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22 October 2024
Florida Man Pleads Guilty to Tax EvasionRead the Press Release
A Florida man pleaded guilty today to evading the payment of more than $1.7 million he owed for tax years 2004 through 2014.
According to court documents and statements made in court, David Albert Fletcher, of Deltona, owned and operated several furniture liquidations businesses in Florida, including Century Liquidators. For tax years 2004 through 2013, Fletcher did not timely file his federal income tax returns or pay taxes. After an audit, the IRS assessed a total of $1.7 million in taxes, interest and penalties against him.
To evade collection of these taxes, Fletcher concealed his income and assets from the IRS. For example, Fletcher used nominees to hide his purchases of luxury vehicles, including Rolls Royces. Fletcher also filed false income tax returns that understated his income and when interviewed by an IRS special agent, falsely represented the amount of income he earned.
A sentencing hearing will be set at a later date. Fletcher faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Zachary A. Cobb and Charles A. O’Reilly of the Justice Department’s Tax Division and Assistant U.S. Attorney Sarah Megan Testerman for the Middle District of Florida are prosecuting the case.
Florida Man Convicted of $77 Million Tender Offer FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JONATHAN MOYNAHAN LARMORE was convicted of tender offer fraud and securities fraud in connection with LARMORE’s announcement of a fake tender offer to manipulate the stock price of WeWork, Inc. (“WeWork”) and drive up the value of LARMORE’s stock options. The verdict followed a one-week trial before U.S. District Judge Paul A. Engelmayer, who will sentence LARMORE on March 4, 2025.
U.S. Attorney Damian Williams said: “Last November, Jonathan Moynahan Larmore orchestrated a scheme to trick the market and prey upon investors by artificially inflating the value of WeWork stock for his personal enrichment. Less than a year later, Larmore stands convicted by a jury of his peers. This case should be a reminder that we remain vigilant and ready to bring swift justice to those who undermine the integrity of our markets and defraud innocent investors.”
According to the evidence presented in court during the trial:
In or about the fall of 2023, LARMORE perpetrated a scheme to use a false and fraudulent tender offer to manipulate the stock price of WeWork, a co-working space company that was headquartered in New York, New York, and publicly traded on the New York Stock Exchange.
LARMORE executed his scheme in three steps. First, on or about October 6, 2023, LARMORE created Cole Capital Funds LLC (“Cole Capital”), a purported real estate investment firm that was, in fact, merely a sham company. Second, on or about November 1, 2023, and November 2, 2023, LARMORE spent more than $775,000 buying tens of thousands of cheap, short-dated, out-of-the-money WeWork call options (the vast majority of which were set to expire on November 3, 2023 at 4:00 p.m. EDT) and hundreds of thousands of shares of WeWork common stock — the latter primarily because two of LARMORE’s brokerage firms did not authorize him to trade options, but did authorize him to buy equities. In fact, LARMORE chartered a yacht and attempted to travel into international waters to make these trades, hoping to evade U.S. jurisdiction. Third, on or about November 3, 2023, LARMORE caused a press release to be published announcing that Cole Capital proposed to acquire 51% of all outstanding shares owned by minority shareholders of WeWork at a more-than-700% premium in an all-cash offer worth more than $77 million. At the time, WeWork was on the verge of bankruptcy. The press release itself contained a number of false and misleading claims about LARMORE and Cole Capital, and their ability to carry through with the purported tender offer.
In fact, neither LARMORE nor Cole Capital had the intent or ability to execute the announced tender offer. Instead, LARMORE intended for news of the tender offer to fraudulently inflate WeWork’s share price and, thereby, to increase the value of LARMORE’s newly acquired WeWork call options and shares.
On or about November 3, 2023, at approximately 5:12 p.m. EDT, the press release about Cole Capital’s purported tender offer was published. Within approximately one minute of publication, in after-hours trading, WeWork’s share price quickly increased more than 70% from $.85 to $1.45, and continued to rise until 5:31 p.m. EDT, when the stock reached its high of $2.14, which was a more-than-150% increase over the stock price prior to the publication of the press release.
The WeWork call options LARMORE purchased could have made LARMORE millions of dollars if the news of LARMORE’s fraudulent tender offer had caused WeWork’s share price to increase significantly prior to the expiration of LARMORE’s options. Unfortunately for LARMORE, he mistimed how long it would take to properly format his press release and have it published. As a result of these delays, LARMORE’s fraudulent press release was not published—and WeWork’s share price did not accordingly rise—until approximately 5:12 p.m. EDT on or about November 3, 2023, which was about an hour after the vast majority of LARMORE’s WeWork call options had expired worthless at 4:00 p.m. EDT that day.
On the following Monday, November 6, 2023, WeWork filed for Chapter 11 bankruptcy protection. On or about November 10, 2023, the small number of remaining WeWork options LARMORE had purchased expired out of the money and worthless.
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LARMORE, 51, of Punta Gorda, Florida, was convicted of one count of tender offer fraud and one count of securities fraud, each of which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigations. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which filed a civil action against LARMORE, for its assistance and cooperation in the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Adam S. Hobson, Sarah Mortazavi, and Justin V. Rodriguez are in charge of the prosecution, with the assistance of Paralegal Specialists Emily Cho and Jonathan Oshinsky.
Fentanyl Trafficker and DC Rapper Sentenced for Bringing Thousands of Counterfeit Oxycodone Pills into the DistrictRead the Press Release
WASHINGTON – Columbian Thomas, 26, of Washington D.C., was sentenced today in U.S. District Court to 160 months in federal prison for participating in a massive fentanyl trafficking conspiracy that distributed hundreds of thousands of fentanyl-laced counterfeit oxycodone pills from Southern California to destinations throughout the United States, including the District. Thomas, aka “Cruddy Murda,” was one of more than two dozen co-defendants arrested over the course of 2023 in D.C., Virginia, Maryland, San Diego, and Los Angeles and charged in the conspiracy.
The sentence was announced by U.S. Attorney Matthew M. Graves, DEA Special Agent in Charge Jarod Forget of the Washington Division, Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service Washington Division, and Chief Pamela A. Smith of the Metropolitan Police Department.
Thomas pleaded guilty on May 30 to conspiring to distribute 400 grams or more of fentanyl. In addition to the 160-month prison term, U.S. District Judge Colleen Kollar-Kotelly ordered Thomas to serve five years of supervised release.
The impetus for this investigation was the overdose death of Diamond Lynch, a young mother in Southeast D.C. In addition to investigating and prosecuting the death-resulting case [1] , law enforcement followed the evidence and uncovered a vast network of traffickers who transported fentanyl from Mexico to Los Angeles to the District of Columbia. Since then, investigators have seized more than 450,000 fentanyl pills, 1.5 kilograms of fentanyl powder, and 30 firearms.
According to court documents, Thomas entered into the conspiracy after he was introduced to a Los Angeles-based drug trafficker, who was a distributor of fentanyl-laced counterfeit oxycodone pills. Thomas would travel to Southern California to purchase the fake oxycodone from the L.A. supplier and return to the District with the drugs.
Thomas and his co-conspirators employed two primary methods to transport the pills to the District: they smuggled them in luggage or carry-on items on airline flights, or they shipped the pills using commercial mail carriers.
Thomas often bragged on social media about the lucrative business of fentanyl trafficking and proudly showcased the spoils of his drug trafficking. The below-pictured social media post shows Thomas holding a large stack of U.S. currency, exclaiming “I [love] Cali!!!!”
On June 2, 2023, the date of his arrest, law enforcement found Thomas in the bedroom of his home and recovered a baggie containing about 100 blue M-30 fentanyl-laced counterfeit oxycodone pills, along with a loaded Glock 21 Gen4 pistol that had been equipped with a “giggle switch,” which converted the firearm into a fully automatic machine gun.
In addition to possessing a machine gun and conspiring to distribute more than 400 grams of fentanyl, Thomas, whose rap stage name is “Cruddy Murda,” often boasted about firearms and acts of violence in his songs. Below is a chart outlining the status and charges of other defendants in the case:
DEFENDANT
AGE
LOCATION
CHARGES/SENTENCE
Hector David Valdez,
aka “Curl”
26
Santa Fe Springs, CaliforniaConspiracy to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering.
Craig Eastman
20
Washington, D.C.Pleaded guilty July 25, 2024, to conspiracy to distribute more than 400 grams of fentanyl.
Sentencing: January 7, 2025.
Charles Jeffrey Taylor20
Washington, D.C.Conspiracy to distribute 400 grams or more of fentanyl;
Possession with intent to distribute fentanyl.
Raymond Nava, Jr.20
Bell Gardens,
California
Sentenced Sept. 17, 2024, to 14 years for conspiracy to distribute 400 grams or more of fentanyl.Ulises Aldaz28
Bell Gardens,
California
Sentenced June 28, 2024, to 95 months in prison for conspiracy to distribute 400 grams or more of fentanyl.Max Alexander Carias Torres26
Bell Gardens,
California
Conspiracy to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering
Teron Deandre McNeil, aka “Wild Boy”34
Washington, D.C.Conspiracy to distribute 400 grams or more of fentanyl.Marvin Anthony Bussie,
aka “Money Marr”
21
Washington, D.C.Sentenced June 28, 2024, to 120 months in prison for conspiracy to distribute 400 grams or more of fentanyl.Marcus Orlando Brown28
Washington, D.C.Sentenced on October 9, 2024, to 108 months in prison for conspiracy to distribute 40 grams or more of fentanyl.Columbian Thomas, aka
"Cruddy Murda”
26
Washington, D.C.Sentenced October 22, 2024, to 160 months in prison for conspiracy to distribute 400 grams or more of fentanyl.Wayne Rodell Carr-Maiden29
Washington, D.C.Sentenced April 29, 2024, to 45 months in prison for conspiracy to distribute 40 grams or more of fentanyl.Andre Malik Edmond,
aka “Draco”
23
Temple Hills, MarylandSentenced July 22, 2024, to 130 months in prison for conspiracy to distribute 400 grams or more of fentanyl.Treyveon James Johnson,
aka “Treyski”
20
Alexandria, VirginiaSentenced Sept. 5, 2024, to 108 months in prison for conspiracy to distribute 40 grams or more of fentanyl.Karon Olufemi Blalock,
aka “Fat Bags”
30
Alexandria, VirginiaConspiracy to distribute 400 grams or more of fentanyl.Ronte Ricardo Greene,
aka “Cardiddy”
28
Washington, D.C.Conspiracy to distribute 400 grams or more of fentanyl;
Possession with intent to distribute fentanyl.
Melvin Edward Allen, Jr., aka “21”38
Washington, D.C.Conspiracy to distribute 400 grams or more of fentanyl.Darius Quincy Hodges,
aka “Brick”
34
Glen Allen, VirginiaConspiracy to distribute 400 grams or more of fentanyl.Lamin Sesay,
aka “Rock Star”
27
Alexandria, VirginiaConspiracy to distribute 400 grams or more of fentanyl.Paul Alejandro Felix25
Glendale,
California
Pleaded guilty July 1, 2024, to conspiracy to distribute 400 grams or more of fentanyl.
Sentencing: November 6, 2024
Omar Arana,
aka “Frogs”
27
Cudahy,
California
Conspiracy to distribute 400 grams or more of fentanyl.Edgar Balderas, Jr., aka “Nano”26
San Diego,
California
Conspiracy to distribute 400 grams or more of fentanyl.Raul Pacheco Ramirez30
Long Beach,
California
Pleaded guilty July 19, 2024, to conspiracy to distribute 400 grams or more of fentanyl.
Sentencing: November 26, 2024.
Giovani Alejandro Briones30
Victorville, CaliforniaConspiracy to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering.
Alfredo Rodriguez Gonzalez26
Rosarito, MexicoConspiracy to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering.
The prosecutions followed a joint investigation by the DEA Washington Division and the U.S. Postal Inspection Service Washington Division, in partnership with the Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with additional support from the DEA Los Angeles, San Diego, and Riverside Field Offices, the Federal Bureau of Investigation’s Washington Field Office, and the Charles County, Maryland Sheriff’s Office. Valuable assistance was provided by the U.S. Attorney’s Offices in the Central and Southern Districts of California, the Eastern District of Virginia, and the District of Maryland.
