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Tuesday 10 September 2024
Mayor Brown Proposes Creating New Special Assistant United States Attorney Position to Focus on Narcotics Prosecution in City of SpokaneRead the Press Release
Spokane, Washington - A proposal put forward by Mayor Lisa Brown would combine federal and city resources to establish a Special U.S. Assistant Attorney to focus on narcotics prosecution impacting the City of Spokane.
If approved by the City Council, this attorney will be a city employee who works in collaboration with the Eastern District of Washington U.S. Attorney’s Office. The U.S. Attorney’s Office will provide office space, training, day-to-day supervision, and will assist with recruitment, interviewing and identifying successful candidates.
Developing this role in partnership with the U.S. Attorney’s Office ensures that the City will have close relationships with federal agencies like the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and have enhanced penalty provisions for high-level drug dealers and traffickers.
“Our community has been deeply affected by the opioid epidemic. To address this crisis, I am looking to partner a new special attorney to target the root of the problem – drug dealing and trafficking. By focusing upstream, we aim to cut off the supply before it reaches out most vulnerable, preventing more people from falling victim and giving our community a chance to heal,” Mayor Brown said. “I am grateful to U.S. Attorney Vanessa Waldref and her team for their partnership in this effort. Together, we will create better outcomes for our community.”
“The City of Spokane and the U.S. Attorney’s Office share the same goal - a safer, stronger community for all who call Spokane home. The dramatic increase in the use of fentanyl in the last few years has destroyed countless lives,” stated U.S. Attorney Vanessa R. Waldref, who serves as the chief federal law enforcement officer for the Eastern District of Washington. U.S. Attorney Waldref continued, “We stand prepared to work with our federal and local law enforcement partners to address the damage being done to our communities. Working together, we are better equipped to address the fentanyl crisis — bringing justice to purveyors of poison in our neighborhoods and sparing community members and families from the tragedy of deadly drug poisonings. I am grateful for our partnership with the City of Spokane, and I look forward to continuing to work with the Mayor’s team on critical public safety projects for our community.”
About the City of Spokane
The City of Spokane, home to more than 229,000 people, is located in the heart of the Inland Northwest. Our 2,000 employees strive to deliver efficient and effective services that facilitate economic opportunity and enhance the quality of life for all our residents. For more information, visit www.spokanecity.org and follow us @spokanecity on Facebook, Twitter and Instagram.
About the U.S. Attorney’s Office
The United States Attorney's Office is responsible for representing the federal government in almost all litigation involving the United States in the Eastern District of Washington, which is comprised of the 20 Washington counties east of the Cascade Mountains. The U.S. Attorney’s Office handles all criminal prosecutions for violations of federal law, as well as civil lawsuits by and against the U.S. government. It is the mission and the pledge of the U.S. Attorney’s Office to represent the United States with determination, professionalism, and integrity. The District’s headquarters is located in Spokane, Washington, with branch offices in Richland and Yakima.
Martha's Vineyard Man Pleads Guilty to Armed Bank RobberyRead the Press Release
BOSTON – An Edgartown man pleaded guilty yesterday in federal court in Boston to armed bank robbery and conspiracy offenses.
Miquel Antonio Jones, 33, pleaded guilty to one count of conspiracy to commit armed bank robbery, and one count of armed bank robbery and aiding and abetting. U.S. District Court Judge William G. Young scheduled sentencing for Dec. 2, 2024. In March 2023, Jones was indicted by a federal grand jury, and additional charges were brought in a superseding indictment in April 2023.
Jones met Omar Johnson, Tevin Porter, and allegedly Romane Clayton, in Martha’s Vineyard on Nov. 16, 2022 to plan the robbery. Jones identified the bank they would be robbing and provided the others with dark-colored clothing and plastic masks that resembled an elderly man with exaggerated facial features. On the morning of Nov. 17, 2022, Porter, Jones and Johnson forced their way through the rear door of the Rockland Trust Bank in Tisbury. The men were armed with two semi-automatic handguns and wearing the clothes and masks that Jones had provided. Once inside the bank, one of the individuals held a gun to the head of one of the bank employees, forced the employee to open the bank’s vault, and took approximately $39,100. The bank employees were bound with duct tape and plastic zip ties while their belongings were searched and the robbers demanded access to one of their vehicles.
Jones, Porter and Johnson then left the bank in an employee’s car, allegedly picked up Clayton outside the bank, and drove to the Manuel Correllus State Forest, where they abandoned the vehicle in a parking lot. They then fled in another vehicle that Clayton allegedly had left there for purposes of their escape.
Porter and Clayton allegedly left Martha’s Vineyard together on a ferry later that morning. Meanwhile, Johnson and Jones drove to a local farm associated with Jones’s landscaping job to dispose of the equipment that had been used during the bank robbery. At the farm, they allegedly buried the two firearms used in the robbery in a hole in the ground and burned the remainder of the robbery equipment, including the plastic masks.
After the evidence was disposed of, Jones returned home to his residence where he hid the approximately $39,100 that had been stolen from the bank, in his bedroom under a bureau. Johnson left Martha’s Vineyard, reconvened with Porter, and allegedly Clayton, in Woods Hole and then drove them to the area of Johnson’s home in New Hampshire.
Johnson and Porter have both pleaded guilty and are awaiting sentencing. Clayton is scheduled to plead guilty on Sept. 12, 2024.
The charge of armed bank robbery provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000. The charge of conspiracy to commit armed bank robbery provides for a sentence of up to five 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 statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by Cape & Islands District Attorney’s Office; the Massachusetts State Police; the Tisbury, West Tisbury, Edgartown, Chilmark, Oak Bluffs, Aquinnah, Canterbury (N.H.) and New Haven (Conn.) Police Departments; the United States Postal Inspection Service; the Bureau of Alcohol Tobacco and Firearms; Immigration and Customs Enforcement; and United States Customs and Border Protection. Assistant U.S. Attorney Meghan C. Cleary of the Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man sentenced for online activities with a minorRead the Press Release
OXFORD, Miss. – A Byhalia, Mississippi man was sentenced today to more than 15 years in prison for transmitting sexual conduct with a minor over the Internet.
According to court documents, Thomas Taylor, 29, was identified as part of Operation Renewed Hope, an operation run by Homeland Security Investigations to identify victims and perpetrators of known child sexual exploitation videos. Taylor admitted to using a video chat mobile application to communicate on live video with others over the Internet. While on the live video, Taylor masturbated and revealed a minor’s genitals and anus to the audience. A recording was made of the incident which has appeared in other investigations related to trafficking of child sexual abuse materials.
On Tuesday afternoon, U.S. District Judge Sharion Aycock sentenced Taylor to 200 months in prison followed by five years of supervised release.
“Minor victims of sexual abuse and exploitation often face a life-time of far-reaching consequences as a result of the reprehensible acts committed by their perpetrators,” remarked U.S. Attorney Clay Joyner. “This office is committed to holding accountable those individuals who sexually exploit minors and we appreciate the outstanding work by HSI and AUSA King to do just that.”
“These despicable crimes are beyond comprehension,” said HSI New Orleans Special Agent in Charge Eric DeLaune. “This criminal will now be held accountable for his vile crimes.”
The Department of Homeland Security investigated the case.
Assistant U.S. Attorney Parker S. King prosecuted the case as part of the Project Safe Childhood initiative. Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by 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. The goal of Project Safe Childhood is to reduce the incidence of sexual exploitation of children.
Madera Man Convicted of Firearms Violations 3 Months After Being Convicted in Jan. 6 Capitol Breach Trial in Washington, D.C.Read the Press Release
FRESNO, Calif. — Following a one-day trial in Fresno, Benjamin Martin, 46, of Madera, was convicted today of illegally possessing firearms and ammunition, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial and other court records, in September 2021, the FBI executed a search warrant at Martin’s residence in Madera and arrested him on charges filed by the U.S. Attorney’s Office for the District of Columbia for the breach of the U.S. Capitol that occurred on Jan. 6, 2021. During the search, the FBI found eight guns, including an AR-15 style assault rifle, multiple high-capacity magazines for the AR-15, and more than 500 rounds of ammunition. Martin was prohibited from possessing these items because of his prior domestic violence conviction, and resulting restraining order, for choking his then girlfriend and dragging her back into the house after she tried to flee.
Shortly after his arrest, Martin was caught on a recorded jail call where he instructed his then fiancée to lie to authorities and tell them that the firearms seized from his residence belonged to her and her father and that he did not know about them. She agreed to do so.
Martin also recently went to trial in the Capitol breach case in Washington, D.C., where the evidence showed that he held a door to the Capitol open while officers tried to close it. He kept the door open so that other rioters could spray chemical irritants and throw objects at the officers. Martin was convicted on all counts, which included two felonies for civil disorder and obstructing an official proceeding.
This case is the product of an investigation by the FBI. Assistant U.S. Attorneys Joseph Barton, Robert Veneman-Hughes, and Michael Tierney are prosecuting the case.
Martin is scheduled to be sentenced in the firearms case in Fresno on Nov. 25, 2024, by U.S. District Judge Jennifer L. Thurston. Martin faces up to 15 years in prison and a 250,000 fine for that case. He is scheduled to be sentenced in the Capitol breach case in Washington, D.C., on Nov. 15, 2024, by U.S. District Judge Rudolph Contreras. He faces additional imprisonment and fines in that case. The actual sentences, 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.
The press release for Martin’s conviction in the Capitol breach case can be found here: https://www.justice.gov/usao-dc/pr/california-man-convicted-felony-and-misdemeanor-charges-actions-during-jan-6-capitol
Lexington County Man Sentenced to More than 16 Years in Federal Prison for Drug TraffickingRead the Press Release
COLUMBIA, S.C. — Reginald Travis Pearson, 40, of West Columbia, was sentenced to more than 1o years in federal prison after pleading guilty to distribution of methamphetamine.
Evidence presented to the court showed that between November 2022 and January 2023, Pearson distributed more than 900 grams of methamphetamine and 28 grams of cocaine to undercover agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Additionally, Pearson sold seven firearms, despite being a convicted felon and legally prohibited from possessing firearms.
Pearson's criminal record includes previous convictions for petty larceny, and multiple drug-related offenses, including possession with intent to distribute marijuana, cocaine, and heroin, as well as heroin distribution. Pearson was sentenced as a career offender based on his six prior drug convictions.
United States District Judge Sherri A. Lydon sentenced Pearson to 200 months' imprisonment, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Homeland Security Investigations (HSI), West Columbia Police Department, Lexington County Sheriff’s Department, and Richland County Sheriff’s Department. Assistant U.S. Attorney Ariyana Gore prosecuted the case.
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Lancaster Woman Pleads Guilty to Defrauding Two Nonprofit Veterans OrganizationsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jessika L. Hiepler, 46, of Lancaster, Pennsylvania, entered a plea of guilty today before United States District Judge Jeffrey L. Schmehl to two counts of wire fraud related to her scheme to defraud two nonprofit veterans organizations, American Legion Post 34 and American Veterans Post 19. Hiepler and her associate netted $1.425 million from the fraud scheme.
The defendant was charged with these violations by criminal information on August 12.
For nearly 15 years, Hiepler served as a board member and as the manager, treasurer, and financial officer for American Legion Post 34 (“Legion Post 34”). In 2019, Hiepler offered to “bail out” a separate veterans’ organization, American Veterans Post 19 (“AMVETS Post 19”), that was facing financial difficulties.
Under the pretext of bailing out AMVETS Post 19, Hiepler assumed control over its financial affairs and acquired its valuable four-acre commercial property through theft, deceit, and misrepresentation. First, Hiepler misled AMVETS Post 19 to secure approval for the bailout, including with the false promises of an interest-free loan, minimal rent, and full transparency. Second, Hiepler stole from her then-employer, Legion Post 34, to raise funds for the bailout. Third, once in control of AMVETS Post 19’s finances, Hiepler also stole from AMVETS Post 19 and used its funds for her own benefit. Fourth, Hiepler concealed her self-dealing, manipulated and altered financial records, and destroyed financial and business records at both Legion Post 34 and AMVETS Post 19.
From the outset, the defendant schemed about making money and selling the AMVETS Post 19’s property at 715 Fairview Avenue in Lancaster, PA. In Hiepler’s own words:
- “[W]e will make our money and they [AMVETS Post 19] can kiss our a[**]”
- “I am ready to get rid of these motherf[*****]s. . . . I can’t wait for sh[**] to be ours”
- “I can’t wait to see their face when we hand them their eviction notice”
- “Honestly all I want is my money. That’s it. I could care f[***]ing less about any of them.”
Three years after acquiring the AMVETS Post 19’s property for a below-market rate of $500,000 through the “bailout,” Hiepler’s real estate investment company sold the fraudulently obtained property for $1.95 million, and booked a gain of $1.425 million after expenses.
“Jessika Hiepler’s contempt for her victims, veterans who served this country, is palpable — and despicable,” said U.S. Attorney Romero. “Not only did she defraud these organizations, she did so gleefully, hurling insults and expletives behind the scenes. My office and the FBI will never stop working to hold crooks like this accountable on behalf of fraud victims, both past and potential.”
“In weaving a web of lies and deception, this defendant pocketed over one million dollars intended for organizations dedicated to supporting our nation’s veterans,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “FBI Philadelphia and our law enforcement partners will continue to pursue criminals who prey on the public for their own personal profit.”
Hiepler faces a maximum possible sentence of 40 years in prison, three years of supervised release, and a $500,000 fine, along with restitution. As part of the plea agreement, Hiepler agreed to a forfeiture money judgment in the amount of $1,425,847.24.
The case was investigated by the FBI, with assistance from the Lancaster City Bureau of Police, and is being prosecuted by Assistant United States Attorneys Samuel S. Dalke and Andrew Jenemann.
Kalispell couple admit defrauding Social Security AdministrationRead the Press Release
MISSOULA — A Kalispell couple today admitted to stealing nearly $200,000 from the Social Security Administration by falsely reporting their living and financial situation so they could receive more benefits on behalf of their children than they were entitled, U.S. Attorney Jesse Laslovich said.
The defendants, Mistie Lynn Knapton, 49, and her husband, Travis Ray Knapton, 50, each pleaded guilty to theft of government money in separate hearings. Mistie Knapton pleaded to a felony charge and faces a maximum of 10 years in prison, a $250,000 fine and three yeas of supervised release. Travis Knapton pleaded to a misdemeanor charge and faces a maximum of one year in prison, a $100,000 fine and one year of supervised release.
