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9 October 2024
15 More Defendants Indicted for Meth and Fentanyl TraffickingRead the Press Release
SPRINGFIELD, Mo. – Fifteen more defendants have been indicted by a federal grand jury for their roles in a drug-trafficking conspiracy after law enforcement officers seized 100 pounds of methamphetamine and a kilogram of fentanyl pills hidden in a vehicle being transported from San Bernadino, Cal. to Springfield, Mo.
Stevie Delane Logan, Jr., 34, Daron Cortez Kelly, 36, Damion Williams, 34, Necole Jennings, 47, Osric Rashaad Edwards, 25, Shawn Weston Morris, 54, and Rikkita Charnay Tolbert, 37, all of Parsons, Kan.; William Edward McKinzie, 52, Juston Dean Crane, 39, and Gary Jay Watkins, Jr., 54, all of Joplin, Mo.; James Richard Sharp, 55, of Seneca, Mo., Jon Kurtis Smith, 39, of El Dorado, Kan.; Christuffer Allen Roeder, 28, of Independence, Kan.; William Earl Troester, Jr., 45, of Wichita, Kan.; and Kylei Paige Sullivan, 27, of St. Paul, Kan., were charged in an 18-count second superseding indictment returned under seal by a federal grand jury in Springfield, Mo., on Tuesday, Oct. 1. That indictment was unsealed and made public today following the arrests of all remaining defendants.
The initial indictment in this case charged Dontrell Anthony Powell, 34, and his brother, Dreshawn Powell, 27, both of Springfield, and Willie Murry, Jr., 42, and Mark Monta Logan, 33, both of Parsons, on Feb. 6, 2024. They remain as defendants in this second superseding indictment.
The federal indictment alleges that 17 of the defendants, with the exceptions of Tolbert and Sullivan, participated in a conspiracy to distribute methamphetamine and fentanyl in Greene, Jasper, and Newton Counties, and elsewhere, from Jan. 1, 2022, to April 20, 2024.
The federal indictment also alleges that 14 of the defendants, with the exceptions of McKinzie, Crane, Morris, Sharp, and Watkins, participated in a money-laundering conspiracy.
Several defendants also are charged in various counts related to drug trafficking and illegally possessing firearms.
According to court documents, investigation into the drug-trafficking organization began when a Trooper with the Oklahoma Highway Patrol searched a vehicle on a car hauler at a truck stop in Oklahoma City, Okla., on Jan. 17, 2024. The Trooper found approximately 100 pounds of methamphetamine and two pounds of fentanyl pills hidden in a subwoofer speaker box in the cargo area of the car, a Dodge Magnum. The driver of the car hauler, who was not involved in the drug shipment, agreed to deliver the Dodge Magnum to its destination at a parking lot in Springfield.
Agents with the Drug Enforcement Administration removed the fentanyl pills from the Dodge Magnum and replaced most of the methamphetamine with sham methamphetamine before conducting a controlled delivery of the vehicle the next morning. On January 18, 2024, Dontrell Powell and Dreshawn Powell arrived at the parking lot together in a Mercedes while Murry and Mark Logan arrived together in a BMW. Dontrell Powell met with the driver of the car hauler to sign for the Dodge Magnum and attempted to start the vehicle, but the battery was dead. Murray and Mark Logan helped jump start the Dodge Magnum, and Dontrell Powell drove it out of the parking lot as the other three men followed in their vehicles. Agents followed the three vehicles to Dontrell Powell’s residence, where they were arrested.
Agents also searched Dontrell Powell’s residence and found, in addition to the controlled delivery from the Dodge Magnum, an AM-15 pistol, .223 ammunition, several high-capacity magazines with ammunition, more than $100,000 in cash, and drug paraphernalia. Agents also found a loaded Glock pistol in one of the vehicles, numerous cell phones, four more large subwoofer boxes (two of which contained shards of crystal methamphetamine), and drug paraphernalia.
Following the controlled delivery of the Dodge Magnum, agents obtained a court order authorizing the interception of wire and electronic communications over three cellular phones being utilized by Mark Logan’s brother, Stevie Logan, in connection with his distribution of methamphetamine.
The investigation culminated on April 20, 2024, when Stevie Logan received a call from McKinzie requesting methamphetamine. Stevie Logan directed Kelly and Williams to retrieve methamphetamine from Jennings’ residence in Parsons, Kan. Kelly and Williams picked Stevie Logan up from a gas station in Pittsburg, Kan., and the three men traveled to a hotel in Joplin, Mo. As McKinzie approached the vehicle, all four men were arrested. Agents searched the vehicle and located approximately 10 pounds of methamphetamine inside of a large tub.
Agents also searched McKinzie’s hotel room and located an additional five ounces of methamphetamine and three firearms.
In addition to the two conspiracies, Dontrell Powell is charged with one count of money laundering, one count of possessing a firearm in furtherance of a drug-trafficking crime, and two counts of being a felon in possession of a firearm. Dontrell Powell allegedly possessed an Anderson Manufacturing AM-15 multi-caliber semi-automatic pistol and a Glock .40-caliber semi-automatic pistol on January 18, 2024. Dontrell Powell allegedly possessed another Glock .40-caliber semi-automatic pistol on June 12, 2022. Dontrell Powell is subject to enhanced penalties resulting from a prior felony conviction for possession of dangerous drugs for sale.
Dontrell Powell, Murry, Dreshawn Powell, and Mark Logan are charged together in one count of attempting to possess methamphetamine and fentanyl with the intent to distribute.
Murry and Mark Logan also are charged together in one count of traveling across state lines from Kansas to Missouri with the intent to carry on or facilitate an unlawful activity (possession with intent to distribute methamphetamine and fentanyl).
Stevie Logan, Kelly, Williams, and Jennings are charged together in one count of possessing methamphetamine with the intent to distribute, and McKinzie is charged with one count of attempting to possess methamphetamine with the intent to distribute.
Stevie Logan, Kelly, and Williams are charged together in one count of traveling across state lines from Kansas to Missouri with the intent to carry on or facilitate an unlawful activity (possession with intent to distribute methamphetamine).
McKinzie also is charged with one count of possessing methamphetamine with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime, and one count of being a felon in possession of firearms. McKinzie allegedly possessed an Arcadia Machine & Tool .45-caliber pistol, a Ruger 9mm pistol, and a Sundance .25-caliber pistol on April 20, 2024.
Sharp also is charged with two counts of possessing methamphetamine with the intent to distribute and one count of possessing a firearm in furtherance of a drug-trafficking crime. Sharp allegedly possessed a Sig Sauer .45-caliber pistol on May 3, 2021.
Crane also is charged with one count of possessing fentanyl with the intent to distribute.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma Highway Patrol, the Kansas Bureau of Investigation, the Parsons, Kan., Police Department, the Ozarks Drug Enforcement Team, and the Labette County, Kan., Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case 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.
8 October 2024
York County Judge Indicted for Fraud, Tampering with A Witness, and Obstruction of JusticeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Steven Stambaugh, age 61, of York, Pennsylvania, was indicted by a federal grand jury in a 31-count indictment with wire and mail fraud, as well as witness tampering and obstruction of justice.
According to United States Attorney Gerard M. Karam, the indictment charges Stambaugh with twenty-six counts of wire fraud, two counts of mail fraud, two counts of tampering with a witness, and one count of obstruction of justice. It is alleged that from March 19, 2020 to on or about May 18, 2020, Stambaugh devised a scheme to defraud the Commonwealth of Pennsylvania to obtain money through materially false and fraudulent pretenses, representations, and promises. The indictment charges that Stambaugh instructed his employees to file and collect unemployment compensation benefits with the Commonwealth of Pennsylvania during the COVID-19 pandemic, while at the same time directing and requiring his employees to continue working for Stambaugh Law, P.C. In furtherance of the scheme to defraud, it is alleged that Stambaugh caused the use of interstate wire communications, as well as the delivery of mail matter via interstate mail deliveries.
The indictment further alleges that beginning in April 2021 through November 2022, Stambaugh attempted to intimidate and corruptly persuade a government witness to offer false testimony before a federal grand jury and to lie to federal law enforcement officers, and also attempted to obstruct justice while serving as a judicial officer for the Pennsylvania Court of Common Pleas for York County.
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving unemployment insurance programs. We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to investigate these types of allegations,” stated Syreeta Scott, Special Agent-in-Charge, Mid-Atlantic Region, U.S. Department of Labor, Office of Inspector General.
"As alleged, the defendant orchestrated a scheme that defrauded the Commonwealth of unemployment benefits designed to provide relief amid the COVID-19 pandemic, and to further this fraud, sought to mislead federal investigators," said Wayne A. Jacobs, special agent in charge of FBI Philadelphia. "The FBI will continue to work alongside partners to protect the integrity of these programs, investigate allegations of fraud, and bring those who engage in these schemes to justice."
The charges stem from a joint investigation involving the U.S. Department of Labor – Office of Inspector General (USDOL-OIG), and the Federal Bureau of Investigation (FBI) – Harrisburg. Assistant United States Attorneys Michelle Olshefski and Sean Camoni are prosecuting the case.
The maximum penalty under federal law for mail/wire fraud and witness tampering is 20 years of imprisonment. The maximum penalty for obstruction of justice is 10 years of imprisonment. A term of supervised release follows any term of imprisonment and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Wisconsin Man Charged with Filing False Tax ReturnsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 8, 2024, a grand jury returned an indictment charging Vikram Naik with three counts of filing false individual income tax returns, in violation of 26 U.S.C. § 7206(1).
According to the indictment, Naik willfully made and subscribed, under penalties of perjury, individual income tax returns (Forms 1040) for the years 2017, 2018, and 2019. Naik had federal income tax withholding amounts that were substantially less than what he reported on each of the returns he filed with the Internal Revenue Service (“IRS”) and, as a result, he had taxable income and total tax owed greater than he reported. Those returns included over $300,000 in false withholding amounts.
If convicted, Naik faces up to three years in prison on each false return count. The IRS, Criminal Investigation Division, investigated the case, which Assistant United States Attorney John P. Scully will prosecute.
The public is cautioned that an indictment or criminal complaint is merely a charge, and the defendant is presumed innocent until and unless proven guilty.
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For further information contact:
Public Information Officer
(414) 297-1700
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Whatcom County man pleads guilty to domestic violence assault resulting in serious bodily injuryRead the Press Release
Seattle – A 49-year-old member of the Lummi Nation pleaded guilty today in U.S. District Court in Seattle to assault resulting in serious bodily injury, announced U.S. Attorney Tessa M. Gorman. Jason Sieber Sr. was charged federally in February 2024, for the October 20, 2023, assault of his domestic partner. Sieber has been detained at the Federal Detention Center at SeaTac since his arrest in February 2024. He is scheduled for sentencing on December 20, 2024.
According to records filed in the case, Sieber became angry with the victim over the amount of time it was taking for her to cook dinner. He struck her repeatedly in the face and head and kept her from leaving the home to get help. The blows with his closed fist caused the victim to suffer facial fractures, extreme pain, and disfigurement.
The victim reported the assault to Lummi Nation Police a few days after the assault. Sieber was charged in tribal court. The case was ultimately referred to federal prosecutors.
Assault resulting in bodily injury is punishable by up to ten years in prison. U.S. District Judge Ricardo S. Martinez will determine the appropriate sentence after considering sentencing guidelines and other factors.
The case was investigated by the Lummi Nation Police Department and the FBI as part of the Safe Trails Taskforce.
The case is being prosecuted by Assistant United States Attorneys J. Tate London and Erika Evans. Mr. London serves as a Tribal Liaison for the U. S. Attorney’s Office, Western District of Washington.
Vallejo Man Sentenced to 5 Years in Prison for Being a Felon in Possession of AmmunitionRead the Press Release
SACRAMENTO, Calif. — Raykheem Andrew Guthery, 32, of Vallejo, was sentenced today to five years in prison for possessing ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 9, 2022, law enforcement officers conducted a vehicle stop on Guthery for driving a car without license plates. Guthery pretended to be someone else, claimed he was not on parole or probation, and denied being armed. In fact, Guthery was on probation for felony assault and had a firearm loaded with an extended magazine concealed on his person. Officers discovered the firearm during Guthery’s arrest. The firearm was a non‑serialized, privately manufactured firearm, known as a “ghost gun.” It was loaded with one round of .40-caliber ammunition in the chamber and another 17 rounds in an extended magazine.
Guthery is prohibited from possessing firearms or ammunition because he has been convicted of at least three felonies, including a 2016 felony conviction for forcible assault likely to cause grave bodily injury. He was also prohibited from possessing firearms or ammunition at the time of this offense because he was then the subject of a domestic violence protective order issued on April 15, 2021, by the Superior Court of California, Solano County.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Solano County District Attorney’s Office, the Solano County Sheriff’s Office, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney’s Office for the Northern District of Georgia Alerts Public to Charity Scams in Wake of Hurricane HeleneRead the Press Release
ATLANTA – U.S. Attorney Ryan K. Buchanan advises the public to be cautious about hurricane relief fraud in the wake of Hurricane Helene.
“Natural disasters unfailingly prompt members of our communities to respond with an outpouring of compassion and support for impacted family members, neighbors, friends and strangers,” said U.S. Attorney Ryan K. Buchanan. “Unfortunately, these occurrences also attract scammers who capitalize on such calamities to exploit affected fellow citizens when they are most vulnerable. By this public notice, we do not aim to deter you from offering assistance but caution you to do so with the awareness of how to detect and avoid common charity scams.”