The case is being prosecuted by Assistant U.S. Attorneys Matthew W. Kinskey, Solomon S. Eppel, and Iris McCranie of the Violence Reduction and Trafficking Offenses (VRTO) Section.
23cr73
[1] https://www.justice.gov/usao-dc/pr/brother-and-sister-sentenced-drug-conspiracy-involving-fentanyl-sales
Federal jury convicts man of methamphetamine trafficking in BillingsRead the Press Release
BILLINGS — A federal jury today convicted a Colorado man of drug trafficking after a high-speed pursuit and search of his vehicle led to the recovery of approximately six pounds of methamphetamine, U.S Attorney Jesse Laslovich said.
After a two-day trial that began on Oct. 21, the jury found Moises Zamora, 39, of Greely, Colorado, guilty of possession with intent to distribute meth as charged in an indictment. Zamora faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Feb. 20, 2025. Zamora remained detained pending further proceedings.
“This drug dealer was caught with almost six pounds of methamphetamine while dangerously attempting to flee a Yellowstone County Deputy Sheriff. With their actions, our law enforcement partners kept more than 21,000 doses of meth from poisoning our community. More work is required, and I am confident such work on other people will yield the same result as Zamora – guilty of drug trafficking,” U.S. Attorney Laslovich said.
In court documents and at trial, the government alleged that on Nov. 11, 2022, a Yellowstone County Sheriff’s deputy pulled into a convenience store parking lot in Billings and noticed a passenger car parked in an obscure manner, away from the pumps or store entrances. As the deputy drove toward the car, he saw the driver, later identified as Zamora, point toward his patrol vehicle and then slouch in the seat. The deputy believed this behavior to be consistent with nefarious acts and pulled behind the vehicle to investigate. Zamora reversed his car and drove away. The deputy activated his lights and siren, but Zamora continued driving, and a high-speed pursuit began. The pursuit lasted almost 10 minutes and involved speeds reaching 80 mph, with Zamora driving recklessly and entering the lane of oncoming traffic. Zamora finally stopped when he came to a dead end and was arrested.
The deputy observed two blue “M30” pills, later confirmed to be fentanyl, in the backseat. Law enforcement determined Zamora had a warrant for his arrest and was booked into the Yellowstone County Detention Center. Law enforcement served a search warrant on Zamora’s car and located approximately six pounds of meth, two fentanyl pills, three cell phones and drug paraphernalia. Six pounds of meth is the equivalent of approximately 21,744 doses.
The U.S. Attorney’s Office is prosecuting the case. The Yellowstone County Sheriff’s Office, Eastern Montana High Intensity Drug Trafficking Area Task Force and FBI 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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Federal jury convicts MS-13 member for multiple murdersRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Salvadoran national and member of the Uniones Locos Salvatrucha (ULS) clique of the violent Mara Salvatrucha 13 (MS-13) gang yesterday on charges relating to his participation in the gang’s criminal enterprise, including six murders and additional murder conspiracies.
On Aug. 25, 2018, Elmer De Jesus Alas Candray, aka German Alexander Ramirez Lopez, Buky, and Desquiciado, 27, met other MS-13 members in New Bedford, Massachusetts, to murder an associate of MS-13's Directos Locos Salvatrucha clique, identified in court records as K.A.C. MS-13 leadership in El Salvador had approved the murder because they believed K.A.C. had betrayed MS-13. That evening, they met K.A.C. at the residence of an MS-13 member in New Bedford. After the group ate dinner together, they beat and strangled K.A.C. to death. The conspirators then dismembered K.A.C.’s body, placed his remains in trash bags, and buried the remains in a wooded area near New Bedford. Alas Candray and other conspirators were promoted in the MS-13 ranks for their participation in the murder.
“This case is a stark reminder of the violence and disregard for human life inherent in MS-13’s criminal enterprise,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Their deadly activities, from flooding our streets with dangerous narcotics to the brutal murders by which they attempt to impose their presence, will not go unchecked. Their crimes will be met with the full attention and resources of this office and our law enforcement partners.”
"Alas Candray committed half a dozen gruesome murders to rise in rank in MS-13, demonstrating a vile disregard for his victims' lives," said Acting Special Agent in Charge Geist. "His conviction is the result of a multiyear investigation worked by the FBI, Fairfax County Police Department, and our federal and local partners. We thank the victim's families for their patience throughout Alas Candray's prosecution and reaffirm our commitment to bringing MS-13 members to justice for terrorizing communities throughout the country."
“This verdict sends a clear message that the community will not tolerate violence, and we will hold those accountable for their actions” said Kevin Davis, Fairfax County Chief of Police.
In June 2019, Alas Candray and others conspired to murder individuals who frequently gathered to drink in a wooded area in the clique’s perceived territory in Reston. On June 23, 2019, Alas Candray and other members and associates armed themselves with a 9mm firearm, a .45 caliber firearm, and two machetes and traveled to the Hunters Woods area of Reston. The group murdered an individual, identified as J.L.G.M., shooting him and slashing him with a machete.
On Sept. 17, 2020, Alas Candray and others devised a plan to lure a young woman, identified as I.J.P.G., to Colts Neck Road in Reston under false pretenses and kill her because they believed she was associated with a rival gang and had disparaged MS-13 on social media. A co-conspirator exchanged messages with I.J.P.G. via Snapchat, pretending to be a member of MS-13’s rival gang. He and another co-conspirator later picked up I.J.P.G. and drove her to Colts Neck Road, where Alas Candray and another MS-13 member were waiting for them. The four co-conspirators killed I.J.P.G. by taking turns shooting her, primarily in the face.
In March 2021, MS-13 members and associates conspired to murder an individual, identified as S.A.T.L., because they believed he was a member of a rival gang. On March 11, 2021, Alas Candray and other MS-13 members and associates, surveilled S.A.T.L. in Fairfax County and waited for an opportunity to murder him. Alas Candray and his co-conspirators went to an apartment complex on Winterthur Court in Reston where Alas Candray fatally shot S.A.T.L.
On May 30, 2022, Alas Candray and co-conspirators travelled to the Lerner Springs at Reston Apartment Homes and joined others on a footpath behind the complex to patrol the clique’s perceived territory. Shortly thereafter, the conspirators encountered an individual, identified as R.A.P.S., on the footpath. Alas Candray and others murdered R.A.P.S. by kicking him and dropping a large rock on his head as he lay on the footpath.
On June 18, 2022, Alas Candray and a co-conspirator picked up an individual, identified as F.R.A.R., from Reston and drove him to Seneca Regional Park in Fairfax County. Alas Candray, and his co-conspirators believed that F.R.A.R. had disrespected MS-13 and violated its rules. After arriving at a pre-selected location in the park, Alas Candray and several co-conspirators murdered F.R.A.R. by beating him with a baseball bat and stabbing him. They then dismembered F.R.A.R.’s body and buried F.R.A.R.'s remains in a clandestine grave.
On Aug. 17, 2022, Alas Candray instructed a relative to relay a message to other ULS members and associates. Using coded language, Alas Candray, instructed a co-conspirator to get rid of ammunition, warned ULS members and associates that law enforcement had pictures of them, and advised them to move. The relative relayed the message the following day.
The jury convicted Alas Candray of conspiracy to participate in a racketeering enterprise, five counts of conspiracy to commit murder in aid of racketeering, five counts of murder in aid of racketeering, and three counts of use of a firearm during a crime of violence causing death. He faces a mandatory minimum sentence of life imprisonment on each of the five murder counts when sentenced on Jan. 30, 2025. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys John Blanchard, Megan Braun, and Natasha Smalky are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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. 1:22-cr-178.
Federal grand jury indicts Jamestown man on sex trafficking and drug chargesRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Dwayne Lowery aka Chi Chi, 29, of Jamestown, NY, with conspiracy to commit sex trafficking by force and coercion, sex trafficking by force and coercion, kidnapping, narcotics conspiracy, possession with intent to distribute fentanyl, and using and maintaining a drag-involved premises. The charges carry a minimum penalty of 15 years in prison and a maximum of life.
Assistant U.S. Attorneys Donna M. Duncan and Joshua A. Violanti, who are handling the case, stated that according to the indictment, between October and December 2022, Lowery conspired with others to coerce individuals to engage in commercial sex acts. Specifically, Lowery forced an individual to engage in a commercial sex act. In addition, between October and November 2023, Lowery kidnapped two individuals.
The indictment also accuses Lowery of conspiring with others to sell and selling fentanyl, using a W. Cowden Place residence in Jamestown for his drug trafficking activities.
The indictment is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Erin Keegan, the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone, and the Olean Police Department under the direction of Police Chief Ron Richardson.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Prisoner Sentenced to 45 Years in Prison for Second Degree MurderRead the Press Release
TUCSON, Ariz. – Romeo Santino Giovanni, 46, was sentenced last week by Senior U.S. District Judge James A. Soto to 45 years in prison, followed by five years of supervised release. Giovanni pleaded guilty to Second Degree Murder on May 23, 2024.
On July 5, 2016, Giovanni, who was then a federal prisoner at a United States Penitentiary, used a cloth makeshift clothesline to strangle his cellmate to death. Giovanni left pieces of paper on his cellmate’s body, including one that read “lights out.”
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Matthew C. Cassell, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-17-1428-TUC-JAS
RELEASE NUMBER: 2024-143_Giovanni# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Federal Complaint Charges Chicago Man with Illegally Possessing Machine Gun Conversion DeviceRead the Press Release
CHICAGO — A man has been charged in federal court with illegally possessing a machine gun conversion device in his Chicago residence last week.
Federal law enforcement on Thursday executed a court-authorized search of LATAVION JOHNSON’s residence on the South Side of Chicago and discovered the conversion device in a tool bag in Johnson’s bedroom, according to a criminal complaint filed in U.S. District Court in Chicago. When equipped to a firearm, the conversion device, also known as a “Glock switch” or “auto sear,” allows the gun to fire multiple rounds with a single pull of the trigger.
The complaint alleges that Johnson posted videos on social media showing himself possessing a firearm equipped with a conversion device. Johnson also allegedly posted a photograph of a conversion device next to a stack of $20 bills.
The complaint charges Johnson, 22, with one count of possession of a machine gun, which is punishable by a maximum sentence of ten years in federal prison. Johnson was arrested on Friday and remains in federal custody. A detention hearing is set for Wednesday at 11:00 a.m. before U.S. Magistrate Judge Sheila M. Finnegan. The U.S. Attorney’s Office will seek Johnson’s continued pre-trial detention.
The complaint and arrest were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Saqib M. Hussain.
The ongoing investigation is being conducted in coordination with ATF’s Crime Gun Intelligence Center of Chicago. The CGIC is a centralized law enforcement hub that focuses exclusively on investigating and preventing gun violence in Chicago and throughout northern Illinois. The CGIC is an interagency collaboration that brings together - under one roof - federal, state, and local law enforcement officers, prosecutors, and intelligence analysts to move quickly to investigate and prosecute violent crimes.
Holding illegal firearm possessors accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
johnson_complaint.pdfEau Claire Man Sentenced to 5 1/2 Years for Illegally Possessing Loaded FirearmRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Damon L. Clark, 26, Eau Claire, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 5 ½ years in federal prison for possessing a firearm and ammunition as a convicted felon. The prison term will be followed by 3 years of supervised release. Clark pleaded guilty to this charge on August 20, 2024.
On January 1, 2024, Eau Claire Police Officers were dispatched to a bar in Eau Claire, Wisconsin, for reports that someone pointed a firearm at another individual during a fight. Witness reports and video surveillance identified Clark as the individual who pointed the firearm. When law enforcement arrived, Clark fled to an adjacent parking lot. Law enforcement arrested Clark and located a loaded Glock 19 handgun with a 31-round magazine under a nearby vehicle. The handgun had a machinegun conversion device installed, which is an illegal, after-market attachment that converts a semi-automatic handgun into a machinegun. With the attachment, a handgun is capable of firing approximately 50 rounds in four seconds with a single pull of the trigger. The Wisconsin State Crime Lab confirmed Clark’s DNA was present on the firearm. Clark is prohibited from legally possessing firearms and ammunition because of prior felony convictions.
