prison on each of the FCPA and conspiracy to violate the FCPA counts, and a maximum penalty of 20 years in prison on each of the money laundering and money laundering conspiracy counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Charges against Oztemel and Innecco were unsealed on Feb. 17, 2023. In a superseding indictment returned on Aug. 29, 2023, both were charged alongside Oztemel’s brother, Gary Oztemel. Gary Oztemel pleaded guilty to money laundering on June 24. In May 2023, Innecco was arrested in France and his extradition to the United States is pending. An indictment is merely an allegation, and Innecco is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In a related matter, in December 2023, Freepoint admitted to bribing officials in Brazil in violation of the anti-bribery provisions of the FCPA. Freepoint entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the District of Connecticut. As a part of the resolution, Freepoint agreed to pay more than $98 million in criminal penalties and forfeiture.
The FBI Los Angeles Field Office’s International Corruption Squad investigated the case. The Justice Department’s Office of International Affairs and authorities in Brazil, Latvia, Switzerland, and Uruguay provided assistance with the investigation.
Trial Attorneys Allison McGuire and Clayton P. Solomon and Assistant Chief Jonathan P. Robell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael McGarry for the District of Connecticut are prosecuting the case.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act (FEPA) matters. Additional information about the Justice Department’s FCPA and FEPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Commercial Airline Pilot Sentenced to over Three Years in Prison for Tax EvasionRead the Press Release
MINNEAPOLIS – A former commercial airline pilot has been sentenced to 41 months in prison followed by two years of supervised release for filing false tax returns, failing to file tax returns, and making false claims, announced U.S. Attorney Andrew M. Luger.
According to court documents and evidence presented at trial, Charles Randall Sorensen, 72, of Minnetonka, was a commercial airline pilot who retired in 2016. In January 2017, Sorensen filed a fraudulent tax return for the 2015 tax year, falsely claiming that he was entitled to a $55,365 tax refund. In reality, Sorensen owed more than $49,000 in income taxes that year. In March 2017, Sorensen filed a fraudulent tax return for the 2016 tax year, falsely claiming that he was entitled to a $123,370 tax refund. In reality, he owed more than $175,000 in taxes that year. The IRS conducted an audit of Sorensen’s 2015 and 2016 tax returns and found that Sorensen fraudulently received more than $150,000 in tax refunds to which he was not entitled and owed more than $290,000 in taxes, interest, and penalties for those tax years.
According to the evidence presented at trial, Sorensen refused to pay his tax debt and took steps to actively evade the IRS’s collection efforts by hiding his income and assets in bank accounts in the name of shell religious non-profits and by liquidating his retirement accounts and converting the funds into cryptocurrency. Sorensen also failed to file federal income tax returns for 2017, 2018, and 2019. It is estimated that Sorensen owes the United States more than $300,000.
On May 31, 2024, Sorensen was found guilty by a federal jury on two counts of filing a false tax return, one count of tax evasion, three counts of failing to file a tax return, and one count of making a false claim. He was sentenced today by Chief Judge Patrick J. Schiltz.
This case is the result of an investigation conducted by IRS – Criminal Investigation.
Assistant U.S. Attorneys Michael P. McBride and Campbell Warner prosecuted the case.
Federal Jury Convicts Kingston Man of Attempting to Entice Minors to Engage in Unlawful Sexual Activity and Other Child Sex Crime OffensesRead the Press Release
KNOXVILLE, Tenn. – On September 25, 2024, following a-three-day trial in United States District Court at Knoxville, a federal jury convicted Christopher Edward Allen, 34, of Kingston, TN, of nine counts involving child pornography and attempting to entice minors to engage in unlawful sexual activity. Specifically, Allen was convicted of three counts of attempting to entice a minor to engage in unlawful sexual activity, one count of producing child pornography, two counts of attempting to produce child pornography, two counts of transporting a visual depiction of a minor engaged in sexually explicit conduct, and one count of transferring obscene material.
Sentencing is set for February 6, 2025, at 2:00 pm, in front of the Honorable Judge Thomas A. Varlan, United States District Judge, United States District Court at Knoxville. Allen faces a sentence of up to life in prison.