On September 26, 2024, Hurricane Helene made landfall in Florida’s Big Bend Region and quickly caused major devastation in that area and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. As we have seen in the wake of previous national disasters, fraudsters target victims of such storms along with citizens across the country who want to do what they can to assist individuals affected by these natural disasters. Unfortunately, criminals exploit these incidents for personal gain by sending fraudulent communications through email or via social media and by creating deceptive websites designed to solicit contributions.
The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, email, door-to-door collections, flyers, mailings, and other similar methods. Before donating to benefit victims of Hurricane Helene, individuals should follow these and other guidelines:
- Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
- Do not be pressured into making contributions as reputable charities do not use such tactics.
- Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
- Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various Internet-based resources that may assist in confirming whether the organization is a valid charity.
- Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.
- Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
- Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in “.org” rather than “.com.”
- Be cautious of emails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney's Office Announces Sentencing of Albuquerque Man for Violent Crime SpreeRead the Press Release
ALBUQUERQUE – An Albuquerque man has been sentenced to 200 months in prison for a violent crime spree that included a series of armed robberies and assaults across New Mexico, culminating in the carjacking and shooting of a 62-year-old veteran.
There is no parole in the federal system.
According to court documents, on November 12, 2021, Procopio Montoya Atkinson, 26, robbed a Dollar General store in Northwest Albuquerque. Atkinson feigned a cash purchase of flavored water, and when the female cashier opened the register to give him change, he reached over the counter to take the money. When she shut the drawer, Atkinson escalated his actions by walking behind the counter and demanding money while pointing a firearm at her. Atkinson discharged the firearm toward the ceiling, causing panic. The manager complied with Atkinson’s demands as he began a verbal countdown. Ultimately, Atkinson took $192 from the register and fled.
The crime spree continued on December 6, 2021, when Atkinson shoplifted clothing and an entire display case full of pocketknives from a Love's Travel Stop in Belen. Atkinson was confronted by two female employees outside and physically assaulted them while attempting to hit them with his vehicle. Just three days later, on December 9, Atkinson assaulted another female employee at a Walmart in Belen after loading a cart with clothing and tools.
Atkinson approaching the display case full of pocketknives.
Atkinson picking up the display case full of pocketknives.
The discarded display case.
On December 13, law enforcement obtained an arrest warrant for Atkinson related to the armed robbery from November 12. On December 17, members of the U.S. Marshals Service fugitive task force established surveillance on his home for his arrest. As they moved in to apprehend him at a gas station, Atkinson displayed awareness of their presence by retrieving binoculars to monitor law enforcement movements. Atkinson drove toward one task force officer while pointing a pistol at him before abandoning his pursuit when backup arrived.
The crime spree culminated on December 20 when John Doe 3 was driving alone in his vintage Chevrolet truck with his wife and daughter following behind in another vehicle. They were stopped at a traffic light when Atkinson approached John Doe 3’s wife and daughter with a pistol and demanded they exit their vehicle. After they refused to open their doors, Atkinson turned his attention to John Doe 3's truck, a beautifully restored ’62 Chevrolet. He opened the passenger door and, after a brief struggle, shot John Doe 3 in the back.
A photo of the scene.
Responding officers successfully blocked the truck in following an unsuccessful escape attempt by Atkinson and John Doe 3 was airlifted to the hospital.
John Doe 3 survived his injuries, but the emotional toll of that day has left lasting scars; he experiences ongoing pain and anxiety whenever near that intersection or driving through similar situations, and his beloved truck now sits dormant.
Upon his release from prison, Atkinson will be subject to five years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the United States Marshal Service, Belen Police Department, Bernalillo County Sheriff’s Office, Albuquerque Police Department, Rio Rancho Police Department and the New Mexico State Police. Assistant U.S. Attorney Timothy Trembley is prosecuting the case.
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U.S. Attorney ’s Office and FBI Charge Arizona Woman with Child AbuseRead the Press Release
ALBUQUERQUE – An Arizona woman has been charged by indictment on multiple counts of abandonment and abuse of a child for allegedly placing three girls in a dangerous situation earlier this year.
Avedale Johnson, 40, an enrolled member of the Navajo Nation, appeared before a federal judge last week and was placed on conditions of release pending trial.
According to the indictment, on May 4, 2024, Johnson is accused of putting Jane Doe 1, Jane Doe 2, and Jane Doe 3—three children under the age of 18—at significant risk of harm by placing them in a situation that could have endangered their lives and health.
If convicted, Johnson faces up to three years in prison.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant United States Attorney Caitlin L. Dillon is prosecuting the case.
View the Indictment (Johnson).pdfAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Dawn N. Ison Alerts Public to Charity Scams in Wake of Hurricane HeleneRead the Press Release
DETROIT – United States Attorney Dawn N. Ison issued a public safety alert today advising the public to be vigilant to hurricane relief fraud in the wake of Hurricane Helene.
“In the aftermath of Hurricane Helene, the public should be on guard against disaster fraud schemes,” said U.S. Attorney Dawn N. Ison. “As we often see when natural disasters occur, criminals will target those impacted and concerned citizens ready to lend a helping hand. The Justice Department stands ready to hold those accountable who perpetrate this type of fraud.”
On Sept. 26, Hurricane Helene made landfall in Florida’s Big Bend Region and quickly caused major devastation there and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. As we have seen in the wake of previous national disasters, fraudsters will target victims of the storm along with citizens across the country who want to do what they can to assist individuals affected by the storm. Unfortunately, criminals exploit disasters for their own gain by sending fraudulent communications through email or social media and by creating deceiving websites designed to solicit contributions.
The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, e-mail, door-to-door collections, flyers, mailings, and other similar methods. Before making a donation to benefit victims of Hurricane Helene, individuals should adhere to certain guidelines, including:
- Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
- Do not be pressured into making contributions as reputable charities do not use such tactics.
- Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
- Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various Internet-based resources that may assist in confirming whether the organization is a valid charity.
- Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.
- Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
- Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in .org rather than .com.
- Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.
U.S. Attorney Alerts Public to Charity Scams in Wake of Hurricane HeleneRead the Press Release
SAN DIEGO – United States Attorney Tara McGrath issued a public safety alert today advising the public to be vigilant to hurricane relief fraud in the wake of powerful hurricanes causing devastation on the East Coast.
“During times of crisis, be vigilant, because not all who ask for help have good intentions,” McGrath said. “Be sure to protect yourself by verifying before you donate to ensure your generous support reaches those truly in need.”
Hurricane Milton is heading for Florida now, less than a week after Hurricane Helene made landfall in Florida’s Big Bend Region on Sept. 26 and quickly caused major devastation there and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. As we have seen in the wake of previous national disasters, fraudsters will target victims of the storm along with citizens across the country who want to do what they can to assist individuals affected by the storm. Unfortunately, criminals exploit disasters for their own gain by sending fraudulent communications through email or social media and by creating deceiving websites designed to solicit contributions.
The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, e-mail, door-to-door collections, flyers, mailings, and other similar methods. Before making a donation to benefit victims of Hurricane Helene, individuals should adhere to certain guidelines, including:
- Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
- Do not be pressured into making contributions as reputable charities do not use such tactics.
- Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
- Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various Internet-based resources that may assist in confirming whether the organization is a valid charity.
- Beware of organizations with copy-cat names similar to, but not exactly the same as, those of reputable charities.
- Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
- Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in .org rather than .com.
- Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.
Two Plead Guilty in Nationwide Marijuana Trafficking and Money Laundering ConspiraciesRead the Press Release
ALBANY, NEW YORK – Lawrence Mumphrey, aka “L,” age 45, of Albany, and Niara Banks, aka “Nie,” age 32, of Troy, New York, pled guilty today to offenses related to their involvement in nationwide marijuana trafficking and money laundering conspiracies.
United States Attorney Carla B. Freedman; Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; Troy Police Chief Daniel DeWolf; and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
Mumphrey and Banks admitted to being members of a marijuana and tetrahydrocannabinols (THC) trafficking organization that cultivated marijuana on a commercial scale in Fresno, California, and shipped thousands of kilograms of marijuana and THC from Fresno to locations throughout the United States, including the Capital Region of New York.
Banks admitted to receiving packages of marijuana shipped by Dwight A. Singletary, II, aka “Nutt” and “Mike Jones,” and McKenzie Merrialice Coles, aka “Kenzie,” from a shipping store in Fresno, Fast Pack & Ship, at her home in Troy and another home in Albany. Banks was notified of the packages of marijuana by Dwight Singletary and David Singletary, aka “DB,” and typically notified David Singletary, who retrieved the packages, when they arrived. Banks also sold marijuana, which she obtained from Dwight and David Singletary.
Between September 2020 and March 2022, Banks received 33 packages containing approximately 133 kilograms (293 pounds) of marijuana at her home in Troy and the other home in Albany.
Banks also admitted to laundering marijuana and THC proceeds for the organization by purchasing cashier’s checks with cash drug proceeds. Federal law requires financial institutions to complete a currency transaction report for cash transactions over $10,000. To avoid the reporting requirement and otherwise conceal the cash drug proceeds, Banks purchased seven cashier’s checks in amounts slightly below the reporting threshold for cash transactions with $65,880 in cash drug proceeds. The cashier’s checks were payable to Dwight Singletary; Dwight Singletary’s company, DAS Empire, Inc.; and a person from whom Dwight Singletary and DAS Empire purchased real estate.
Mumphrey admitted to receiving packages of marijuana shipped from Fast Pack & Ship at his apartment in Albany and to selling marijuana and THC “edibles” for the organization out of a “knock spot” in Troy. In searching the “knock spot” in January 2022, law enforcement discovered 29 pounds of marijuana, which was in several plastic shelves with sticky notes denoting the strain and price of the marijuana, and in a backpack. The “knock spot” also contained $3,953 in cash, several digital scales, a large safe with a bulletproof vest, and a box shipped from Fast Pack & Ship to Mumphrey at his apartment in Albany.
In June 2022, law enforcement executed a search warrant at Mumphrey’s apartment in Albany and discovered, among other things, a dogfood container with approximately eight pounds of marijuana in a room in the basement. In the same room, law enforcement discovered a Ruger model AR-556 5.56x45mm caliber semiautomatic rifle, a 5.56x45mm caliber semiautomatic rifle with no serial number, an Anderson model AM-15 5.56x45mm caliber semiautomatic rifle with no serial number, and a Taurus 9mm caliber pistol with no serial number, and assorted ammunition. Mumphrey possessed the firearms to protect the organization’s marijuana, THC edibles, and drug proceeds, including from potential robbers.
Between February 2020 and June 2022, 74 packages containing approximately 341 kilograms (752 pounds) of marijuana were shipped from Fast Pack & Ship to Mumphrey at his apartment in Albany.
Mumphrey also admitted to laundering drug proceeds for the organization. Between March 2020 and June 2022, Mumphrey purchased 14 cashier’s checks in amounts slightly below the reporting threshold for cash transactions with $132,270 in cash drug proceeds. Mumphrey also gave cash drug proceeds to two other members of the organization for use in purchasing cashier’s checks in amounts slightly below the reporting threshold.
Banks faces up to 20 years in prison on each of the two counts to which she pled guilty, conspiring to distribute marijuana and THC and conspiring to commit money laundering; fines of up to $1 million and $500,000, respectively, on each count; and a term of supervised release of between three years and life.
Mumphrey faces a total of at least 10 years in prison and up to life on the three counts to which he pled guilty, conspiring to distribute marijuana and THC, conspiring to commit money laundering, and possession of firearms in furtherance of a drug trafficking crime; a total of $5.75 million in fines; and a term of supervised release of between four years and life.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Banks and Mumphrey were charged in an indictment with Dwight Singletary, David Singletary, Coles, and 19 other people charging marijuana distribution and money laundering conspiracies, firearms offenses, and other crimes. Dwight Singletary, David Singletary, and Coles have pled not guilty and are presumed innocent unless and until proven guilty. The charges in the indictment are merely accusations.
In addition to Banks and Mumphrey, 14 other defendants, Rosemary Coles, Latrice Mumphrey, Sammy Olague, Victor Turner, Kristle Walker, Ruby Ledesma, Lateek White, Onisha Smith, Jazell Shuler, Earnest Flood, aka “Pop,” Consanga Harris, aka “Sondy,” James Tyrell Daniels, aka “Red” and “Ghost,” LaFay Pearson, aka “Lala,” and Alyssa June White previously pled guilty and are pending sentencing.
The ATF, DEA, Troy Police Department and HSI are investigating the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Treasure Coast Men Sentenced to Prison for Robbing U.S. Postal Service Letter CarriersRead the Press Release
MIAMI – Two of three St. Lucie County men, responsible for a string of robberies of U.S. Postal Service (USPS) letter carriers for their Postal keys, were sentenced to federal prison yesterday by U.S. District Court Judge K. Michael Moore sitting in Ft. Pierce, Fla.
"The defendants brazenly terrorized loyal public servants, U.S. Postal Service letter carriers working in Florida, at gunpoint for their postal keys with the intent to steal mail from collection boxes. Their sentencing shows that the safety of U.S. Postal Service employees is of the utmost importance,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Armed assaults on letter carriers negatively impact our entire community, which relies on the U.S. Postal Service for the safe delivery of the mail.”