At sentencing, Judge Conley characterized Clark’s behavior as disastrous and emphasized the danger that he posed by pointing a fully loaded machinegun with extended magazine at someone outside a bar with other patrons present. Judge Conley balanced the extremely aggravated nature of this offense with Clark’s lack of prior prison experience. Judge Conley expressed his hope that this would be a turning point for Clark.
The charge against Clark was the result of an investigation conducted by the ATF Madison Crime Gun Task Force consisting of federal agents from ATF and Task Force Officers (TFOs) from local agencies including the Dane County and Clark County Sheriff’s Offices and the Fitchburg, Madison, Sun Prairie, and La Crosse Police Departments. The Federal Bureau of Investigation, Eau Claire Police Department, and UW-Eau Claire Police Department also assisted in this investigation. Assistant U.S. Attorney Colleen Lennon prosecuted this case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
East Idaho Men Sentenced to Federal Prison in Separate Cases for Committing Sex Crimes Involving Minor ChildrenRead the Press Release
POCATELLO – U.S. Attorney Josh Hurwit announced the outcomes in two separate eastern Idaho cases in which the defendants were sentenced to 15 years and 12 years in federal prison, respectively, for sex crimes against minor children.
“These cases reflect our steadfast commitment to bring to justice criminals who use digital technology, the internet, and cameras to sexually victimize young children,” said U.S. Attorney Hurwit. “Sadly, there is much work to be done, but the strong partnerships between federal, state, and local law enforcement will continue to make an impact. We are one team motivated to do as much as possible to stop anyone who would harm Idaho’s kids.”
Shaun Patrick Conley, 53, of Shelley, was sentenced to 188 months in federal prison for receiving child pornography. According to court records, on July 28, 2023, a parole search was conducted at Conley’s residence. Conley was on parole for a prior sexual offense involving a minor. During the parole search, law enforcement discovered images on Conley’s phone that showed his attempt to surreptitiously film an 11-year-old child that was undressed. Law enforcement identified the minor as a child belonging to a family that Conley had befriended. Conley had introduced himself to the family of the minor using the name Shaun Millard and had denied having previously been convicted of a sex offense. Law enforcement also found four pairs of the 11-year-old child’s underwear at Conley’s house. Finally, law enforcement found a collection of child pornography in Conley’s possession.
Chief U.S. District Judge David C. Nye also ordered Conley to be placed on supervised release for ten years following his prison sentence. Conley will also be required to register as a sex offender as a result of his conviction. Conley pleaded guilty to the charge on April 19, 2024.
In a separate case, Mathew Dayton White, 44, of Idaho Falls, was sentenced to 152 months in federal prison for possession of child pornography. According to court records, On February 1, 2023, law enforcement received a report that White had hidden a camera in a 13-year-old child’s bedroom. On February 2, 2023, law enforcement obtained and executed a search warrant at White’s residence. Multiple electronic devices including computers and hard drives were seized from White’s home and forensically searched. Homeland Security Investigations identified over 4,000 images of child pornography on White’s devices.
Chief U.S. District Judge David C. Nye also ordered White to be placed on supervised release for the remainder of his life following his prison sentence, and White was ordered to pay $184,050 in restitution to be distributed among 24 victims. White will also be required to register as a sex offender as a result of his conviction. White pleaded guilty to the charge on March 28, 2024.
“HSI makes it a priority to identify predators anywhere they may be found to stop the exploitation of children, in coordination with our law enforcement partners,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. "Whether it is a repeat offender or a predator acting covertly to fulfill their own repugnant desires, we will never stop fighting for children who deserve to grow up free from harm.”
The Conley case was investigated by Homeland Security Investigations (HSI) in Idaho Falls, Idaho State Probation and Parole, the Bingham County Sheriff’s Office, the Blackfoot Police Department, and the Shelley Police Department. The White case was investigated by HSI in Idaho Falls, the Pocatello Police Department, and the Idaho Falls Police Department. Assistant U.S. Attorney Justin Paskett prosecuted both cases.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) of the Department of Justice, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Del Mar Fairgrounds Agrees to Pay $5.6 Million to Settle Allegations over Pandemic-Related LoanRead the Press Release
SAN DIEGO – The 22nd District Agricultural Association (DAA), which owns and operates the Del Mar Fairgrounds in San Diego County, and Carlene Moore, the chief executive officer of the 22nd DAA, have agreed to pay $5,664,015 to settle allegations that the 22nd DAA was not eligible for the $4,713,700 Paycheck Protection Program loan that it obtained.
The 22nd DAA is governed by a nine-member board, all appointed by the governor of California. The Del Mar Fairgrounds, under the ownership and operation of the 22nd DAA, hosts various public events, including the annual San Diego County Fair and thoroughbred horse racing.
Congress created the Paycheck Protection Program, or PPP, in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to eligible small businesses experiencing economic hardship caused by the COVID-19 pandemic. Although many small businesses were eligible for forgivable PPP loans, some businesses were not. Regulations provide that businesses ineligible for SBA loans include those considered “government-owned.” The United States contends that the 22nd DAA was government-owned and therefore not eligible to receive a PPP loan.
In May 2020, the 22nd DAA obtained a PPP loan in the amount of $4,713,700 based on an application that Carlene Moore, then Deputy General Manager of the 22nd DAA, signed and certified for accuracy of eligibility. The loan was subsequently forgiven based on another application that Ms. Moore also signed and certified for accuracy. The 22nd DAA’s loan and forgiveness of the loan resulted in the United States paying $4,713,700 in loan principal plus $97,890 in fees and interest to the bank that processed the loan.
“These loans were intended to provide critical relief to eligible businesses during a time of global crisis,” said U.S. Attorney Tara McGrath. “This settlement upholds the integrity of the COVID-relief program and holds the DAA accountable for obtaining millions in taxpayer-funded benefits to which they were not entitled.”
SBA’s General Counsel Therese Meers stated, “The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office and the SBA’s Office of Inspector General to pursue recovery from those who obtained essential government program funds they weren’t eligible for.”
This matter was handled by Assistant U.S. Attorney Joseph P. Price Jr.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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
Defendants Plead Guilty to Violation of the Big Cat Public Safety ActRead the Press Release
LITTLE ROCK—Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced today that two men involved with violations of the Big Cat Public Safety Act have pleaded guilty. Keidrick Damond Usifo, 30, of Conway, and Deon Johnson, 28, of Little Rock, entered guilty pleas earlier today before United States District Judge James M. Moody, Jr.
The Big Cat Public Safety Act was enacted December 20, 2022, to protect the public by putting an end to the private ownership of big cats, such as tigers and lions, as pets and by prohibiting exhibitors from allowing public contact with big cats, including tiger cubs. It has placed new restrictions on the commerce, breeding, possession, and use of certain big cat species. In order to legally possess privately owned big cats, the Act required individuals or entities to register any big cats before the date of enactment, that were in their possession with the U.S. Fish and Wildlife Service (USFWS).
Usifo and Johnson were indicted by a federal grand jury on March 5, 2024. That indictment charged Usifo with one count of violation of the Big Cat Public Safety Act and Johnson with misprision of a felony, which related to Johnson’s affirmative concealment of Usifo’s crime. On October 22, 2024, both Usifo and Johnson pled guilty to their counts in the indictment. Judge Moody will sentence Usifo and Johnson at a later date.
Violation of the Big Cat Public Safety Act is punishable by not more than five years’ imprisonment and a fine of not more than $10,000. Misprision of a felony is punishable by not more than three years’ imprisonment and a fine of not more than $250,000.
An investigation revealed that Usifo purchased and transported a tiger cub around March 16-18, 2023, from a tiger broker in Dallas, Texas. On April 7, 2023, the Arkansas Game & Fish Commission (AGFC) notified USFWS that they received a complaint of a tiger cub sighting in a residential neighborhood in Conway. On April 17, 2023, an agent with AGFC was notified that there was a man with a tiger in the backyard of a residence in Conway. There was also an anonymous tip posted on AGFC’s page about a tiger cub for sale in Conway. The Big Cat Public Safety Act makes it illegal to privately possess or breed big cats.
A further investigation revealed that on April 19, 2023, a second complaint was made to AGFC about a tiger at a residence in Conway. On April 21, 2023, a traffic stop was conducted and Usifo was arrested on a felony state warrant. The Conway Police Department executed a search warrant at Usifo’s residence and although they did not locate the tiger, there was evidence in the residence indicating the presence of a tiger, as well as matching rooms from Usifo’s Instagram posts.
While in the Pulaski County Detention Facility (PCDF), Usifo made several calls to Johnson. The investigation revealed that Johnson had knowledge of when Usifo was going to travel to Dallas to get the tiger and of Usifo’s possession of the tiger. Johnson also fed the tiger for Usifo during Usifo’s incarceration at PCDF. Johnson concealed any knowledge of the tiger when questioned by agents.
The case was investigated by the USFWS, with assistance from the AGFC, Conway Police Department, and the Little Rock Police Department. The case is being prosecuted by Assistant United States Attorney Edward Walker.
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Additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
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@USAO_EDAR
Debary Man Sentenced to Fifteen Months in Federal Prison for Dealing in Firearms Without A LicenseRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Brandon Eugene Brooke (30, Debary) to 15 months in federal prison for dealing in firearms without a license. Brooke entered a guilty plea on May 22, 2024.
According to court documents, between April 14 and October 10, 2022, Brooke purchased 69 firearms from federally licensed firearms dealers (FFLs). Many of the firearms were identical and were purchased together or close in time to one another. On October 13, 2022, ATF agents questioned Brooke regarding his repeated purchases of identical firearms from FFLs. A search of Brooke’s phone revealed evidence of firearms dealing.
Following the interview, ATF agents served Brooke with a “Warning Notice of Unlicensed Firearms Dealing in Violation of Federal Law.” In the Notice, Brooke was advised that his firearm transfers constituted dealing in firearms without a license. Brooke signed the Notice, acknowledging receipt, and was given a copy to retain. Following his acknowledgment of the Notice, Brooke continued to deal in firearms without a license, in violation of federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Noah P. Dorman.
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.
DEA’s National Prescription Drug Take Back Day set for October 26, 2024Read the Press Release
BILLINGS — The U.S. Attorney’s Office for the District of Montana joins the Drug Enforcement Administration in support of the National Prescription Drug Take Back Day on Saturday, October 26. The biannual event will be from 10 a.m. to 2 p.m. at sites across Montana. The event is an effort to rid homes of potentially dangerous, expired, unused, and unwanted prescription drugs.
The DEA will be hosting a collection site at the Firehall in Browning, on the Blackfeet Indian Reservation. The Firehall is located at 128 2nd Ave. NW.
This initiative addresses a vital public safety and public health issue. Medicines that languish in homes are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses from these drugs.
“Getting rid of expired or unused prescription drugs, especially opioids, is an important step all Montanans can take to help fight the national epidemic of drug overdoses. I urge everyone to participate in the DEA’s Drug Take Back Day by cleaning out their medicine cabinet. It’s an easy way to help make our communities safer,” U.S. Attorney Jesse Laslovich said.
“Prevention of drug misuse starts at home. For over a decade DEA’s National Prescription Drug Take Back Day has provided our community a safe and easy way to get rid of unnecessary medications,” said DEA Montana Resident Agent in Charge Cesar Avila. “This past spring we collected more than 2,200 pounds of unneeded medications throughout Montana, and, with your help, we hope to collect even more this Saturday.”
Numerous sheriff’s offices, police departments and federal agencies across Montana are participating in Take Back Day. Information about collection sites and more information about event is available here: https://takebackday.dea.gov/
During the last Take Back Day held on April 27, 2024, 4,607 law enforcement participants at 4,869 collection sites across the country brought in a total weight of 670,136 pounds, or 335 tons, of drugs. This brings the total weight collected to 18.5 million pounds, or more than 9,285 tons, of prescription drugs collected in the history of the program. Collection results may include materials other than prescription drugs.
During the April 2024 event, Montanans turned in 2,270 pounds of prescription drugs at 25 collection sites. Twenty-six law enforcement agencies participated. Total all time weight collected in Montana is 56,824 pounds.
For more information about the disposal of prescription drugs or about the October 26 Take Back Day event, go to www.DEATakeBack.com.
