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4 October 2024
Costa Rican National Pleads Guilty to Firearm PossessionRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that MILTON RAYO CASTILLO (“RAYO CASTILLO”), age 26, a native of Costa Rica, pled guilty October 1, 2024 to being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A).
According to the indictment, on or about March 10, 2024, RAYO CASTILLO, an alien illegally present in the United States, was found in possession of a nine-millimeter semi-automatic pistol after brandishing that weapon at a patron while at a Kenner, La. restaurant.
At sentencing, RAYO CASTILLO faces up to 15 years imprisonment, up to a $250,000 fine, up to three years of supervised release, and a mandatory $100 special assessment fee. United States District Judge Wendy B. Vitter scheduled sentencing for December 12, 2024.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security and the Kenner Police Department in investigating this matter. Assistant United States Attorney Spiro G. Latsis of the General Crimes Unit oversees the prosecution.
Convicted Felon Arrested and Indicted Following Mail Robbery, Drug and Gun CrimesRead the Press Release
SALT LAKE CITY, Utah – A convicted felon had his initial appearance today on two separate indictments, and will remain in custody. The defendant was arrested last month after allegedly committing mail robbery, and drug and gun crimes in the Spring of 2024 while on federal probation.
Andres “Junior” Garcia, 35, of Salt Lake City was indicted twice by a federal grand jury in June 2024 once for robbery of mail, and then for distribution of methamphetamine and fentanyl, and possession of firearms and ammunition. Since Garcia’s arrest, both indictments have been unsealed.
According to court documents, in February 2024, Garcia allegedly stole mail from a U.S. Postal Service van and threatened the postal worker when he confronted Garcia. As alleged, Garcia reached into his sweatshirt, as if he had a weapon, and told the postal worker to “get back.” Garcia then ran off with the mail. In the second case, in March 2024, on three separate occasions, Garcia allegedly sold 500 fentanyl pills, four ounces of methamphetamine and three firearms, including a Bersa Firestorm pistol, a Smith & Wesson M&P 9C pistol, and a Girsan MC 1911 S XLV pistol, and associated ammunition.
Garcia, a convicted felon, is restricted from possessing firearms and ammunition and was on felony probation at the time he allegedly committed these new offenses.
United States Attorney Trina A. Higgins of the District of Utah made the announcement.
The cases are being investigated jointly by Unified Police Department of Greater Salt Lake, Metro Gang Unit, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service.
The United States Attorney’s Office for the District of Utah is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Columbus man sentenced to 6 years in prison for conspiring to launder $9.5 million in drug proceedsRead the Press Release
COLUMBUS, Ohio – A Columbus man was sentenced in federal court here today to 72 months in prison for conspiring to launder millions of dollars of drug trafficking money through a Columbus grocery store front business.
From at least 2016 until at least 2021, Alejandro Ventura-Santos, 45, conspired to launder upwards of $9.5 million in drug proceeds.
The defendant purported to help operate La Tiendita, a small grocery store in Columbus that actually served as a large-scale money-laundering hub. Drug traffickers would come into the store and drop off large amounts of cash to Ventura-Santos, who would then falsify sender names and addresses and wire the drug money to dealers in structured amounts.
According to court documents, Ventura-Santos wired the money to drug trafficking organizations in Mexico in aid of their drug trafficking in central Ohio. The defendant structured the amount and timing of transactions to avoid reporting requirements and detection.
As one example, Ventura-Santos accepted $9,900 from undercover agents who said they were heroin dealers. The defendant kept a 10 percent commission from the undercover agents and wired the money to the provided recipient names.
In total, Ventura-Santos personally obtained at least $1 million, which he will forfeit.
Ventura-Santos was charged federally in August 2023 and pleaded guilty in April 2024.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Karen Wingerd, Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Cincinnati Field Office; Dublin Police Chief Justin Paez; Angie Salazar, Special Agent in Charge, Homeland Security Investigations Detroit; Columbus Police Chief Elaine Bryant and officials with the Ohio HIDTA (High Intensity Drug Trafficking Area) and Ohio Attorney General Dave Yost’s Ohio Organized Crime Commission announced the sentence imposed today by U.S. District Court Judge Algenon L. Marbley. Assistant United States Attorneys S. Courter Shimeall and Timothy Prichard are representing the United States in this case.