U.S. District Judge Donald W. Molloy presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing for both defendants was set for Jan. 9, 2025. The defendants were released pending further proceedings.
The government alleged in court documents that the Knaptons received benefits from the Social Security Administration (SSA) on behalf of five of their children through the Supplemental Security Income (SSI) program. The program is meant to provide monthly payments to people with disabilities who have little to no income or resources. The SSI program has income and asset limits, either of which could make a beneficiary ineligible for benefits.
The government further alleged that Mistie was the representative payee for her children enrolled in SSI. In May 2009, Mistie wrote to SSA that Travis no longer lived with her and her children. Mistie frequently reported to SSA that she and the children paid rent for their housing, that Travis was not a member of the household and that their only income was child support Travis paid to Mistie. However, from 2009 to present, Travis owned the houses that Mistie and the children lived in, he frequently lived with them, and he paid for vehicles, food and other living expenses for the family from his income. In addition to the houses, Travis owned several cars, trucks, ATVs, a motorcycle and a jet ski.
In September 2020, SSA conducted a redetermination of benefits for one of the children. The agency determined that Mistie failed to list Travis as a member of the household and told SSA that she paid rent of $1,400 a month. Mistie also confirmed that “no one in the household was a parent or child of either the landlord or his/her spouse.” In truth, Mistie and Travis jointly owned the house, and Travis was part of the household at that time. SSA analyzed the Knapton’s assets and determined that from April 2011 through February 2024, the Knapton children would not have qualified for SSI benefits had SSA known the truth abut the Knapton’s living and financial situation. SSA calculated that the Knapton children received $196,575 in SSI benefits they were not actually eligible to receive. The SSI income was paid into separate bank accounts for each child. Mistie frequently shared and transferred this money, stolen from the United States, into Travis’ bank account. Travis then used the stolen money to purchase homes and vehicles, pay for general living expenses and other items for himself and his family.
The U.S. Attorney’s Office is prosecuting the case. The SSA Office of Inspector General and Montana Division of Criminal Investigation conducted the investigation.
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Jacksonville Woman Pleads Guilty to Credit Scheme and COVID Relief Fraud Involving the Paycheck Protection ProgramRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Crystal Denean Harvell (37, Jacksonville) has pleaded guilty to one count of conspiracy to commit wire fraud involving a line of credit scheme and one count of wire fraud involving COVID relief fraud through the Paycheck Protection Program (PPP). Harvell faces up to 20 years in federal prison on each count and payment of restitution to the victims she defrauded and to the United States government. Harvell has also agreed to forfeit $20,415, which is traceable to proceeds of the wire fraud offense involving COVID relief fraud. A sentencing date has not yet been set.
According to court documents, Harvell and her co-conspirators fraudulently obtained the Social Security numbers (SSNs) of others. From February 2016 through September 2019, Harvell and others recruited individuals to obtain lines of credit at various businesses, using the SSNs. After fraudulently obtaining the lines of credit, they obtained jewelry and other merchandise. Harvell resold some of the merchandise and lines of credit on social media platforms.
In April 2021, Harvell submitted a PPP loan application to a lender authorized by the Small Business Administration (SBA) to lend funds for approved PPP loan applications. The PPP loan application falsely claimed that Harvell operated her own business. Throughout the loan application Harvell made multiple false statements regarding her purported gross income and expenses associated with operating her business. In support of her PPP loan application, she submitted a false IRS Form 1040 - Profit or Loss From Business. It contained false statements about operating expenses, gross income, and wage expenditures for her purported business. In truth, Harvell’s business did not exist. In reliance on the false statements in her loan application, her application was approved, and she received a PPP loan totaling $20,415.
After receiving the PPP loan proceeds in her bank account, Harvell began making withdrawals and spending the funds on personal expenses. In October 2021, Harvell submitted a PPP loan forgiveness application to the SBA that included multiple false representations. In the application, she falsely claimed that she spent more than $18,000 on payroll costs and that the PPP loan proceeds were only used for eligible purposes. In reliance on her false statements the SBA forgave the entire loan, plus accrued interest.
This case was investigated by the Jacksonville Sheriff’s Office and the U.S. Secret Service – Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein. The asset forfeiture is being handled by Assistant United States Attorney Jennifer M. Harrington.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department's response to the pandemic, please visit Justice.gov/Coronavirus and Justice.gov/Coronavirus/CombatingFraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice's National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.
Jacksonville Armed Career Criminal Sentenced to 15 Years in Federal PrisonRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced David Wayne Riddle (30, Jacksonville) to 15 years in federal prison for possessing a firearm as a convicted felon. Riddle entered a guilty plea on May 22, 2024.
According to court documents, on January 8, 2023, Riddle was stopped by officers from the Jacksonville Sherriff’s Office after they had observed Riddle not wearing his seat belt while driving. When the officers encountered Riddle, they smelled marijuana coming from inside the vehicle. A search of the vehicle was conducted, and a loaded Smith and Wesson pistol was recovered from under the front passenger seat. Riddle was interviewed and admitted that he possessed the firearm knowing that he was a convicted felon.
Riddle has multiple prior felony convictions for serious drug related offenses and violent crimes making him prohibited from possessing firearms under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney John Cannizzaro.
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.
Israeli Freight Forwarder Pleads Guilty to Violating Export Restrictions Imposed on RussiaRead the Press Release
MIAMI – Gal Haimovich, 49, of Israel, pleaded guilty yesterday to conspiracy to commit export control and smuggling violations for his role in a scheme to illegally ship aircraft parts and avionics from U.S. manufacturers and suppliers to Russia, including for the benefit of sanctioned Russian airline companies. As part of his plea agreement, Haimovich admitted that his scheme involved deceiving U.S. companies about the true destination of the goods at issue, and that the defendant and others attempted to conceal the scheme by submitting false information in export documents filed with the U.S. government. A sentencing hearing has been set for Nov. 22.
According to court documents, Haimovich owned an international freight forwarding company that was an affiliate in a group of companies that did business in various countries, including the United States and Israel. Haimovich, through those companies, operated as a freight forwarder of choice for individuals and entities seeking to illegally export goods to Russia in violation of U.S. export control laws. Between at least March 2022 and May 2023, Haimovich facilitated the export of aircraft parts and avionics, including those with missile technology applications, from the United States, through the Southern District of Florida, to various third-party transhippers on behalf of Russian customers. These Russian end customers routinely instructed Haimovich to deceive the U.S.-based manufacturers and suppliers about the ultimate destination of the goods.
For example, between April 2022 and April 2023, after the United States imposed additional restrictions on the export of goods to Russia in response to the country’s full-scale invasion of Ukraine, Haimovich arranged for more than 160 shipments to companies in the Maldives and United Arab Emirates that were responsible for the illicit transshipment of the goods to Russia. One such shipment, of an air data module, occurred in August 2022. Haimovich, who had been hired by Siberia Airlines (doing business as S7 Airlines) to deliver the aircraft component to Russia, directed a co-conspirator to falsely inform the U.S. supplier that the part was destined for the Maldives; in fact, Haimovich knew that the part was destined for Russia for the benefit of S7 Airlines.
Haimovich also agreed that, between March 2022 and May 2023, he billed Russian customers, including Siberia Airlines (doing business as S7 Airlines), more than $2 million to have aircraft parts and avionics illegally exported from the United States to Russia. In connection with Haimovich’s plea, he agreed to the entry of a forfeiture money judgment in the sum of $2,024,435 and to forfeit various aircraft parts and components.
The Department of Commerce’s Office of Export Enforcement and the FBI investigated the case.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Assistant Secretary for Export Enforcement Matthew S. Axelrod of the U.S. Commerce Department and Executive Assistant Director Robert Wells of the FBI National Security Branch made the announcement.
Assistant U.S. Attorney Christopher Browne for the Southern District of Florida and Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
This case is being coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-cr-20374.
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Israeli Freight Forwarder Pleads Guilty to Violating Export Restrictions Imposed on RussiaRead the Press Release
Gal Haimovich, 49, of Israel, pleaded guilty yesterday to conspiracy to commit export control and smuggling violations for his role in a scheme to illegally ship aircraft parts and avionics from U.S. manufacturers and suppliers to Russia, including for the benefit of sanctioned Russian airline companies. As part of his plea agreement, Haimovich admitted that his scheme involved deceiving U.S. companies about the true destination of the goods at issue, and that the defendant and others attempted to conceal the scheme by submitting false information in export documents filed with the U.S. government. A sentencing hearing has been set for Nov. 22.
According to court documents, Haimovich owned an international freight forwarding company that was an affiliate in a group of companies that did business in various countries, including the United States and Israel. Haimovich, through those companies, operated as a freight forwarder of choice for individuals and entities seeking to illegally export goods to Russia in violation of U.S. export control laws. Between at least March 2022 and May 2023, Haimovich facilitated the export of aircraft parts and avionics, including those with missile technology applications, from the United States, through the Southern District of Florida, to various third-party transhippers on behalf of Russian customers. These Russian end customers routinely instructed Haimovich to deceive the U.S.-based manufacturers and suppliers about the ultimate destination of the goods.
For example, between April 2022 and April 2023, after the United States imposed additional restrictions on the export of goods to Russia in response to the country’s full-scale invasion of Ukraine, Haimovich arranged for more than 160 shipments to companies in the Maldives and United Arab Emirates that were responsible for the illicit transshipment of the goods to Russia. One such shipment, of an air data module, occurred in August 2022. Haimovich, who had been hired by Siberia Airlines (doing business as S7 Airlines) to deliver the aircraft component to Russia, directed a co-conspirator to falsely inform the U.S. supplier that the part was destined for the Maldives; in fact, Haimovich knew that the part was destined for Russia for the benefit of S7 Airlines.
Haimovich also agreed that, between March 2022 and May 2023, he billed Russian customers, including Siberia Airlines (doing business as S7 Airlines), more than $2 million to have aircraft parts and avionics illegally exported from the United States to Russia. In connection with Haimovich’s plea, he agreed to the entry of a forfeiture money judgment in the sum of $2,024,435 and to forfeit various aircraft parts and components.
The Department of Commerce’s Office of Export Enforcement and the FBI investigated the case.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Executive Assistant Director Robert Wells of the FBI National Security Branch, and Assistant Secretary for Export Enforcement Matthew S. Axelrod of the U.S. Commerce Department made the announcement.
Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorney Christopher Browne for the Southern District of Florida are prosecuting the case.
This case is being coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
India- and New Jersey-Based Jeweler Admits Multimillion-Dollar International Trade Fraud Scheme and Unlicensed Money TransmittingRead the Press Release
NEWARK, NJ. – An India- and New Jersey-based man who operated jewelry companies in New York City’s Diamond District admitted today to spearheading a scheme to illegally evade customs duties for more than $13.5 million of jewelry imports into the United States and with illegally processing more than $10.3 million through an unlicensed money transmitting business, U.S. Attorney Philip R. Sellinger announced.
Monishkumar Kirankumar Doshi Shah, aka “Monish Doshi Shah, 39, of Mumbai, India, and Jersey City, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count each of conspiracy to commit wire fraud and operating and aiding and abetting the operation of an unlicensed money transmitting business.
According to documents filed in this case and statements made in court:
From December 2019 through April 2022, Shah engaged in a scheme to evade duties for shipments of jewelry from Turkey and India to the United States. Shah would ship and/or instruct his conspirators to ship goods from Turkey or India – which would have been subject to an approximately 5.5 percent duty if shipped directly to the United States – to one of Shah’s companies in South Korea. Shah’s conspirators in South Korea would change the labels on the jewelry to state that they were from South Korea instead of Turkey or India, and then ship them to Shah or his customers in the United States, thereby unlawfully evading the duty. Shah would also make and instruct his customers to make fake invoices and packing lists to make it look like Shah’s South Korean companies were actually ordering jewelry from Turkey or India. Shah also instructed a third-party shipping company to provide false information to U.S. Customs and Border Protection (CBP) concerning the origin of the jewelry. During the scheme, Shah shipped approximately $13.5 million of jewelry from South Korea to the United States without paying the appropriate duty.
From July 2020 through November 2021, Shah owned and/or operated numerous jewelry companies in New York City’s Diamond District, including MKore LLC, MKore USA Inc., and Vruman Corp. Shah used these entities to conduct more than $10.3 million in illegal financial transactions for customers, including converting cash to checks or wire transfers. Shah would also collect cash from customers and use other individuals’ jewelry companies to convert the cash into wires or checks. At times, Shah and other members of the money transmitting business moved hundreds of thousands of dollars in a single day. In exchange for their services, Shah or other members of the money transmitting business charged a fee. None of Shah’s or his associates’ companies were registered as money transmitting businesses with New York, New Jersey, or the Financial Crimes Enforcement Network (FinCEN).
As part of his plea agreement, Shah agreed to pay restitution to CBP in the amount of $742,500 for the wire fraud scheme and forfeiture in the amount of $11.13 million for the wire fraud and unlicensed money transmitting schemes.
The wire fraud conspiracy charge is punishable by a maximum of 20 years in prison. The charge of operating and aiding and abetting the operation of an illegal money transmitting business carries a maximum penalty of five years in prison. Each count is also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Jan. 23, 2025.
U.S. Attorney Sellinger credited special agents and task force officers of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; special agents of Homeland Security Investigations New York, under the direction of Acting Special Agent in Charge Darren B. McCormack; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; and special agents with U.S. Customs and Border Protection at the Port of New York/Newark, under the direction of Port Director TenaVel Thomas, with the investigation leading to today’s guilty plea. He also thanked U.S. Customs and Border Protection in New York; Homeland Security Investigations in Seoul, South Korea; the Korea Customs Service in South Korea; the Seoul Customs Special Investigation Office in South Korea; the U.S. Drug Enforcement Administration in Paterson; the Parsippany-Troy Hills Police Department; the Morristown Police Department; the Federal Deposit Insurance Corporation – Office of Inspector General; and the Justice Department’s Money Laundering and Asset Recovery Section (MLARS).
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.