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Columbus man who fired weapon in parking lot of Polaris area golf entertainment venue sentenced to 10 years in prisonRead the Press Release
COLUMBUS, Ohio – Davon L. Rayford, 28, of Columbus, was sentenced in U.S. District Court today to 120 months in prison for gun and drug crimes. The defendant opened fire in the parking lot of an area golf entertainment center during an altercation last winter.
“Escalating to gun violence is never the answer,” said U.S. Attorney Kenneth L. Parker. “People should be free to go about their daily lives and visit local businesses without fear. This case shows that if you break federal firearms laws and endanger others, you could face significant time in federal prison.”
According to court documents, in February 2023, Rayford went to the Topgolf near Polaris with several other people. An altercation began between Rayford and the other individuals with whom he was golfing, and at approximately 4:30pm, Rayford went to his car and retrieved a Glock 9mm pistol. Rayford fired several shots at the individuals in their car and fled. The business’s parking lot was full of other customers at the time.
A special duty officer was present and collected the shell casings. Rayford was also captured on the business’s surveillance video footage.
The next day, Rayford was involved in a car crash. When officers arrived, Rayford was intoxicated and trying to leave the scene of the crash. Upon arresting Rayford, officers discovered methamphetamine, cocaine, fentanyl and Xanax, the Glock 9mm pistol and $5,000 in cash.
The crime lab determined the pistol was a ballistics match to the one used at the Topgolf shooting.
Rayford was charged federally and arrested in June 2023. He pleaded guilty in May 2024. He admitted to possessing with the intent to distribute controlled substances and to possessing a firearm in furtherance of drug trafficking.
The Court ordered Rayford to serve his federal sentence consecutive to his current state sentence with the Ohio Department of Rehabilitation and Corrections, which is due to end in August 2026.
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 Columbus Police Chief Elaine Bryant announced the sentence imposed by Chief U.S. District Court Judge Sarah D. Morrison. Assistant United States Attorney Elizabeth A. Geraghty is representing the United States in this case.
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Collier County Couple Plead Guilty to Six Figure Retail Theft SchemeRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces that Naples couple Richard Murtaugh (age 81) and Gail Murtaugh (age 77) today pleaded guilty to conspiracy to commit mail fraud. Each faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, beginning at least as early as September 2020, the Murtaughs engaged in a scheme to steal merchandise from big box retailers and grocers in Collier and Lee Counties, and to sell the stolen merchandise on their eBay store “dickandgail.” In 2021 and 2022 specifically, the Murtaughs were captured on store video surveillance stealing thousands of dollars worth of personal hygiene products, grooming supplies, nicotine products, teeth whitening and dental care supplies, over the counter medications, drill bits, and other merchandise from big box retailers and grocers in the Southwest Florida area. eBay records showed that between December 2020 and May 2022, the Murtaughs were paid $175,621.31 in profits by eBay for the sale of stolen goods.
In April 2022, the United States Postal Inspection Service executed a search warrant at the Murtaughs’ home on Isle of Capri in Naples, Florida. Inside the residence, postal inspectors located thousands of dollars in stolen merchandise appearing to be the same or similar to merchandise the Murtaughs had been observed stealing from various retailers. Additionally, the Murtaughs’ iPads were searched, which contained photos that matched the listing photos of stolen merchandise on the Murtaughs’ eBay store.
As part of their guilty pleas, the Murtaughs have agreed to forfeit $175,621.31, the proceeds of the charged criminal conduct.
This case was investigated by the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Trent Reichling.
Choctaw County Resident Sentenced for Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Christopher Edward Downey, age 38, of Grant, Oklahoma, was sentenced to 37 months in prison, with five years of supervised release, for Failure to Register as Sex Offender.
On April 15, 2024, Downey pleaded guilty to one count of Failure to Register as a Sex Offender.
The charges arose from an investigation by the United States Marshal Service.
In 2011, Downey was convicted in the State of Texas on four counts of Sexual Assault of a Child and was required to register as a sex offender. Downey was advised that he was required to register as a sex offender every ninety days for life, and to inform law enforcement within seven days of any change in residency. An investigation by U.S. Marshals revealed that between June 2022 and October 3, 2023, Downey failed to register as a sex offender in Oklahoma, despite moving from Texas to Oklahoma and living at various residences in and around Indian country in the Eastern District of Oklahoma.
The Honorable Raúl M. Arias-Marxuach, Chief Judge in the United States District Court for the District of Puerto Rico, sitting by assignment, presided over the hearing in Muskogee, Oklahoma. Downey will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve his sentence of incarceration.
Assistant U.S. Attorney Emily Wittlinger represented the United States at sentencing.
Child Predator Sentenced to More than 27 Years in Prison for Sexual Exploitation of a 5-Year-Old GirlRead the Press Release
WASHINGTON – Michael Humphrey, 43, a registered sex offender from Southeast Washington, D.C., was sentenced today in U.S. District Court to more than 27 years in federal prison for uploading graphic videos of himself to the internet depicting his sexual abuse of a five-year-old girl, announced U.S. Attorney Matthew Graves, FBI Acting Special Agent in Charge David Geist of the Washington Field Office’s Criminal and Cyber Division, and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Humphrey pleaded guilty January 8 to sexual exploitation of a child. Humphrey previously was convicted on a charge relating to the sexual abuse of another child. On March 10, 2020, he was convicted of third-degree sex offense in the Circuit Court of Montgomery County, Maryland. Since May 2022, Humphrey has been registered as a sex offender in the District of Columbia as required by law.
In addition to the 327-month prison term rendered today, U.S. District Judge Trevor N. McFadden ordered Humphrey to serve 15 years of supervised release and pay restitution to the girl and several other victims.
According to the government’s evidence, in July 2023, Google LLC reported to the National Center for Missing and Exploited Children (NCMEC) that two Google accounts, later identified as belonging to Humphrey, had uploaded material depicting child sexual abuse to Google servers. NCMEC turned that information over to the investigators from the FBI Washington Field Office and the MPD.
Investigators obtained a warrant authorizing the search of Humphrey’s Google accounts and discovered three videos that documented Humphrey sexually abusing a five-year-old girl in Washington, D.C. during June 2023.
Humphrey was arrested on August 11, 2023, and has been held since. After he was taken into custody, investigators obtained Humphrey’s electronic devices and discovered thousands of images and hundreds of videos depicting the sexual abuse of children.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, detectives from the Metropolitan Police Department, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
The matter is being prosecuted by Assistant U.S. Attorneys Rachel Forman and Janani Iyengar, of the U.S. Attorney’s Office for the District of Columbia.
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Cape Girardeau Felon Admits Stealing Gun, Possessing Machine GunsRead the Press Release
CAPE GIRARDEAU – A convicted felon on Tuesday admitted stealing a pistol from a Cape Girardeau County gun store and being caught days later with two machine guns.
Dayvion Jyraud Parker, 21, pleaded guilty in U.S. District Court in Cape Girardeau to five felonies: stealing a firearm from a licensed dealer, two counts of being a felon in possession of a firearm and two counts of possession of a machine gun.
Parker admitted that on June 17, 2024, he and another man stole a Sig Sauer 9mm pistol from a federally licensed firearm dealer in Cape Girardeau County. Parker first hid the pistol under his jacket before placing it between his back and the back of his wheelchair. On June 25, law enforcement officers performing a court-approved search of a home in Cape Girardeau found Parker lying on a bed with two pistols between the bed frame and the wall. Both pistols were equipped with auto sears, or “switches,” that rendered them fully automatic.
Parker is a felon and is barred from possession firearms. He was also wanted on an outstanding arrest warrant and was on probation in Illinois for aggravated discharge of a firearm.
Parker is scheduled to be sentenced Jan. 28, 2025. The theft charge carries a potential penalty of up to 5 years in prison. The felon in possession charges each carry a penalty of up to 15 years in prison and the machine gun charge carries a potential 10-year prison term.
Parker’s co-defendant, Danaje Raymond Webster, 23, has not yet been arrested. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service and the Cape Girardeau County Sheriff’s Office investigated the case. Assistant U.S. Attorney Timothy Willis 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 Mobile Phlebotomy Lab and Its Owners to Pay $135,000 to Resolve Allegedly False Claims for Blood Testing Services and Travel MileageRead the Press Release
Veni-Express Inc. (Veni-Express), headquartered in California, and its owners Myrna and Sonny Steinbaum have agreed to pay at least $135,000 to resolve False Claims Act allegations that they submitted false claims for mobile phlebotomy services and associated travel mileage and paid kickbacks to a third-party marketer of these services, in violation of the Anti-Kickback Statute (AKS). Veni-Express has agreed to pay $100,000, plus additional amounts based on the sale of company property. Myrna Steinbaum has agreed to pay $25,000, and Sonny Steinbaum has agreed to pay $10,000. These settlements are based on their ability to pay.
The United States alleged that from 2015 to 2019, Veni-Express and the Steinbaums knowingly caused false or fraudulent claims to federal health care programs for mobile phlebotomy services and associated travel mileage. Specifically, with the Steinbaum’s oversight and approval, Veni-Express submitted false claims for venipuncture (blood draw) procedures that the company did not actually perform during homebound patient visits, and for travel mileage associated with these visits that was not reimbursable by Medicare. The United States further alleged that, from July 2014 to June 2015, Veni-Express paid unlawful kickbacks (in the form of a percentage of company revenue) to a third-party, Altera Laboratories also known as Med2U Healthcare LLC, for the marketing of Veni-Express’ services, in violation of the AKS.
“Health care providers that bill for services they did not provide or offer illegal incentives to increase profits will be held accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to safeguard federal health care programs against those who seek to abuse them.”
“Providers must not bill for services they did not perform. Further, the presence of unlawful kickbacks all too often corrupts medical judgment,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “Our office is committed to investigating and holding accountable those who violate the False Claims Act and AKS to safeguard the public fisc and protect the integrity of our federal health care system.”
“Improper incentives and billing Medicare for services never actually provided divert taxpayer funding meant to pay for medically necessary services for Medicare enrollees,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of the Inspector General (HHS-OIG). “HHS-OIG and our law enforcement partners remain committed to identifying and holding accountable those who engage in such unlawful relationships.”
The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Banisha Evans, a former phlebotomist for another California provider, and Richard Drummond, a technical director at a Texas laboratory. Under those provisions, a private party can file an action on behalf of the United States for false claims and receive a portion of any recovery. The qui tam cases are captioned U.S. et al., ex rel. Evans v. PhlebXpress et al., No. 2:18-cv-2038 (EDCA) and U.S. ex rel. Drummond v. Veni-Express Inc., et al., No. 2:21-cv-1199 (EDCA).
The relators’ share of the settlement has not yet been determined.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division's Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Eastern District of California and HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorney Gary R. Dyal of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Colleen Kennedy for the Eastern District of California handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
California Mobile Phlebotomy Lab and Its Owners to Pay $135,000 to Resolve Allegedly False Claims for Blood Testing Services and Travel MileageRead the Press Release
SACRAMENTO, Calif. – Veni-Express Inc., headquartered in California, and its owners Myrna and Sonny Steinbaum, have agreed to pay at least $135,000 to resolve False Claims Act allegations that they submitted false claims for mobile phlebotomy services and associated travel mileage and paid kickbacks to a third-party marketer of these services, in violation of the Anti-Kickback Statute (AKS). Veni-Express has agreed to pay $100,000, plus additional amounts based on the sale of company property, Myrna Steinbaum has agreed to pay $25,000, and Sonny Steinbaum has agreed to pay $10,000. These settlements are based on their ability to pay.
The United States alleged that from 2015 to 2019, Veni-Express and the Steinbaums knowingly caused false or fraudulent claims to federal healthcare programs for mobile phlebotomy services and associated travel mileage. Specifically, with the Steinbaum’s oversight and approval, Veni-Express submitted false claims for venipuncture (blood draw) procedures that the company did not actually perform during homebound patient visits, and for travel mileage associated with these visits that was not reimbursable by Medicare. The United States further alleged that from July 2014 to June 2015, Veni-Express paid unlawful kickbacks (in the form of a percentage of company revenue) to a third-party, Altera Laboratories also known as Med2U Healthcare LLC, for the marketing of Veni-Express’ services, in violation of the AKS.