The evidence presented at trial showed that, among other things, Allen used various social media platforms to identify minors online. Once Allen identified the minors, he enticed them over social media and texting apps to engage in unlawful sexual activity and to send nude images of themselves engaged in sexually explicit conduct. In two instances, Allen paid the minors for nude images of themselves, which Allen later emailed to himself using the minor’s name as the subject line of the emails. Allen also sent sexually explicit images of himself to minors using social media. In at least one instance, Allen met a minor in person at the restaurant where Allen worked. Allen added the minor to one of his social media accounts. Later that night, Allen communicated with the minor over social media. Law enforcement learned of those messages and, with consent from the minor’s parents, assumed the minor’s identity on social media two days later. That same day, Allen was arrested at a park in Kingston, TN, after arriving with the intent to meet the minor.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee and Special Agent in Charge Joseph E. Carrico of the Federal Bureau of Investigation (FBI) made the announcement.
FBI and the Tennessee’s Ninth Judicial District Attorney General’s Office investigated the case that led to the indictment and subsequent conviction of Allen.
Assistant U.S. Attorneys Jennifer Kolman and William A. Roach, Jr., represented the United States at trial.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Durham Woman Sentenced to 12 Years in Prison for Sex TraffickingRead the Press Release
GREENSBORO – LESLIE CHEVONNE STOUT was sentenced today to 144 months in prison after being convicted of sex trafficking, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
STOUT, age 43, pleaded guilty on October 16, 2023, to conspiracy to commit sex trafficking by force, threats of force, fraud, and coercion.
Evidence at the trial of STOUT’s codefendant Chester Fletcher Wallace showed that STOUT and Wallace ran a sex trafficking ring based out of a three-bedroom house located in Durham that Wallace rented from July 2021 until late spring of 2022. STOUT and Wallace recruited women who were homeless or suffering from substance abuse, promising them housing and drugs if they came to live at the residence. Once there, all five victims testified they were photographed for advertisements posted for commercial sex posted on sites such as “Mega Personals” and “Skipthegames,” and that STOUT and Wallace set up the “dates” for commercial sex. The victims further testified that STOUT and Wallace established certain house rules that all the victims had to obey and used violence and coercion to enforce the rules of the house.
STOUT was sentenced today to 144 months imprisonment and ten years of supervised release by the Honorable Loretta C. Biggs, United States District Judge in the United States District Court for the Middle District of North Carolina. In addition to prison time, STOUT was ordered to pay restitution in the amount of $914,401.07.
Wallace was sentenced on November 2, 2023, to six life terms of imprisonment, to run concurrent with one another.
The case was investigated by Homeland Security Investigations and the Durham Police Department, with support and assistance from the Durham County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Nicole DuPré and former Assistant United States Attorney Tanner Kroeger.
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Discharged Army Soldier Formerly Based in Hawaii Sentenced to 3 Months in Prison for Theft from GovernmentRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that Andre Fulton, II, 30, of Georgia, was sentenced today by U.S. District Judge Jill A. Otake to three months in prison followed by three years of supervised release for theft of government money. Fulton was also ordered to pay $202,309.27 in restitution and a $100 fine.
According to information provided to the court, in January 2018, the defendant, while stationed at Fort Hood, Texas, entered a fraudulent marriage. Thereafter, his co-conspirator filed an application for a change in immigration status, based on her fraudulent marriage to the defendant. The defendant admitted in his plea agreement he knew the purpose of the fraudulent marriage was to permit his co-conspirator, who was not a United States citizen, to evade the immigration laws of the United States and remain in the United States illegally. The defendant further admitted that the marriage was fraudulent because, among other things, the defendant and his co-conspirator were not romantically involved, never lived together, did not intend to establish a life together, and married only for the purpose of using the marriage ceremony to facilitate their fraudulent scheme. The defendant received several thousand dollars as payment to enter the fraudulent marriage.
In May 2019, the Army transferred the defendant to Fort Shafter, Hawaii. His co-conspirator and her minor daughter remained on the mainland. The defendant admitted that in August and September 2019, he submitted paperwork claiming, falsely, that his co-conspirator and her minor daughter were living with the defendant, in Hawaii, as his dependents. If they were truly his dependents, the defendant would have been entitled to additional money for housing allowances, medical coverage, and cost of living allowances.