The government is represented by Assistant U.S. Attorneys Marko Pesce and Olta Bejleri of the Economic Crimes Unit in Newark.
shah.information.pdfFraudster Sentenced for Deceitfully Obtaining Social Security Disability BenefitsRead the Press Release
Salt Lake City, Utah – Calvin Perry, 53, of Sandy, Utah, was sentenced today to 12 months’ home detention, four years’ probation, and ordered by the court to pay $130,901 in restitution after defrauding the Social Security Administration (SSA) for at least six years.
On July 1, 2024, Perry pleaded guilty to theft of government property before a U.S. District Court Judge.
According to court documents and statements made at Perry’s sentencing hearing, beginning by at least March 2017 and continuing until October 2023, Perry stole funds from the United States, specifically benefits from the SSA. Perry was initially granted SSA disability benefits in November 2012 after he claimed he could not work due to a back injury. At that time, and on several later occasions, the SSA reminded Perry of his duty to update the SSA of various changes, including those related to work, income, and improvements in his condition. Yet, in March 2017, Perry began working full time at a lawncare company, earning a monthly salary of $4,400, without notifying SSA. In October and November 2023, SSA agents observed Perry actively engaged in manual labor for this company including, heavy lifting and unloading large equipment while bending and twisting his back.
After SSA received reports of Perry’s work concealment, it gave Perry the opportunity to complete a Continuing Disability Review Report. However, he failed to respond, and SSA suspended Perry’s benefits. In November 2023, Perry visited the South Jordan SSA Field office and filed a Continuing Disability Review Report and a Work Activity Report, claiming that he had not worked since 2011 and still struggled with basic tasks like standing, walking, and getting dressed. However, in December 2023 SSA agents interviewed Perry and his employer, who both admitted that Perry had been working for several years.
In total, Perry received overpayment of $130.901.00 in Social Security benefits. Additionally, according to court documents, Perry is a repeat offender, having a prior state conviction in 2005 for attempting to receive unemployment benefits while he was employed.
The case was investigated jointly by the Social Security Administration (SSA).
Special Assistant United States Attorney Sachi J. Jepson of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
Former Utica Mayor and School Board President Sentenced for Mail Fraud SchemeRead the Press Release
SYRACUSE, NEW YORK – Louis LaPolla, age 79, of Utica, New York, was sentenced today in federal court in Syracuse to 3 years of probation, after previously pleading guilty to mail fraud for soliciting and then stealing donations intended for a scholarship fund in his late wife’s name. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), announced the guilty plea.
In pleading guilty previously, LaPolla admitted that he set up a scholarship fund in honor of his late wife, Andrea LaPolla, after she passed away in 2018, with the stated intention of benefitting Utica City School District students who planned to pursue post-secondary education in health-related fields. LaPolla further admitted that he received nearly $40,000 in donations intended for the scholarship fund from individuals and businesses and that he spent nearly all the donated money on himself rather than depositing it into the scholarship fund. LaPolla served as the mayor of Utica from 1984 to 1995, and he served as President of the Utica City School Board from 2018 to 2022, following 21 years of service as a member of the board.
As part of his sentence, LaPolla will pay restitution in the amount of $38,616, and he will separately owe a forfeiture money judgment in the same amount.
Earlier this year, LaPolla pled guilty in Oneida County Court to a misdemeanor petit larceny charge after admitting that he used envelopes, stamps, and mailing labels belonging to the Utica City School District to send out fundraising flyers relating to the scholarship. In that case, LaPolla was sentenced to 60 days of house arrest, 3 years of probation, and ordered to pay $3,100 in restitution.
The FBI investigated this case with assistance from the New York State Police and the Oneida County District Attorney’s Office. Assistant U.S. Attorney Michael F. Perry prosecuted the case.
Former Tuscaloosa-Area Credit Union Insider Pleads Guilty to ConspiracyRead the Press Release
BIRMINGHAM, Ala. – A former credit union employee pleaded guilty for her role in a wide-ranging account-takeover scheme, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.
Appearing before U.S. District Judge Madeline Haikala, Brianna Mckala Johnson, 25, of Tuscaloosa, pleaded guilty to one count of conspiracy to commit wire fraud.
According to the plea agreement, Johnson was previously employed by Alabama Credit Union as a Member Care Agent. In this role, Johnson was able to access credit union member account information including, among other things, the names and personal identifying information of accountholders and their account balances. From August 2022 to January 2023, Johnson abused this access, misappropriating customer account information and then providing that account information to the administrator of a Telegram channel called “The Lucky Shop.”
The administrator of “The Lucky Shop” channel sold the information that Johnson provided, including bank logins and digital checks, to customers of his channel. The administrator also worked with others to withdraw funds from certain accounts. This part of the scheme, which the conspirators called “Operation ACU,” included depositing fraudulent checks, submitting fraudulent loan applications, and initiating fraudulent Automated Clearing House transfers. It also included using stolen passcodes to withdraw funds from Automated Teller Machines.
The maximum penalty for conspiracy to commit wire fraud is 5 years in prison and a $250,000 fine. Johnson has agreed to pay at least $406,809.96 in restitution to her former employer as part of her plea agreement.
The FBI investigated the case with assistance from Alabama Credit Union, the Tuscaloosa Police Department, and the Orange Beach Police Department. The U.S. Secret Service, the U.S. Postal Inspection Service, and the U.S. Postal Service Office of Inspector General have assisted in the broader investigation.
Assistant U.S. Attorney Edward J. Canter is prosecuting the case.
Former Rutherfordton ABC Store Manager Pleads Guilty to Wire Fraud and Money Laundering for Embezzling More Than $374,000Read the Press Release
ASHEVILLE, N.C. – Russel Edward Hester, 72, of Rutherfordton, N.C., appeared before U.S. Magistrate Judge W. Carleton Metcalf yesterday and pleaded guilty to federal charges for embezzling $374,807.10 from the Alcohol Beverage Control Board of Rutherfordton, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Charlotte Field Office, Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, and Chief Clint Ingle of the Rutherfordton Police Department, join U.S. Attorney King in making today’s announcement.
According to filed plea documents, from December 2021 to October 2023, Hester embezzled at least $374,807.10 from the Alcohol Beverage Control Board of Rutherfordton (the Board) which manages the ABC Store where Hester worked as a manager for nearly 10 years. As store manager, Hester had access to, and control over, the Board’s financial accounts and records, wrote checks to pay bills, and was responsible for creating the budget each year. Hester was also responsible for providing all information needed for the annual independent third-party audit of the ABC Store.
According to court records, beginning as early as December 19, 2021, Hester used the Board’s debit card to withdraw funds at Two Kings Casino. Continuing until October 22, 2023, Hester used this debit card at the casino 192 times to withdraw funds totaling $374,807.10, and used the money to gamble, primarily playing slot machines. On days where Hester used the Board’s debit card, he won jackpots totaling $1,469,368.31, and deposited the winnings into his personal bank accounts. For example, on July 4, 2023, Hester used the Board’s debit card to withdraw $3,000 at Two Kings Casino. Hester then placed these funds into a slot machine and won a jackpot of $18,350. Hester elected to have this jackpot issued in the form of a check, which he deposited into a bank account under his control.
Plea documents also show that Hester took steps to cover up the embezzlement. For example, during the Board’s 2023 annual independent audit, Hester provided multiple altered and falsified bank statements to the auditor. In furtherance of the fraud, Hester removed transactions from the casino, added fabricated transactions, and falsified bank account balances on the statements before providing them to the auditor.
Hester pleaded guilty to wire fraud and money laundering. He is currently released on bond. At sentencing, Hester faces up to 20 years in prison for the wire fraud charge and 10 years in prison for the money laundering charge. A federal district court judge will determine Hester’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King commended IRS-CI, USPIS, and the Rutherfordton Police Department for their investigation of the case and thanked the Rutherford County District Attorney’s Office for its invaluable assistance.
Assistant U.S. Attorney Alex M. Scott of the U.S. Attorney’s Office in Asheville is prosecuting the case.
Former Orange County High School Teacher Who Installed Hidden Cameras in School Bathrooms Sentenced to 17½ Years in PrisonRead the Press Release
SANTA ANA, California – A former teacher at a high school in Orange County who secretly installed hidden cameras in bathrooms at the school and elsewhere and, during a three-year span, viewed and downloaded hundreds of images – including of children under the age of 12 – using the restroom, was sentenced today to 210 months in federal prison for possessing child sexual abuse material (CSAM).
Siu Kong Sit, 38, of Rowland Heights, was sentenced by United States District Judge John W. Holcomb, who ordered Sit to be placed on lifetime supervised release following his eventual release from prison and scheduled a restitution hearing for November 8 in this case.
Sit pleaded guilty on March 29 to one count of possession of child pornography.
“This defendant was every parent’s nightmare – rather than care for the safety and well-being of students, he exploited them in the most abhorrent way,” said United States Attorney Martin Estrada. “It is important that we send a strong message of zero tolerance for those who take advantage of children. My office will continue to prosecute offenders who prey on our youth to the fullest extent allowed by law.”
According to Sit’s plea agreement, beginning in at least February 2020, when he was employed as a teacher at Beckman High School in Irvine, Sit began secretly installing hidden cameras in restrooms located on campus. After installing the cameras, Sit regularly reviewed the videos captured by the cameras and downloaded the videos that were of interest to him.
In May 2022, while serving as the high school robotics team coach, Sit placed a hidden camera in the restroom of a hotel room where minor students on the robotics team were staying during a robotics tournament in Texas. From 2020 to 2023, Sit viewed and downloaded hundreds of images of children and adults, in various states of undress, using restrooms.
In February 2023, after the cameras had been discovered, law enforcement seized several digital devices from Sit’s home. Sit owned and was the sole user of all these devices. Officers also seized two external storage drives from the cameras that Sit had secretly installed at Beckman High School.
A forensic review of the various digital devices identified dozens of images and videos of child pornography, including images and videos that Sit had recorded himself of children using restrooms in various states of undress. The victims that Sit recorded without their consent were under the age of 18, and some of the victims were under the age of 12.
A search of a Sit-owned hard drive resulted in the seizure of at least 22 images and one video of CSAM, including several depicting a toddler engaged in sexual activity. The search of a separate Sit-owned hard drive contained at least 150 images and four videos of CSAM.
Sit admitted in his plea agreement to knowingly possessing images and videos of minors under the age of 12 engaging in sexual conduct.
The Orange County District Attorney’s Office is pursuing criminal charges against Sit in Orange County Superior Court concerning the adult victims in the hidden videos matter. The charges filed in state court concerning Sit’s minor victims was dismissed so the federal case could proceed.
Homeland Security Investigations and the Irvine Police Department investigated this matter.
Assistant United States Attorney Melissa S. Rabbani of the Santa Ana Branch Office prosecuted this case.
Former Michigan Police Officer Sentenced for Civil Rights Violation for Violently Assaulting ArresteeRead the Press Release
DETROIT – A former Warren, Michigan, police officer was sentenced today to one year and one day in prison for using excessive force against an arrestee while fingerprinting and photographing him at a local detention facility.
Matthew Rodriguez, 49, pleaded guilty in March to one count of deprivation of rights under color of law. According to court documents, on June 13, 2023, then-officer Rodriguez was fingerprinting and photographing an arrestee, J.S., who had recently been brought to the Warren Police Department’s jail for processing. During fingerprinting, Rodriguez and J.S. got into a verbal argument and began trading insults. In retaliation for one of J.S.’ remarks, Rodriguez struck J.S. multiple times and slammed J.S.’ head against the fingerprint room floor.
In connection with his plea, Rodriguez admitted to writing a report in which he made false statements about the incident and omitted material information in an attempt to cover up his crime.
“This defendant swore to protect and serve his community, but instead he abused his power by violently assaulting an arrestee,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence should serve as a reminder to all law enforcement that a badge is not a license to answer verbal insults with physical violence and excessive force. The Justice Department will continue to protect the constitutional rights of all Americans and to hold law enforcement accountable when they violate federal civil rights law.”
“Police officers have a duty to protect the civil rights of everyone in our community, including individuals in their custody,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Physical abuse of detainees is completely unacceptable and undermines public confidence in the integrity of law enforcement. My office is committed to accountability for all public servants who abuse the public trust, and today’s sentence is a powerful reflection of that commitment.”
“When it comes to the public’s trust, law enforcement officers are held to the highest ethical standards,” said Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office. “The sentencing of former police officer Matthew Rodriguez should serve as a stark reminder that the use of excessive force and deliberate false statements are not only criminal acts but also tarnishes the hard work and dedication of law enforcement officers who serve with integrity every day. This sentencing would not have been possible without the assistance of the Warren Police Department, the U.S. Attorney’s Office of Eastern Michigan and the Justice Department’s Civil Rights Division.”
The FBI Detroit Field Office investigated the case, with assistance from the Warren Police Department’s Internal Affairs Unit.
Assistant U.S. Attorney Robert Moran for the Eastern District of Michigan and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division prosecuted the case.
Former Michigan Police Officer Sentenced for Civil Rights Violation for Violently Assaulting ArresteeRead the Press Release
A former Warren, Michigan, police officer was sentenced today to one year and one day in prison for using excessive force against an arrestee while fingerprinting and photographing him at a local detention facility.
Matthew Rodriguez, 49, pleaded guilty in March to one count of deprivation of rights under color of law. According to court documents, on June 13, 2023, then-officer Rodriguez was fingerprinting and photographing an arrestee, J.S., who had recently been brought to the Warren Police Department’s jail for processing. During fingerprinting, Rodriguez and J.S. got into a verbal argument and began trading insults. In retaliation for one of J.S.’ remarks, Rodriguez struck J.S. multiple times and slammed J.S.’ head against the fingerprint room floor.
In connection with his plea, Rodriguez admitted to writing a report in which he made false statements about the incident and omitted material information in an attempt to cover up his crime.
“This defendant swore to protect and serve his community, but instead he abused his power by violently assaulting an arrestee,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence should serve as a reminder to all law enforcement that a badge is not a license to answer verbal insults with physical violence and excessive force. The Justice Department will continue to protect the constitutional rights of all Americans and to hold law enforcement accountable when they violate federal civil rights law.”
“Police officers have a duty to protect the civil rights of everyone in our community, including individuals in their custody,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Physical abuse of detainees is completely unacceptable and undermines public confidence in the integrity of law enforcement. My office is committed to accountability for all public servants who abuse the public trust, and today’s sentence is a powerful reflection of that commitment.”