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Colorado Man Sentenced to Eight Years in Prison for His Role in $300 Million Nationwide Telemarketing Fraud Scheme Targeting the ElderlyRead the Press Release
MINNEAPOLIS – A Colorado man has been sentenced to 96 months in prison followed by five years of supervised release for his role in a $300 million nationwide telemarketing fraud scheme that targeted elderly and vulnerable victims, announced United States Attorney Andrew M. Luger.
According to court documents and evidence presented at trial, Amondo Antoine Miller, 48, of Littleton, Colorado, knowingly conspired with numerous other defendants to carry out a telemarketing scheme that began in at least 2000 and victimized numerous individuals across the United States, many of whom are elderly and vulnerable.
According to court documents and evidence presented at trial, Miller and his co-conspirators accomplished their scheme by calling victim-consumers who had one or more existing magazine subscriptions and offering to "renew" the existing magazine subscriptions, often at a reduced cost. In reality, the conspirators tricked the victim-consumers into signing up for entirely new magazine subscriptions, which they did not want and often could not afford. Some victim-consumers were fraudulently billed by as many as ten companies at a time and received more than $1,000 in monthly magazine subscription charges. Over the course of the scheme, the co-conspirators defrauded more than $300 million from over 150,000 victims nationwide.
On November 6, 2023, Miller was convicted by a federal jury of conspiracy to commit mail fraud, mail fraud, and wire fraud. He was sentenced yesterday in U.S. District Court by Judge John R. Tunheim, who remarked that this case is “the largest elder fraud case in the nation.”
The case was the first in Minnesota charged under the Senior Citizens Against Marketing Scams Act of 1994, which ensures enhanced penalties for persons convicted of mail or wire fraud in connection with the conduct of telemarketing. This case is the result of an investigation conducted by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Treasury Inspector General for Tax Administration (TIGTA).
Assistant U.S. Attorneys Harry M. Jacobs, Matthew S. Ebert, Joseph H. Thompson, Garrett S. Fields, and Melinda A. Williams prosecuted the case.
City of Yakima Awarded more than $350,000 to Combat Domestic Violence and Sexual AssaultRead the Press Release
Yakima, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced a Department of Justice grant award for the City of Yakima. The grant allocates $353,998 to combat domestic violence. The grant was awarded on September 13, 2024.
Funding for the grant was awarded by The Office on Violence Against Women, Fiscal Year 2024 Enhancing Investigation and Prosecution of Domestic Violence, Dating Violence, Sexual Assault, and Stalking Initiative. This initiative encourages law enforcement agencies and prosecutors’ offices to expand and improve their capacity to effectively investigate and prosecute domestic violence, support victim safety, and hold offenders accountable.
The project description for the $353,998 grant awarded to the City of Yakima says the funds will be used by the City of Yakima, Washington, in partnership with the YWCA Yakima, to provide a victim advocate, identify high risk cases for referral to the Domestic Violence High Risk Team, provide more resources for victims of domestic violence and sexual assault, and provide training for officers and prosecutors to recognize and address bias about victims of domestic violence.
“Supporting survivors of domestic violence and sexual assault and holding individuals accountable who perpetrate this violence is critical to building safer and strong communities. This award demonstrates the Department of Justice’s commitment to working with law enforcement and community partners to fund critical services to assist sexual assault survivors, protect victims of crime, amplify their voices, and to seek justice on behalf of all citizens in Eastern Washington,” said U.S. Attorney Waldref.
“The City of Yakima Prosecution Division is excited for the opportunity to enhance domestic violence, sexual assault, and stalking prosecution efforts, including victim advocacy services through our partnership with YWCA Yakima, and supported by the grant resources provided by the Office on Violence Against Women,” said City Prosecutor Cynthia Martinez. “The Prosecution Division, Yakima Law Enforcement, and our community partners, including the YWCA Yakima, are committed to holding offenders accountable, supporting victims and their children in their efforts to remain safe, and eliminating bias at all levels in the City of Yakima criminal justice system. The Prosecution Division welcomes this opportunity to expand and improve our current service delivery for the City of Yakima.”
Additional information about grants and funding through the U.S. Department of Justice Office of Justice Programs is available at https://www.ojp.gov. Information regarding the Department of Justice’s Office on Violence against Women is available at https://www.justice.gov/ovw.