As a result of the defendant’s deceit, a non-citizen was able to maintain her status in the United States and the government paid out at least $202,039.27 (Housing Allowances - $166,071.35; Medical Expenses - $30,214.40; and Cost of Living Adjustment - $5,753.52) in unauthorized benefits.
“While the United States appropriately confers significant benefits upon our military personnel for their service, it does so with the understanding that such benefits will be not exploited or misused,” said U.S. Attorney Clare E. Connors. “Here, defendant Fulton exploited his position with the United States military to violate our immigration laws and defraud the government. We will hold those who abuse our laws and privileges accountable under the law.”
“The successful prosecution of this case highlights the Department of the Army Criminal Investigation Division’s unwavering commitment to upholding the integrity of our military and ensuring those who violate the public’s trust are held accountable,” said Special Agent-in-Charge Ruben R. Santiago, Department of the Army Criminal Investigation Division’s Pacific Field Office. “Engaging in fraudulent activities erodes confidence in our institutions and diverts funds and resources that should be dedicated to our nation’s defense.”
“HSI is committed to safeguarding the nation through protecting the integrity of our country’s immigration system,” said HSI’s Acting Special Agent in Charge Lucia Cabral-DeArmas. “Through our partnerships with federal agencies, HSI ensures the benefits afforded to honorable service members are not abused.”
The investigation was conducted by the U.S. Citizenship and Immigration Services, Fraud Detection and National Security Directorate; Army Criminal Investigation Division; Defense Criminal Investigative Service; and Homeland Security Investigations.
Assistant U.S. Attorney Darren W.K. Ching prosecuted the case.
Department of Justice awards nearly $8 million to Washington Tribes, non-profits, and government entities to combat domestic violenceRead the Press Release
Seattle – The Department of Justice Office on Violence Against Women has awarded nearly $8 million to Western Washington tribal nations, non-profits, and government programs to provide services for victims of domestic violence, announced U.S. Attorney Tessa M. Gorman. The grants are paid out over multi-year periods.
“These federal dollars support the strong work done in our state to protect the vulnerable,” said U.S. Attorney Gorman. “Native American women suffer domestic violence at a higher rate than other communities, so I am pleased to see the impactful programs our tribal partners are supporting with this funding.”
The Port Gamble S’Klallam Tribe in Kitsap County was awarded $1 million for its program that provides advocacy, legal services, housing, and safety planning for victims of domestic violence.
The Snoqualmie Indian Tribe in east King County was awarded $998,595 to increase their supervised visit program, no cost civil legal services for survivors, as well as advocacy and support efforts.
Both the Quileute Tribe and the Confederated Tribes of the Chehalis Reservation were awarded $650,000 for victim services such as housing, transportation, advocacy and legal assistance. The Chehalis will also provide education and training to 75 young people on dating violence and healthy relationships.
The Makah Tribe was awarded $425,000 for its Domestic Violence Program to better respond to violence, stalking, sex trafficking and sexual assault. Funding will help develop prevention and education programs.
The Washington State Native American Coalition against Domestic Violence and Sexual Assault received two grants totaling $796,335 for education and training for all 29 federally recognized Tribes in the state on ways to combat domestic violence, sexual assault and trafficking of Native women. The funding also supports the WomenSpirit Coalition, providing domestic violence and sexual assault services in Tribal communities.
Pierce County received $1 million to improve the criminal response to domestic violence. The money will support victim outreach and support for victims at legal hearings, as well as creation of a policy and procedure handbook for advocates.
King County Sexual Assault Resource Center was awarded $803,741 to identify gaps in legal advocacy and to work with other entities such as the King County Prosecuting Attorney’s Office, the Atlantic Street Center and El Centro de la Raza to develop coordinated responses with system-based improvements.
The Seattle City Attorney’s Office was awarded $500,000 to enhance investigation and prosecution of domestic violence, dating violence, sexual assault and stalking. In partnership with the YWCA of King and Snohomish Counties, the funds will support an investigator position and trainings for Seattle Police Officers.
The Domestic Abuse Women’s Network (Dawn) in South King County was awarded $300,000 to provide shelter beds for victims who also need to shelter their pets.
The Family Support Center of South Sound was awarded $499,915 to improve advocacy services in Thurston, Mason, and Lewis Counties. The funds may pay for a dedicated domestic violence detective as well as law enforcement training.