“Providers must not bill for services they did not perform. Further, the presence of unlawful kickbacks all too often corrupts medical judgment,” said U.S. Attorney Phillip A. Talbert of the Eastern District of California. “Our office is committed to investigating and holding accountable those who violate the False Claims Act and AKS to safeguard the public fisc and protect the integrity of our federal health care system.”
“Health care providers that bill for services they did not provide or offer illegal incentives to increase profits will be held accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to safeguard federal health care programs against those who seek to abuse them.”
“Improper incentives and billing Medicare for services never actually provided divert taxpayer funding meant to pay for medically necessary services for Medicare enrollees,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of the Inspector General (HHS-OIG). “HHS-OIG and our law enforcement partners remain committed to identifying and holding accountable those who engage in such unlawful relationships.”
The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Banisha Evans, a former phlebotomist for another California provider, and Richard Drummond, a technical director at a Texas laboratory. Under those provisions, a private party can file an action on behalf of the United States for false claims and receive a portion of any recovery. The qui tam cases are captioned U.S. et al., ex rel. Evans v. PhlebXpress et al., No. 2:18-cv-2038 (EDCA) and U.S. ex rel. Drummond v. Veni-Express Inc., et al., No. 2:21-cv-1199 (EDCA).
The relators’ share of the settlement has not yet been determined.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division's Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Eastern District of California, and HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorney Gary R. Dyal of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Colleen Kennedy for the Eastern District of California handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
settlement.pdfBusiness Owner Pleads Guilty to Money Laundering ChargeRead the Press Release
SHREVEPORT, La. – Brian T. Owen, 52, of Caddo Parish, Louisiana, pleaded guilty yesterday to money laundering, announced United States Attorney Brandon B. Brown. United States District Judge S. Maurice Hicks, Jr. presided over the hearing.
A Bill of Information was filed September 30, 2024, charging Owen with one count of money laundering. This charge was the result of an investigation conducted by state and federal law enforcement agencies into the unlawful activities of Owen, who was the president of an oilfield consulting service business headquartered in Bossier City. On June 22, 2020, the company filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Western District of Louisiana.
In January 2021, as part of the company’s bankruptcy plan of reorganization, a Distribution Trust was established to pay back creditors, and Owen executed a Distribution Trust Agreement in his role as president of the company. According to this plan, if Owen received any additional compensation from the company, he was required to pay 30% of that directly to the Distribution Trust.
In 2021, the company began applying for Employee Retention Credits (“ERCs”), which are a refundable tax credit for certain eligible businesses and tax-exempt organizations that had employees and were affected during the COVID-19 pandemic. Owen then devised a scheme to defraud the Distribution Trust by intercepting the physical U.S. Department of Treasury Checks before they were deposited into the company’s working accounts. Unbeknownst to other senior leadership at the company, Owen had opened a bank account in the name of the company while it was still in bankruptcy. As part of the scheme, he deposited a total of $3.8 million in ERC funds for himself as additional compensation. Owen did not pay the Distribution Trust the 30% as he had agreed, but instead used the money for his own personal expenses, including to pay off gambling debts. In total, he defrauded the Distribution Trust out of $1,157,154.39.
Owen faces a sentence of up to 10 years in prison, 3 years of supervised release, and a fine of up to $250,000.
The case was investigated by the Internal Revenue Service Criminal Investigation, Federal Bureau of Investigation, and Louisiana State Police and prosecuted by Assistant United States Attorney Seth D. Reeg.
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Buffalo man sentenced for buying stolen data from Genesis MarketRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Wul Isaac Chol, 27, of Buffalo, NY, who was convicted of possession of 15 or more unauthorized access devices with intent to defraud, was sentenced to serve 20 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Charles M. Kruly, who handled the case, stated that Genesis Market is an online marketplace 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 June 2019, and January 2021, Chol deposited approximately $105.08 worth of bitcoin in a Genesis account that he had created. Chol used the funds he deposited in his Genesis account to purchase 21 packages of unauthorized access devices. Those packages contained, in total, approximately 778 unauthorized access devices. In addition, Chol admits that he obtained, without authorization, $25,164.00 from the New York State Department of Labor.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
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Buffalo man pleads guilty to bilking two banks out of nearly half a million dollarsRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Joshua Parra, 32, formerly of Buffalo, NY, now living in Melbourne, Florida, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to bank fraud, which carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that between December 28, 2021, and January 6, 2022, Parra defrauded Bancorp and Stride Bank by creating 94 fictitious disputed transactions on behalf of 11 customers of Fintech Company 1, a financial technology company that offers customers mobile banking services. However, none of the 11 customers’ accounts with Fintech Company 1 had transactions that would justify such disputes. Nearly all of the fictitious disputed transactions were in the amount of $5,000. As a result, funds were transferred from settlement accounts, held at Bancorp and Stride Bank, to accounts maintained by the Fintech Company 1 customers for whom Parra created the fictitious disputed transactions. Losses to Bancorp and Stride Bank totaled approximately $459,000.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Thomas Fattorusso, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Miraglia.
Sentencing will be scheduled at a later date.
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Brooklyn Man Admits Conspiracy to Commit Child Sex TraffickingRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man today admitted his role in a conspiracy to commit child sex trafficking, U.S. Attorney Philip R. Sellinger announced.
Soauib Butcher, 30, of Brooklyn, pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark federal court to one count of conspiracy to commit sex trafficking of a minor.
According to documents filed in this case and statements made in court:
In August 2019, Butcher brought the victim by train to New York City, where he instructed the victim to perform oral sex for money on a rooftop in Brooklyn. Several days later, Butcher brought the victim to Elizabeth, New Jersey, where, from August 2019 to January 2020, the victim stayed with Butcher and a conspirator in a series of motel rooms. The conspirator posted advertisements depicting the victim on escort websites and, together with Butcher, arranged for customers to come to the motels to have sex with the victim in exchange for money.
Conspiracy to commit sex trafficking of a minor carries a maximum term of life in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 19, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano of the Health Care Fraud Unit and Aaron L. Webman of the Economic Crimes Unit in Newark.
butcher.indictment.pdfBenicia Man Pleads Guilty to Possessing a Firearm in His Second Federal Felon in Possession CaseRead the Press Release
SACRAMENTO, Calif. — Jeremiah Malik Jefferson, 27, of Benicia, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, during a November 2023 search of his residence, Jefferson was found to be in possession of a firearm that was loaded with a high-capacity magazine that had previously been reported stolen. Jefferson is prohibited from possessing a firearm due to multiple prior felony convictions, including for burglary and a previous conviction for being a felon in possession of a firearm.
Jefferson is scheduled to be sentenced on Feb. 11, 2025, by U.S. District Judge John A. Mendez. Jefferson faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Probation Office, the Benicia Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorney Adrian T. Kinsella 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 U.S. Department of Justice 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.
Alabama Man Sentenced to 30 Months for Making Threats Against Maricopa County Elections OfficeRead the Press Release
PHOENIX, Ariz. – Brian Jerry Ogstad, 60, of Cullman, Alabama, was sentenced yesterday by United States District Judge Michael T. Liburdi to 30 months in prison, followed by 36 months of supervised release. Judge Liburdi also ordered Ogstad to pay a $1,000 fine. Ogstad pleaded guilty to one count of Making a Threatening Interstate Communication on July 25, 2024.
“In this election season we honor and respect those public servants who enable Americans to exercise their constitutional right to vote,” said United States Attorney Gary Restaino. “And we seek to protect all election workers from intimidation and harassment. Threats of violence, whether conveyed by words or deeds or pictures, will be met in this District with robust prosecution.”
“As Director Wray has said many times, threats of violence toward election workers are also threats to the democratic process and cannot become normalized,” said FBI Phoenix Acting Special Agent in Charge Jarod Brown. “The FBI takes seriously all threats of violence against public officials, and we will continue to assess them and take swift action as necessary.”
On August 2, 2022, Arizona held primary elections for federal and state officeholders, including a gubernatorial primary election that received nationwide media coverage. From the day of the election through August 4, 2022, Ogstad sent multiple threatening messages to an Instagram social media account maintained by Maricopa County Elections. For example, on or about August 3, 2022, Ogstad stated, (1) “You did it! Now you are [expletive]. Dead. You will all be executed for your crimes”; (2) “[expletive] you! You are caught! They have it all. You [expletive] are dead”; (3) “You are lying, cheating [expletive] . . . you better not come in my church, my business or send your kids to my school. You are [expletive] stupid if you think your lives are safe”; and (4) “You [expletive] are so dead.” On or about August 4, 2022, Ogstad further stated, “[Y]ou people are so ducking [sic] stupid. Everyone knows you are lots [sic], cheats, frauds and in doing so in relation to elections have committed treason. You will all be executed. Bang [expletive]!”
The FBI Phoenix Field Office, with substantial assistance from the FBI Birmingham Field Office, conducted the investigation in this case. Assistant U.S. Attorney Mary Sue Feldmeier, District of Arizona, and Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section handled the prosecution.
CASE NUMBER: CR-24-03130-PHX-MTL
RELEASE NUMBER: 2024-142_Ogstad# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.ALDI Executive and Southern Illinois Contractor Sentenced for Rigging Construction Project Bids, Ordered to Pay More Than $2.8 MillionRead the Press Release
EAST ST. LOUIS, Ill. – A federal judge sentenced a former ALDI executive and a general contractor from Breese, Illinois, for rigging the bid system for construction projects of grocery stores throughout southern Illinois and Missouri. The two were ordered to repay ALDI more than $2.8 million in restitution as a result of the fraudulent bidding scheme.
Louis R. Ross, Sr., 64, of St. Louis, pleaded guilty in May to multiple counts of mail and wire fraud and a conspiracy to commit those crimes. Ross was sentenced to 24 months’ imprisonment and ordered to pay more than $2.8 million in restitution to ALDI.
Donald E. Schniers, 73, pleaded guilty to one count of conspiracy to commit mail and wire fraud, one count of mail fraud and one count of wire fraud. Schniers was sentenced to 3 years’ probation and also ordered to pay more than $2.8 million in restitution to ALDI.
According to court documents, Ross was the Director of Real Estate for ALDI’s O’Fallon, Missouri, Division, and Schniers owned C. Juengel Company out of Breese, Illinois. Schniers, through C. Juengel, provided general contracting services including construction and renovation to ALDI stores within Ross’s division. The two men conspired to fabricate and submit fraudulent bids for general contracting services to cause C. Juengel to win contracts for ALDI construction and renovation projects without a competitive bidding process.
“As a trusted executive, Louis Ross exploited his position to personally profit by rigging the bid process, granting projects to Donald Schniers’ construction company and ultimately defrauding ALDI out of millions of dollars,” said U.S. Attorney Rachelle Aud Crowe. “To protect the integrity of the construction bidding process and strengthen consumer protections, I appreciate our partnership with the FBI and the U.S. Postal Inspection Service to secure justice.”
From at least February 2014 through March 2018, Ross and Schniers conspired to create a faux competitive bidding environment for construction projects. Schniers admitted to completing false bid forms under the guise of other construction companies without their knowledge or consent. By doing so, Ross and Schniers created the appearance of a competitive bidding environment for ALDI’s work when there was not one.
“Ross and Schniers colluded to inflate prices and eliminate fair markets, the effects of which trickled down to the victim business, the consumers, and the competition,” said FBI Springfield Special Agent in Charge Christopher Johnson. “The FBI is committed to working with our partners to investigate fraudulent schemes and bring to justice those who conspire to enrich themselves at the expense of the American public.”
The fictitious bids always included higher amounts than C. Juengel’s, which led to C. Juengel being awarded the projects. Using the rigged bidding system, C. Juengel was awarded 12 contracts for general contractor services valued at approximately $20 million.
Ross and Schniers also manipulated the bidding process by altering legitimate bids submitted by another local construction company. Due to the stifled competition, ALDI overpaid for the projects and suffered an approximate loss greater than $2.8 million.
“This sentencing is a statement that mail fraud will not be tolerated, and the perpetrators will be brought to justice,” said Acting Inspector in Charge, John Jackman, who leads the St. Louis Field Office of the U.S. Postal Inspection Service. “The Postal Inspection Service will continue to partner with our law enforcement partners to collectively pursue criminals who victimize postal customers, U.S. consumers, and businesses.”