“The prison sentences handed down to these defendants should serve as a reminder that violent acts committed against U.S. Postal Service employees providing service to the community will not be tolerated and the U.S. Postal Inspection Service, along with our law enforcement partners, will ensure that those committing these acts will be pursued and justly punished for their crimes,” said Juan A. Vargas, Inspector in Charge of the U.S. Postal Inspection Service, Miami Division.
Bernard Jerome Davis III, 20, of Port St. Lucie, Fla., was sentenced to 192 months’ imprisonment, to be followed by 3 years’ supervised release, after pleading guilty to two counts of conspiracy to commit Hobbs Act robbery, two counts of armed Postal/U.S. property robbery, a single count of brandishing a firearm during and in furtherance of a crime of violence, attempted Hobbs Act robbery, and Hobbs Act robbery.
Jalen Dennis Elliott, 19, of Port St. Lucie, was sentenced to 30 months’ imprisonment, to be followed by 2 years’ supervised release, after pleading guilty to conspiracy to commit Hobbs Act robbery and Hobbs Act robbery.
Jamal Travon Brown Weathers, 23, of Fort Pierce, pleaded guilty on June 12, and is scheduled to be sentenced on October 24, in Ft. Pierce.
According to the court record, to include factual proffers in support of the defendants’ guilty pleas, between Nov. 19, 2022, and Oct. 21, 2023, Brown Weathers, Davis and Elliott robbed at least six USPS letter carriers in St. Lucie, Brevard, Orange and Miami-Dade counties in Florida.
On Nov. 19, 2022, a USPS letter carrier was delivering mail inside an apartment complex in Port St. Lucie. While the carrier was at the mailboxes, Brown Weathers demanded “Give me the key.” Brown Weathers then grabbed and started yanking the letter carrier’s keys, which were attached to her uniform pants. Brown Weathers then brandished a semi-automatic handgun and demanded “Give me the f------ key. You got five seconds to give up the key.” At that point the letter carrier unhooked her arrow key and handed it over to Brown Weathers, who fled in a vehicle driven by Davis. The vehicle, belonging to Brown Weathers’ mother, was later chased by a St. Lucie County Sheriff’s deputy in Fort Pierce. The occupants fled and a K-9 deputy recovered the firearm used in the robbery along the path of flight.
A Postal arrow key is an accountable property assigned to U.S. Post Office(s) that is only authorized to be used by USPS employees in an official capacity. A Postal arrow key is used by USPS employees to open mail receptacles within a geographic area to collect and deliver mail.
On May 12, 2023, Brown Weathers and Davis robbed two USPS letter carriers at gunpoint in the Middle District of Florida. At approximately 12:13 p.m., a USPS letter carrier was delivering mail in Melbourne, Fla., when Davis approached the letter carrier with a black firearm and demanded the letter carrier’s Postal arrow key. Once the letter carrier handed over the key, Davis fled the scene in a Nissan Altima that he rented. At approximately 1:20 p.m., another USPS letter carrier was on his mail delivery route in Orlando, Fla., when a Nissan Altima stopped behind his Postal vehicle. Brown Weathers exited the Nissan Altima, ran towards the letter carrier while holding a black firearm, grabbed the letter carrier by the shirt, and demanded the letter carrier give him the arrow key. The letter carrier removed the arrow key from his belt loop and gave it Brown Weathers, who fled in the vehicle rented and driven by Davis.
On Aug. 1, 2023, a USPS letter carrier was delivering mail in Fort Pierce when a white Pontiac Grand Prix began to follow her and pulled up behind her USPS vehicle. The letter carrier observed Davis carrying a black semi-automatic firearm and walking toward the Postal vehicle. Fearing a robbery, the letter carrier quickly drove away and called 911. The same white vehicle followed another letter carrier, who also called 911.
On Oct. 11, 2023, a USPS letter carrier was delivering mail in Fort Pierce when Davis approached the driver’s side of the Postal vehicle brandishing a black semi-automatic handgun and demanded that the letter carrier give him the key. Once the letter carrier handed the Postal arrow key to Davis, he entered a white vehicle and drove away.
On Oct. 21, 2023, a USPS letter carrier was delivering mail in an apartment community in Miami Beach, Fla. when she was confronted by Davis who shouted, “give me the keys.” Davis ripped the keys, including a Postal arrow key, from the letter carrier's hand, causing an injury. Davis then fled to a waiting black BMW SUV, driven by Elliott.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS), Miami Division, Chief Wayne A. Jones of the City of Miami Beach Police Department, Sheriff Keith Pearson of the St. Lucie County Sheriff’s Office, Chief Diane Hobley-Burney of the Fort Pierce Police Department, Sheriff John W. Mina of the Orange County Sheriff’s Office, and Sheriff Wayne Ivey of the Brevard County Sheriff’s Office made the announcement.
The USPIS, Miami Beach Police Department, St. Lucie County Sheriff’s Office, Fort Pierce Police Department, Orange County Sheriff’s Office, and Brevard County Sheriff’s Office, investigated the case. The Port St. Lucie Police Department provided assistance. Managing Assistant U.S. Attorney Carmen M. Lineberger is prosecuting the case.
This case is the result of Project Safe Delivery (PSD), a joint U.S. Postal Service and U.S. Postal Inspection Service initiative aimed at countering postal crime and safeguarding postal employees. Announced in May 2023, in direct response to a rise in threats and attacks on letter carriers and mail theft incidents, PSD seeks to protect Postal employees and the mail stream, prevent incidents through education and awareness, and enforce the laws that protect our nation’s mail stream. Since the launch of PSD, postal inspectors, working with law enforcement partners, have arrested more than 287 individuals for postal-related robberies through June 30, 2024. In the first six months of the fiscal year, the number of arrests for postal-related robberies rose 72% versus the same period the previous year, while the number of postal-related robberies dropped 21%. Meanwhile, the number of mail theft complaints received during that period decreased 35%, suggesting the PSD approach is achieving the intended result.
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. The Postal Inspection Service is authorized to issue monetary rewards for the forcible assault, robbery or attempted robbery of any custodian of any mail, money, or other property of the United States under the control and jurisdiction of the Postal Service. Additionally, individuals are 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.
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 23-cr-14053.
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Three Lawrence Men Arrested on Drug ChargesRead the Press Release
BOSTON – Three Lawrence men have been arrested for conspiracy to distribute and possess with intent to distribute drugs.
Ronald Odelyn Tejeda, 38; Erick Pimentel-Cabrera, 27; and Carlos M. Rodriguez, 36, have been charged with conspiracy to distribute and to possess with intent to distribute controlled substances. Pimentel-Cabrera and Rodriguez had their initial appearances in federal court in Boston today; Tejeda will appear at a later date.
According to the charging documents, after investigators became aware that Tejeda was selling fentanyl pills in the Lawrence area, several controlled purchases were conducted in August 2024 and September 2024 that resulted in seizures totaling over 5,000 pills. In September 2027, Tejeda and Pimentel-Cabrera were observed engaging in suspected drug activity the home where both Pimentel-Cabrera and Rodriguez live. During an October 2024 search of the residence, approximately four pounds of suspected crystal methamphetamine, approximately 30,000 pressed pills suspected to contain fentanyl, approximately 5,000 pressed pills suspected to contain methamphetamine, various amounts of suspected powder fentanyl, pill presses, three firearms and United States currency were seized.
The charge of conspiracy to distribute and to possess with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, three years to life of supervised release and a fine of up to $1 million dollars. 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 Acting Special Agent in Charge Stephen P. Belleau, Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance was provided by Homeland Security Investigations and by the Lawrence Police Department. Assistant U.S. Attorney Annapurna Balakrishna of the Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Bloods Gang Members Convicted at Trial of Racketeering (RICO) and Firearms OffensesRead the Press Release
ST. PAUL, Minn. – Three Minneapolis Bloods gang members were found guilty of racketeering (RICO) and firearms offenses in connection with a years-long pattern of gang violence, including two murders, announced U.S. Attorney Andrew M. Luger.
“The Minneapolis Bloods gang is a violent criminal enterprise,” said U.S. Attorney Andrew Luger. “As the evidence proved, the defendants convicted today were members of that enterprise, and they carried out violence and murder on its behalf. As Bloods members, the rules these defendants lived by superseded all criminal laws and social tenets, such as respect for human life or concern for public safety.”
“Today, a jury reached a verdict that sends a clear message to those who seek to terrorize our streets: we will find you, we will remove you from our streets, and we will bring you to justice,” said Minneapolis Police Chief Brian O’Hara. “Thank you to all those who have put in countless hours to ensure the successful prosecution of these violent individuals. To our community members who have been affected by the violent acts perpetrated by these violent gang members, I hope today brings you some sense of justice and closure.”
“The FBI is committed to working tirelessly to disrupt violent gangs like the Bloods and ensure that our communities are safer,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “This guilty verdict sends a clear message: we will not tolerate gang violence, drug trafficking, or the devastation these criminal organizations cause. We are proud to work alongside our law enforcement partners to bring these individuals to justice.”
Following a weeks-long trial before Judge Susan Richard Nelson in U.S. District Court, Desean James Solomon, aka Black, 34, Michael Allen Burrell, aka Skitz, 44, and Leontawan Lentez Holt, aka Leon, aka Shotta, aka Shot Dog, 26, were found guilty on all charges. Solomon was convicted of one count of RICO conspiracy and two counts of using and carrying a firearm in furtherance of murder. Burrell and Holt were each convicted of one count of using and carrying a firearm in furtherance of murder.
According to the evidence presented at trial, since at least 2020, Solomon, Burrell, and Holt, have been members and associates of the Minneapolis Bloods street gang. Historically, the gang’s territory is located on the south side of Minneapolis, near Chicago Avenue South and 38th Street East. The hierarchy of the Bloods includes a head or leader of the gang, senior leaders, street-level leaders, and other members or associates. New recruits (called “YGs” or young gangsters) must fight, shoot, or make money to gain respect and increase their position in the gang. The next level is “OG” (original gangsters), who are well-respected members of the gang, and the highest level is “double OG.” All OGs are equal in rank and can direct “shots” or orders. “Enforcers” carry out the OG’s “shots” or orders by beating or assaulting the offender. If a Bloods member is disrespected, other members are expected to retaliate. When shootings break out with opposition gangs, Bloods members within proximity are expected to come to each other’s aid by firing their own weapons at opposition gang members.
According to the evidence presented at trial, on June 14, 2020, Solomon, Burrell, and other Bloods members went to the 200 Club, a nightclub in north Minneapolis, where they assaulted a rival gang member in the men’s restroom. Following the assault, a shooting broke out outside the club. Solomon and Burrell both fired their weapons multiple times, resulting in the murder of a rival gang member.
According to the evidence presented at trial, on April 23, 2022, Solomon, Holt, and other Bloods members went to Williams Pub, a bar in the Uptown neighborhood of south Minneapolis, to celebrate a birthday. Inside the bar, Holt threw an unprovoked punch at a rival gang member and the rest of the Bloods members joined in. A large bar fight ensued. After several minutes, the Bloods members exited the bar onto a nearby street, where Holt and a juvenile member of the Bloods shot at and killed a rival gang member.
Sentencing hearings will be scheduled at a later date. With today’s convictions, a total of 17 Bloods members and associates have pleaded guilty or have been convicted at trial.
This case is the result of an investigation conducted by the FBI and the Minneapolis Police Department.
Assistant U.S. Attorneys Esther Mignanelli Soria, Kristian Weir, and Campbell Warner tried the case.
Thibodaux Residents Charged with Federal Drug and Firearm ViolationsRead the Press Release
NEW ORLEANS, LA - U.S. Attorney Duane A. Evans announced today that EARL HENRY Jr. (“HENRY”), age 27, ROY ROBINSON (“ROBINSON”),age 34, and TAMMY THOMPSON (“THOMPSON”), age 56, all residents of Thibodaux, La., were indicted on October 4, 2024 for Possession with Intent to Distribute 500 grams or more of Methamphetamine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A) (Count 1). HENRY and ROBINSON were additionally indicted for Conspiracy to Possess with Intent to Distribute 500 grams or more of a mixture of methamphetamine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A) (Count 2), as well as Possessing Firearms in Furtherance of a Drug Trafficking Offense, in violation of Title 18, United States Code, Section 924(c)(1)(a) (Count 3). Finally, HENRY was also indicted for possessing firearms after previously being convicted of certain felony offenses, in violation of Title 18, United States Code, Section 922(g)(1) (Count 4).
According to the indictment, Thibodaux law enforcement officers observed HENRY purchase narcotics from ROBINSON in a parking lot. A subsequent search of ROBINSON’s vehicle along with executed search warrants of HENRY’s residence yielded multiple firearms, a large sum of U.S. currency, and over 7,000 grams of methamphetamine. THOMPSON was seen attempting to move the methamphetamine out of the residence as law enforcement arrived to execute the warrants.
If found guilty of Counts 1 or 2, HENRY, ROBINSON, and THOMPSON face a minimum of 10 years imprisonment and a maximum of life imprisonment, up to a $10,000,000 fine, and at least five years of supervised release.
If found guilty of Count 3, HENRY and ROBINSON face a minimum of five years imprisonment and a maximum of life imprisonment, up to a $250,000 fine, and up to five years of supervised release. Any sentence imposed on Count 3 must run consecutive to any other sentence.
If found guilty of Count 4, HENRY faces up to fifteen years imprisonment, up to a $250,000 fine, and up to three years of supervised release. There is also a $100 mandatory special assessment fee for each count.
United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of a defendant must be proven beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Force (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 http://www.justice.gov/OCDETF.
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.