“When it comes to the public’s trust, law enforcement officers are held to the highest ethical standards,” said Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office. “The sentencing of former police officer Matthew Rodriguez should serve as a stark reminder that the use of excessive force and deliberate false statements are not only criminal acts but also tarnishes the hard work and dedication of law enforcement officers who serve with integrity every day. This sentencing would not have been possible without the assistance of the Warren Police Department, the U.S. Attorney’s Office of Eastern Michigan and the Justice Department’s Civil Rights Division.”
The FBI Detroit Field Office investigated the case, with assistance from the Warren Police Department’s Internal Affairs Unit.
Assistant U.S. Attorney Robert Moran for the Eastern District of Michigan and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division prosecuted the case.
Former Correctional Officer Sentenced to More Than Six Years in Prison Following Federal Drug ConvictionRead the Press Release
MONTGOMERY, ALABAMA – Today, Acting United States Attorney Kevin P. Davidson announced the sentencing of a Montgomery, Alabama man for his role in a conspiracy to bring illegal drugs into a prison. On September 9, 2024, a federal judge sentenced 46-year-old Henry Guice, Jr., a former correctional officer with the Alabama Department of Corrections (ADOC), to 75 months in prison. Federal inmates are not eligible for parole.
According to court records and statements made in open court, on June 20, 2023, an ADOC officer and his canine conducted a sniff search of all vehicles in the parking lot of Staton Correctional Facility in Elmore County. The dog alerted on Guice’s vehicle, who was working inside the facility at the time. ADOC officials summoned Guice from his post and conducted a search of the vehicle. Investigators found three bags of suspected methamphetamine inside Guice’s car and two additional bags in his pockets. Drug laboratory analysis confirmed the substance to be methamphetamine.
During his plea hearing in May of this year, Guice admitted that he possessed methamphetamine with the intent to distribute the illegal drug and that he conspired with another individual for that purpose. A federal grand jury also indicted 48-year-old Brad Elliot Gordon, who was an inmate at Staton in June 2023, for his alleged role in the conspiracy. Gordon’s trial is scheduled for February 3, 2025. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Drug Enforcement Administration and the ADOC Law Enforcement Services Division investigated this case, which Assistant United States Attorney Mark E. Andreu prosecuted.
Former Bronx Public Charter School Teacher Sentenced to 30 Years in Prison for Sexual Abuse of Five Former StudentsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that JESUS CONCEPCION was sentenced to 30 years in prison by U.S. District Judge Loretta A. Preska in connection with his sexual abuse of five minor victims who had been his students. CONCEPCION previously pled guilty to five counts of child enticement, four counts of transportation of a minor with intent to engage in illegal sexual activity, and one count of travel with intent to engage in illegal sexual activity with a minor.
U.S. Attorney Damian Williams said: “Today, Jesus Concepcion was sentenced to decades in prison for his horrific exploitation of children placed into his care as students. The victims of these crimes have waited almost twenty years for Concepcion to be held accountable for the devastating harm and trauma he inflicted on them and their families. Today’s sentencing is a reminder that it is never too late for justice to be served and that the Southern District of New York will work tirelessly to protect children from abuse and exploitation.”
According to the Superseding Indictment and statements made in court and public filings:
CONCEPCION was a music teacher and orchestra instructor at a public charter middle school located in the Bronx, New York (“School-1”) from in or about 2000 up to and including in or about 2007. During that same period, CONCEPCION abused his position as a teacher to induce and attempt to induce five of his students (“Minor Victim-1,” “Minor Victim-2,” “Minor Victim-3,” “Minor Victim-4,” and “Minor Victim-5,” and together the “Minor Victims”) to engage in sexual acts. The Minor Victims were as young as 12 years old at the time of the abuse.
To carry out his sexual abuse of the Minor Victims, CONCEPCION singled out the Minor Victims for personal attention; he gave them money, clothing, jewelry, and other gifts, and he provided certain Minor Victims with alcohol to facilitate the abuse. He persuaded the Minor Victims to believe that they were in romantic relationships with him and provided certain Minor Victims with cellphones so that he could communicate with them to arrange sexual encounters.
CONCEPCION engaged in sexual acts including, oral and vaginal sex, with Minor Victim-1, Minor Victim-2, Minor Victim-3, and Minor Victim-4 in various locations on multiple occasions, including in School-1’s music room, in the back room of School-1’s auditorium, in his car, at motels, and at his residences. On numerous occasions, CONCEPCION brought Minor Victims from School-1 or other locations in the Bronx to motels in New Jersey to sexually abuse them. On at least one occasion, after Minor Victim-1 graduated from middle school, CONCEPCION traveled to Minor Victim-1’s high school in Connecticut to have sexual intercourse with her. CONCEPCION also paid, on multiple occasions, for Minor Victim-2 to travel from her high school in Pennsylvania to visit him in New York, where he had sexual intercourse with her. To continue his abuse, CONCEPCION threatened to physically harm Minor Victim-3 and her family if she told anyone about his sexual abuse of her and her younger sister, Minor Victim-4.
CONCEPCION similarly pursued Minor Victim-5 and sent hundreds of text messages over the course of several months to Minor Victim-5, who was then 13 years old, leading her to believe that they were in a romantic relationship. CONCEPCION arranged to meet Minor Victim-5 during school hours at School-1 and kissed Minor Victim-5 on the mouth. The abuse stopped only after Minor Victim-5’s parents discovered CONCEPCION’s communications and reported him.
* * *
In addition to the prison term, CONCEPCION, 51, of Simpsonville, South Carolina, was sentenced to 10 years of supervised release and ordered to pay a total of $1000 in assessments and restitution in an amount to be determined.
Mr. Williams praised the efforts of the Federal Bureau of Investigation (“FBI”) and the New York City Police Department (“NYPD”) for their outstanding work in this matter, particularly the FBI-NYPD New York Child Exploitation and Human Trafficking Task Force.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Camille L. Fletcher, Alexandra S. Messiter, and Jacqueline Kelly are in charge of the prosecution.
Federal Prosecutors Highlight Efforts to Stop Rising Mail Thefts and Prosecute OffendersRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office has intensified federal efforts to address the surge in mail thefts by increasing the prosecution of cases involving stolen mail, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Federal prosecutors and investigators are also urging residents and businesses to take proactive measures to prevent thefts and report stolen mail promptly.
“Mail theft is not a victimless crime. Not only does it disrupt the delivery of important mail, but it can be a conduit to identity theft and financial fraud, with significant consequences for victimized individuals and businesses,” said U.S. Attorney King. “My Office is committed to protecting and securing our postal system, but we also need individuals and businesses to remain vigilant and take steps to secure their mail. Working together, we can stop mail thefts and uphold the integrity of our postal services.”
The U.S. Attorney’s Office has brought charges and secured convictions against defendants for crimes related to mail theft. The cases involve mail stolen from residential and business mailboxes and mail processing centers, used to commit financial fraud, bank fraud, and identity theft. Among the defendants charged are former postal employees, who misused their position and access to commit mail theft and engage in criminal schemes involving stolen mail.
“The safety and security of the U.S. mail and its customers are core to the mission of the U.S. Postal Inspection Service,” said Inspector-in-Charge Tommy D. Coke of the Atlanta Division. “Mail theft can have devasting consequences for victimized individuals and businesses. This effort would not be successful without the cooperation between our federal, state, and local law enforcement counterparts. We will continue to work collectively to pursue criminals who victimize postal customers.”
“We appreciate the outstanding effort by both our law enforcement partners and the Department of Justice,” said Jeffrey Krafels, Special Agent in Charge of the U.S. Postal Inspection Service, Office of the Inspector General (USPS-OIG). “The vast majority of Postal Service employees are honest, hardworking individuals who would not violate the public’s trust in this manner. An employee who decides otherwise, will be aggressively investigated by OIG Special Agents. These cases serve as an excellent example of the successful collaboration between the USPS-OIG, our federal and state law enforcement partners, and the U.S. Attorney’s Office to pursue and prosecute Postal Service employees and their co-conspirators involved in criminal activity.”
Examples of recent charges brought by the U.S. Attorney’s Office include:
U.S. v. Miguel Bridges and U.S. v. Jaleesa Bridges and Ryan Bridges – Miguel Bridges, 34, of Charlotte, worked as a postal employee at a mail distribution center in Charlotte. Today, he pleaded guilty in federal court to conspiracy to commit offense against the United States for stealing cell phones from the U.S. Postal Service (USPS) and selling them for profit. Jaleesa Bridges, 36, of Charlotte, and Ryan Bridges, 32, of Florence, South Carolina, were charged separately in August 2024, with conspiracy to commit wire fraud and possession of stolen mail. Their charges are still pending. According to allegations in the charging documents, Miguel Bridges took advantage of his position as a postal employee to open mail parcels and steal cellular phones, which he and his co-conspirators then sold to ecoATM automated kiosks and other locations, as well as to third parties. During the conspiracy, it is alleged that more than 1,400 stolen cell phones were sold for approximately $400,000.
U.S. v. John Davis – On August 28, 2024, John Calvin Davis, III, 28, of Charlotte, was sentenced to 18 months in prison and three years of supervised release for executing a scheme involving stolen checks. Court documents show that, from August 2022 to January 2023, Davis obtained approximately 50 checks that were stolen from USPS mail collection boxes in Charlotte. The defendant then fraudulently endorsed the stolen checks, used ATMs to deposit the checks into bank accounts he controlled, and quickly withdrew the funds via ATMs or mobile transfers before the victims or the bank discovered the checks were stolen. Through this scheme, Davis fraudulently obtained $304,355.56 in fraudulent proceeds.
U.S. v. Quadarius Thomas – On August 7, 2024, Quadarius Thomas, 30, of Charlotte, pleaded guilty to one count of possession of stolen mail, and two counts of possession of a firearm by a convicted felon. Court records show that, in December 2023, Thomas had in his possession a U.S. Treasury Check that had been mailed to a victim company. The check was in the amount of $2,463,923.52, and it had been stolen from a letter box or post office. Thomas also pleaded guilty to possession of a firearm by a felon. Court records show that Thomas possessed two firearms despite having prior criminal convictions that prohibit him from possessing firearms. Thomas is currently in federal custody and is awaiting sentencing.
U.S. v. Jessica Sowell – On August 5, 2024, Jessica Bailey Sowell, 31, of Charlotte, pleaded guilty to bank fraud, aggravated identity theft, and possession of a firearm by a convicted felon. Court records show that, from March 2023 to February 2024, Sowell executed an identity theft and bank fraud scheme using personal identifying information (PII) of identity theft victims. Sowell obtained the PII through various means, including stealing mail, from the internet, and other sources. Sowell used the stolen PII to create fraudulent identification documents which she used at banks, hotels, and retail stores in order to obtain money and merchandise, and to rent hotel rooms and cars. During that time, Sowell also illegally possessed a firearm. Sowell is currently detained. A sentencing hearing has not been set.
U.S. v. Douglas Gumbs – On August 1, 2024, Douglas Gumbs, 39, of Charlotte, was sentenced to 36 months in prison and three years of supervised release for bank fraud. Court records show that, from 2022 to 2023, Gumbs conspired with others to steal large quantities of U.S. mail from residential and business mailboxes. The stolen mail included business and individual checks, credit cards, tax forms, bank and other financial statements, packages, as well as victims’ PII. Gumbs carried out the fraud by altering the amounts of the stolen checks and changing the names of the payees to his own name, then cashing the stolen checks. In other instances, Gumbs obtained stolen blank checks and wrote the checks to himself. Gumbs also created false identification documents, including drivers’ licenses, that contained his picture with the names and drivers’ license numbers of identity theft victims, which he used in furtherance of the scheme.
U.S. v. Tressa Baucom, et al. – In July 2024, Jennings Peter Keziah, also known as Christian Thomas Carpenter, 37, of Stanley, N.C., was sentenced to 30 months in prison followed by two years of supervised release for conspiracy to possess stolen mail, for stealing thousands of pieces of mail in North Carolina and South Carolina. Keziah’s co-defendant, Tressa Nichole Baucom, 31, of Charlotte, has pleaded guilty to the same offense and is awaiting sentencing. According to court records, from October to December 2021, the defendants executed a mail theft scheme that targeted residential mailboxes in Charlotte and Gastonia, N.C., and York County, S.C. Over the course of the scheme, Baucom and Keziah allegedly stole more than 3,700 pieces of mail, including credit cards, checks, gift cards, driver’s licenses, bank statements and a passport. Court records show that the defendants used the stolen cards for personal expenditures, including to make purchases at Walmart, Academy Sports & Outdoors, Quick Trip, and Best Buy.
U.S. v. Nakedra Shannon, et. al. – Nakedra Shannon, 30, Donnell Gardner, 28, and Desiray Carter, 30, all of Charlotte, were indicted for a scheme involving stolen checks. In July 2024, Gardner was sentenced to 54 months in prison, after he pleaded guilty to conspiracy to commit financial institution fraud and theft of government money, property, or records. According to court records, Shannon, who was employed by the USPS as a mail processing clerk, stole incoming and outgoing checks from the U.S. mail, which Shannon, Gardner, and Carter then sold to other individuals. Over the course of the conspiracy, the defendants stole checks totaling more than $24 million, including more than $12 million in stolen checks which were posted for sale on the Telegram channel OG Glass House, and more than $8 million in stolen U.S. Treasury checks. Shannon and Carter have pleaded guilty to conspiracy to commit financial institution fraud and theft of government money, property, or records and are awaiting sentencing.
U.S. v. Montavius Hancock, et al. – In May 2024, a federal grand jury charged Montavius Hancock, 28, and Marquez Gaston, 28, both of Charlotte, with conspiracy to commit offense against the United States for theft of U.S. mail and unlawful possession of USPS universal keys, also known as “arrow keys,” amongst other charges. According to allegations in the indictment, Gaston used his position as a USPS employee to steal the arrow keys, which he then sold to other individuals, including to Hancock. Hancock and others used the arrow keys to steal U.S. mail, including checks and bank cards, from USPS mail receptacles. During the conspiracy, Hancock obtained checks with a face value of more than $400,000. Hancock pleaded guilty to conspiracy to commit offense against the United States and is awaiting sentencing. The charges against Gaston are pending.