Child Sexual Abuser Sentenced to 52.5 Years in PrisonRead the Press Release
WASHINGTON – Matthew Stitt Johnson, 34, of Washington, D.C., was sentenced in U.S. District Court today to 52.5 years in prison for two counts of sexual exploitation of a minor and one count second-degree child sexual abuse with aggravating circumstances for abusing three minor children.
The sentence was announced by U.S. Attorney Matthew M. Graves, FBI Acting Special Agent in Charge David Geist of the Washington Field Office Criminal and Cyber Division, and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Johnson pleaded guilty on August 29, 2022, before U.S. District Court Judge Jia M. Cobb. In addition to the 52.5-year prison term, Judge Cobb ordered Johnson to register as a sex offender.
According to the government’s evidence, Johnson sexually abused three children, an eight-year-old, a five-year-old, and an eight-month-old infant, between 2015 and 2020. Johnson took videos of his sexual abuse of the five-year-old child and the eight-month-old infant. While the five-year-old and her sister reported the abuse to their mother, the abuse was not reported to law enforcement.
In May 2021, law enforcement received a tip that Johnson downloaded child pornography from a cloud-based service and subsequently executed a search warrant on his home. Videos depicting the sexual abuse of the five-year-old and eight-month-old victims were discovered in Johnson’s cell phones along with 13,000 images of child pornography. Johnson distributed the images of his sexual abuse of children in internet forums dedicated to trading child pornography, particularly trading images of the rape and torture of infants and toddlers, and actively sought out and distributed other child pornography images over a two-year period.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. The investigation received valuable assistance from the MPD’s Narcotics and Special Investigation Division, Human Trafficking Unit. It was prosecuted by Assistant U.S. Attorneys Robert Platt and Janani Iyengar with the valuable assistance of Victim/Witness Advocate Yvonne Bryant.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Charlotte Man Sentenced to Prison for Role in Bank Fraud Conspiracy Involving Stolen MailRead the Press Release
CHARLOTTE, N.C. – A Charlotte man was sentenced to prison today for his role in a bank fraud conspiracy involving stolen mail, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Terrell Alexander Hager, Jr., 25, of Charlotte, was ordered to serve three years in prison followed by two years of supervised release.
In September 2023, Hager’s co-conspirators, Kiara Padgett, and her husband, Dominique Dunlap, pleaded guilty to conspiracy to commit bank fraud. Dunlap also pleaded guilty to four counts of possession of stolen mail. A sentencing date for Padgett and Dunlap has not been set.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, Jeff Krafels, Special Agent in Charge of the United States Postal Service, Office of the Inspector General (USPS-OIG) for the Mid-Atlantic Area Field Office (MAAFO), which oversees Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to court documents and today’s sentencing hearing, from August 2021 to November 2022, Hager conspired with Padgett, Dunlap, and others to operate a bank fraud scheme involving stolen checks. Padgett, who at the time was employed by the U.S. Postal Service, used her position as a postal carrier to steal incoming and outgoing checks of businesses and individuals. Padgett used Dunlap as her intermediary to sell the stolen checks to Hager. Hager and his co-conspirators then deposited the stolen checks into bank accounts they controlled and withdrew the funds before the financial institutions discovered the fraud. During the conspiracy, Hager and his co-conspirators deposited more than $66,000 in stolen or counterfeit checks and money orders.
Court documents also show that, from October 2021 through November 2022, Hager served as the primary administrator and owner of a Telegram channel, “Hunnitband Swipe School,” which he used to sell some of the stolen checks. For example, in June 2022, law enforcement operating in an undercover capacity purchased a check with a face value of more than $2,400 for $250. According to court records, over the course of the scheme, the Telegram channel posted over 400 checks stolen from the U.S. Mail, with a total face value over $7.3 million. At the time Hager committed this fraud, he was on probation with the state of North Carolina for an unrelated offense.
In making today’s announcement, U.S. Attorney King commended the USPIS, USPS-OIG, and CMPD for their investigation of the case.
Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte prosecuted the case.
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In September, the U.S. Attorney’s Office announced efforts to stop the rise in mail thefts and increase the prosecution of cases involving stolen mail. Federal prosecutors and investigators also continue to urge residents and businesses to report stolen mail promptly and to take the following steps to protect their mail and avoid becoming a victim of mail theft:
- Promptly Retrieve Mail: Collect your mail daily and avoid leaving it in the mailbox overnight.
- Secure Mailboxes: Use secure, lockable mailboxes for incoming and outgoing mail.