United States Attorney Evans praised the work of the Drug Enforcement Administration, the Louisiana State Police, the Thibodaux Police Department, the Lafourche Parish Sheriff’s Office, and the Terrebonne Parish Sheriff’s Office. This case is being prosecuted by Assistant United States Attorney Stuart Theriot of the Narcotics Unit.
St. Petersburg Doctor Settles Claim to Improve Services to Patients with Communication DisabilitiesRead the Press Release
Ocala, FL – U.S. Attorney Roger B. Handberg announces that the United States Attorney’s Office for the Middle District of Florida has reached an agreement with Dr. Mark A. Nowacki, M.D. to resolve allegations that his medical practice, Mark A. Nowacki, M.D., P.A., violated Title III of the Americans with Disabilities Act (ADA) by failing to provide auxiliary aids and services to patients with communication disabilities.
The U.S. Attorney’s Office opened an investigation into Dr. Nowacki after receiving a complaint from an individual (complainant) who is deaf and uses American Sign Language (ASL). The complainant alleged that in October 2021 she called to schedule a new patient appointment with Dr. Nowacki, an internal medicine specialist in St. Petersburg. During that phone call, the complainant requested an ASL interpreter be provided at the appointment in order for her to effectively communicate with Dr. Nowacki and his staff, but Dr. Nowacki denied her request. As a result of Dr. Nowacki failing to provide an ASL interpreter, the complainant was denied the opportunity to access his health care services.
Under the terms of the settlement agreement, Dr. Nowacki must: adopt a written effective communication policy that specifies his office’s obligations under Title III of the ADA; provide qualified interpreters when necessary to effectively communicate with patients—or their companions—with disabilities; implement effective communication training for all employees regarding their obligations under Title III of the ADA; maintain a log documenting all requests Dr. Nowacki receives for auxiliary aids and services, as well as how he handled those requests; report any complaints received alleging Dr. Nowacki violated Title III of the ADA to the United States; and pay the Complainant $1,000 in compensatory damages.
This case was handled by Assistant United States Attorney Alexandra N. Karahalios, in coordination with the Disability Rights Section of the United States Department of Justice, Civil Rights Division.
Title III of the ADA requires public accommodations, including professional offices of health care providers, to take such steps as may be necessary to ensure that no individual with a disability is excluded, denied services, segregated, or otherwise treated differently than other individuals because of the absence of auxiliary aids and services. Auxiliary aids and services include, but are not limited to, qualified interpreters who appear on-site or through video remote interpreting (VRI) services. A public accommodation is required to furnish appropriate auxiliary aids and services where necessary to ensure effective communication with individuals with disabilities.
Individuals who believe they may have been victims of discrimination may contact the Civil Rights Unit of the U.S. Attorney’s Office for the Middle District of Florida by calling our Civil Rights Hotline at (813) 274-6095 or emailing us at [email protected]. To fill out our civil rights complaint form, please visit https://www.justice.gov/usao-mdfl/civil-rights-complaint-form.
The Attorney General is authorized to investigate alleged violations of Title III of the ADA and to bring a civil action in federal court if the United States is unable to secure voluntary compliance in any case that involves a pattern or practice of discrimination or that raises issues of general public importance. Ensuring that professional offices of health care providers do not discriminate against individuals with disabilities is an issue of general public importance.
For more information on the ADA, visit www.ada.gov or call the Department of Justice’s toll-free ADA Information Line at (800) 514-0301 (Voice) or (833) 610-1264 (TTY). Accessibility specialists are available to answer questions from individuals, businesses, and state or local governments. All calls are confidential.
executed_doj_settlement_agreement_nowacki.pdf Download Settlement AgreementSouthington Man Admits Dealing AR-15-Style Assault Rifles, MarijuanaRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that BRYAN JOYCE, 38, of Southington, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to multiple offenses related to his selling privately made AR-15-style firearms, ammunition, and marijuana.
According to court documents and statements made in court, in January 2022, the Connecticut State Police received information that Joyce was offering to sell assault weapons and other firearms, including privately manufactured firearms (PMFs or “ghost guns”), as well as ammunition and firearms accessories. On January 28, 2022, Joyce sold an undercover law enforcement officer a privately-made AR-15 style rifle, a privately-made 9mm handgun, and a box of ammunition, in exchange for $2,000. On March 4, 2022, Joyce sold the undercover officer two loaded AR-15 style rifles and approximately 400 grams of marijuana, for $5,800.
On March 21, 2022, Joyce was arrested at a parking lot in Waterbury where he met with the undercover officer who had arranged to purchase five more privately-made AR-15 style rifles and a kilogram of marijuana. A search of Joyce’s vehicle revealed the five firearms, marijuana, and numerous rounds of ammunition.
The investigation revealed that Gregory Leary was Joyce’s firearm supplier. A subsequent search of Leary’s Wolcott residence revealed six privately-made AR-15 style rifles; two privately-made 9mm semiautomatic handguns; a loaded Remington 12-gauge shotgun; a Glock .40 caliber semiautomatic handgun; a Glock 9mm semiautomatic handgun stamped “San Antonio Police Department”; numerous firearm parts and accessories; equipment used to manufacture firearms; and $7,129 in cash.
Joyce is a felon with a criminal history that includes state convictions for drug, larceny, and burglary offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Joyce pleaded guilty to one count of engaging in the business of dealing in firearms without a license, which carries a maximum term of imprisonment of five years; three counts of unlawful possession of ammunition by a felon, which carries a maximum term of imprisonment of 10 years on each count; one count of possession with intent to distribute, and distribution of, marijuana, which carries a maximum term of imprisonment of five years; and one count of possession with intent to distribute marijuana, which carries a maximum term of imprisonment of five years. Judge Underhill schedule sentencing for January 6.
Joyce, who had been released on bond, has been detained since April 2024 after he was arrested after an alleged domestic violence incident.
Leary pleaded guilty on June 13, 2023, and admitted that he manufactured and sold more than 25 firearms to Joyce. On November 7, 2023, he was sentenced to 30 months of imprisonment.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Connecticut State Police Statewide Firearms Trafficking Task Force (SFTTF) and Statewide Urban Violence Cooperative Crime Control Task Force (SUVCCCTF/Gangs Unit), assisted by the Statewide Narcotics Task Force (SNTF) Southwest and North Central Offices, and the Bridgeport, Shelton, Orange, Waterbury, and Hartford Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Rahul Kale through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
Sanbornton Man Sentenced to 87 Months in Federal Prison for Possession of Approximately 2600 Images of Child Sexual AbuseRead the Press Release
CONCORD – A former Sanbornton man was sentenced today in federal court for possession of child sexual abuse material (CSAM), U.S. Attorney Jane E. Young announces.
Timothy Ryan, 35, was sentenced by U.S. District Court Judge Steven McAuliffe to 87 months in federal prison and 5 years of supervised release. In December 2022, Ryan was charged with one count of possession of CSAM. In November 2023, while Ryan was on pre-trial release for this original federal CSAM charge, he reoffended and was subsequently charged with another count of possession of CSAM. On June 27, 2024, Ryan pleaded guilty to a superseding information charging him with two counts of possession of CSAM.
“The defendant was caught possessing thousands of images depicting child sexual abuse – not once – but twice. His contempt for the conditions of his pre-trial release, lack of remorse, and brazen disregard for accountability is appalling,” said U.S. Attorney Jane E. Young. “The defendant will now serve a lengthy prison sentence, preventing him from causing additional harm to child survivors of sexual abuse.”
“Despite being arrested by federal agents for possessing child sexual abuse material, Ryan continued to access CSAM while out on bond, resulting in additional federal charges. Now, he’ll be spending the next several years in federal prison,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “HSI remains committed to working with our partners to hold offenders like Ryan to account.”
“Today’s sentencing holds the defendant accountable for the despicable act of possessing child sexual abuse material,” said Special Agent in Charge Christopher Algieri of the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG thanks our law enforcement partners and the U.S. Attorney’s Office for their collaboration in pursuing justice in this case.”
Ryan was identified as a top offender in the state of New Hampshire for supplying CSAM through a peer-to-peer file-sharing network. Investigators traced the illicit internet activity to his residence and executed a federal search warrant to seize and search his electronic devices on December 13, 2022. Forensic examination of Ryan’s cell phone revealed the presence of approximately 2,600 files of apparent CSAM. Following this search, he was charged by complaint, and subsequently by information, with one count of possession of CSAM.
In November 2023, while Ryan was on bond for his federal CSAM charge, investigators with the Department of Veteran’s Affairs received information that an IP address associated with one of its residential facilities in Massachusetts was being used regularly to distribute known CSAM on the same peer-to-peer file-sharing network. Further investigation revealed that Ryan had moved into that facility around the same time that the illicit activity was first observed. In December 2023, federal authorities executed a second search warrant for Ryan’s private room at the facility, which resulted in the seizure of more electronic devices containing hundreds of images of CSAM. Based on this new information, authorities brought a second charge against Ryan.
Homeland Security Investigations and the United States Department of Veteran’s Affairs Office of the Inspector General led the investigation. Valuable assistance was provided by the United States Secret Service, the New Hampshire Internet Crimes Against Children Task Force, the Nashua Police Department, the Grafton County Sheriff’s Department, the Sanbornton Police Department, and the U.S. Veteran’s Affairs Police Service. Assistant U.S. Attorney Kasey Weiland is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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Sacramento County Man Pleads Guilty to Fraud in Connection with Medical Device SalesRead the Press Release
SACRAMENTO, Calif. — Michael Andrew Scott, 38, of Fair Oaks, pleaded guilty today to wire fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between June 2018 and June 2022, Scott devised a scheme to defraud investors in his company, Trusted Medical Partnership. Scott told investors that either he or Trusted Medical Partnership received purchase orders from various health care providers for medical devices but lacked the capital to fulfill the orders. Scott solicited and obtained loans from these investors, and, in exchange, promised them substantial returns in a relatively short time with zero risk.
In reality, Scott’s representations to these prospective investors were false because Scott did not have purchase orders from health care providers. To some of his victims, Scott sent purchase orders that he had doctored or fabricated in order to convince them to lend money. The health care providers listed on these purported purchase orders confirmed that the orders were fake altogether or altered to reflect inflated amounts or other false information. Further, Trusted Medical Partnership was not a legitimate business – while incorporated in the State of California, it conducted no legitimate business transactions, paid no taxes, submitted no wage or employment-related records, and had been suspended in December 2021, before Scott solicited investments on its behalf from some of his victims.
Scott’s victims lent him money on the basis of his false statements, including the fraudulent purchase orders, but received little to no returns on their investments. Instead, Scott spent the money on gambling at several local casinos (sometimes the same day he received the victims’ money), personal expenses, or payments to other, prior investors in order to keep the scheme running. Collectively, Scott defrauded more than 10 victims of between $250,000 and $550,000.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Dhruv M. Sharma is prosecuting the case.
Scott is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Jan. 14, 2025. Scott faces a maximum statutory penalty of 20 years in prison and a fine of $250,00, or twice the gross gain or gross loss, whichever is greater. In addition to pleading guilty, Scott agreed to pay restitution to his victims of between $338,843 and $550,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Ross Township Resident Indicted on Sexual Exploitation of Minors ChargesRead the Press Release
PITTSBURGH, Pa. - A resident of Ross Township, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges related to the sexual exploitation of minors, United States Attorney Eric G. Olshan announced today.
The six-count Indictment named Ralph Talerico, 44, as the sole defendant.
According to the Indictment, from June through July 2023, Talerico produced and attempted to produce material depicting the sexual exploitation of minors. Talerico is also charged with possession of material depicting the sexual exploitation of prepubescent minors and minors under 12 years of age on June 6, 2024.
The law provides for a maximum total sentence of not less than 15 years and up to 30 years in prison, a fine of up to $1.5 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney V. Joseph Sonson is prosecuting this case on behalf of the government.
The Pennsylvania Office of Attorney General and Homeland Security Investigations conducted the investigation leading to the Indictment.
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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Rochester man going to prison for his role in drug conspiracyRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Dante Bolling, 25, of Rochester, NY, who was convicted of conspiracy to possession with intent to distribute, and to distribute, 500 grams or more of cocaine, and possession of ammunition by an unlawful user of a controlled substance, was sentenced to serve 60 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that between August 2020, and August 25, 2022, Bolling conspired with others to sell quantities of cocaine in the Rochester area. On August 25, 2022, law enforcement executed a search warrant at Bolling’s Mayflower Street residence, seizing approximately 66 grams of cocaine and drug trafficking paraphernalia, That same day, Bolling, knowing that he was an unlawful user of marijuana, possessed a firearm and ammunition.
The sentencing is the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan Miller, New York Field Division
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Richfield Felon Sentenced to 21 Years in Prison in Methamphetamine Distribution ConspiracyRead the Press Release
MINNEAPOLIS – A Richfield man has been sentenced to 262 months in prison followed by 10 years of supervised release for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney Andrew M. Luger.
On September 19, 2023, Andrew Jerome Bigbee, 58, was convicted by a federal jury on one count of conspiracy to distribute methamphetamine and three counts of possession with intent to distribute methamphetamine. He was sentenced yesterday in U.S. District Court by Judge John R. Tunheim.
According to the evidence presented at trial, the defendant conspired to distribute methamphetamine between approximately September 2019 and May 2021. Law enforcement officers obtained a warrant and searched the defendant’s house in Richfield, Minnesota, on September 4, 2019. Law enforcement found more than 520 grams of methamphetamine in the defendant’s house, as well as other miscellaneous indicators of drug trafficking, such as a digital scale, more than $8,000 in cash, a money counting machine, drug packaging materials, and two firearms.