Finally, both the Washington Coalition of Sexual Assault Programs of Kennewick, Washington ($252,846) and the Washington State Coalition against Domestic Violence ($114,533) in Seattle, received grants for statewide coordination and education programs.
Coralville Man Sentenced to 78 Months in Federal Prison for Assault ChargeRead the Press Release
DAVENPORT, Iowa – A Coralville man was sentenced September 24, 2024, to 78 months in federal prison for assault on person assisting federal officer. There is no parole in the federal system.
According to public court documents and evidence presented at sentencing, Jorey Daniel Karl Butterbaugh, 33, was convicted in November 2023 of possession with intent to distribute methamphetamine and possession of a firearm in the United States District Court for the Southern District of Iowa. Following his sentencing, and while awaiting transport to a Bureau of Prisons (BOP) facility, Butterbaugh was temporarily held at the Muscatine County (Iowa) Jail. On November 13, 2023, Butterbaugh assaulted a Muscatine County correctional officer, who was conducting an internal investigation of contraband within the jail.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the United States Marshal’s Service and Muscatine County Sheriff’s Office.
Convicted Felon Sentenced to 34 Months in Prison on Gun ChargeRead the Press Release
BIRMINGHAM, Ala. – A convicted felon has been sentenced for illegally possessing a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus Watson.
U.S. District Court Judge Anna Manasco sentenced Jonathan Teal, 35, of Vestavia, to 34 months in prison. In April, Teal pleaded guilty to being a felon in possession of a firearm.
According to the plea agreement, on September 24, 2023, a Birmingham Police Department officer responded to a call of a man walking down the street and waving a gun as vehicles drove by him. The officer approached Teal, and while performing a pat down search for weapons, the officer recovered a Taurus 9mm pistol from Teal’s waistband.
Teal is prohibited from possessing a firearm because of multiple prior felony convictions.
The ATF investigated the case along with the Birmingham Police Department. Assistant U.S. Attorney Kristy M. Peoples prosecuted the case.
Convicted CBP Officer Sentenced in El Paso for Use of Excessive ForceRead the Press Release
EL PASO, Texas – A former U.S. Customs and Border Protection (CBP) Officer was sentenced to 24 months in federal prison for two counts of deprivation of rights under color of law and one count of the falsification of a document in a federal investigation.
According to court documents, documents and evidence presented at trial, Miguel Angel Delgado Jr., 41, used excessive force in two incidents while he was on duty at the Bridge of Americas Port of Entry between October 2019 and June 2020. As a result of Delgado’s unlawful use of force, the victims suffered bodily injury. Following one of the incidents, Delgado submitted a CBP Incident Log Report, in which he falsely reported the occurrence.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The Department of Homeland Security Office of Inspector General and the CBP Office of Professional Responsibility investigated the case.
Assistant U.S. Attorneys Patricia Aguayo, Sarah Valenzuela and Debra Kanof prosecuted the case.
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Columbia Man Sentenced to Federal Prison for Drug ChargesRead the Press Release
COLUMBIA, S.C. —Lontre Jason Wise, 52, of Columbia was sentenced to 13 years in federal prison after pleading guilty to possession with the intent to distribute both crack cocaine and marijuana.
Evidence obtained in the investigation revealed that the Columbia Police Department Organized Crime and Narcotics Unit received an anonymous complaint about the sale of illegal narcotics at a residence located on House Street. The complainant stated there was constant foot and vehicle traffic at the residence, which people were only observed being at the residence for minutes at a time. Based on the information provided from the complainant, a confidential informant went to the residence on two different occasions to purchase marijuana. During both occasions, the confidential informant purchased the marijuana from Wise. Based on the complaint and controlled purchases, a search warrant was obtained for the residence and executed by CPD.
During the search, the police located Wise and immediately took him into custody on arrest warrants for the distribution of marijuana. Wise was searched and the police found a clear container containing crack cocaine on him.
During the search of the residence, a black book bag was located and contained a large clear plastic bag of marijuana. The book bag also contained a 9mm caliber handgun and a .38 caliber revolver. The police located a safe underneath the couch with a black pouch that contained pieces of crack cocaine, Wise’s South Carolina driver’s license, social security card, debit card, and money. Wise told the officers that the safe was his. There was multiple hand rolled cigars containing marijuana found throughout the living room of the residence and on a plate on the couch.