- Inquire About Overdue Mail: If you have not received valuable or important mail you’re expecting, contact the sender to inquire about it.
- Don’t Send Cash: Avoid mailing cash, gift cards, or other items of value. When doing, so utilize the package tracking and signature confirmation options.
- Hold Mail When Away: Use the USPS Hold Mail service when you are out of town.
- File a Change of Address: When moving, file a change of address with USPS.
- Report Suspicious Activity: Immediately report any suspicious individuals or activities near mailboxes to local law enforcement.
- Monitor Financial Statements: Regularly review bank and credit card statements for any unusual activity.
- Sign up for Informed Delivery and get daily digest emails that preview your mail and packages scheduled arriving soon.
Customers are encouraged to report stolen mail as soon as possible by submitting an online complaint to the Postal Inspection Service at www.uspis.gov/report or calling 877-876-2455.
Additionally, report the theft to your local police department to ensure they are aware of potential criminal activity in your area. Individuals are also encouraged to report allegations of Postal Service employee misconduct, including attempts to corrupt a Postal Service employee, to the USPS OIG at 1-888-877-7644 or www.uspsoig.gov.
Cedar Lake Woman Sentenced to 42 Months in PrisonRead the Press Release
HAMMOND- Felicia Bywater, 33 years old, of Cedar Lake, Indiana was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to distributing methamphetamine, announced United States Attorney Clifford D. Johnson.
Bywater was sentenced to 42 months in prison followed by 2 years of supervised release.
According to documents in the case, between October 2022 and February 2023, Bywater sold methamphetamine on three separate occasions, totaling approximately two ounces.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Assistant U.S. Attorney Nicholas J. Padilla.
Casper man sentenced for being a felon in possession of a firearmRead the Press Release
Jashawn Michael Lee Crowley, 27, of Casper, Wyoming, was sentenced to 115 months’ imprisonment for illegal possession of a firearm. He was ordered to serve his sentence consecutive to the 7-to-10-year sentence imposed in State of Wyoming v. Crowley, docket number 23167-C and 23168-C for theft, conspiracy to commit theft, conspiracy to commit forgery, eluding, property destruction, and interference and concurrent to his 8-to-10-year sentence in State of Wyoming v. Crowley, docket number 2315, for auto burglary, theft, and aggravated eluding.
According to court documents, on March 17, 2023, the defendant was pulled over in Casper during a traffic stop and had in his possession a 9mm Sig Sauer handgun. Crowley had an extensive criminal history, including at least two prior convictions for drug felonies and knew he was not allowed to possess a firearm. The defendant also acknowledged the firearm he possessed was stolen, not manufactured in Wyoming, and traveled across state lines to enter his possession.
Crowley was indicted on May 10, 2023, and pleaded guilty on July 12, 2024. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Oct. 3. This crime was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives, the Wyoming Division of Criminal Investigation, and the Casper Police Department. The case was prosecuted by Assistant U.S. Attorney Christyne M. Martens.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, Please visit
Justice.gov/PSN.
Case No. 23-CR-00105Carthage Man Sentenced to 20 Years for Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Carthage, Mo., man has been sentenced in federal court for possessing methamphetamine to distribute.
Robert Marion Nevels, 36, was sentenced by U.S. District Judge M. Douglas Harpool on Thursday, Oct. 3, to 20 years in federal prison without parole.
On March 12, 2024, Nevels pleaded guilty to possessing methamphetamine with the intent to distribute. Nevels admitted that he was in possession of 200.2 grams of methamphetamine and a handgun when he was stopped by Carthage police officers on May 16, 2023.
Nevels, who was on probation and parole at the time for assault and narcotics, was driving a tan 1996 Mercury Grand Marquis when he was stopped for failing to signal. The officer searched Nevels’s vehicle and found a backpack in the trunk that contained a loaded Echasa 7.65-caliber handgun and plastic baggies that contained methamphetamine. There were also four receipts (totaling $6,523) that indicated Nevels had been sending money to Mexico and California, as well as numerous empty baggies with methamphetamine residue.
According to court documents, law enforcement officers seized a total of 598.8 grams of pure methamphetamine. Nevels was responsible for the distribution of at least 1.5 kilograms but less than 4.5 kilograms of pure methamphetamine.