According to the evidence presented at trial, on October 16, 2020, law enforcement searched the defendant’s RV in Bloomington, Minnesota. There, law enforcement found more than 5,000 grams of methamphetamine throughout the RV as well as drug trafficking paraphernalia, including a vacuum sealer machine, plastic bags, digital scales, a money counting machine, and more than $300,000 in cash. On May 6, 2021, law enforcement searched the defendant’s residence in Elko, Minnesota. Law enforcement found almost 12,000 grams of methamphetamine in the residence. Law enforcement also found additional evidence of drug trafficking, including a digital scale, a money counter machine, almost $18,000 in cash, and a firearm.
This case is the result of an investigation conducted by the Drug Enforcement Administration, Minnesota Bureau of Criminal Apprehension, Bloomington Police Department, Scott County Sheriff’s Office, Edina Police Department, Richfield Police Department, Southwest Hennepin Drug Task Force, and the Springerville Police Department in Arizona.
Assistant U.S. Attorney Nathan H. Nelson prosecuted the case.
Red Lake Woman Sentenced to Prison for Child Neglect Following the Death of a Child on the Red Lake ReservationRead the Press Release
MINNEAPOLIS – A Red Lake woman has been sentenced to 15 months in prison following the death of a child in her care, announced U.S. Attorney Andrew M. Luger.
According to evidence presented at trial, Sharon Rosebear, 64, intentionally deprived a child, Minor A, of necessary food and health care over the course of 2022. The evidence at trial established that Minor A died in 2022 from the combined effects of starvation and infection. Rosebear’s codefendant, Julius Fineday, Sr., pleaded guilty to one count of felony child neglect causing the death of a child and was sentenced to five years in prison earlier this year.
The evidence at trial established that Rosebear acted as one of Minor A’s caretakers in 2022. In accordance with Minnesota law, the jury was instructed that Rosebear’s lack of formal legal custody of Minor A did not alter her responsibility to the child. The evidence at trial established that Rosebear was reasonably able to provide for Minor A’s nutrition and healthcare—including evidence establishing that healthcare and transportation to healthcare is free within the Red Lake Nation, and that all of the adults and children involved in the case received nutritional and cash assistance adequate to meet their basic needs—and that Rosebear nonetheless intentionally deprived Minor A of those basic needs by withholding food, and by looking the other way while Minor A’s health deteriorated. The evidence at trial included evidence that Minor A died at the same weight she had been nearly three years earlier, and that while Rosebear was aware of Minor A’s severe lice infestation, Rosebear responded by keeping Minor A isolated rather than seeking medical attention for Minor A.
Medical testimony at trial established that the type of infection Minor A had when she died could have entered Minor A’s body through scratches in her scalp related to her unaddressed lice. The medical testimony also established that Minor A’s prolonged starvation may have been an independently sufficient cause of death, or may have severely compromised Minor A’s immune system’s ability to fight infection.
On April 29, 2024, Rosebear was found guilty of felony child neglect following a six-day trial in U.S. District Court. She was sentenced today by Chief Judge Patrick J. Schiltz.
In handing down the sentence, Chief Judge Schiltz commented, “One of the most tragic things about Minor A’s death is that it was so easily preventable … day after day, week after week, month after month, Ms. Rosebear watched as Minor A slowly starved to death.”
This case is the result of an investigation conducted by the FBI and the Red Lake Tribal Police Department.Assistant U.S. Attorneys Lindsey E. Middlecamp and Rachel L. Kraker tried the case.
Pittsburgh Man Charged with Robbery of Reserve Township BankRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of bank robbery, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Mark Laughner, 38, as the sole defendant.
According to the Indictment, on or about May 16, 2024, Laughner entered a Reserve Township bank and, by force, violence, and intimidation, took approximately $1,370 in United States currency from the teller.
The law provides for a total sentence of up to 20 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney V. Joseph Sonson is prosecuting this case on behalf of the government.
The Allegheny County Police Department and Federal Bureau of Investigation conducted the investigation leading to the Indictment.
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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty
Philadelphia Man Sentenced to 11 Years in Prison for Meth Distribution, Drug and Gun PossessionRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Malik Lewis, 33, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge John F. Murphy to 11 years in prison, 5 years’ probation, 2,500 fine and 400 special assessment for drug and firearm offenses.
Lewis was charged by information in April 2023 with two counts of distribution of 50 grams or more of methamphetamine, possession with the intent to distribute 50 grams or more of methamphetamine, cocaine base, and marijuana, and unlawful possession of a firearm by a felon. He pleaded guilty to the charges against him in May 2023.
In April of 2021, the FBI had developed information that showed Lewis was selling pound quantities of methamphetamine and illegal firearms throughout the Mayfair section of Philadelphia.
From April to June of that year, the FBI purchased multiple pounds of methamphetamine directly from Lewis. Ultimately, members of the FBI conducted a search warrant on Lewis’ residence and recovered approximately six pounds of methamphetamine, crack cocaine, bulk marijuana, and a Glock firearm with a 30-round extended magazine.
“Malik Lewis and others profiting from the drug trade here have no regard for the harm they do to our community,” said U.S. Attorney Romero. “Getting illicit drugs and illegal guns off the street makes the city of Philadelphia safer. That’s why my office and the FBI work together every day to build and prosecute these cases.”
“Today’s sentencing sends a strong message to those who would sell drugs and illegal firearms in our communities – you will be held accountable for your crimes,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI and our partners at the U.S. Attorney’s Office will not cease in our efforts to stop such individuals from endangering our communities.”
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Everett Witherell.
Pharmaceutical Executive Pleads Guilty to Insider TradingRead the Press Release
BOSTON – A former executive of a global pharmaceutical company pleaded guilty today in federal in Boston to earning more than $250,000 by trading on material non-public information.
Dishant Gupta, 40, of Hillsborough, N.J., pleaded guilty to one count of securities fraud. U.S. District Court Judge Julia E. Kobick scheduled sentencing for Jan. 9, 2025. Gupta was charged by Information in September 2024.
Gupta worked as the Director of Strategy and Operations in the Boston office of a global pharmaceutical company (Company A). In the spring of 2022, during the course of his employment at Company A, Gupta learned that Company A was negotiating to acquire certain assets of a smaller pharmaceutical company based in Boston (Company B), including its leading cancer drug, and that Company A later agreed to acquire Company B outright.
While in possession of this material non-public information, and in violation of his fiduciary duties to Company A, Gupta acquired shares of Company B in his own and his wife’s brokerage accounts – in an effort to profit from the eventual public announcement of the transaction. Gupta purchased more than 300,000 shares of Company B over approximately two and a half months. Gupta then sold all the shares he had acquired after Company A announced the acquisition of Company B, earning more than $250,000.
The charge of securities 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 $5 million. 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.
The Securities and Exchange Commission filed a civil complaint against Gupta alleging violations of the securities laws.
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 Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Peru Woman Sentenced to 15 Years for Selling More than 1.5 Kilos of Methamphetamine to Undercover OfficerRead the Press Release
PORTLAND, Maine: A Peru, Maine woman was sentenced today in U.S. District Court in Portland for trafficking methamphetamine and for possessing a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Nancy Torresen sentenced Mandy Lynn Shorey, 43, to 180 months to be followed by five years of supervised release.
According to court records, between July 2022 and January 2023, Shorey sold approximately 1.5 kilograms of methamphetamine to an undercover officer across four controlled buys. For three of the buys, the purity of the methamphetamine Shorey sold to police approached 100%. During one of the buys, Shorey explained that she carried a firearm with her for protection when she met with new drug customers and removed the firearm from a bag and placed it in her waistband. During another exchange, she told the undercover officer that meeting her to conduct their next transaction would be safe because she would “bring one armed man to back me up that they will never see, just in case.” When Shorey was arrested, she was in possession of a Charter Arms .22 revolver.
The FBI Safe Streets Task Force investigated the case.
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Updated 10/9/24 to correct defendant's city of residence at time of arrest from Windham, ME to Peru, ME
Passenger in Highway 76 Emergency Plane Landing Facing Drug ChargesRead the Press Release
SAN DIEGO –Troy Othneil Smith, a passenger aboard a small aircraft that made an emergency landing on Highway 76 in Oceanside last month, appeared in federal court today to face drug charges stemming from the incident.
According to a complaint, after the plane landed safely, Smith attempted to hide a package of cocaine from Oceanside police officers who responded to the emergency landing that occurred at about 1:39 a.m. on September 26, 2024.
According to the complaint, Smith was under investigation by the DEA and the U.S. Postal Service prior to the emergency landing. In that ongoing probe, Smith is suspected of shipping narcotics from Oceanside, California, across the United States through the United States Postal Service.
Flight records indicate the private plane departed from a San Diego airport at approximately 10:49 a.m. on September 25, 2024, and landed at about 6:48 p.m. that evening in Mesa, Arizona. At approximately 11:08 p.m. on September 25, 2024, the airplane departed Mesa, Arizona and headed westward toward California. At approximately 1:28 a.m., the airplane flew past Carlsbad over the Pacific Ocean, and made a U-turn heading back toward Oceanside. At approximately 1:39 a.m., the airplane made an emergency landing on Highway 76.
Based upon information gathered during the investigation, law enforcement learned that the pilot and passenger, later identified as Smith, began experiencing mechanical issues with the airplane during the flight as it arrived in San Diego County airspace. The pilot and passenger were planning an ocean landing because the airplane seemed to shut-off and was malfunctioning. They were able to turn the airplane around over the ocean as the airplane and engine began working again. After a short time, the engine shut off a second time, which resulted in the pilot landing the plane on Highway 76.
The Oceanside Police Department immediately responded to the scene on Highway 76 and found the pilot and passenger near the airplane. The passenger identified himself to police officers as Smith. One of the officers on scene noticed Smith was wearing a backpack and was pacing near the plane. After ordering Smith to stop going back to the airplane, the officer turned his attention away from Smith. When he heard the unzipping of a backpack, the officer immediately turned his attention back toward Smith, who was near the guardrail on the highway. The officer observed Smith reach into the backpack, take something out, and place it in the bushes. The officer ordered Smith to step away from the guardrail, while another officer went over to the guardrail and found a heat-sealed, air-tight package resting on the ground among the bushes. The contents of the package tested positive for cocaine. Smith was arrested.
Smith’s preliminary hearing and arraignment are scheduled to take place on October 31, 2024, at 1:30 p.m.
DEFENDANT Case Number 24-MJ-03788
Troy Othneil Smith Age: 36 Oceanside, CA
SUMMARY OF CHARGES
Possession of Cocaine with the Intent to Distribute– Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Twenty years in prison and $1 million fine
INVESTIGATING AGENCIES
Drug Enforcement Administration
United States Postal Inspectors
San Diego Field Division Narcotics Task Force Team 6
North County Narcotics task Force
Oceanside Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Okmulgee Resident Pleads Guilty to Federal Drug and Firearm CrimesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Richard Tyrone Dawson, age 35, of Okmulgee, Oklahoma, entered a guilty plea to an Indictment of one count of Possession of Methamphetamine with the Intent to Distribute, and one count of Felon in Possession of a Firearm.
The Indictment alleged that on October 16, 2023, Dawson knowingly and intentionally possessed a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, and that Dawson knowingly possessed a loaded .40 caliber pistol after having been previously convicted of a crime punishable by more than one year imprisonment.
The charges arose from an investigation by the Federal Bureau of Investigation and the Muscogee (Creek) Nation Lighthorse Tribal Police.
The Honorable Jason A. Robertson, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Dawson was remanded into the custody of the United States Marshal Service pending sentencing.
Assistant U.S. Attorney Michael E. Robinson represented the United States.
North Tonawanda man going to prison for 14 years for his role in drug conspiracyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Johnny Williams, 32, of North Tonawanda, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 400 grams or more of fentanyl, was sentenced to serve 168 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Nicholas T. Cooper and Aaron J. Mango, who handled the case, stated that between June and October 2021, Williams conspired with others, including Lairon Graham, to sell fentanyl and crack cocaine from a residence on Liddell Street in Buffalo. While doing so, Williams possessed a firearm on multiple occasions. In August 2021, law enforcement executed a search warrant at a Davey Street residence in Buffalo, which was also used by members of the conspiracy to sell fentanyl and crack cocaine. During the search, investigators recovered approximately 44 grams of fentanyl, approximately 37 grams of crack cocaine, approximately $2,500 cash, and assorted drug paraphernalia. In March 2022, Williams a semi-automatic pistol to fire multiple gunshots at an individual, striking the victim in the upper arm. The Government contends that the shooting was intended to discourage another person from providing information to law enforcement about the narcotics conspiracy. Williams contends that was not his motivation for firing gunshots at the victim.
Lairon Graham was previously convicted and sentenced to serve 264 months in prison.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; Homeland Security Investigations, under the direction of Special Agent-in-Charge Erin Keegan; the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia; the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia; the Lancaster Police Department, under the direction of Chief William Gummo; and the Lackawanna Police Department, under the direction of Chief Mark Packard.
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Nicaraguan Man Guilty of Making False Statement on Passport ApplicationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that SILVIO MENDOZA SANCHEZ (“SANCHEZ”), age 45, a citizen of Nicaragua, pleaded guilty on October 7, 2024, to making a false statement on a passport application, in violation of Title 18, United States Code, Section 1542.