United States District Judge Joseph F. Anderson, Jr. sentenced Wise to 156 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia Police Department’s Organized Crime and Narcotics Unit. Assistant U.S. Attorney William K. Witherspoon is prosecuting the case.
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Colonie Man Pleads Guilty to Trafficking Fentanyl and CocaineRead the Press Release
ALBANY, NEW YORK – Benz Coleman, age 33, of Colonie, New York, pled guilty today to one count of possessing with intent to distribute fentanyl and cocaine.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
Coleman admitted that on January 31, 2024, he possessed more than 3,000 fentanyl pills and more than 13 grams of cocaine, all with the intent to distribute the drugs. Coleman further admitted that between November 1, 2023, and January 31, 2024, he sold another person more than 2,400 fentanyl pills.
At sentencing on February 12, 2025, before Senior United States District Judge Lawrence E. Kahn, Coleman faces at least 5 years and up to 40 years in prison. The judge will also be required to impose a term of post-release supervision of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
DEA and the Colonie Police Department investigated this case. Assistant U.S. Attorney Rick Belliss is prosecuting the case.
Cincinnati man pleads guilty to selling machinegun, possessing firearm within 1,000 feet of local high schoolRead the Press Release
CINCINNATI – Antonio White, 19, of Cincinnati, pleaded guilty in U.S. District Court to three separate gun crimes.
White pleaded guilty to attempted firearm trafficking, illegal possession of a machine gun and possession of a firearm in a school zone.
According to court documents, throughout the course of the investigation, White sold 11 firearms, one machine gun conversion device, a bulletproof vest, two extended pistol magazines and a 50-round drum.
For example, in April 2024, White sold undercover agents a pistol with a “switch” machine gun conversion device. The firearm was an untraceable “ghost gun” that had no serial number.
White believed the firearms were being trafficked out-of-state to have their serial numbers obliterated and sold to gang members.
White also exited Dohn Community High School on 4th Street in Cincinnati while possessing a pistol in April 2024.
White was arrested in May 2024.
He faces up to 15 years in prison and up to five years consecutive to that. Congress sets maximum statutory sentences, and sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors at a future hearing.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Cincinnati Police Chief Teresa A. Theetge announced the guilty plea entered today before Senior U.S. District Judge Micheal R. Barrett. Assistant United States Attorneys Ryan A. Keefe and Timothy D. Oakley are representing the United States in this case.
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Charlotte Man Pleads Guilty to Brandishing AR-15 Rifle During Restaurant RobberyRead the Press Release
CHARLOTTE, N.C. – Jermond Santa Lowery, Jr., 29, of Charlotte, appeared in federal court today and pleaded guilty to brandishing an AR-15 rifle during a restaurant robbery, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to plea documents and court proceedings, on October 31, 2023, Lowery entered a Waffle House restaurant located in Charlotte. Upon entering the restaurant, Lowery brandished an AR-15 rifle and told the employees, “You better get back.” As the employees began to flee out of the restaurant’s back door, Lowery ordered them to come back and open the register. He also threatened the employees, telling them, “I’ll kill you right now.” Lowery then removed the cash register from the restaurant and left. Law enforcement arrested Lowery on November 1, 2023.
Lowery pleaded guilty to brandishing a firearm in furtherance of a crime of violence, which carries a minimum penalty of seven years and a maximum penalty of life in prison. Lowery remains in federal custody. A sentencing date has not been set.
The FBI and CMPD investigated the case.
Assistant U.S. Attorney Shavonn Bennette of the U.S. Attorney’s Office in Charlotte 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.
California Man Indicted for Distribution of Child PornographyRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Nathaniel Sean Deleon, age 20, of Tulare, California, was indicted by a federal grand jury on charges of distribution of child pornography.
According to United States Attorney Gerard M. Karam, on November 24 and 25, 2023, Deleon distributed child pornography in Cumberland County, Pennsylvania.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant United States Attorney David C. Williams is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute 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".
The maximum penalty under federal law for these offenses is 20 years, with a mandatory minimum sentence of five years, 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 and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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