In exchange for Ross’s willingness to continue awarding C. Juengel its desired contracts, Ross required Schniers to pay him kickbacks for approximately a decade. These kickback payments usually came in the form of monthly $9,000 checks from C. Juengel’s bank account and totaled over $975,000.
Both men were ordered to pay $2,851,239 in restitution to ALDI. Following imprisonment, Ross will serve three years of supervised release.
The FBI Springfield and St. Louis Field Offices and the St. Louis Field Office of the U.S. Postal Inspection Service contributed to the investigation.
Assistant U.S. Attorney Zoe Gross with the Southern District of Illinois and Trial Attorney Andrew Rosa with the Department of Justice, Antitrust Division, Chicago Office prosecuted the case.
21 October 2024
Wyoming County Man and Raleigh County Woman Sentenced for Evading Financial Reporting RequirementsRead the Press Release
BECKLEY, W.Va. – Today, Merrick Rice, 44, of Mullens, was sentenced to one year and three months in prison, to be followed by three years of supervised release, and Miranda Aliff, 32, of Rock Creek, was sentenced to five years of federal probation. Each pleaded guilty to structuring transactions with one or more domestic financial institutions, admitting that they structured bank deposits of illicit drug proceeds to evade currency transaction reporting requirements.
According to court documents and statements made in court, beginning in or around mid-2019 Rice and Aliff, both then in a romantic relationship, became involved in a conspiracy to distribute marijuana and other controlled substances in and around Mullens. Aliff admitted that Rice obtained the marijuana in wholesale quantities from Jack Paskin, who caused the marijuana to be shipped to them from various sources in California, Oregon and elsewhere.
On March 2, 2020, Rice created She Paints Quite a Lot LLC, a single-member limited liability corporation, with the West Virginia Secretary of State. Aliff was listed as the LLC’s sole member. On March 3, 2020, Paskin, Rice and Aliff traveled to the Beckley branch of domestic financial institution where they opened a business bank account in the name of the LLC. Paskin and Aliff were listed as signers on the bank account.
Rice and Aliff admitted that the LLC had no legitimate business purpose. Rice and Aliff further admitted that the LLC was created to transfer the proceeds of the marijuana distribution conspiracy from them to Paskin. Beginning on March 17, 2020 and continuing through August 13, 2020, Rice, Aliff and others connected to this conspiracy made cash deposits of less than $10,000 in the LLC’s bank account at the Beckley branch. The deposits were made in 27 transactions and totaled $228,000. Rice and Aliff admitted that these transactions were specifically designed to avoid currency reporting requirements. Financial institutions are required to report cash deposits of more than $10,000, and federal law prohibits structuring multiple cash deposits to avoid this reporting requirement. Rice and Aliff further admitted that the $228,000 consisted of proceeds from the conspiracy to distribute controlled substances.
Rice also admitted to assisting other individuals in depositing a total of $54,000 in increments of $9,000 in the LLC’s bank account on six separate occasions between June 1, and June 23, 2020. Rice admitted that he knew the June 23, 2020, bank deposit was made in an amount that would avoid triggering the reporting requirement.
Aliff also admitted that she and Rice purchased 111 U.S. Postal Service money orders totaling $109,000 as part of a method to pay Paskin. Rice drove Aliff to different posts offices in or near Raleigh County and directed Aliff to purchase a $1,000 money order at each post office. Federal law requires the U.S. Postal Service to obtain information from the purchaser of money orders, wire transfers, and stored value cards when the dollar amount of cash purchases total $3,000 or more. Aliff admitted that Rice advised her how to structure these transactions to avoid triggering the U.S. Postal Service reporting requirements. Aliff further admitted that Rice involved another individual to travel to these posts offices and purchase the money orders.
The money orders were payable to Paskin or to Akashic Connections, a business entity established by Paskin. Once Rice had secured the necessary amount of money orders, usually totaling $8,000, he and Aliff would deposit them at Beckley bank branches into Paskin’s personal bank account or a business account in the name of Akashic Connections.
Paskin, 34, of Nelsonville, Ohio,pleaded guilty August on 21, 2024, to money laundering and awaits sentencing.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Postal Inspection Service, the Internal Revenue Service, and the Drug Enforcement Administration (DEA).
Chief United States District Judge Frank W. Volk imposed the sentences. Assistant United States Attorney Jonathan T. Storage prosecuted the cases.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 5:24-cr-66 (Rice) and 5:24-cr-65 (Aliff).
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White Swan Man Who Choked His Pregnant Girlfriend Sentenced to Federal PrisonRead the Press Release
Yakima, Washington - On October 21, 2024, Chief United States District Judge Stanley A. Bastian sentenced Branden Scott Higgins, age 34, of White Swan, Washington, to nearly 3 months in federal prison for choking and assaulting his girlfriend. Chief District Judge Bastian also imposed 3 years of supervised release.
According to court documents and information presented at the sentencing hearing, on September 10, 2023, Higgins and his girlfriend got into an argument about the couple’s finances. The argument escalated into a physical fight with Higgins pushing, then choking the victim, who was 26-weeks pregnant. Higgins then let go of the victim’s throat and grabbed a serrated knife and took two steps toward the victim before throwing the knife away.
The confrontation continued into the master bedroom. Higgins pushed the victim onto the bed and began to choke her until the victim began to lose consciousness. Higgins only stopped the assault when the couple’s young child walked into the room.
“Everyone deserves to live in a safe home. My heart goes out to this young mother who told investigators she feared for her life and the life of her unborn child while she was being choked to the point of unconsciousness,” stated U.S. Attorney Vanessa Waldref. “My office is committed to holding domestic violence offenders accountable, which is central to addressing the crisis of missing and murdered indigenous women and promoting safety and security on Tribal lands.”
This case was investigated by the FBI and the Yakama Nation Police Department. It was prosecuted by Assistant United States Attorneys Letitia A. Sikes and Courtney R. Pratten.
1:23-cr-02056-SAB
Wetzel County Man Admits to Firearms ChargeRead the Press Release
WHEELING, WEST VIRGINIA – Talon D. Feucht, age 30, of New Martinsville, West Virginia, pled guilty to the unlawful possession of a firearm.
According to court documents and statements made in court, Moundsville Police arrested Feucht on an outstanding warrant on an entering without breaking charge in Marshall County. During the arrest, Feucht admitted to having a firearm in his bag. A search of the bag resulted in the seizure of a .38 caliber firearm and ammunition. Feucht is prohibited from having firearms because of two prior felony theft convictions.
Feucht faces up to 15 years in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Clayton Reid is prosecuting the case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Moundsville Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Waterford Woman Admits Theft from Addiction and Mental Health Services NonprofitRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHELE DEVINE, 50, of Waterford, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to a fraud offense in connection with her embezzlement from the Southeastern Regional Action Council on Substance Abuse, Inc. (“SERAC”), where she was employed as its executive director.
According to court documents and statements made in court, SERAC, headquartered in Norwich, is a 501(c)(3) organization that serves 41 towns in southeastern and northeastern Connecticut with substance abuse, problem gambling, and mental health related services. SERAC is primarily funded through hundreds of thousands of dollars in state and federal grants from the State of Connecticut’s Department of Mental Health and Addiction Services, and the U.S. Department of Health and Human Services, Substance Abuse and Mental Health Services Administration.
Devine was the executive director of SERAC until July 2022. Beginning in approximately 2008, Devine spent thousands of dollars on purchases that did not relate SERAC but instead were personal expenses for Devine and her family, including thousands of dollars spent on home appliances; travel; timeshare fees at a Connecticut resort; stays at the Canyon Ranch in the Berkshires, Massachusetts; and private school donations.
The government contends that Devine stole nearly $400,000 from SERAC.
Devine pleaded guilty to wire fraud, an offense that carries a maximum term of imprisonment of 20 years. Judge Meyer scheduled sentencing for January 13.
Devine was arrested on August 3, 2023. She is released on a $25,000 bond pending sentencing.
This matter has been investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of Inspector General, with the assistance of the New London State’s Attorney’s Office and the State of Connecticut Office of the Attorney General. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Van Nuys Man Sentenced to More Than 20 Years in Prison for Trafficking Fentanyl and Cocaine via Darknet Marketplaces and Possessing GunsRead the Press Release
LOS ANGELES – A San Fernando Valley man who admitted in court documents to causing one fatal fentanyl overdose was sentenced today to 248 months in federal prison for using darknet marketplaces to sell hundreds of thousands of dollars’ worth of fentanyl-laced pills and cocaine to buyers nationwide.
Brian McDonald, 23, of Van Nuys, whose aliases include “Malachai Johnson,” “SouthSideOxy,” and “JefeDeMichoacan,” was sentenced by United States District Judge Michael W. Fitzgerald.
McDonald pleaded guilty on July 17 to one count of conspiracy to distribute fentanyl and cocaine, and one count of possession of firearms in furtherance of a drug trafficking crime. He has been in federal custody since May 2023.
“This defendant led a drug-trafficking operation that used the dark corners of the internet to ship large quantities of fentanyl-laced pills – with deadly consequences,” said United States Attorney Martin Estrada. “My office will continue using every tool under federal law to prosecute and imprison criminals who prioritize greed over human life.”
From at least April 2021 until May 2023, McDonald and others conspired to sell fentanyl and cocaine via darknet marketplaces such as “White House Market,” “ToRReZ” and “AlphaBay.” McDonald, using aliases, created vendor profiles on these marketplaces to sell illegal drugs in exchange for cryptocurrency.
McDonald created, monitored, and maintained the darknet vendor profiles, including by updating drug listings and shipment options, tracking drug orders received online, and offloading Monero cryptocurrency received as drug deal payments into cryptocurrency wallets that McDonald controlled.
McDonald recruited and hired accomplices to help with packaging and shipping the narcotics that they sold on the darknet. McDonald directed other co-conspirators on how to package and ship the narcotics, and he assisted them in the packaging and shipping. Specifically, McDonald purchased bulk quantities of fentanyl and cocaine, and then directed the activities of other co-conspirators to help sell these drugs on the dark web.
Among other activities, McDonald directed co-conspirators in receiving and tracking orders placed for fentanyl and cocaine on his dark web vendor profiles, packaging drug orders, and shipping drug orders to customers though the United States Postal Service. Over the course of the conspiracy, McDonald knowingly oversaw and carried out hundreds of drug sales involving the distribution of large quantities of both fentanyl and cocaine, including hundreds of thousands of fentanyl-laced pills that collectively contained more than 12 kilograms of fentanyl.
As part of the conspiracy, McDonald distributed fentanyl-laced pills to victim Z.S., who ingested a fentanyl-laced pill sold to Z.S. by McDonald, which in turn resulted in Z.S.’s death.
McDonald also possessed firearms, specifically two gold-plated handguns – one without a serial number – to protect his drug trafficking business and the proceeds of drug sales made on darknet marketplaces.
Ciara Clutario, 23, of Burbank, has pleaded guilty to a federal criminal charge in this case and is scheduled to be sentenced on January 13, 2025.
The FBI and the Drug Enforcement Administration investigated this matter as part of JCODE. The Justice Department established the FBI-led JCODE team to lead and coordinate government efforts to detect, disrupt, and dismantle major criminal enterprises reliant on the darknet for trafficking opioids and other illicit narcotics, along with identifying and dismantling their supply chains.
Assistant United States Attorney Declan T. Conroy of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.
U.S. Attorney’s Office Announces Election Day Program to Protect Election Workers and Voting RightsRead the Press Release
NEWARK, N.J. – Federal law protects elections against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.
U.S. Attorney Philip R. Sellinger announced today that the public can call the office’s Election Day Hotline at 888-636-6596 to report voting rights concerns, threats against election officials, or any other activity that would interfere with the right to vote in the District of New Jersey. This number will be active Oct. 26, 2024, through Nov. 8, 2024, and will be staffed live on Election Day, Nov. 5, 2024.
“We are committed to ensuring that every citizen in New Jersey is able to vote without interference or discrimination, and to have that vote counted. In coordination with the Department’s Election Day Program, our office will do everything in its power to protect voters and election workers throughout New Jersey.”