According to court documents, SANCHEZ applied for a United States passport using the name, date of birth, and social security number of a Puerto Rican man.
SANCHEZ faces a sentence of up to 10 years imprisonment, up to 3 years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee. U.S. District Judge Jay C. Zainey has set the sentencing for January 7, 2025.
U.S. Attorney Evans praised the work of the United States Department of State, Diplomatic Security Service, in investigating this matter. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.
Niagara Falls woman sentenced for her role in debt collection schemeRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Erica Lounsberry, 37, of Niagara Falls, NY, who was convicted of conspiracy to commit wire fraud, was sentenced to serve 21 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Franz M. Wright, who handled the case, stated that between January 2014 and February 2017, Lounsberry conspired with others in the activities of supposed debt collection agencies, which operated under various names, including Lakeside Mediations, Lincoln Mediation, Valentine Legal Mediation, First Point Mediation, State Filing and Legal Services, and Elite Services. As a manager for these operations, Lounsberry directed and trained other employees, including those who placed calls to “debtors,” those who posed as attorneys during the calls, and those who provided the “debtors” with payment instructions. Lounsberry and the employees she managed placed telephone calls to thousands of “debtors” throughout the United States, and used various fraudulent tactics and misrepresentations to induce the “debtors” to make payments, including using false identities, making false threats that debtors would be arrested, and making false claims that criminal charges would be filed against the “debtors.” The “debtors” were eventually directed to employees posing as attorneys, and were provided with payment instructions, supposedly to settle their outstanding debts. Lounsberry and others routinely collected money from “debtors” from whom they had already collected payment, deemed to be “easy targets.” “Debtors” were instructed to make payment through various means, including MoneyGram payments, bank wire transfers, and debit/credit card payments. Between February 2015, and December 2016, Lounsberry and those she managed collected approximately $2,103,105.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special-Agent-in-Charge Erin Keegan; the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Thomas Fattorusso; the United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Ketty Larco-Ward; and the New York State, Office of Inspector General, under the direction of Inspector General Catherine Lucy Lang.
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New Orleans Tax Preparer Convicted of Tax Fraud and Covid FraudRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that CELINA BOLTON-FULTZ (“BOLTON-FULTZ”), age 35, of Slidell, Louisiana, pled guilty on October 3, 2024 to thirty counts of assisting in filing false tax returns under 26 U.S.C. § 7206(2), five counts of filing her own false tax returns under 26 U.S.C. § 7206(1), four counts of making false statements under 18 U.S.C. § 1001, and two counts of theft of government funds under 18 U.S.C. § 641. The Honorable Eldon E. Fallon set sentencing for January 23, 2025.
According to court documents, from 2018 through 2022, BOLTON-FULTZ submitted thirty false tax returns for seven clients of her tax preparation business, fraudulently inflating their income by adding fake “household help” income to their returns to obtain inflated tax credits that the clients would not have received had they been truthful. BOLTON-FULTZ also fraudulently reduced her own income on her tax returns for tax years 2017 through 2021, by fraudulently reducing her gross receipts and reporting false expenses for businesses that she owned.
In addition to the tax crimes, BOLTON-FULTZ pled guilty to two types of fraud concerning funds disbursed under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). She pled guilty to four counts of making false statements, in violation of 18 U.S.C. § 1001, for submitting fraudulent applications in 2020 and 2021 for Paycheck Protection Program (“PPP”) loans, in which she provided false information about her businesses’ payroll and submitted fake tax forms to support those PPP applications. BOLTON-FULTZ also pled guilty to two counts of theft of government funds, under 18 U.S.C. § 641, for making fraudulent applications for Economic Injury Disaster Loan (“EIDL”) applications, through the submission of false applications to the Small Business Administration (“SBA”) for EIDL funds. To accomplish this fraud, she inflated her businesses’ revenues and expenses and submitted false tax documents in support of the EIDL applications. In total, she received $204,103 in funds through the fraudulent PPP and EIDL applications.
Under the terms of her plea agreement, BOLTON-FULTZ agreed to pay a total of at least $405,133.00 in restitution to the IRS and the SBA.
At sentencing, the maximum penalty BOLTON-FULTZ may receive is three years of imprisonment as to each of the tax counts, five years of imprisonment as to each of the PPP fraud counts, and ten years of imprisonment as to each of the EIDL fraud counts. She also faces a fine of up to $100,000 for each of the tax counts and up to $250,000 for each of the PPP and EIDL fraud counts, or the greater of twice the gross gain to the defendant or twice the gross loss to any person under 18 U.S.C. § 3571, or both. Following any term of imprisonment, BOLTON-FULTZ also faces a term of supervised release of up to three years for the PPP and EIDL fraud counts and up to one year for the tax counts. Finally, she faces payment of a mandatory special assessment fee for every count to which she pled guilty.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The U.S. Attorney’s Office would also like to acknowledge the assistance of IRS Criminal Investigations with this matter. Assistant United States Attorney Nicholas D. Moses, of the Financial Crimes Unit and Health Care Fraud Coordinator, is in charge of the prosecution.
Nashua Man Sentenced to 53 Months in Federal Prison for Possessing over 1100 Images of Child Sexual AbuseRead the Press Release
CONCORD – A Nashua man was sentenced today in federal court for possessing over 1,100 images of child sexual abuse material (CSAM), U.S. Attorney Jane E. Young announces.
Brian Eric Hynes, 35, was sentenced by U.S. District Court Chief Judge Landya B. McCafferty to 53 months in prison and 10 years of supervised release. On May 6, 2024, Hynes pleaded guilty to possession of child pornography.
“The defendant exacerbated the pain and suffering of countless child survivors by possessing images of their abuse,” said U.S. Attorney Jane E. Young. “He then tried to cover up his crime by deleting suspected CSAM when he was confronted by law enforcement. Today’s sentence serves as a warning to those who think that applications (apps) and websites will give them enough anonymity to continue victimizing children. Law enforcement will identify you, investigate you, and prosecute you, and you will be incarcerated for your role in the child exploitation epidemic.”
“Hynes possessed over a thousand images, each capturing the pain and trauma of a child. The possession and demand for these images perpetuates that pain and today’s sentence shows the consequences—federal prison time,” said Special Agent in Charge Michael J. Krol. “HSI continues to work alongside our partners to detect and bring to justice predators who seek out child sexual abuse material.”
In August 2021, law enforcement reviewed chat rooms being used to exchange CSAM on an app called Viber. Law enforcement learned that an individual with the username “John ketg” was present in chat rooms where CSAM was posted and traced the username back to the defendant. In February 2022, law enforcement obtained a search warrant for the defendant’s electronic devices. When executing the warrant, law enforcement saw the defendant sitting in his vehicle. The defendant initially did not comply with law enforcement’s commands to exit the vehicle and was seen swiping up on his phone. Although the defendant eventually exited the vehicle, he continued to swipe the phone. Officers subdued the defendant and secured the phone. The recently used video player application on his phone displayed CSAM. A forensic examination of the phone revealed approximately 1,150 CSAM images, primarily depicting young girls under 10 years old. The web history further showed that the defendant had visited websites associated with CSAM, and he had saved bookmarks to websites with phrases and words indicative of CSAM.
Homeland Security Investigations and the Nashua Police Department led the investigation. Assistant U.S. Attorneys Alexander S. Chen and Kasey Weiland prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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NH Learning Solutions Corporation Agrees to Pay $975,000 to Resolve False Claims Act Suit for Allegedly Inflating Post 9/11 GI-Bill Tuition BenefitsRead the Press Release
The Justice Department announced today that NH Learning Solutions Corp. (NHLS) has agreed to pay $975,000 to resolve allegations that it submitted false claims to the Department of Veterans Affairs (VA) for inflated educational assistance benefits under the Post-9/11 Veterans Educational Assistance Act of 2008 (Post-9/11 GI Bill). The United States filed suit against NHLS under the False Claims Act (FCA) in December 2022, in the U.S. District Court for the Eastern District of Michigan. Detroit-based NHLS provided technology-focused, non-college degree programs at locations across the Midwest and Northeast.
“The Post-9/11 GI Bill was designed to support the educational needs of our veterans, not to permit schools to illegally profit at the expense of the American taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement shows that the Justice Department will hold schools accountable for violating program requirements and submitting inflated claims for payment.”
“The Post-9/11 GI Bill benefits are part of our nation’s promise to the brave men and women who have served our country,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “My office is committed to protecting the integrity of our federal programs to ensure the assistance reaches the intended beneficiaries.”
“Safeguarding Post-9/11 GI Bill education benefit funds reserved for deserving veterans remains a priority, and our investigators are working diligently in the field to ensure these programs are not exploited for financial gain,” said Special Agent in Charge Gregory Billingsley of the VA's Office of Inspector General (VA OIG)’s Central Field Office. “The VA OIG thanks the Justice Department for its efforts in this investigation.”
Under the Post-9/11 GI Bill, the VA pays tuition and fees directly to qualifying schools on behalf of enrolled students. For veteran students properly enrolled in a course, the VA pays the actual net cost for tuition and fees charged by the school, after it has applied any scholarships, waivers, grants or other assistance designed to defray the cost of tuition and fees, which is known as the “last payer rule.” The rule ensures that the VA is the payer of last resort and receives the benefit of any tuition-based, financial support available to a student.
The government’s amended complaint alleged that NHLS knowingly submitted false claims for inflated tuition and fees, in violation of the last payer rule, at five NHLS locations in Illinois, Ohio and Michigan. More specifically, the government alleged that NHLS repeatedly reported tuition and fees to the VA on student invoices, where it failed to deduct the tuition scholarships, grants or waivers it provided to certain veterans, thereby causing the VA to overpay NHLS for educational assistance benefits under the Post-9/11 GI-Bill for these veterans.
The lawsuit is captioned United States v. NH Learning Solutions Corp. No. 2:22-cv-13045 (EDMI). The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Michigan, with substantive assistance from VA OIG.
Senior Trial Counsel Christopher Wilson of the Civil Division and Assistant U.S. Attorney Anthony C. Gentner for the Eastern District of Michigan handled the matter.
The claims asserted against defendant are allegations only. There has been no determination of liability.
Settlement
NH Learning Solutions Corporation Agrees to Pay $975,000 to Resolve False Claims Act Suit for Allegedly Inflating Post 9/11 GI-Bill Tuition BenefitsRead the Press Release
DETROIT –The Justice Department announced today that NH Learning Solutions Corp. (NHLS) has agreed to pay $975,000 to resolve allegations in a lawsuit that it submitted false claims to the Department of Veterans Affairs (VA) for inflated educational assistance benefits under the Post-9/11 Veterans Educational Assistance Act of 2008 (Post-9/11 GI Bill). The United States filed suit against NHLS under the False Claims Act (FCA) in December 2022, in the United States District Court for the Eastern District of Michigan. Detroit-based NHLS provided technology-focused, non-college degree programs at locations across the Midwest and Northeast.
“The Post-9/11 GI Bill was designed to support the educational needs of our veterans, not to permit schools to illegally profit at the expense of the American taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement shows that the Justice Department will hold schools accountable for violating program requirements and submitting inflated claims for payment.”
“The Post-9/11 GI Bill benefits are part of our Nation’s promise to the brave men and women who have served our country,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “My office is committed to protecting the integrity of our federal programs to ensure the assistance reaches the intended beneficiaries.”
Under the Post-9/11 GI Bill, the VA pays tuition and fees directly to qualifying schools on behalf of enrolled students. For veteran students properly enrolled in a course, the VA pays the actual net cost for tuition and fees charged by the school, after it has applied any scholarships, waivers, grants or other assistance designed to defray the cost of tuition and fees, which is known as the “Last Payer Rule.” The Rule ensures that the VA is the payer of last resort and receives the benefit of any tuition-based, financial support available to a student.
The government’s amended complaint alleged that NHLS knowingly submitted false claims for inflated tuition and fees, in violation of the Last Payer Rule, at five NHLS locations in Illinois, Ohio, and Michigan. More specifically, the government alleged that NHLS repeatedly reported tuition and fees to the VA on student invoices, where it failed to deduct the tuition scholarships, grants, or waivers it provided to certain veterans, thereby causing the VA to overpay NHLS for educational assistance benefits under the Post-9/11 GI-Bill for these veterans.
“Safeguarding Post-9/11 GI Bill education benefit funds reserved for deserving veterans remains a priority, and our investigators are working diligently in the field to ensure these programs are not exploited for financial gain,” said Special Agent in Charge Gregory Billingsley with the Department of Veterans Affairs, Office of Inspector General’s Central Field Office. “The VA OIG thanks the Justice Department for its efforts in this investigation.”
The lawsuit is captioned United States v. NH Learning Solutions Corp., No. 2:22-cv-13045 (E.D. Mich.). The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Eastern District of Michigan, with substantive assistance from the U.S. Department of Veterans Affairs Office of Inspector General.
The United States was represented in this matter by Senior Trial Counsel Christopher Wilson of the Civil Division and Assistant U.S. Attorney Anthony C. Gentner of the Eastern District of Michigan.
The claims asserted against defendant are allegations only and there has been no determination of liability.
Maryland Staffing Firm Owners Indicted for Evading Payment of at Least $10 Million Dollars in Taxes Owed to the United StatesRead the Press Release
Baltimore, Maryland – On October 2, 2024, a federal grand jury returned an indictment charging Jeannette Gomez, age 54, of Perry Hall, Maryland, and Edgar Gomez, age 51, of Perry Hall, Maryland, with failure to report and pay over employment taxes accrued pursuant to their interest in SND Services, LLC and related entities.