U.S. v. Jakia McMorris – In April 2024, Jakia McMorris, 33, of Charlotte pleaded guilty to conspiracy to commit bank fraud for stealing more than $40,000 in checks, including checks stolen from the U.S. mail. According to court records, McMorris was a USPS employee. On or around September 13, 2021, McMorris reported that, while she was delivering mail, she lost a USPS universal key that could open many U.S. mailboxes. After that day, McMorris stopped reporting for work at the USPS. During the scheme, McMorris’s co-conspirators used the stolen universal USPS key to open multi-unit outdoor mailboxes in Charlotte and steal mail. The stolen mail included business checks, which were deposited into various bank accounts, including in bank accounts in McMorris’s name. The co-conspirators then quickly withdrew the cash from the accounts before the banks detected the fraud. McMorris received a portion of the funds as payment for using her bank accounts to perpetuate the scheme. McMorris is released on bond and is awaiting sentencing.
U.S. v. Kyree Corbett – In February 2024, Kyree Jamayl Corbett, 23, of Charlotte, was sentenced to 78 months in prison, followed by two years of supervised release for conspiracy and robbery of property of the United States. Court records show that, in December 2021, Corbett participated in a robbery at gunpoint of a U.S. postal employee, using the threat of force to steal a USPS universal key. Corbett and his co-conspirators then used the key on multiple occasions to steal large quantities of mail from U.S. Postal collection boxes throughout the Charlotte area. Corbett and his co-conspirators would then open and remove the contents of the stolen mail, which included individual and business checks. David Miller, a co-conspirator in Corbett’s mail theft conspiracy, was sentenced to 14 months in prison in March 2023.
The U.S. Attorney’s Office advises the public to take the following steps to protect their mail and avoid becoming a victim of mail theft:
- Promptly Retrieve Mail: Collect your mail daily and avoid leaving it in the mailbox overnight.
- Secure Mailboxes: Use secure, lockable mailboxes for incoming and outgoing mail.
- Inquire About Overdue Mail: If you have not received valuable or important mail you’re expecting, contact the sender to inquire about it.
- Don’t Send Cash: Avoid mailing cash, gift cards, or other items of value. When doing, so utilize the package tracking and signature confirmation options.
- Hold Mail When Away: Use the USPS Hold Mail service when you are out of town.
- File a Change of Address: When moving, file a change of address with USPS.
- Report Suspicious Activity: Immediately report any suspicious individuals or activities near mailboxes to local law enforcement.
- Monitor Financial Statements: Regularly review bank and credit card statements for any unusual activity.
- Sign up for Informed Delivery and get daily digest emails that preview your mail and packages scheduled arriving soon.
Customers are encouraged to report stolen mail as soon as possible by submitting an online complaint to the Postal Inspection Service at www.uspis.gov/report or calling 877-876-2455.
Additionally, report the theft to your local police department to ensure they are aware of potential criminal activity in your area. Individuals are also encouraged to report allegations of Postal Service employee misconduct, including attempts to corrupt a Postal Service employee, to the USPS OIG at 1-888-877-7644 or www.uspsoig.gov.
Federal Inmate Arrested for Forcible Assault on Correctional Officers and Possession of ContrabandRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Muller Vedrine (33, Miami) on a two-count indictment charging him with assaulting, resisting, and impeding officers of the United States, and possession of contraband by a federal inmate. If convicted, Vedrine faces up to 14 years in federal prison.
According to court records, Vedrine is a federal inmate at the Coleman Federal Correctional Complex in Sumter County. On March 10, 2024, during a routine search of Vedrine’s cell, correctional officers observed Vedrine with a cellphone in his hand. When the officers ordered Vedrine to hand over the contraband phone, he instead punched a correctional officer in the chest and then began smashing the phone. Once the officers subdued Vedrine, they also discovered buprenorphine, a Schedule III controlled substance, hidden with the legal documents in his prison cell.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being prosecuted as part of a United States Department of Justice task force aimed at rooting out contraband and misconduct in the Federal Bureau of Prisons (FBOP). The task force was led by the FBOP and the DOJ Office of the Inspector General, with support from the Federal Bureau of Investigation, the Drug Enforcement Administration, and the United States Attorney’s Office for the Middle District of Florida. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
Deerfield Beach Man Sentenced to More Than 14 Years in Federal Prison for Armed Bank RobberyRead the Press Release
Orlando, FL – U.S. District Judge Anne Conway today sentenced Johnson Saint-Louis (39, Deerfield Beach) to 14 years and 3 months in federal prison for bank robbery and brandishing a firearm in furtherance of a crime of violence. The court also ordered Saint-Louis to forfeit a Ruger firearm and assorted ammunition, which were used during the commission of the offense. A jury had found Saint-Louis guilty on May 30, 2024.
According to testimony and evidence presented at trial, Saint-Louis was a former ATM technician who traveled around the southeast tampering with ATMs serviced by his former employer. On February 16, 2021, Saint-Louis robbed a bank in Longwood. Saint-Louis visited the location’s drive-thru ATM, manipulated the ATM in a way that caused it to malfunction, and then waited for the ATM technician to arrive. Once the technician arrived and opened the ATM and vault containing the cash, Saint-Louis, dressed in dark clothing and wearing a mask and gloves to conceal his identity, approached from a hole in the parking lot perimeter fence. Saint-Louis confronted the ATM technician with a firearm, forcing him to his knees to wait out the robbery, while Saint-Louis moved the cash from the vault cassettes into a backpack. In total, Saint-Louis stole approximately $135,530 from the ATM.
As part of the FBI’s investigation into the bank robberies, Saint-Louis was surveilled by deputies from Seminole County Sheriff’s Office. On November 4, 2021, deputies observed Saint-Louis traveling to various bank locations in Seminole County. Deputies eventually stopped Saint-Louis, and during that traffic stop, they observed that Saint-Louis had a firearm inside his car with black tape covering its serial numbers, as well as several pieces of paper listing bank branch locations in Jacksonville. The listed bank branches were annotated with whether the ATM at each location was manufactured by Saint-Louis’s former employer or by another company, along with other notes.
This case was investigated by the Federal Bureau of Investigation, the Seminole County Sheriff’s Office, and the Tallahassee Police Department. It was prosecuted by Assistant United States Attorneys Rachel S. Lyons and Chauncey A. Bratt.
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.
Cottage Grove Felon Charged with Conspiracy to Distribute Methamphetamine, Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Cottage Grove man has been charged in a four-count indictment with conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm as a felon, and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Andrew M. Luger.
According to court documents, on July 16, 2024, law enforcement executed a search warrant at the residence of Jonathan Henry Valencour, 44, in Cottage Grove. Law enforcement seized approximately 84.4 kilograms of methamphetamine from a large trash can in the garage of the residence. Law enforcement also seized a firearm with an attached silencer. Because Valencour has prior felony convictions in Hennepin and Washington Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
The indictment charges Valencour with conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm as a felon. Valencour was arraigned yesterday in U.S. District Court before Magistrate Judge John F. Docherty. He has been ordered to remain in custody pending further proceedings.
This case is the result of an investigation conducted by the Drug Enforcement Administration, the Washington County Drug Task Force, and the Cottage Grove Police Department.
Assistant U.S. Attorney Thomas M. Hollenhorst is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Convicted Felon Indicted for Possessing a FirearmRead the Press Release
A federal grand jury returned an indictment today charging a Mississippi man with being a felon in possession of a firearm.
The indictment charges that, on or about June 28, Marquez Dante Scott, 21, of Jackson, knowingly possessed a firearm after he was previously convicted of a crime punishable for a term exceeding one year.
If convicted, Scott faces a maximum penalty of 15 years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Todd W. Gee for the Southern District of Mississippi made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, with assistance from the Capitol Police Department.
Trial Attorney Lakeita F. Rox-Love of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Matt Allen for the Southern District of Mississippi are prosecuting the case.
This case is brought as part of the Criminal Division’s Violent Crime Initiative to prosecute violent crimes in Jackson and the surrounding areas. The Criminal Division and the U.S. Attorney’s Office for the Southern District of Mississippi have partnered, along with local, state, and federal law enforcement agencies, to address violent crimes committed by gang members and associates through the enforcement of federal laws and use of federal resources to prosecute the violent offenders and prevent further violence.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Convicted Felon Indicted for Possessing a FirearmRead the Press Release
WASHINGTON - A federal grand jury returned an indictment today charging a Mississippi man with being a felon in possession of a firearm.
The indictment charges that, on or about June 28, Marquez Dante Scott, 21, of Jackson, knowingly possessed a firearm after he was previously convicted of a crime punishable for a term exceeding one year.
If convicted, Scott faces a maximum penalty of 15 years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Todd W. Gee for the Southern District of Mississippi made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, with assistance from the Capitol Police Department.
Trial Attorney Lakeita F. Rox-Love of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Matt Allen for the Southern District of Mississippi are prosecuting the case.
This case is brought as part of the Criminal Division’s Violent Crime Initiative to prosecute violent crimes in Jackson and the surrounding areas. The Criminal Division and the U.S. Attorney’s Office for the Southern District of Mississippi have partnered, along with local, state, and federal law enforcement agencies, to address violent crimes committed by gang members and associates through the enforcement of federal laws and use of federal resources to prosecute the violent offenders and prevent further violence.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Columbia Man Sentenced to Federal Prison for Unlawful Possession of a FirearmRead the Press Release
COLUMBIA, S.C. — Leroy Antonio Belin, 31, of Columbia, was sentenced to more than eight years in federal prison after pleading guilty to being a felon in possession of a firearm and possession with intent to distribute a controlled substance.
Evidence presented to the court showed that on July 6, 2023, following a traffic stop, officers with the Columbia Police Department discovered Belin in possession of a loaded firearm, ammunition, marijuana, psilocybin mushrooms, ecstasy, and oxycodone. The firearm in Belin's possession was reported stolen from Charlotte, North Carolina. As a result of prior felony convictions, Belin was prohibited from possessing firearms.
Belin has previous convictions for attempted murder, discharging firearms into a dwelling, common law robbery, strong arm robbery, and two counts possession of a firearm or ammunition by a person convicted of a violent felony.
United States District Judge Mary Geiger-Lewis sentenced Belin to 100 months' imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbia Police Department. Assistant U.S. Attorney Ariyana Gore prosecuted the case.
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Columbia Man Sentenced for Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man was sentenced in federal court today for illegally possessing firearms.
Shaune Aaron Price, 36, was sentenced by U.S. District Judge Brian C. Wimes to a total sentence of 10 years and 10 months in federal prison without parole.
On Nov. 7, 2023, Price pleaded guilty to two counts of being a felon in possession of a firearm.
A detective with the Jefferson City, Mo., Police Department recognized Price on March 23, 2022, and confirmed he had a warrant for his arrest. Officers stopped the bus Price was riding and arrested him. Price had a tan duffle bag that contained a loaded Glock 9mm semi-automatic handgun.
The ATF National Integrated Ballistic Information Network (“NIBIN”) conducted an analysis that linked the handgun to three separate events, including a shooting outside Gold Bar in downtown Columbia on Nov. 6, 2021, and a domestic assault on Jan. 1, 2022.
Investigators also found a video on Price’s cell phone that depicts him holding a Glock .40-caliber handgun on May 31, 2021. According to the government evidence, Price’s cell phone and Facebook records indicate he possessed at least 11 firearms. Investigators also discovered several messages in which Price bragged about being involved in “shoot-outs,” including one message about being involved in three “shoot-outs” in the past nine days.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Price has prior felony convictions for attempting to carry a concealed weapon and carrying a concealed weapon.
This case was prosecuted by Supervisory Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson City, Mo., Police Department.
Project Safe Neighborhoods
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.
Colorado Man Sentenced for Cyberstalking Three Individuals in Hawaii and Obstructing JusticeRead the Press Release
A Colorado man was sentenced yesterday to eight years and one month in prison followed by three years of supervised release for cyberstalking and obstruction of justice offenses committed in Hawaii.
According to court documents, from May 2022 to August 2022, John B. Hart, 54, of Louisville, while living in Hawaii, engaged in a cyberstalking campaign to harass and intimidate his former girlfriend, Jane Doe 1; her former partner, John Doe 1; and her then-partner, John Doe 2. Hart frequently posed as John Doe 1 while targeting his other two victims, and also pretended to target himself in an attempt to deflect attention away from himself and falsely implicate John Doe 1. Hart hid his true identity by using multiple “burner apps” to generate dozens of fake phone numbers that he used to message his victims. Hart also falsely reported the conduct to local and federal law enforcement authorities and others, claiming that John Doe 1 was responsible and posed a genuine and serious threat to Hart and others. Two days after being questioned by federal agents, Hart deleted one of his personal e-mail accounts in an attempt to obstruct the ongoing investigation.
Hart pleaded guilty in April to three counts of cyberstalking and one count of obstruction of justice. In his plea agreement, Hart admitted to posing as John Doe 1 and committing acts directed at each of his three victims, including, among other things: (1) sending communications to Jane Doe 1 encouraging her to kill herself; (2) sending communications to Jane Doe 1, her family members, and her associates claiming that John Doe 2 was a human trafficker who may have kidnapped Jane Doe 1; (3) sending communications to Jane Doe 1’s family members, John Doe 2, and their associates that contained express or implied threats to kill, kidnap, rape, and otherwise injure Jane Doe 1; (4) creating online dating profiles in Jane Doe 1’s name, and sending messages causing multiple men to appear at Jane Doe 1’s workplace; (5) sending communications to John Doe 2 claiming to have sexual photos and videos of Jane Doe 1 and threatening to post them online and distribute them to her friends and family; and (6) spray-painting Jane Doe 1’s vehicle and placing metal spikes on the ground near her tires, while her vehicle was parked outside of her place of employment.
Hart has been detained since his August 2023 arrest in Colorado.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, U.S. Attorney Clare E. Connors for the District of Hawaii, Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office, and Acting Assistant Director James C. Barnacle Jr. of the FBI’s Criminal Investigative Division made the announcement.
The FBI investigated the case.
Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Sara D. Ayabe and Aislinn Affinito for the District of Hawaii prosecuted the case.
Child Sex Predator Sentenced to 30 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Sean E. Karjala, 53, formerly of Red Bluff, was sentenced today by U.S. District Judge John A. Mendez to 30 years in prison and a life term of supervised release for production of child sexual abuse material, U.S. Attorney Phillip A. Talbert announced. Karjala’s federal sentence will be served concurrently with his state sentence of 36 years to life for the attempted murder of a California Highway Patrol Officer.