According to court documents, Nevels was involved in large-quantity methamphetamine distribution in Jasper and Newton Counties beginning as early as February 2023. Text messages indicate he could purchase one kilogram (2.2 pounds) of methamphetamine for $4,000. He typically sold to customers in quantities between one-eighth ounce to one pound. His distribution prices fluctuated, but text messages indicate he typically sold one ounce of methamphetamine for $300 to $350, and one pound of methamphetamine for $2,300 to $2,500.
This case was prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Drug Enforcement Administration, the Carthage, Mo., Police Department, the Oklahoma Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Canadian National Pleads Guilty to Possession of Sex Abuse Videos of Toddler and Prepubescent BoysRead the Press Release
WASHINGTON – Matthew Norman Ballek, 32, of Saskatchewan, Canada, pleaded guilty today to a federal child pornography charge stemming from his distribution of child pornography to an undercover law enforcement agent in January 2024, announced U.S. Attorney Matthew M. Graves; FBI Acting Special Agent in Charge David Geist, of the Washington Field Office Criminal and Cyber Division; and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Ballek pleaded guilty in U.S. District Court for the District of Columbia to one count of possession of child pornography. The Honorable Reggie B. Walton scheduled a sentencing hearing for March 21, 2025.
According to plea documents, in January 2024, a member of the FBI–MPD Child Exploitation and Human Trafficking Task Force was monitoring an online dating application in an undercover capacity. Law enforcement has learned that the application is sometimes used by individuals who have a sexual interest in children. Ballek contacted the undercover agent and, believing he was communicating with a pedophile, expressed an interest in child pornography. Ballek later sent the undercover agent three video files via an encrypted messaging application. Those video files depicted adult men raping toddler and prepubescent boys. Ballek was arrested in the District of Columbia on February 7, 2024. The FBI seized and forensically examined Ballek’s phone, which contained 10 unique videos and at least 21 unique still images that constitute child pornography.
Ballek has remained in custody since his February 7, 2024, arrest.
Ballek faces a maximum sentence of 20 years in prison and a $250,000 fine. In addition, Ballek must pay mandatory restitution of at least $3,000 to any identified victim. The statutory sentences for federal offenses are prescribed by Congress and are provided here for informational purposes only. Any sentence will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.
In addition, Ballek will be required to register as a sex offender and be subject to deportation proceedings and other adverse immigration consequences following any prison term.
This case is being brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the FBI Washington Field Office and MPD’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
The case is being prosecuted by Assistant U.S. Attorneys Paul V. Courtney and Karen L. Shinskie.
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California Real Estate Agent Charged with Tax CrimesRead the Press Release
A federal grand jury in Los Angeles returned an indictment yesterday charging a California man with evading the payment of his individual income taxes and obstructing the IRS in its efforts to collect those taxes.
According to the indictment, Gabriel Guerrero, a Los Angeles-based commercial real estate agent, did not timely file tax returns for many years. In 2014, he allegedly filed more than 10 years’ worth of returns but did not pay the amounts he self-reported he owed. When the IRS began trying to collect those outstanding taxes, Guerrero allegedly sought to prevent the IRS from being able to do so in at least two ways: by not depositing substantial commission checks he earned from commercial real estate sales into his bank accounts and using cashier’s checks to circumvent IRS levies of those accounts. The indictment also alleges that Guerrero further obstructed collection efforts by submitting false financial disclosure forms to the IRS, which significantly underreported his income and by not disclosing a bank account he used to deposit his income.
In total, Guerrero is alleged to have caused a tax loss to the IRS of more than $350,000.
If convicted, he faces a maximum penalty of five years in prison for tax evasion and three years in prison for obstructing the IRS. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Martin Estrada for the Central District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Robert Kemins and Christopher Gerace of the Tax Division and Assistant U.S. Attorney Steven Arkow for the Central District of California are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
California Man Arrested for Threatening Massachusetts CompaniesRead the Press Release
BOSTON – A California man was arrested yesterday and charged with leaving a series of violent and threatening voicemails at companies in Massachusetts.
Daniel Nguyen, 34, was charged by complaint with transmitting a threat in interstate commerce. Nguyen will have an initial appearance today in federal court in San Francisco and will appear in Boston and a later date.
According to the charging documents, from January through February 2024, Nguyen made a series of five phone calls to companies based in Massachusetts, and left voicemails in which he threatened to “shoot up” the offices with an AK-47. In the voicemails, Nguyen allegedly said the employees were “all going to be [expletive] dead. It’s going to be a [expletive] bloodbath.”