The indictment was announced by Erek L. Barron, U.S. for the District of Maryland, and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
As detailed in the indictment, the defendants owned and operated several companies engaged in providing temporary staffing services. These companies included SND Services, LLC and SND Services Inc. Under the direction of Jeannette Gomez, these entities issued Forms W-2 to employees and withheld federal income taxes and Social Security and Medicare (“FICA”) taxes from their wages but failed to pay over the total withheld to the IRS. It is estimated that the defendants failed to pay over at least $10,476,696 in employment taxes.
As further alleged in the indictment, the defendants diverted the funds withheld in trust for their personal use, including for the purchase of residences costing more than $1 million dollars and luxury vehicles costing in excess of $200,000.
If convicted, the defendants face a maximum sentence of 5 years in federal prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
U.S. Attorney Barron commended Internal Revenue Service Criminal Investigation for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Adeyemi Adenrele and Special Assistant U.S. Attorney Melinda Dunmire, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Marion County Little League Coach Indicted for Attempted Enticement of A Minor to Engage in Sexual ActivityRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Joseph Rocco Quaranta (48, Dunnellon) with attempted enticement of a minor to engage in sexual activity. If convicted, Quaranta faces a minimum mandatory penalty of 10 years, up to life, in federal prison. Quaranta is currently detained pending the resolution of his case.
According to court documents, on July 25, 2024, an undercover detective from the Marion County Sheriff’s Office posed online as a 13-year-old girl. Quaranta contacted the undercover detective and, after learning the minor’s age, engaged in a sexually explicit conversation. Quaranta arranged to meet the minor at a predetermined location in Marion County to engage in sexual activity. He arrived at the meeting location and was arrested shortly thereafter by law enforcement. After his arrest, Quaranta told deputies that he was volunteering as a local Little League baseball coach.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Marion County Sheriff’s Office, the Ocala Police Department, the Florida Department of Law Enforcement, the Chiefland Police Department, and Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Lehigh Acres Man Indicted for COVID Relief FraudRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Thakur Sukhdeo (38, Lehigh Acres) with wire fraud and illegal monetary transactions. If convicted, Sukhdeo faces a maximum penalty of 30 years in federal prison for each wire fraud count and up to 10 years in federal prison for each illegal monetary transaction count. The indictment also notifies Sukhdeo that the United States intends to forfeit a 2018 Jaguar F-Pace, 2020 GMC Sierra 3500 HD, and $414,000, which are alleged to be traceable to proceeds of the offense.
According to the indictment, beginning in approximately July 2021, Sukhdeo engaged in a scheme to defraud the Small Business Administration (SBA) by making fraudulent representations in Economic Injury Disaster Loan (EIDL) loan documents about the use of EIDL funds. Sukhdeo’s false representations caused the SBA to fund a $414,000 EIDL for his company, J.R. Handyman Pro’s LLC. Instead of using the EIDL proceeds for working capital, Sukhdeo used the funds for unauthorized purposes and for his own personal enrichment and the enrichment of others. This included the purchase of a luxury car for $68,984.61 and a truck for $93,994.42.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. On source of relief provided by the CARES Act was the expansion of an existing disaster-related program, the EIDL Program. The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Trent Reichling. The forfeiture will be handled by Assistant United States Attorney Suzanne Nebesky.
Lehigh Acres Man Arrested in Connection with Multi-Million Dollar COVID Relief Fraud SchemeRead the Press Release
Fort Myers, FL – United States Attorney Roger B. Handberg announces the arrest of Lester John Parker, Jr. (55, Lehigh Acres) on a 15-count indictment related to his alleged involvement in a multi-million-dollar COVID-19 relief fraud scheme. Parker’s charges include one count of conspiracy to commit wire fraud, five counts of wire fraud, one count of conspiracy to commit money laundering, one count of access device fraud, four counts of aggravated identity theft, and three counts of engaging in monetary transactions in criminally derived property. If convicted, Parker faces up to 20 years in federal prison for each count of conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. He faces up to 10 years’ imprisonment for each count of access device fraud and engaging in monetary transactions in criminally derived property. The aggravated identity theft counts carry a mandatory penalty of 2 years in federal prison consecutive to any other penalties imposed.
According to the indictment and court records, between 2020 and 2021 Parker devised a scheme to defraud the United States Small Business Administration (SBA) and various SBA-approved lenders by submitting fraudulent Paycheck Protection Program (PPP) loan applications which included forged bank statements and IRS records. PPP loans were one of the sources of economic relief provided by the Coronavirus Aid, Relief and Economic Security (CARES) Act. Parker has been linked to dozens of fraudulent PPP loan applications which resulted in more than $3 million in fraudulent loan payouts in 2020 and 2021.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United State Secret Service. It is being prosecuted by Assistant United States Attorney Simon Eth.
In May 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/Combating Fraud. 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.
Leader of an International Romance Scam Conspiracy Sentenced to More Than Ten Years in Federal PrisonRead the Press Release
PROVIDENCE, RI – An Atlanta man described in court documents as an “unrepentant con man” who played a leading role in a romance scam and money laundering conspiracy involving perpetrators from across the United States and overseas locations including Nigeria, that targeted and bilked elder widows and divorcees in Rhode Island and elsewhere out of millions of dollars was sentenced today to more than ten years in federal prison, announced United States Attorney Zachary A. Cunha.
Wisdom Oghenekaro Onyobeno, 44, and others, created false personas and utilized a variety of online apps and games, such as Words with Friends, or dating applications to befriend and target potential victims. Onyobeno and his co-conspirators would then use fraudulent representations and emotional appeals to gain their victims’ trust, in order to convince those victims to send money to help with a purported personal crisis or urgent financial situation.
In some instances, conspirators falsely claimed to be military members stationed overseas, who needed funds to send their belongings home or to travel back to the U.S.; in other cases, they claimed to be U.S. contractors stuck on oil rigs in the Gulf of Mexico. Victims were instructed to mail checks, money orders, or cashier’s checks to post office boxes or to wire money to bank accounts managed by members of the conspiracy, including Onyobeno himself. In many cases, victims were convinced to send more money, on multiple occasions, based on conspirators’ made-up claims of unexpected and urgent circumstances. In yet other instances, conspirators would pose as government officials and tell victims that additional money was needed to deliver parcels that had been sent from overseas.
Once these funds were sent by victims, the conspirators laundered the funds to conceal their origin. As part of the money laundering conspiracy, Onyobeno and others created business entities and bank accounts into which ill-gotten victim funds were deposited, and later withdrawn. According to information presented to the court, victims are known to have lost more than $5.8 million dollars to members of this conspiracy.
“To those who believe that they can help themselves to the hard-earned savings of Rhode Islanders through deception and fraud, wherever you are, know that we will find you and bring you to justice,” said U.S. Attorney Zachary A. Cunha. “And to members of the public– I implore you- be skeptical of requests for funds from anyone you don’t know well, and take steps to protect yourself.”
“Wisdom Onyobeno preyed on the vulnerable causing not only significant financial losses but unmeasurable emotional damage,” said Ketty D. Larco-Ward, Inspector in Charge, U.S. Postal Inspection Service, Boston Division. “Postal Inspectors, working with our partners, will continue to target these predators and bring them to justice.”
Onyobeno pleaded guilty on April 28, 2023, to charges of conspiracy to commit wire fraud and money laundering, and wire fraud. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 121 months of incarceration to be followed by three years of federal supervised release. Restitution will be determined by the court at a later date.
A co-defendant in this matter, Dominique Golden, is currently serving a term of incarceration of 78 months in federal prison.
The case was prosecuted by Assistant United States Attorneys Denise M. Barton and John P. McAdams.
The matter was investigated by the U.S. Postal Inspection Service, with the assistance of the Federal Bureau of Investigation, U.S. Department of Labor-Office of Inspector General, and U.S. Treasury Inspector General for Tax Administration in Atlanta.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available by calling the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, http://www.elderjustice.gov.
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Kissimmee Man Sentenced for Possessing Machineguns and Dealing in Unlicensed FirearmsRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Jamal Joseph Mala Leonardo (20, Kissimmee) to 30 months in federal prison for possession or transfer of a machinegun and dealing in firearms without a license. The court also ordered Mala Leonardo to forfeit several machinegun conversion devices involved in the offense. Mala Leonardo entered a guilty plea on May 20, 2024.
According to court documents, Leonardo met with an undercover law enforcement officer (UC) on multiple occasions between January and February 2024. During those meetings, Mala Leonardo sold the UC 17 machinegun conversion devices (MCDs) which can be used to convert a firearm into a fully automatic machinegun. Mala Leonardo also sold the UC two AR pistols, including one which was privately manufactured.
(AR pistols and MCDs sold by Leonardo)
Law enforcement officers later searched Mala Leonardo’s residence and recovered 25 additional MCDs from his bedroom. None of the MCDs were registered in the National Firearms Registration and Transfer Record, as required under federal law, nor is Mala Leonardo a licensed firearms dealer.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Richard Varadan and Kara Wick.
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.
Kissimmee Felon Pleads Guilty to Possessing FirearmsRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Jose Luis Lugo (40, Kissimmee) has pleaded guilty to possessing firearms as a convicted felon. Lugo faces a maximum penalty of 15 years in federal prison. The sentencing hearing is scheduled for December 18, 2024.
According to court records, Lugo, a registered sex offender in Florida, was convicted of felony offenses in 2004, 2005, 2014, and 2022. On two occasions in July 2023, law enforcement officers observed Lugo possess and sell multiple firearms. As a previously convicted felon, Lugo is prohibited from possessing firearms under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Adam J. Nate.
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.
Kankakee Man Sentenced to Ten Years in Prison for Attempting to Use Mail to Obtain FentanylRead the Press Release
Urbana, Ill. – A Kankakee man, Javan Jamar Thompson, 35, of the 100 block of Taylor Avenue has been sentenced to ten years in prison for Attempted Possession of Fentanyl with Intent to Distribute, Attempted Possession of Cocaine with Intent to Distribute, Use of a Communication Facility to Facilitate a Controlled Substance Offense, and Possession of a Firearm by a Felon.
At the sentencing hearing, the government presented evidence that Thompson used the United States Mail in an attempt to obtain fentanyl and cocaine for distribution. The United States Postal Inspection Service and the Kankakee Area Metropolitan Enforcement Group (KAMEG) intercepted a parcel, destined for Thompson, that contained thousands of fentanyl laced pills and several hundred grams of cocaine. During his arrest, law enforcement located a handgun in Thompson’s vehicle. As a felon, Thompson was prohibited by law from possessing a firearm.
At the hearing, U.S. District Court Judge Colin S. Bruce found that Thompson’s drug crimes were made more severe by his possession of a firearm. Judge Bruce also noted that the amount of fentanyl Thompson attempted to possess via the mail triggered an enhanced penalty of at least ten years of imprisonment. It was ordered that Thompson forfeit his legal interests in a BMW X5, a Springfield Armory XDM handgun, and $18,745 in United States Currency.
Thompson pleaded guilty to all charges on June 20, 2024.
The statutory penalties for Attempted Possession of Fentanyl with Intent to Distribute are at least ten years of imprisonment and up to life imprisonment, a fine of up to $10,000,000, and a term of supervised release of up to life. The statutory penalties for Attempted Possession of Cocaine with Intent to Distribute are up to 20 years of imprisonment, up to a $1,000,000 fine and a term of supervised release of up to life. The statutory penalties for Use of a Communication Facility to Facilitate a Controlled Substance Offense are a term of imprisonment of up to four years, a fine of up to $250,000 and a term of supervised release of up to one year. The statutory penalties for Possession of a Firearm by a Felon are a ten-year term of imprisonment, up to a $250,000 fine and up to three years of supervised release.
“We will continue to work with our law enforcement partners to protect the community from the distribution of these deadly substances and will fully prosecute individuals attempting to utilize the U.S. mail in an illegal manner.” said U.S. Attorney Gregory K. Harris. “We remain dedicated to protecting the safety and security of the U.S. mail service.”
“Postal inspectors are committed to ensuring the U.S. Postal Service is not a mechanism to distribute deadly fentanyl and other illicit narcotics,” stated Ruth Mendonça, Inspector in Charge of the Chicago Division of the United States Postal Inspection Service. “The sentence handed down in this case serves as a reminder that postal inspectors, along with our law enforcement partners, remain steadfast in our resolve to combat the flow of illicit drugs impacting our communities.”
“This was a collaborative effort between the United States Postal Inspection Service, KAMEG, and the United States Attorney’s Office in continuance of our dedication to stop illicit narcotics from hitting the streets of our communities”, said KAMEG Director Clayt Wolfe. “I commend everyone involved for staying persistent in their pursuit of those involved with the trafficking of fentanyl and other illicit narcotics.”
The United States Postal Inspection Service investigated the case in collaboration with KAMEG. Assistant United States Attorney William J. Lynch represented the government in the prosecution.
Kalispell man admits pointing laser at airplaneRead the Press Release
MISSOULA — A Kalispell man today admitted to pointing a laser at an airplane while it was in flight over Kalispell, U.S. Attorney Jesse Laslovich said.
The defendant, Nolan Wayne Hamman, 32, pleaded guilty to aiming a laser pointer at an aircraft as charged in an indictment. Hamman faces a maximum of five years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Feb. 6, 2025 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Hamman was detained pending further proceedings.