According to court documents, in 2013, Karjala engaged in a months-long inappropriate sexual relationship with a minor female victim after she answered an online Craigslist advertisement. Karjala repeatedly raped the minor victim and subjected her to bondage and other physical abuse. Karjala manipulated the victim into sexual activity with another female and took photos of the activity with his cellphone camera.
After Karjala communicated with an undercover police officer whom he believed was another minor female, investigators searched Karjala’s residence. During the search, investigators found multiple sexual bondage materials including a matching pink and white ankle and wrist cuff set and a collar that Karjala had described in conversations with the undercover officer. They also found clothing commonly associated with younger females and a photo of Karjala and the victim. In Karjala’s vehicle, investigators found a duffle bag containing a bondage manual, condoms, and a local high school counseling slip with the victim’s name. Investigators also located numerous images on Karjala’s cellphone of the victim engaged in sexual acts with another female.
This case was the product of an investigation by the Tehama County District Attorney's Office and the Federal Bureau of Investigation. Assistant U.S. Attorneys Heiko P. Coppola and Roger Yang prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Chattanooga Man Sentenced to 60 Months in Prison for Defrauding Elderly Widow with Dementia of $1.2 MillionRead the Press Release
NASHVILLE – Karl Hampton, 65, of Chattanooga, Tennessee, was sentenced to 60 months in prison, followed by 3 years of supervised release, and ordered to pay over $1.2 million in restitution for executing a scheme to defraud an elderly widow who had dementia, announced Henry C. Leventis, United States Attorney for the Middle District of Tennessee.
Hampton and his wife Deborah, both formerly of Franklin, Tennessee, were indicted in June 2021 on multiple counts of conspiracy and money laundering and Karl Hampton was also charged with eight counts of wire fraud. After a week-long jury trial in April 2023, Karl Hampton was convicted on all counts.
At trial, the evidence showed that Karl Hampton met the 86-year-old widow while he was working as an exterminator for a pest control company based in Nashville. Between January 2018 and February 2020, Karl Hampton tricked the woman into believing that he would care for her personally and financially. Hampton held himself out to the woman and others as her “personal representative,” her “son” or “godson,” and pretended that he was acting on her behalf. In April 2019, Hampton convinced her to sign over her Power of Attorney and to name him in her Revocable Living Trust and in her will. He then methodically drained the woman’s bank accounts, took out a $500,000 line of credit in her name, and amassed huge charges on her credit cards for his own personal expenses.
Some of the funds Hampton stole came from two investment accounts that belonged to the estate of the woman’s deceased sister. Those funds were supposed to be split between the woman and another individual. Instead, Hampton transferred the funds to himself.
In total, Hampton took more than $1.2 million. from the woman’s accounts in the form of checks, cashier’s checks, and bank transfers, cash withdrawals, and using the woman’s credit card for his own benefit. Hampton frequently purchased luxury items, including a car and a luxury SUV, and a 4.3-karat diamond ring that cost more than $21,000. Hampton often spent over $1,000 per day in cash buying lottery tickets.
Deborah Hampton pleaded guilty to one count of money laundering on February 13, 2023. She was sentenced to time served, 3 years of supervised release, and ordered to pay restitution in the amount of $21,000.
This case was investigated by the Federal Bureau of Investigation, Memphis Field Office, Nashville Resident Agency. Assistant U.S. Attorney Kathryn Booth prosecuted the case.
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Canadian Man Pleads Guilty to $1.4 Million Embezzlement SchemeRead the Press Release
BOSTON – A Canadian man pleaded guilty today in federal district court in Boston to embezzling more than $1.4 million from his employer and its clients.
Adil Rahman, 36, of Ontario, Canada, pleaded guilty to one count of wire fraud before United States Senior District Judge William G. Young, who scheduled sentencing for Dec. 9, 2024. Rahman was charged in July 2024.
Rahman worked in Ontario, Canada as a credit analyst for Company A – a subsidiary of a large electrical distribution and services company based in Pittsburgh. As part of his job, Rahman interacted with clients of Company A concerning invoices for the company’s services. Between November 2022 and December 2023, Rahman directed certain customers of Company A to pay their invoices via ACH transfers to his personal bank account, rather than to the account of Company A.
For example, in or about November 2022, Rahman sent an email to the accounts payable department of Company B – a nonprofit municipal corporation based in Hartford, Conn. – asking if the company would be interested in paying future invoices to Company A by ACH transfer rather than by check. When Company B agreed to do so, Rahman provided his personal account information to Company B. Thereafter, under the false impression that it was sending the money to Company A to pay the invoices it owed, Company B sent at least 15 ACH transfers to Rahman’s personal account between December 2022 and June 2023.
Likewise, in May 2023, Rahman emailed the accounts payable department at Company C – a privately held provider of corporate security systems based in Andover, Mass. – asking if Company C wished to pay future invoices by ACH transfer. Once again, when Company C agreed to do so, Rahman provided his personal bank account information and Company C thereafter made 11 ACH transfers to Rahman’s personal account between May 2023 and July 2023.
In total, through this scheme, Rahman defrauded Company A and its clients of more than $1.4 million.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division made the announcement. Assistant U.S. Attorney Stephen E. Frank, Chief of the Securities, Financial & Cyber Fraud Unit, is prosecuting the case.
Bureau of Indian Affairs Officer Faces Federal Charges for Sexual AssaultRead the Press Release
Spokane, Washington - A Federal Grand Jury has returned an indictment charging Darren Bowannie, age 34, with Deprivation of Rights Under Color of Law. Bowannie made his first appearance in Federal Court on Monday, September 9, 2024.
Bowannie was employed by the Bureau of Indian Affairs as a lead correctional officer. According to the indictment, Bowannie transported individuals who were in the custody of the Spokane Tribe of Indians and Bureau of Indian Affairs to and from the Colville Tribal Correctional Facility in Nespelem, Washington.
The indictment alleges that on February 9, 2024, Bowannie, who was working as a correctional officer for the Bureau of Indian Affairs (BIA) at the time, was transporting an individual from Wellpinit, Washington to Nespelem, Washington. In his role as a correctional officer, Bowannie’s duties included prisoner transport to and from the BIA’s jail in Wellpinit. During the transport, Bowannie allegedly threatened and sexually assaulted the individual he was transporting. If convicted, Bowannie faces a sentence of up to life in prison and up to 5 years of supervised release.
“Our society places significant trust in law enforcement. Every day we rely on law enforcement officers who put themselves at risk to keep our communities safe and uphold their oath to protect and serve. When law enforcement fails to uphold this trust, my office will carefully investigate allegations of wrongdoing and seek justice to reestablish trust, protect victims, and to keep our communities safe and strong," said U.S. Attorney Vanessa Waldref.
The FBI is investigating the case. Assistant United States Attorney Michael J. Ellis and Tim M. Durkin are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brothers sentenced to prison for federal drug trafficking and firearms convictionsRead the Press Release
RICHMOND, Va. – A Hopewell man was sentenced today to four years and six months in prison for being a felon in possession of a firearm and ammunition.
According to court documents, on Dec. 19, 2022, Virginia State Police (VSP) encountered Eric Michael Vaughan Jr., 32, in a Hopewell motel room when VSP executed a search warrant on the room. The room was rented by Vaughan’s brother, Quadir McKinnon, 34, of Hopewell, who previously sold 74.37 grams of cocaine, 4.43 grams of heroin, and 96.73 grams of methamphetamine to a confidential source. VSP recovered four firearms, 27.74 grams of cocaine, and 5.93 grams of a mixture containing heroin, cocaine, and fentanyl from the room.
On Jan. 18, 2023, VSP apprehended McKinnon during a traffic stop. Vaughan was in the vehicle with McKinnon. In plain view on the center console of the vehicle was a loaded 9mm handgun. When McKinnon stepped out of the vehicle, a backpack that had also been present in the motel room during the search warrant was tangled in his feet. Inside the backpack were 41.85 grams of cocaine and 6.99 grams of methamphetamine, a digital scale, baggies, and marijuana.
Under the front passenger seat, where Vaughan was sitting, was a loaded 9mm handgun and on the seat was a loose 9mm hollow-point round. In Vaughan’s pockets were .35 grams of a mixture of heroin, cocaine, and fentanyl and .76 grams of cocaine.
On July 16, 2012, Vaughan, armed with a sawed-off shotgun, and a co-defendant robbed individuals in a home in Petersburg. Vaughan was convicted of eleven felonies, including robbery, burglary, use of a firearm in commission of a felony, and abduction. Vaughan was sentenced to 13 years in prison. Less than two months after Vaughan was released from prison, Vaughan threw a firearm from the window of his vehicle as a VSP Trooper attempted to stop him for speeding. Vaughan was convicted of possession of a firearm by a felon, reckless driving, eluding police, and driving without a license. Vaughan was sentenced to two years and 8 months in prison. Vaughan was on pre-trial release for those charges when he was encountered in the motel room on Dec. 19, 2022, and when he was arrested with his brother on Jan. 18, 2023. As a previously convicted felon, Vaughan cannot legally possess a firearm or ammunition.
McKinnon pled guilty on Sept. 13, 2023, to possession with intent to distribute five grams or more of methamphetamine and possession with intent to distribute cocaine. On Jan. 31, McKinnon, a career offender, was sentenced to 14 years and seven months in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; James VanVliet, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after Vaughan was sentenced by U.S. District Judge Roderick C. Young.
Assistant U.S. Attorney Jessica L. Wright prosecuted the cases. Former Special Assistant U.S. Attorney Devon E. Schulz, an Assistant Attorney General with the Virginia Attorney General’s Office, assisted in the prosecution of this case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:23-cr-152 (Vaughan) and 3:23-cr-116 (McKinnon).
Brooklyn Park, Minnesota, Man Guilty of Distributing CocaineRead the Press Release
A man who conspired with others to distribute large quantities of cocaine that resulted in the death of a young Dubuque woman pled guilty today in federal court in Cedar Rapids.
Michael Samuel Knight, age 38, from Brooklyn Park, Minnesota, was convicted of one count of conspiracy to distribute 500 grams of more of cocaine within 1000 feet of several parks and schools in Dubuque, Iowa, between 2017 and April of 2021, that resulted in the death of a young Dubuque woman on February 14, 2021. Knight also pled guilty to personally distributing the cocaine on February 14, 2021, that caused the woman’s death.
At the plea hearing, Knight admitted he was a member of a conspiracy to distribute cocaine in the Dubuque area near numerous parks and schools. He admitted getting cocaine from the individual who brought it from Chicago, and then worked with others to distribute the cocaine to customers in Dubuque. On February 14, 2021, Knight distributed cocaine to a young woman in Dubuque who went home, used the cocaine and died.
Sentencing before United States District Court Chief Judge C.J. Williams will be set after a presentence report is prepared. Knight remains in custody of the United States Marshal pending sentencing. Knight faces a mandatory minimum sentence of 20 years imprisonment and a possible maximum sentence of life imprisonment, a $6,000,000 fine, and up to life on supervised release following any imprisonment. Knight will also be required to pay restitution to the family of the young woman who died using the cocaine distributed by him.
The case was prosecuted by Assistant United States Attorneys Patrick J. Reinert and Nicole Nagin and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department
of Justice through a cooperative effort of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Iowa Medical Examiner’s Office and the Dubuque Drug Task Force, comprised of Dubuque Police Department, Dubuque Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-01013.
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Boston Physician Resolves Allegations of Improper Prescribing Practices Involving Controlled SubstancesRead the Press Release
BOSTON – A physician who practiced at Brigham and Women’s Hospital has agreed to pay $25,000 in civil penalties to settle allegations that he violated the Controlled Substances Act by prescribing opioid controlled substances outside the usual course of professional practice.
As part of the settlement agreement, Dr. Edgar Ross, 70, Boston, admitted that, for one patient, he prescribed a mix of controlled substances, including opioids, without always appropriately documenting the risks. Ross also provided early refills in response to the patient’s requests. After multiple hospitalizations and an overdose, the hospital arranged for another physician to take over Ross’s treatment of the patient.
As part of the settlement, Ross entered into a Memorandum of Agreement with the DEA that requires him to work with an independent compliance monitor for three years.
“Safe prescribing of drugs—particularly opioids—is essential to patient and public safety and a priority for our office,” said Acting United States Attorney Joshua S. Levy. “This settlement is an example of how our office and the DEA work to ensure that doctors prescribe dangerous medications only when they are acting within the scope of proper professional practice and with appropriate safeguards in place to prevent and address abuse. We will continue to work with our partners at the DEA to protect patients and enforce the Controlled Substances Act.”
“DEA registrants are responsible for handling controlled substances responsibly and ensuring that complete and accurate records are being properly kept and accounted for in compliance with the Controlled Substances Act,” said Acting Special Agent in Charge Stephen Belleau, Drug Enforcement Administration, New England Field Division. “We are committed to working with our law enforcement and regulatory partners to ensure that these rules and regulations are followed.”
Under the Controlled Substances Act, physicians and other prescribers registered with the Drug Enforcement Administration (the DEA) may only issue prescriptions for a legitimate medical purpose and in the usual course of professional practice.
Acting United States Attorney Levy and DEA ASAC Belleau made the announcement today. Assistant U.S. Attorney Alexandra Brazier of the Affirmative Civil Enforcement Unit handled the case.
Behavioral Healthcare Company Executive Charged with Healthcare FraudRead the Press Release
BOSTON – The Chief Executive Officer of Dana Group Associates, who is also the former Chief Operating Officer of Prime Behavioral Health, was charged today in connection with a scheme to defraud health care benefit programs by directing false billing for patient visits.
Miguel Saravia, 42, was charged and has agreed to plead guilty to six counts of health care fraud. A plea hearing date has not been set.
According to the charging documents, from approximately 2017 to 2022, Saravia directed a group of individuals with no billing or medical training to enter Current Procedural Terminology codes (CPT) for therapy services that were not provided and to upcode CPT codes used for psychotherapy visits. It is further alleged that Saravia submitted, or directed the submission of, false claims for treatment that was not provided or for more complex and expensive treatment than was provided.The charge of health care fraud carries a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000, or twice the gross gain or loss from the offense. 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 U.S. Attorney Joshua S. Levy; Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Insurance Fraud Bureau Executive Director Anthony DiPaolo; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Kelly B. Lawrence and Mackenzie A. Queenin of the Health Care Fraud Unit and Lindsey Ross and Steven Sharobem of the Affirmative Civil Enforcement Unit are 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.