U.S. Attorney Philip R. Sellinger
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (when voters need assistance because of disability or inability to read or write in English).
In addition to the Election Day Hotline, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The FBI can be reached by the public at 973-792-3000.
Complaints about possible violations of the federal voting rights laws, or any civil rights violation, can be made at any time to the U.S. Attorney’s Office’s Civil Rights Hotline, 855-281-3339, or by submitting an online complaint here, or to the Civil Rights Division in Washington, D.C., by phone at 800-253-3931 or by complaint form here.
In the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places and almost always have faster reaction capacity in an emergency.
Assistant U.S. Attorneys Susan Millenky, Mark McCarren, and Joseph McFarlane will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming general election.
U.S. Attorney’s Office Announces Election Day Efforts for the November 2024 General ElectionRead the Press Release
Jackson, Miss. - United States Attorney Todd Gee announced today that Assistant United States Attorneys (AUSAs) Bert Carraway and Samuel Goff will lead the efforts of his office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. AUSAs Carraway and Goff have been appointed to serve as the District Election Officers (DEOs) for the Southern District of Mississippi, and in that capacity are responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
United States Attorney Gee said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
United States Attorney Gee stated that: “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. To respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSAs Bert Carraway and Samuel Goff will be on duty in this District while the polls are open. They can be reached by the public at the following telephone numbers: 601-973-2826 or 601-973-2855.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 601-948-5000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.
United States Attorney Gee said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
U.S. Attorney's Office Announces Election Day ProgramRead the Press Release
SCRANTON - United States Attorney Gerard M. Karam announced today that Criminal Division Chief Bruce D. Brandler, Assistant United States Attorneys (AUSA) Michael Consiglio, Geoffrey MacArthur, and James Buchanan will lead the efforts of this Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election.
Criminal Chief Brandler has been appointed to oversee and lead the District’s Election Day Program. AUSAs Consiglio, Buchanan, and MacArthur will serve as the District Election Officers (DEO) for the Middle District of Pennsylvania in our Harrisburg, Scranton, and Williamsport Offices. In that capacity, they are responsible for overseeing the handling of election day complaints of voting rights concerns, threats of any kind to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Karam. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of any kind. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of any kind directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
“The right to vote is the cornerstone of American democracy, said U.S. Attorney Karam. “We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.”
In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, our DEOs will be on duty in this District while the polls are open. AUSA/DEO Consiglio can be reached by the public at the Harrisburg Office number: 717-221-4482; AUSA/DEO Buchanan can be reached at the Scranton Office number: 570-348-2800; and AUSA/DEO MacArthur can be reached at the Williamsport Office number: 570-326-1935.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 215-418-4000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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U.S. Attorney Announces 2024 District Election OfficerRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware announced today that Assistant United States Attorney (AUSA) Shamoor Anis will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. AUSA Anis has been appointed to serve as the District Election Officer (DEO) for the District of Delaware, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Weiss said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
U.S. Attorney Weiss additionally commented that, “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Anis will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number – 302-893-5213.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 410-265-8080.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
U.S. Attorney Weiss concluded, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Truist Bank Pays over $9M to Resolve Allegations Concerning SunTrust Bank’s Administration of Trust AccountsRead the Press Release
Truist Bank (Truist), based in Charlotte, North Carolina, has agreed to pay the United States $9,125,000 to resolve claims under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), in connection with the administration of certain trust accounts by SunTrust Bank (SunTrust) from December 2011 through December 2015. SunTrust was acquired by Branch Banking and Trust Company in December 2019, and the combined entity was renamed Truist.
“Our federally insured financial institutions must act in accordance with the law, including meeting their obligations to beneficiaries when they serve as trustees,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement makes clear that the department will hold banks accountable when they knowingly run afoul of applicable legal requirements.”
The settlement announced today resolves claims arising out of SunTrust’s management of certain trust accounts it administered as part of its relationship with a New Jersey company doing business as The Halpern Group (Halpern). Halpern served as a “structured settlement facilitator” in matters involving individuals who received settlement awards in personal injury litigation and referred those individuals to SunTrust. These individuals then established trusts at SunTrust that were intended to help them preserve their recoveries by protecting against unwise disbursements. Both SunTrust and Halpern collected fees in exchange for their agreement to provide these services.
In or around December 2011, SunTrust began administering a group of trust accounts, known as the “Doe Run Accounts,” that were referred to the bank by Halpern and resulted from the settlement of lead poisoning cases near Herculaneum, Missouri. Those accounts involved beneficiaries who claimed various health and cognitive issues from lead poisoning. The United States contends that, rather than helping these beneficiaries avoid unwise disbursements, Halpern requested and SunTrust frequently approved imprudent disbursements that were not in the beneficiaries’ best interests, including disbursements for the benefit of third-parties (e.g., relatives). The United States contends that SunTrust’s approval of these disbursements violated its fiduciary obligations as the trustee of these accounts.
“Banks occupy a special place of trust in our society,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “This settlement shows that when banks violate that trust — especially in situations involving vulnerable customers — they will face accountability.”
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of Georgia.
Senior Trial Counsel David W. Tyler of the Civil Division’s Commercial Litigation Branch and Assistant U.S. Attorney Austin M. Hall for the Northern District of Georgia handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
Truist Bank Pays over $9 Million to Resolve Allegations Concerning SunTrust Bank’s Administration of Trust AccountsRead the Press Release
ATLANTA – Truist Bank (Truist), based in Charlotte, North Carolina, has agreed to pay the United States $9,125,000 to resolve claims under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). These claims relate to the administration of certain trust accounts by SunTrust Bank (SunTrust) from December 2011 through December 2015. SunTrust was acquired by Branch Banking and Trust Company in December 2019, and the combined entity was renamed Truist.
“Our financial institutions occupy a special place of trust in our communities,” said U.S. Attorney Ryan K. Buchanan. “This settlement demonstrates our office’s commitment to hold accountable any bank that violates its fiduciary duties to beneficiaries, especially in situations involving vulnerable clients.”
“Our federally insured financial institutions must act in accordance with the law, including meeting their obligations to beneficiaries when they serve as trustees,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement makes clear that the Department will hold banks accountable when they knowingly run afoul of applicable legal requirements.”
The settlement announced today resolves claims arising from SunTrust’s management of certain trust accounts it administered as part of its relationship with a New Jersey company doing business as The Halpern Group (Halpern). Halpern served as a “structured settlement facilitator” in matters involving individuals who received settlement awards in personal injury litigation and referred those individuals to SunTrust. These individuals then established trusts at SunTrust that were intended to help them preserve their recoveries by protecting against unwise disbursements. Both SunTrust and Halpern collected fees in exchange for their agreement to provide these services.
In or around December 2011, SunTrust began administering a group of trust accounts, known as the “Doe Run Accounts,” that were referred to the bank by Halpern and resulted from the settlement of lead poisoning cases near Herculaneum, Missouri. Those accounts involved beneficiaries who claimed various health and cognitive issues from lead poisoning. The United States contends that, rather than helping these beneficiaries avoid unwise disbursements, Halpern requested and SunTrust frequently approved imprudent disbursements that were not in the beneficiaries’ best interests, including disbursements for the benefit of third-parties (e.g., relatives). The United States also contends that SunTrust’s approval of these disbursements violated its fiduciary obligations as the trustee of these accounts.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the United States Attorney’s Office for the Northern District of Georgia. The matter was handled by Senior Trial Counsel David W. Tyler from the Commercial Litigation Branch, Assistant U.S. Attorney Austin M. Hall from the Northern District of Georgia, and former Assistant U.S. Attorney Armen Adzhemyan from the Northern District of Georgia.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Tahlequah Resident Sentenced to 25 Years for MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Timothy Randall England, age 36, of Tahlequah, Oklahoma, was sentenced to 300 months in prison for the 2023 murder of a Stilwell resident.
The charge arose from investigations by the Cherokee County Sheriff’s Office, the Cherokee Nation Marshal Service, the Adair County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.
On April 30, 2024, England pleaded guilty to one count of Murder in Indian Country—Second Degree. According to investigators, on February 7, 2023, England traveled to a Stilwell residence, waited outside for the resident to arrive, then fired upon the victim eight times with a 7.62x39 rifle before fleeing the scene. Three of the shots struck the victim, who died at the scene. England was later apprehended by the Cherokee Nation Marshal Service in Tahlequah and arrested without incident. The crime occurred in Adair County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Raúl M. Arias-Marxuach, Chief Judge in the U.S. District Court for the District of Puerto Rico, sitting by assignment, presided over the hearing in Muskogee. England will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Kevin Gross represented the United States at sentencing.
Suburban Chicago Man Sentenced to 18 Years in Prison for Trafficking Fentanyl and Attempting to Support ISISRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to 18 years in federal prison for trafficking fentanyl and attempting to provide material support to the Islamic State of Iraq and al-Sham, also known as ISIS.
On three occasions in 2019, JASON BROWN provided $500 in cash to an individual with the understanding that the money would be wired to an ISIS soldier engaged in terrorist activity in Syria. Unbeknownst to Brown, the individual to whom he provided the money was confidentially working with law enforcement, and the purported ISIS fighter was actually an undercover law enforcement officer.
Also in 2019, Brown trafficked fentanyl and other drugs from California to the Chicago suburbs and illegally possessed several loaded handguns in furtherance of his drug trafficking activities.
Brown, 42, of Lombard, Ill., pleaded guilty last year to one count of attempting to provide material support to ISIS, one count of distributing fentanyl, and one count of possessing a firearm in furtherance of a drug trafficking crime. U.S. District Judge Mary M. Rowland imposed the sentence on Oct. 16, 2024, during a hearing in federal court in Chicago. Brown has been in law enforcement custody since his arrest in 2019.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Matthew G. Olsen, Assistant Attorney General for National Security at the U.S. Department of Justice, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation Chicago Field Office, and Larry Snelling, Superintendent of the Chicago Police Department. Substantial assistance was provided by the Illinois State Police, U.S. Postal Inspection Service, U.S. Customs and Border Protection, Homeland Security Investigations, Lombard, Ill. Police Department, Addison, Ill. Police Department, and FBI Field Offices in Atlanta, Los Angeles, and San Diego. The government was represented by Assistant U.S. Attorney Shawn McCarthy of the Northern District of Illinois and S. Elisa Poteat, Trial Attorney from the Justice Department’s National Security Division, Counterterrorism Section.
Stowe Man Sentenced to 14 Months in Jail for Unlawful Possession of a FirearmRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on October 21, 2024, Theodore Bland, 29, of Stowe, Vermont, was sentenced by United States District Judge William K. Sessions III to a term of 14 months’ imprisonment to be followed by a two-year term of supervised release. Bland previously pleaded guilty to possessing a Mossburg 12-gauge shotgun on March 17, 2023, while being an unlawful user of controlled substances and knowing that he was an unlawful user of controlled substances.
According to court records, on March 17, 2023, Bland brandished a 12-gauge Mossburg Model 88 Maverick shotgun while threatening the driver of a vehicle in the parking lot of a South Burlington convenience store. The two female passengers that had been travelling with the threatened driver then got in Bland’s car. Bland and the two females then drove around for several hours, during which time Bland smoked cocaine base and continued to possess the shotgun. When Bland was stopped by the Vermont State Police, officers observed the Mossburg shotgun and various controlled substances located in the vehicle.
After the sentencing hearing, Bland was arraigned on a separate, pending indictment, which charges drug and firearms crimes. The United States issued a press release on that matter on September 19, 2024. Bland pleaded not guilty to those charges and was detained pending trial.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the South Burlington Police Department, the Vermont State Police, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Stowe Police Department, the Federal Bureau of Investigation, the Morristown Police Department, the Drug Enforcement Administration, and the Lamoille County Sheriff’s Department.
The case was prosecuted by Assistant U.S. Attorneys Jason Turner and Paul Van de Graaf. Bland is represented by David Sleigh, Esq.
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.
Springfield, Vermont Man Pleads Guilty to Gun ChargeRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that Ernest Lamphere, 44, of Springfield, Vermont, pleaded guilty today to a gun possession charge before U.S. District Court Judge William K. Sessions III.