In court documents, the government alleged that on Nov. 25, 2023, a flight instructor operating a plane over Kalispell called 911 to report a person shining a laser pointer at her plane while she was flying with a minor student. The Flathead County Sheriff’s Office deputies responded and located Hamman on the ground with the laser pointer. Hamman admitted to shining the laser at the plane while it was in flight.
The U.S. Attorney’s Office is prosecuting the case. The FBI, Federal Aviation Administration, Flathead County Sheriff’s Office and Kalispell Police Department conducted the investigation.
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Justice Department Sues LA Fitness for Disability Discrimination at Its Gym and Fitness ClubsRead the Press Release
The Justice Department today sued Fitness International LLC, also called LA Fitness, for discriminating against people with disabilities at its gym and fitness clubs. LA Fitness is the largest chain of owner-operated gym and fitness clubs in the United States, with nearly 700 locations across the country.
The lawsuit, filed in the U.S. District Court for the Central District of California, alleges LA Fitness violated the Americans with Disabilities Act (ADA), which prohibits public accommodations, including gym and fitness clubs, from discriminating against people with disabilities. The ADA requires LA Fitness to give people with disabilities equal access to LA Fitness’ services and facilities, remove architectural barriers to make its facilities accessible to people with disabilities and maintain accessible features. The ADA also prohibits LA Fitness from charging extra fees to people with disabilities.
Yet, as the department’s lawsuit alleges, LA Fitness gym and fitness clubs have many barriers that prevent LA Fitness members with disabilities from accessing the clubs or using the clubs’ pools and fitness equipment. Common barriers include broken pool lifts and broken elevators. Sometimes, these issues left people with mobility disabilities unable to get into clubs or pools at all. Other times, people with disabilities have gotten stuck dangling over the water on broken pool lifts, have had to call LA Fitness staff to help them get in and out of pools or have had to crawl out of pools. Even after members with disabilities complained about these issues, LA Fitness did not fix them for long periods of time.
“Access to physical fitness activity is crucial for promoting the health and well-being of all Americans, including those with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “For over 30 years, the ADA has prohibited gyms and fitness clubs like LA Fitness from denying patrons with disabilities the opportunity to use and enjoy facilities enjoyed by patrons without disabilities. Through this lawsuit, the Justice Department seeks to eliminate LA Fitness’s discriminatory barriers and ensure that people with disabilities have equal access to fully participate at their local LA Fitness gym and fitness clubs.”
“Ensuring accessibility is key to safeguarding civil rights for all Americans,” said U.S. Attorney Martin Estrada for the Central District of California. “Our office is committed to ensuring that people with disabilities have access to public accommodations by enforcing the protections afforded by the Americans with Disabilities Act. When we support those with disabilities, our entire community benefits.”
Through the lawsuit, the department asks the court to stop LA Fitness from discriminating against people with disabilities, including by requiring LA Fitness to make its facilities and equipment accessible. The department also seeks monetary damages for people harmed by LA Fitness’ discrimination. This includes people who were directly harmed by LA Fitness’ barriers to access and broken equipment, as well people who need help to use LA Fitness’ clubs and were charged extra fees to have a friend, nurse or personal assistant help them use LA Fitness facilities.
If you or someone you know had trouble accessing an LA Fitness gym or fitness club because of a disability, including due to a broken pool lift or elevator, or if you were charged an extra fee to have someone help you access LA Fitness’ equipment, please call 1-888-392-5417 (toll-free), or email [email protected]. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Justice Department Sues LA Fitness for Alleged Disability Discrimination at Its Gym and Fitness ClubsRead the Press Release
LOS ANGELES – The Justice Department today sued Irvine-based Fitness International LLC, which does business as LA Fitness, for discriminating against people with disabilities at its gym and fitness clubs. LA Fitness is the largest chain of owner-operated gym and fitness clubs in the United States, with nearly 700 locations across the country.
The lawsuit alleges LA Fitness violated the Americans with Disabilities Act (ADA), which prohibits public accommodations, including gym and fitness clubs, from discriminating against people with disabilities. The ADA requires LA Fitness to give people with disabilities equal access to LA Fitness’s services and facilities, remove architectural barriers to make its facilities accessible to people with disabilities and maintain accessible features. The ADA also prohibits LA Fitness from charging extra fees to people with disabilities.
“Ensuring accessibility is key to safeguarding civil rights for all Americans,” said United States Attorney Martin Estrada. “Our office is committed to ensuring that people with disabilities have access to public accommodations by enforcing the protections afforded by the Americans with Disabilities Act. When we support those with disabilities, our entire community benefits.”
“Access to physical fitness activity is crucial for promoting the health and well-being of all individuals, including those with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “For over 30 years, the ADA has prohibited gyms and fitness clubs like LA Fitness from denying patrons with disabilities the opportunity to use and enjoy facilities enjoyed by patrons without disabilities. Through this lawsuit, the department seeks to remedy LA Fitness’s discriminatory actions and ensure that patrons with disabilities have equal access to fully participate at their local LA Fitness gym and fitness clubs.”
Through the lawsuit, the United States asks the court to stop LA Fitness from discriminating against people with disabilities, including by requiring LA Fitness to make its facilities and equipment accessible. The lawsuit also seeks money damages for people harmed by LA Fitness’s discrimination. This includes people who were directly harmed by LA Fitness’s barriers to access and broken equipment, as well people who need help to use LA Fitness’s clubs and were charged extra fees to have a friend, nurse or personal assistant help them use LA fitness facilities.
If you or someone you know had trouble accessing an LA Fitness gym or fitness club because of a disability, including due to a broken pool lift or elevator, or if you were charged an extra fee to have someone help you access LA Fitness’s equipment, please call 1-888-392-5417 (toll-free), or email [email protected]. For more information on the ADA, please call the Justice Department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Assistant United States Attorneys Matthew Barragan and Margaret Chen of the Civil Division’s Civil Rights Section and attorneys from the Disability Rights Section of the Justice Department’s Civil Rights Division are handling this case.
Information about the Civil Rights Section in the Civil Division of the United States Attorney’s Office is available on our website. Members of the public may report possible civil rights violations to our office via email to [email protected].
Justice Department Secures Agreement with Durham, North Carolina, to End Discriminatory Hiring Practices in City’s Fire DepartmentRead the Press Release
WASHINGTON – The Justice Department announced today that it has secured a settlement agreement with the City of Durham (City), North Carolina, to resolve the department’s claim that the hiring process for firefighters in the Durham Fire Department (DFD) violates Title VII of the Civil Rights Act. Specifically, the department alleges that the City’s fire department screens applicants with a written test that discriminates against Black candidates.
Title VII is a federal statute that prohibits employment discrimination based on race, sex, color, national origin and religion. Title VII prohibits not only intentional discrimination but also employment practices that result in a disparate impact on a protected group, unless such practices are job related and consistent with business necessity.
The settlement agreement resolves a civil pattern or practice investigation the Civil Rights Division opened in February 2020. As part of the investigation, the division conducted an in-depth review of DFD’s hiring practices, applicant data and other information received from the DFD. The division concluded that the fire department was using a written test that does not meaningfully distinguish between applicants who can and cannot perform the job of a firefighter. The test also disqualified Black applicants from employment at significantly disproportionate rates. The department thus concluded that the test violates Title VII.
“Discriminatory employment tests do more than cost applicants a fair chance to compete for public service jobs like firefighting; they also prevent communities from being served in these crucial positions by the most qualified candidates for the job,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The under-representation of Black people in the fire department workforce in Durham, and across the country, undermines public safety efforts. This settlement agreement requires the Durham Fire Department to reform its unlawful hiring process and provide monetary and other relief to those already harmed. The Justice Department will continue to work to ensure that all qualified applicants have a fair and equal opportunity to serve their communities.”
“Employers should identify and eliminate practices that have a disparate impact based on race,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “The Justice Department will continue to work to eliminate discriminatory policies that deprive qualified applicants of a fair chance to compete for employment opportunities.”
The complaint, filed yesterday in the Middle District of North Carolina, alleges that the City’s uses of the written test called the Comprehensive Examination Battery (CEB) disproportionately exclude Black candidates from employment as firefighters. The department further alleges that DFD’s uses of the CEB are not job-related and consistent with business necessity, and thus violate Title VII.
Under the terms of the consent decree also filed yesterday, DFD will:
- Adopt a written test that does not discriminate in violation of Title VII and provide data to the department on the administration of the new test to ensure compliance;
- Pay $980,000 in back pay to applicants who were disqualified by DFD’s uses of the challenged test; and
- Hire up to 16 applicants who were unfairly disqualified by the challenged test and who successfully complete the new firefighter selection process.
The full and fair enforcement of Title VII is a top priority of the Civil Rights Division. The division has issued a fact sheet on combating hiring discrimination by police and fire departments to help applicants for public safety jobs understand their rights to be free from discriminatory hiring processes. More information about the Civil Rights Division can be found at https://www.justice.gov/crt.
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Justice Department Secures Agreement with Durham, North Carolina, to End Discriminatory Hiring Practices in City’s Fire DepartmentRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with the City of Durham (City), North Carolina, to resolve the department’s claim that the hiring process for firefighters in the Durham Fire Department (DFD) violates Title VII of the Civil Rights Act. Specifically, the department alleges that the City’s fire department screens applicants with a written test that discriminates against Black candidates.
Title VII is a federal statute that prohibits employment discrimination based on race, sex, color, national origin and religion. Title VII prohibits not only intentional discrimination but also employment practices that result in a disparate impact on a protected group, unless such practices are job related and consistent with business necessity.
The settlement agreement resolves a civil pattern or practice investigation the Civil Rights Division opened in February 2020. As part of the investigation, the division conducted an in-depth review of DFD’s hiring practices, applicant data and other information received from the DFD. The division concluded that the fire department was using a written test that does not meaningfully distinguish between applicants who can and cannot perform the job of a firefighter. The test also disqualified Black applicants from employment at significantly disproportionate rates. The department thus concluded that the test violates Title VII.
“Discriminatory employment tests do more than cost applicants a fair chance to compete for public service jobs like firefighting; they also prevent communities from being served in these crucial positions by the most qualified candidates for the job,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The under-representation of Black people in the fire department workforce in Durham, and across the country, undermines public safety efforts. This settlement agreement requires the Durham Fire Department to reform its unlawful hiring process and provide monetary and other relief to those already harmed. The Justice Department will continue to work to ensure that all qualified applicants have a fair and equal opportunity to serve their communities.”
“Employers should identify and eliminate practices that have a disparate impact based on race,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “The Justice Department will continue to work to eliminate discriminatory policies that deprive qualified applicants of a fair chance to compete for employment opportunities.”
The complaint, filed yesterday in the Middle District of North Carolina, alleges that the City’s uses of the written test called the Comprehensive Examination Battery (CEB) disproportionately exclude Black candidates from employment as firefighters. The department further alleges that DFD’s uses of the CEB are not job-related and consistent with business necessity, and thus violate Title VII.
Under the terms of the consent decree also filed yesterday, DFD will:
- Adopt a written test that does not discriminate in violation of Title VII and provide data to the department on the administration of the new test to ensure compliance;
- Pay $980,000 in back pay to applicants who were disqualified by DFD’s uses of the challenged test; and
- Hire up to 16 applicants who were unfairly disqualified by the challenged test and who successfully complete the new firefighter selection process.
The full and fair enforcement of Title VII is a top priority of the Civil Rights Division. The division has issued a fact sheet on combating hiring discrimination by police and fire departments to help applicants for public safety jobs understand their rights to be free from discriminatory hiring processes. More information about the Civil Rights Division can be found at www.justice.gov/crt.
Insurance Broker Sentenced to Federal Prison for Fabricating Applications and Payment Forms for Unauthorized End-of-Life Policies in Order to Collect Commission PaymentsRead the Press Release
PROVIDENCE, RI – A North Attleboro, MA, insurance broker who collected nearly $137,000 dollars in sales commissions by submitting fabricated insurance applications for end-of-life insurance policies in clients’ names without their knowledge, and used those clients’ personal and banking information to pay for those policies, was sentenced today to federal prison, announced United States Attorney Zachary A. Cunha.
Bruno Francis Ragusa, 53, pleaded guilty on June 20, 2024, to a charge of wire fraud. He was sentenced today by U.S. District Court Judge William E. Smith to a term of incarceration of eighteen months in federal prison to be followed by two years of federal supervised release.
At the time of his guilty plea, Ragusa admitted that he forged clients’ electronic signatures on more than fifty insurance policy applications and directed that all policy correspondence be sent directly to him and not to the clients. He also admitted that he used clients’ bank account information to cause payment for the policies to be directly wired from their bank accounts without their knowledge, and that he failed to advise his clients of the fact that policies had been purchased in their names.
As a result of his criminal conduct, Ragusa’s collected $136,956.56 in insurance sales commissions that he was not entitled to receive. At the government’s request, Ragusa has been ordered by the court to pay restitution in the amount of $70,379.47 to the insurance company, representing the balance of commissions paid to Ragusa that have yet to be recouped. On learning of the fraud, the insurance company repaid individual victims whose funds were used without their permission.
The case was prosecuted by Assistant United States Attorney Milind M. Shah.
The matter was investigated by the FBI. United States Attorney Cunha thanks the United States Attorney’s Office for the District of Massachusetts, the North Attleboro Police Department, and the Rhode Island Department of Business Regulation for their assistance in the investigation.
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