Arizona Man and Co-Defendants Facing Federal Charges for Roles in $178 Million COVID-19 Fraud ConspiracyRead the Press Release
PORTLAND, Ore.—A federal superseding indictment was unsealed Monday in the District of Oregon charging an Arizona man and three associates for conspiring with one another and others to devise and carry out a scheme that attempted to defraud the U.S. Small Business Administration out of at least $178 million in loans intended to help small businesses during the COVID-19 pandemic.
Eric Karnezis, 43, of Sedona, Arizona, is charged in the 23-count superseding indictment with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering, along with co-defendants Lynisha Wells, 47, and Nikkia Bennett, 43, both of Chula Vista, California, and Fredrico Williams, 48, of San Diego.
According to the superseding indictment, from January 2021 and continuing until at least March 2022, Karnezis carried out a scheme whereby he conspired with recruiters, including Williams, to gather fraudulent business information from customers, including Wells and Bennett, and used the information to submit fraudulent Paycheck Protection Program (PPP) loan applications to the U.S. Small Business Administration (SBA). To facilitate the scheme, Karnezis and his co-conspirators created fictious documents to support their fraudulent loan applications, including false payroll information and tax documents.
In total, Karnezis submitted or caused to be submitted at least 1,300 PPP applications, which together attempted to obtain at least $178 million from SBA. Approximately $105 million in loans were funded in response to these fraudulent applications.
On September 6, 2024, following his arrest in Sedona the day prior, Karnezis made his initial appearance in federal court in the District of Arizona and pleaded not guilty. In a detention hearing held today, Karnezis was released on conditions pending his arraignment in District of Oregon on September 24, 2024.
Bennett and Wells made their first appearances and were arraigned in the District of Oregon on August 23 and August 29, 2024, respectively. Both were released on conditions pending a three-day jury trial scheduled to begin on February 11, 2025. Williams will be arraigned in the District of Oregon on September 20, 2024.
Conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering are punishable by up to 20 years in federal prison, three years’ supervised release, and fines of up to $250,000 or twice the gross gains or losses resulting from the offense.
This case was investigated by the SBA Office of Inspector General (SBA-OIG), IRS Criminal Investigation (IRS:CI), the U.S. Treasury Inspector General for Tax Administration (TIGTA), and the Naval Criminal Investigative Service (NCIS). It is being prosecuted by Meredith Bateman and Robert Trisotto, Assistant U.S. Attorneys for the District of Oregon.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Since January 2021, more than 50 people have been charged in the District of Oregon for their roles in fraud schemes targeting federal COVID-19 relief programs. Together, these defendants attempted to steal more than $903 million in federal funds. 38 individuals have been convicted for their crimes and sentenced to a combined total of 631 months in federal prison and 1,194 months of probation and/or supervised release.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Monday 9 September 2024
Virginia Woman Sentenced for Role in Drug Trafficking OperationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Hailey Lynn Oliff, 28, of Mount Jackson, Virginia, was sentenced today to 66 months in federal prison for her role in a drug trafficking operation in Berkeley, Hampshire, and Morgan Counties.
According to court documents and statements made in court, Oliff was one of the distributors of the organization, selling methamphetamine, fentanyl, cocaine hydrochloride, and cocaine base.
Oliff will be on three years of supervised release following her prison sentence.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated. The task force consists of the Federal Bureau of Investigation, the Drug Enforcement Administration, the West Virginia State Police, the Hampshire County Sheriff’s Office, the Mineral County Sheriff’s Office, the Hardy County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department. The Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Berkeley County and Hampshire County Prosecuting Attorney’s Offices assisted.
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.
U.S. District Judge Gina M. Groh presided.
Press release on original indictment: www.justice.gov/usao-ndwv/pr/twenty-six-charged-eastern-panhandle-drug-trafficking-indictment
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U.S. Attorney Josh Hurwit to Co-Sponsor “United Against Hate” Summit in MoscowRead the Press Release
COEUR D’ALENE – U.S. Attorney Josh Hurwit, the Latah County Human Rights Task Force, the Nez Perce Tribe, the Moscow Human Rights Commission, DOJ Community Relations Service, and the FBI, are convening a United Against Hate summit on September 16 at The 1912 Center in Moscow. The event is free and is open to the public.
United Against Hate is an initiative launched by the Department of Justice focused on improving efforts to combat hate crimes and hate incidents through relationship building at the local level. Through this endeavor, the U.S. Attorney’s Office seeks to create and strengthen trust and partnerships among law enforcement, community leaders, and residents. Well‑attended summits have already been held in Coeur d’Alene, Caldwell, Boise, Ketchum, Pocatello, and Sandpoint.
“The United Against Hate initiative continues to resonate and be a priority for our office because Idaho continues to grapple with unlawful hate,” said U.S. Attorney Hurwit. “We are committed to empowering Idahoans to recognize and report hate crimes so that we can enforce the law and work toward communities where everyone enjoys the protections of our Constitution without fear of being targeted by bigotry and hate.”
The September 16 event will include remarks from local leaders, presentations from prosecutors about hate crimes laws and reporting mechanisms, and speakers who will share their visions of safety and peace in their community and region.
“It is very exciting for Moscow to host this unique and timely event with such a wide representation of presenters including a panel giving the local perspective on providing a safe and welcoming environment,” said Joann Muneta, Chair of the Latah County Human Rights Task Force
“Our commitment to promoting human rights and combating hate is stronger than ever,” said Erin Agidius, Moscow Human Rights Commission Chair. “This summit represents an opportunity for us to come together as a community, share our experiences, and build lasting partnerships that stand against hate and bigotry. We are honored to collaborate with our co-sponsors to advance this vital cause. It is our collective responsibility to ensure that all members of our community feel safe, valued, and heard. By coming together, we can foster a culture of respect and understanding, making it clear that hate has no place in Moscow or anywhere else.”
“Hate and bigotry can only flourish if it is ignored or goes unopposed,” said Shannon F. Wheeler, Chairman, Nez Perce Tribal Executive Committee. “Working with and getting to know our neighbors is the most effective way to actively push back on hate and prevent it from gaining a foothold in this region. The Nez Perce Tribe has called this area home for thousands of years. As its first inhabitants, we consider these lands sacred and, we are proud to be a partner in the United Against Hate campaign. We will continue to work together with all who are willing to make this region a home for everyone.”
“I look forward to meeting community members and hearing different perspectives on how we can work together to unite our community in standing up to hate,” said U.S. Attorney Hurwit. “And I am deeply honored to partner with our co-sponsors to prioritize this critical mission.”
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Two Baltimore Men Sentenced to 9 Years and 15 Years, Respectively, in Federal Prison, Relating to Three Armed CarjackingsRead the Press Release
Baltimore, Maryland – U.S. District Judge Brendan A. Hurson sentenced Franklin Jay Smith, age 34, of Catonsville, Maryland, to 9 years (48 months for carjacking and 60 months consecutive for use of a firearm in connection with a crime of violence) and 4 years supervised release, and Davon Tramont Dorsey, age 30, of Gwynn Oak, Maryland, to15 years and 3 years supervised release.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Richard Worley of the Baltimore Police Department; Chief Robert McCullough of the Baltimore County Police Department; Harford County Sheriff Jeffrey R. Gahler; and Harford County State’s Attorney Alison M. Healey.
According to Smith’s and Dorsey’s guilty pleas and evidence introduced at the trial of two codefendants earlier this year, between May and August 2021, the conspirators planned and organized the kidnapping of three victims, J.H. and two employees of check cashing businesses, victims A.T. and A.K. The conspirators carjacked and abducted the victims and used force and threats of force to steal cash. Posing as police officers, using police vests, badges, and a law enforcement-type light bar, the conspirators stopped the victims and/or their vehicles, and brandished firearms and a blow torch during the kidnappings. The three incidents occurred on May 5, 2021, May 15, 2021, and August 2, 2021. Smith admitted that he participated in the two incidents in May, and Dorsey admitted that he participated in the May 15, 2021, incident and the August 2, 2021, incident.
As detailed in Smith’s plea agreement and evidence introduced at the trial of two codefendants earlier this year, on May 5, 2021, two of the conspirators followed victim A.T. from the check cashing business where she worked, driving a Ford Fusion supplied by Smith. Smith set up a detour along the route to cause A.T. to turn down a side street where the two conspirators driving the Ford Fusion posed as police and used a law enforcement-type light bar to pull over A.T.’s vehicle. Wearing police vests and badges, the conspirators brandished firearms to remove A.T. from her vehicle, handcuffed her, placed her into the rear of one of their vehicles, blindfolded her, and stole her vehicle. While driving with victim A.T., the conspirators burned victim A.T. with the blow torch in an attempt to get information from A.T. in order to access the check cashing business where she worked, with the intent to remove all the cash from the business. Smith and the other conspirators later placed A.T. back in the rear of her vehicle, still bound, covered the vehicle with a tarp, and left A.T. to make her way out and call for help.
Smith and Dorsey both admitted that on May 15, 2021, while driving a Ford Fusion with police-style lights, Dorsey and other members of the conspiracy drove to Edgewood, Maryland to abduct and rob J.H. Dorsey and the others were wearing police-style vests with “police” written on them, masks, and gloves. Around midnight on May 15-16, 2021, J.H. left Edgewood, driving a 2022 Toyota Camry. The members of the conspiracy used the police-style lights to stop J.H.’s vehicle. Dorsey and the conspirators, armed with firearms, approached J.H.’s car and identified themselves as police. The conspirators told J.H. that he had an outstanding warrant, and that he was under arrest. The conspirators put J.H. in handcuffs, put duct tape over his eyes and mouth, bound his feet, and put him in the back of their vehicle. J.H. was then driven away in the Ford Fusion with two of the conspirators while two other members of the conspiracy followed in J.H.’s Camry. While J.H. was in the Ford Fusion, the conspirators demanded $10,000, told J.H. that they knew where he lived and that they would kill his parents if he did not cooperate.
At the time J.H. was abducted, Smith was in the White Marsh area of Baltimore County, within minutes of an onramp to Interstate 95, awaiting a call from a conspirator notifying him that J.H. had been abducted. As the Ford Fusion traveled south on Interstate 95, Smith received a call from a coconspirator, and then drove in a separate vehicle and met up with the Ford Fusion, J.H. and other conspirators in Baltimore City. While in the Ford Fusion, one of the conspirators questioned J.H. about money, and used a blow torch to burn his chest when he did not answer questions. The conspirators took J.H.’s necklace, wallet, phone, and car keys. After more than 5 hours of driving and demanding money, the conspirators released J.H. in Baltimore City at approximately 5:20 a.m.
Dorsey also admitted that on August 2, 2021, he and two co-conspirators approached victim A.K. as she left the check cashing business where she worked. The conspirators, wearing police vests and badges, brandished firearms to kidnap victim A.K. and placed her into the rear of one of their vehicles equipped with law enforcement-type lights. The driver was holding a blowtorch with a blue fuel canister, and A.K. observed a bottle of bleach on the floor in the back of the car. After A.K. entered the vehicle, the men bound A.K.’s wrists behind her back with zip-ties and used black duct tape to affix a blindfold over her eyes. One of the men stated to A.K., “We don’t burn sisters.”
According to Dorsey’s guilty plea, while in the vehicle, the men took A.K.’s wallet, phone, and keys, which included the keys to the check cashing business. The men demanded that A.K. provide access to the check cashing business, including demanding the A.K. provide the men with access codes, safe codes, and the amount of money in the safe at the business. The men demanded information from A.K. for nearly 6 hours, then released A.K. in Edmonson Village in Baltimore City at approximately 1:00 a.m. Before they drove away, the men instructed A.K. not to remove her face covering until they had driven away.
In June, a federal jury convicted two codefendants of their roles in the abductions. Dennis Allen Hairston, age 34, of Windsor Mill, Maryland, and Donte Davon Stanley, age 33, of Rosedale, Maryland, were convicted on federal charges of kidnapping and robbery conspiracies; kidnapping; carjacking; robbery affecting commerce. Hairston was also convicted of using, carrying, and brandishing a firearm during and in relation to a crime of violence. District Judge Brendan A. Hurson has scheduled sentencing for Stanley for November 4, 2024, at 10:00 a.m. and Hairston for November 7, 2024, at 10:00 a.m.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Barron commended the FBI, the Baltimore Police Department, the Baltimore County Police Department, the Harford County Sheriff’s Office, and the Harford County State’s Attorney’s Office for their work in the investigation and prosecution. Assistant U.S. Attorneys Paul E. Budlow and Spencer Todd of the Civil Rights and Special Victims Section are prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
Three Individuals Sentenced for Child Neglect, Endangerment on the Red Lake ReservationRead the Press Release
MINNEAPOLIS – Three individuals living on the Red Lake Indian Reservation have been sentenced for felony child neglect and felony child endangerment, announced United States Attorney Andrew M. Luger.
According to court documents and evidence presented at trial, between February 2022 and January 2023, Robin John Roy, 55, Nicole Robyn Roy, 29, and Harrison Edwin Dudley Sr., 36, willfully deprived minor victims of necessary food, health care, and supervision despite their reasonable ability to make the necessary provisions, resulting in substantial harm to the minor victims’ physical, mental, and emotional health. Trial evidence established that one of the minor victims suffered from severe anemia as a result of malnourishment, and despite repeat efforts by health care providers to intervene in the child’s condition, the child nearly died as a result of the defendants’ collective failure to provide needed care. Trial evidence also established that both children suffered from prolonged lice infestations that progressed to life-threatening scalp infections.
On February 16, 2024, following a six-day trial before U.S. District Judge Nancy E. Brasel, all three defendants were found guilty of felony child neglect. Nicole Roy and Dudley were also found guilty of felony child endangerment. All three defendants were sentenced on September 5, 2024, by Judge Brasel. Robin Roy received 24 months of probation, Nicole Roy received 12 months and a day in prison followed by three years of supervised release, and Dudley received four months in prison.
In handing down the sentences, Judge Brasel stated she had balanced the relative culpability and the relative nature and circumstances of each defendant. She emphasized that the neglect the children had suffered was “no less serious than an act of assault” because “the injuries that resulted were certainly life threatening,” the neglect went on for a long time, there were “relatively easy” steps the caretakers could have taken, and the caretakers nonetheless willfully failed to take action for the children’s basic needs. Judge Brasel remarked, “The children in this case, and all of the children like them, deserve better.”