According to court records including the stipulated facts in the plea agreement between the parties, in late February 2024, Lamphere was subject to a State of Vermont relief from abuse order, which was sought by his family members and prohibited his possession of firearms. When law enforcement served the relief from abuse order on Lamphere on February 27 at his home, he turned over four firearms and also admitted opiate use. Two days later Lamphere was located alone in his vehicle, blocking the drive-thru lane at the McDonald’s in Springfield, Vermont and nodding off from illegal drug use. Lamphere had opiates in his system at the time. Along with significant quantities of illegal drugs located in his vehicle and on his person, Lamphere was also in possession of two AR-style rifles, a silencer, and assorted ammunition.
Lamphere pleaded guilty today to being a drug user in possession of a firearm, a charge which carries a maximum sentence of 15 years. The actual sentence will be determined by the District Court with reference to the Federal Sentencing Guidelines and statutory sentencing factors of the United States Code. If accepted by the court, the plea agreement signed by Lamphere and the government recommends (1) that sentencing be delayed for one year, and (2) that Lamphere receive a time-served sentence, to be followed by three years of supervised release, if he abides by the terms of the plea agreement during the intervening year.
The U.S. Attorney’s Office thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Springfield, VT Police Department for their work on this case.
U.S. Attorney Nikolas Kerest has handled the case for the government. Assistant Federal Public Defender Steven Barth represents Ernest Lamphere.
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.
Spokane Dermatologist Indicted for Using Approximately $1.5 Million in COVID-19 Relief Funds to Buy Arizona Home, Sports Cars, and Other PropertiesRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced a federal grand jury has an indicted a Spokane dermatologist, and his associated businesses, for fraudulently obtaining and using approximately $1.5 million dollars in COVID-19 relief funds to purchase luxury sports cars, buy real estate, and pay off personal debt.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. EIDL funds were to be used solely as working capital to alleviate economic injury to a business caused by the COVID-19 disaster, such as paying payroll, health insurance premiums, rent, utilities, and fixed debt payments. EIDL funds were not to be used for personal purposes or to obtain real property or to pay off debts that were not yet due and owing, such as paying more than a fixed monthly payment on a mortgage or other loan.
The Indictment announced today charges William Philip Werschler, age 66, of Spokane, Washington, along with his businesses Spokane Dermatology Clinic, Premier Clinical Research L.L.C., and 3rd and Sherman Plaza L.L.C., with 23 counts of fraud in connection with how Werschler and his businesses allegedly spent EIDL loans.
Beginning no later than April 2020 and continuing until at least July 2022, Werschler applied for EIDL loans for his businesses: Spokane Dermatology Clinic, Premier Clinical Research, and 3rd and Sherman Plaza L.L.C. In total, Werschler and his businesses received more than $2.9 million in EIDL money.
The Indictment alleges that Werschler used the EIDL funds for personal purchases including over half of the $575,000 purchase price of a house in Scottsdale, Arizona; the purchase of a 2011 Porsche 911 GT3 for $166,687; the purchase of a 1997 Porsche Carrera for $88,687; and $123,960 to pay off a loan for a storage unit at 6720 N. Pittsburg Street that was used to store automobiles, jet skis, and a boat. According to the indictment, Werschler also allegedly used EIDL money to pay off the balance of a loan for property on Grant Street in Spokane, Washington, for $286,792, and $550,000 to purchase two properties across from his Spokane Dermatology Clinic, both contrary to the proper use of EIDL funds.
“Many small and local businesses struggled to stay afloat during the COVID-19 pandemic. The Economic Injury Disaster Loan program was designed to provide those business owners an economic lifeline,” stated U.S. Attorney Waldref. “My office has made it a priority to hold fraudsters accountable who used these critical funds to enrich themselves.”
This case was investigated by the IRS Criminal Investigations, the FBI, and the Small Business Administration Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jeremy J. Kelley.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Spiro Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced Christopher Joe Knight, age 43, of Spiro, Oklahoma, was sentenced to 80 months in prison for illegally possessing a firearm.
The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma Highway Patrol.
On February 20, 2024, Knight pleaded guilty to one count of Felon in Possession of a Firearm. According to investigators, on December 26, 2022, OHP troopers conducting a routine traffic stop in Leflore County discovered Knight in possession of a 9mm semiautomatic pistol. Knight knowingly possessed the firearm after having been previously convicted of a crime punishable by more than one year imprisonment.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Honorable Raúl Manuel Arias-Marxuach, Chief District Judge in the United States District Court for Puerto Rico, sitting by assignment, presided over the hearing in Muskogee, Oklahoma. Knight will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Jonathan E. Soverly represented the United States.
South Texan sent to prison for receiving child porn via messaging appRead the Press Release
McALLEN, Texas – A 21-year-old resident of Edinburg has been ordered to prison for receipt of child pornography depicting prepubescent minors, announced U.S. Attorney Alamdar S. Hamdani.
Lazaro Segundo-Vazquez pleaded guilty May 15, 2023, admitting he received over 1,800 images and video files containing child sexual abuse material.
Chief U.S. District Judge Randy Crane has now sentenced Segundo-Vazquez to 78 months in federal prison. He must also pay $3,000 in restitution to three victims and will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Segundo-Vazquez will also be ordered to register as a sex offender.
An alert from the National Center for Missing and Exploited Children led authorities to a residence in Edinburg appearing to be uploading child pornography to a Google account. The investigation revealed Segundo-Vazquez received images and videos containing child sexual abuse material via a third-party messaging application on his cellular phone.
Segundo-Vazquez admitted to receiving child sexual abuse material that included videos and images of prepubescent children and toddlers. The material depicted children engaged in sexual acts with adults and other children. Segundo-Vazquez then uploaded several images of child sexual abuse material to a Google account.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Cahal P. McColgan prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Social Security Administration Employee Charged with Attempting to Induce a Social Security Beneficiary for ProstitutionRead the Press Release
BOSTON – A Social Security Administration (SSA) employee was arrested today for attempting to persuade a Social Security beneficiary to cross state lines to engage in prostitution.
Dae Sung Kim, 35, of Auburn, Mass., was charged with one count of attempting to induce a person to travel in interstate commerce to engage in prostitution.
According to the criminal complaint, in March 2024, Kim handled an in-person visit at the Gardner SSA field office from an individual seeking Social Security benefits after losing her job. After redirecting the individual to another SSA field office near her residence in another state, Kim allegedly called the individual, using the phone number he obtained from SSA’s computer system. Kim allegedly indicated that he understood she was in a difficult situation and stated that maybe they could “work something out” that would benefit them both.
During a call monitored by law enforcement later that month, Kim allegedly again stated to the individual that they could “help each other out” and proposed giving the individual money in exchange for sex. In several subsequent text messages, Kim allegedly suggested that the individual travel to Massachusetts to meet him, offering to pay $100 to have sex in a car at a hotel parking lot. When Kim traveled to the hotel parking lot to execute his plan in October 2024, he was confronted by law enforcement.
The charge of attempting to induce a person to travel in interstate commerce to engage in prostitution provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy and Amy Connelly, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement. Valuable assistance was provided by Homeland Security Investigations and the Fitchburg and Gardner Police Departments. Assistant U.S. Attorney Brendan D. O’Shea of the Worcester Branch Office and Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Seattle man sentenced for string of marijuana dispensary robberiesRead the Press Release
Seattle – A 19-year-old Seattle-area man, was sentenced October 18, 2024, to 90 months in prison for a series of seven armed robberies of marijuana dispensaries, announced U.S. Attorney Tessa M. Gorman. Caiden James Charlton was arrested in June 2023, in connection with three armed robberies in May and June 2023. He pleaded guilty in July 2024 admitting his involvement in all seven robberies. At the sentencing hearing U.S. District Judge Richard A. Jones imposed three years of supervised release to follow prison.
“This defendant and his juvenile accomplices targeted small businesses – marijuana dispensaries – across our region. With guns drawn they frightened employees grabbing cash and product and in one case even stealing the safe,” said U.S. Attorney Gorman. “This dangerous conduct cannot be tolerated.”
According to records filed in the case, Charlton pleaded guilty in July 2024 to committing three pot shop robberies on May 30, 2023, The first robbery was of Herb’s House on NW 65th Street in Seattle. The second was West Seattle Cannabis and the third robbery was of Hashtag Cannabis on Nickerson Street in Seattle. On June 10, 2023, Charlton and an accomplice robbed Oz Cannabis on Stone Way in Seattle. The next day, June 11, 2023, Charlton robbed Novel Tree MJ in Bellevue, and on June 12, he robbed Seaweed Cannabis in Edmonds, Washington. Finally, on June 21, he and accomplices robbed Dockside Cannabis in the Ballard neighborhood of Seattle. In each of the robberies, surveillance video shows clothing, tattoos, and jewelry that was linked to Charlton. Victims of the robberies noted distinctive face tattoos around Charlton’s eyes that were not concealed by his mask.
In each of the robberies, one of two intruders displayed a handgun and ordered the dispensary staff to open safes or empty the till. In addition to money, the suspects stole a large amount of marijuana products. In some cases, the safes at the dispensaries could not be opened due to time locks used to discourage robberies. In one case, the robbers stole the safe by detaching it from the floor.
The robbery crew would run to a getaway car after the robberies – two of the cars had been reported stolen.
In asking for an eight-year prison sentence Assistant United States Attorney Todd Greenberg wrote to the court, “The offense conduct in this case is extremely serious. Charlton went on a violent crime spree, robbing seven marijuana dispensaries over the course of 30 days. During each robbery, he and/or his accomplices were armed with firearms and used them – brandishing the guns, pointing them directly at the victims, etc. It is very fortunate that no one was shot or otherwise injured. The Court is well aware that similar robberies often end up with shootings and/or deaths, when victims act in ways not expected by the perpetrators or with the accidental discharge of a firearm.”
Some the robbery victims wrote to the court about the trauma the robberies caused in their life. One owner wrote, “… these robberies destroyed the business my wife and I worked to build over the nine plus years…. When they walk into a business with guns and demand money and product, the impact goes way beyond the loss of money and product.”
The case was investigated by the FBI, the Seattle Police Department, and the Bellevue Police Department, as well as the King County and Snohomish County Sheriffs’ Offices.
The case was prosecuted by former Assistant United States Attorneys Erin H. Becker and Assistant United States Attorney Todd Greenberg.
Quincy Woman Charged with Social Security FraudRead the Press Release
BOSTON – A Quincy woman was charged today in federal court in Boston with fraudulently receiving Social Security disability benefits.
Crystal Gesumaria, 41, was charged with one count of theft of government money. She will appear in court at a later date.
According to the charging documents, July 2013 to August 2022, Gesumaria stole approximately $93,603 in Social Security disability benefits.
The misdemeanor charge of theft of government money provides for a sentence of up to one year in prison, one year of supervised release, five years of probation and a fine of $100,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Amy Connelly, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division made the announcement today. Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Philadelphia Resident Charged for Election-Related Threat to State Party RepresentativeRead the Press Release
An indictment was unsealed today charging a Pennsylvania man with threatening to kill a representative of a state political party who was recruiting official poll watchers.
According to the indictment, on Sept. 6, John Pollard, 62, of Philadelphia, sent threatening text messages to Victim 1. Victim 1 had previously posted online, in Victim 1’s capacity as an employee of a state political party, that Victim 1 was recruiting volunteers to “help[] observe at the polls on Election Day” and included Victim 1’s phone number. Pollard allegedly texted Victim 1 that he was “interested in being a poll watcher” and included Victim 1’s first name. Pollard then allegedly texted three threats to Victim 1:
- “I will KILL YOU IF YOU DON’T ANSWER ME!”
- “Your days are numbered, B****!”
- “GONNA F***ING FIND YOU AND SKIN YOU ALIVE AND USE YOUR SKIN FOR F***ING TOILET PAPER, YOU F***ING KKK**T!”
Pollard was arrested today and appeared in federal court in Philadelphia. He is charged with one count of transmitting interstate threats. If convicted, he faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania made the announcement.
The FBI Pittsburgh Field Office is investigating the case.
Trial Attorney Jacob R. Steiner of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Nicole A. Stockey for the Western District of Pennsylvania are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Three years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.
Under the leadership of Deputy Attorney General Monaco, the task force is led by PIN and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
View the indictment here.