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Lindsey E. Middlecamp and Rachel L. Kraker prosecuted the case.
Three Council Bluffs Individuals Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
COUNCIL BLUFFS, Iowa – Three individuals from Council Bluffs were sentenced to federal prison for conspiracy to distribute methamphetamine:
- George Ormond Rolle, Jr., 51, was sentenced on August 28, 2024, to 210 months in federal prison;
- Joseph Robert Winger, 34, was sentenced on February 23, 2024, to 140 months in federal prison; and
- Linda Clover Winger, 41, was sentenced on April 25, 2024, to 78 months in federal prison.
According to public court documents, Rolle, Joseph Winger, and Linda Winger conspired with each other to distribute methamphetamine in the Council Bluffs metro area in 2023. In July 2023, law enforcement officers received information on a package, containing methamphetamine, that was addressed to a residence in Council Bluffs. Law enforcement officers seized the package and conducted a controlled delivery of the seized package. Rolle and Linda Winger attempted to retrieve the package from the residence and were subsequently taken into custody. Their vehicle was searched and had approximately 76 grams of methamphetamine, drug paraphernalia, drug ledgers, and more than $4700. Phone messages confirmed the group was working together to pool their money to buy the methamphetamine for distribution in the Council Bluffs metro area.
After completing their term of imprisonment, each individual will be required to serve a five-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Southwest Iowa Narcotics Task Force.
Supervisor and Employee of City of Trenton Bureau of Environmental Health Charged with Receiving Illegal Overtime PaymentsRead the Press Release
TRENTON, N.J. – A Burlington County, New Jersey, man and a Mercer County, New Jersey, man made their initial court appearances today on charges of participating in a conspiracy to obtain overtime payments from the city of Trenton for work they did not perform, by fraudulently inflating the overtime hours they claimed to have worked conducting residential lead inspections and meal deliveries to needy Trenton residents, U.S. Attorney Philip R. Sellinger announced.
Martin Moore, 59, of Florence, New Jersey, and Andre Trott, 51, of Ewing, New Jersey, are each charged by complaint with conspiracy to embezzle, steal, and obtain by fraud more than $5,000 in funds belonging to and under the care, custody and control of the city of Trenton. Moore is also charged with making false statements to investigators. They appeared before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and were each released on $50,000 unsecured bond.
According to the documents filed in this case and statements made in court:
Trenton’s Department of Health and Human Services (Trenton HHS) is required to provide services to identify lead sources in residential homes in Trenton where children had tested positive for elevated levels of lead in their blood. Beginning in 2018, a New Jersey state grant funded inspections of Trenton properties identified with childhood residents with elevated blood lead levels. Trenton’s Bureau of Environmental Health (BEH), a subdivision of Trenton HHS, was responsible for performing these residential lead inspections.
Trenton received federal funding from the U.S. Department of Housing and Urban Development under a Community Development Block Grant (CDBG) to provide public services, including a meal program to prepare and deliver meals throughout Trenton to the city’s most vulnerable and needy populations. Members of BEH delivered meals under the CDBG from 2020 to 2021.
Moore, a principal registered environmental health specialist for BEH and the entity’s supervisor, and Trott, a senior registered environmental health specialist for BEH, conducted residential lead inspections with other members of BEH from February 2018 through May 2022, and delivered meals with other members of BEH from April 2020 through May 2021. Moore directed members of BEH, including conspirators Trott, Michael Ingram, William Kreiss, and Meraj Fatima, to obtain payments from the city of Trenton for work they did not perform, by fraudulently inflating the overtime hours they claimed to have worked relating to residential lead inspections. Moore also directed Trott, Ingram and Kreiss to inflate their overtime hours submitted for meal deliveries. Moore, himself, also falsely reported overtime exceeding the time it actually took him to complete activities related to lead inspections and meal deliveries. As a result of these fraudulent overtime reports, Moore, Trott, and other members of BEH were paid for overtime work that they did not perform.
In May 2022, when the FBI asked Moore about his role in connection with lead inspections, Moore falsely stated that there was no situation where he had purposedly misrepresented his hours and no situation where he had claimed overtime hours for periods of time that he was outside of New Jersey, even though Moore knew at the time he made these statements that they were knowingly and intentionally false.
Moore faces a maximum penalty of 10 years in prison and maximum fine of $500,000. Trott faces a maximum penalty of five years in prison and a $250,000 fine.
Ingram and Kreiss pleaded guilty on Nov. 28, 2023, and Fatima pleaded guilty on Feb. 26, 2024, to separate informations charging each with one count of conspiracy to embezzle, steal, and obtain by fraud more than $5,000 in funds belonging to and under the care, custody and control of the City of Trenton. They are awaiting sentencing.
U.S. Attorney Sellinger credited agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the U.S. Environmental Protection Agency Office of Inspector General, under the direction of Acting Assistant Inspector General Nicolas L. Evans; and the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Vicky Vazquez, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Branch Office.
The charges and allegations contained in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
mooretrott.complaint.pdfSt. Louis Man Admits Operating Long-Running Ponzi SchemeRead the Press Release
ST. LOUIS – A St. Louis, Missouri man on Monday admitted operating a Ponzi scheme for almost a decade that raised $350,000.
Robert F. Rothluebbers, 68, pleaded guilty in U.S. District Court in St. Louis to one count of wire fraud, admitting that he operated the scheme from October 2014 through January 2024. Rothluebbers solicited investments by falsely claiming that he would use their money to purchase R-22 refrigerant in bulk, at a discount, and then re-sell the refrigerant to contractors and others at a 50% profit. Rothluebbers claimed that the gradual phaseout of R-22 would enable him to increase investors’ profits.
Rothluebbers solicited investors from October 2014 to May 2017, entering into written purchase agreements in which he agreed to the purchase of specified amounts of R-22 at certain prices, and a minimum resale price. But Rothluebbers admitted using investors’ money to pay earlier investors, pay relatives or for personal purchases.
Rothluebbers provided bogus excuses for failing to pay investors, including a claim that the money had been frozen by his financial institution and the Internal Revenue Service.
Rothluebbers admitted raising at least $350,000 from four investors. He admitted paying Ponzi scheme payments of $171,450, mostly after investors discovered his scheme.
Rothluebbers is scheduled to be sentenced on December 12. Wire fraud is punishable by up to 20 years in prison, a $250,000 fine or both prison and fine.
The FBI investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
Roslindale Man Sentenced to Five Years in Prison for Firearm OffenseRead the Press Release
BOSTON – A Heath Street Gang member/associate involved in a shooting in residential neighborhood was sentenced on Sept. 6, 2024 in federal court in Boston for unlawfully possessing a firearm.
Deondre Blanding, 27, of Roslindale, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to five years in prison to be followed by four years of supervised release. In May 2024, Blanding pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.
Blanding was charged and arrested in February 2024, along with over 40 alleged Heath Street Gang members/associates, who were charged with racketeering conspiracy, drug trafficking, firearms and financial fraud charges. Blanding was a marijuana dealer for the Gang who distributed pound-quantity amounts of marijuana.
On Oct. 8, 2023, Blanding arranged to buy three pounds of marijuana from an individual and arrived at the deal armed with a firearm. The arranged drug deal resulted in a shooting in the middle of a Randolph neighborhood involving Blanding and two other individuals.
Acting United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Randolph Police Department. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit prosecuted the case.
Readout of the Justice Department’s Violent Crime Reduction Steering Committee MeetingRead the Press Release
The Justice Department’s Violent Crime Reduction Steering Committee met last week to discuss the efforts, challenges, and successes in reducing violent crime — as well as how the Department can further the steady, continued decline in violent crime in 2024. The Steering Committee is chaired by Principal Associate Deputy Attorney General (PADAG) Marshall Miller and composed of leadership and representatives from across the Department.
After PADAG Miller called the meeting to order, the Committee was briefed on the latest violent-crime statistics. Preliminary data from 88 cities showed that violent crime has continued to decline considerably in 2024, including a 16.9% decline in murder, a 7.5% decrease in rape, a 3.4% decrease in aggravated assault, and a 5.2% decline in robbery.
The Committee received updates from U.S. Attorney Andrew Luger for the District of Minnesota on the various initiatives employed by members of the U.S. Attorney community to crack down in violent crime during the summer months, when violent crime historically surges. These initiatives, employed by U.S. Attorneys’ Offices across the country, included such efforts as: increased outreach and intervention activities; weekly, data-driven coordination with local law enforcement to identify shooters and other drivers of violent crime for federal prosecution; surges in federal firearms prosecutions; increased focus on prosecution for possession or use of machinegun conversion devices, which convert semi-automatic firearms into fully automatic machineguns; launch and implementation of carjacking task forces; and partnerships with the Department’s Criminal Division to bring prosecutions under the Racketeer Influenced and Corrupt Organizations Act. Early data showed successful outcomes from initiatives that included, for example, further year-over-year reductions in homicides in Detroit and a zeroing out of carjackings in the Eastern District of Texas during the summer months of 2024.
The Committee was briefed by the Drug Enforcement Administration and the U.S. Marshals Service on their efforts and successes in combating violent crime over the summer through Operation Overdrive and Operation North Star, respectively, and from the Bureau of Alcohol, Tobacco, Firearms and Explosives regarding the Department’s convening with the additive manufacturing industry on how to reduce the availability and use of unlawful machinegun conversion devices, which was held Friday and included remarks from the Deputy Attorney General.
The Committee also heard from the Department’s grantmaking components regarding grants and additional resources to combat violent crime. The Office of Justice Programs discussed its use of grants, training, and technical assistance to assist state, local, and Tribal justice agencies in addressing their communities’ specific public safety needs. After previewing plans to observe the upcoming 30th anniversary of the Violence against Women Act, the Office of Violence Against Women briefed the Committee on its work at the intersection of firearms and domestic violence and on an important resource for prosecutors, the Framework for Prosecutors to Strengthen Our National Response to Sexual Assault & Domestic Violence Involving Adult Victims. The Department’s Community Oriented Policing Services discussed additional grants and resources available for combatting violent crime, including the award of grants to local law enforcement to hire career law enforcement officers.
At the conclusion of the meeting, Principal Associate Deputy Attorney General Miller discussed a new directive from the Deputy Attorney General on combating machinegun conversion devices. He also indicated that the Steering Committee’s work would be reported to Department leadership, including developments from the Department’s violent crime reduction initiatives and recommendations regarding additional policy and enforcement strategies.
Pierce County man sentenced to seven years in prison for drug and gun crimesRead the Press Release
Seattle – A 46-year-old Pierce County man was sentenced last week in U.S. District Court in Seattle to seven years in prison for his repeated drug trafficking and firearms possession, announced U.S. Attorney Tessa M. Gorman. Ryan James Townsend was indicted in November 2023, after two encounters with law enforcement. At the sentencing hearing U.S. District Judge Robert S. Lasnik imposed four years of supervised release to follow sentencing.
According to records filed in the case, Townsend was investigated by law enforcement in November 2022, for an incident where he fired multiple shots into the air outside a Planet Fitness gym on East 72nd Street in Tacoma. Witnesses and surveillance video showed Townsend in a white Escalade firing a handgun into the air. Townsend was later located in the car at a gas station, passed out behind the wheel. A 9mm handgun was found in the car. Townsend was prohibited from possessing firearms due to prior convictions.
About nine months later, in August 2023, a Puyallup Police Officer attempted to stop Townsend as he was driving in a different car with no license plates. Townsend fled in the car, hitting and damaging another vehicle, and injuring the driver. Ultimately Townsend crashed his car. He attempted to run from the police who responded to the crash site.
A court authorized search of the car revealed methamphetamine as well as a handgun in the glove box. When a search warrant was served on Townsend’s residence, agents seize fentanyl pills, heroin, and three firearms.
In June 2024, Townsend pleaded guilty to possession of a controlled substance with intent to distribute and two counts of unlawful possession of a firearm. Both prosecutors and defense recommended a sentence of 84 months in prison.
In asking for the seven-year sentence, Assistant United States Attorney Casey Conzatti wrote to the court, “On a number of occasions Mr. Townsend continued to possess firearms knowing he was not allowed to. On one occasion Mr. Townsend was observed shooting a gun into the air putting civilians in danger. Following the arrest for this conduct, Mr. Townsend did not stop his criminal behavior. Less than a year later, Mr. Townsend was found with a second firearm, and this time he had drugs with him.”
The case was investigated by the Drug Enforcement Administration (DEA), and the Puyallup and Tacoma Police Departments.
The case was prosecuted by Assistant United States Attorney Casey Conzatti.
Philadelphia Man Who Scarred, Nearly Blinded Ex-Girlfriend in Public Chemical Attack Convicted at TrialRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Victor Ortiz, 47, of Philadelphia, Pennsylvania, was convicted Friday at trial of stalking, seriously injuring, and permanently disfiguring a woman with whom he had a previous relationship.
On the morning of May 4, 2022, the defendant had pursued his ex-girlfriend as she walked to her office in Philadelphia. Before she reached the building, the defendant threw soda ash, a caustic substance, on the victim’s face and torso. His attack temporarily blinded her in the left eye and caused severe pain and permanent scarring on her body.
Investigators subsequently found that the defendant had attached a GPS device to the victim’s vehicle so that he could monitor her location and follow her. After law enforcement officials discovered the device, the defendant was caught on camera attempting to install a second GPS device on the victim’s vehicle in July 2022.
The defendant is scheduled to be sentenced on December 17 and faces a maximum possible sentence of 20 years’ incarceration.
“Victor Ortiz needed to take ‘no’ for answer,” said U.S. Attorney Romero. “But rather than moving on when a relationship ended, he targeted, stalked, and viciously assaulted his ex-partner, causing horrendous physical pain and emotional trauma. My office will continue to work with our law enforcement colleagues to get justice for stalking victims and take the dangerous offenders who terrorized them off the street.”
“HSI is dedicated to protecting individuals from dangerous predators such as Victor Ortiz,” said Acting Special Agent in Charge of HSI Philadelphia Sara Bay. “Our excellent partnership with the U.S. Attorney’s Office for the Eastern District of Pennsylvania allows us to hold these criminals responsible for their crimes and obtain justice for their victims.”
The case was investigated by Homeland Security Investigations and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorneys Michael R. Miller and Angella Middleton.