The charging document also describes threatening emails that Nguyen allegedly sent to individuals in Nevada and California. Those emails allegedly contained race-based threats, stating “I will … shoot all you [expletive] [expletive]s dead and burn al[l] you [expletive] piece of [expletive] [expletive]s in the dump and ditches where all you [expletive]s belong,” and “the only good [expletive] is a dead [expletive] that is shot and killed.”
The charge of transmitting a threat in interstate commerce provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Lauren Maynard of the Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Baltimore Man Sentenced to 60 Months in Federal Prison for Access Device Fraud and Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – U.S. District Chief Judge George L. Russell III yesterday sentenced Dolapo Lawal, age 34, of Baltimore, Maryland, to 60 months’ imprisonment and 3 years of supervised release for federal charges of access device fraud and aggravated identity theft.
The sentence was announced by Erek L. Barron, U.S. Attorney 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.
According to the guilty plea, Lawal knowingly and willfully participated in and executed a stolen identity tax refund fraud scheme to obtain fraudulent tax refunds using the identities of elderly victims, then load those refunds onto debit cards tied to bank accounts opened in the victims’ names, sent those cards to secure known addresses throughout the United States, and finally withdraw those refunds in cash.
As outlined at his guilty plea Lawal’s involvement in the scheme can be grouped into two efforts. In the first instance, Lawal intentionally trafficked and used 24 Green Dot Bank debit cards in elderly victims’ names in the spring of 2022. These cards were fraudulently loaded with more than $200,000 in 2021 tax refunds, which were fraudulently obtained through identity theft. On April 8, 2022, the Baltimore County Police Department lawfully stopped and searched Lawal’s Mercedes S-class sedan. During the search, officers found approximately $18,900 in cash and these 24 debit cards in a bag left under Lawal’s seat. Lawal admitted to officers on the scene that this was his bag. The vehicle also contained multiple plastic bags filled with opened packaging for these or similar debit cards. Cell tower pings, automated license plate reader data, bank records, and Lawal’s admissions to law enforcement show that Lawal had used these 24 cards to conduct more than 300 cash withdrawals at ATMs to obtain more than $80,000 in the preceding month. Lawal later admitted that he used these fraudulent debit cards on multiple occasions to conduct cash withdrawals for his personal benefit – specifically to make payments on his Mercedes and to pay off personal credit card debt.
In the second instance, Lawal possessed over 300 additional unique Green Dot Bank debit cards in his home on or about June 21, 2023. That day, law enforcement executed a search warrant on Lawal’s residence. During the search, IRS-CI agents found, among other items, a box containing more than 300 additional unique Green Dot Bank debit cards. Lawal’s iPhone – also seized pursuant to the same search warrant – contained photographs of several of these cards along with portions of the packaging for each of the cards that had the bank account number and routing number for the corresponding account associated with the card. Approximately 200 of these cards were linked to bank accounts opened in the names of additional victims, which were listed as the direct deposit accounts for fraudulent 2021 and 2022 tax refund claims filed in the names of those same victims. Many of these tax returns were filed after Lawal’s April 8, 2022 traffic stop. The total amount of fraudulent tax refund claims associated with these cards was over $3 million. The IRS had not issued these refund claims before law enforcement searched Lawal’s home.
In total, Lawal’s offenses furthered a scheme to defraud the United States of over $3 million.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available 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 professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps, including identifying appropriate reporting agencies, providing information to callers to assist them in reporting or connecting them with agencies, and providing resources and referrals on a case-by-case basis. The hotline is staffed from 10:00 a.m. to 6:00 p.m. Monday through Friday. 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, www.elderjustice.gov. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324.
U.S. Attorney Barron commended the IRS-CI for its work in the investigation and thanked the Baltimore County Police Department for its assistance. Mr. Barron thanked Assistant U.S. Attorney Joseph L. Wenner, who is 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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Attorney General Merrick B. Garland Statement Marking One Year Since Hamas’s October 7 Terrorist Attacks in IsraelRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland marking one year since Hamas’s October 7 terrorist attacks in Israel:
“Monday, October 7 will mark one year since Hamas terrorists murdered nearly 1,200 people, including more than 40 Americans, kidnapped hundreds of civilians, and perpetrated the deadliest massacre of Jews since the Holocaust.
As made clear by the charges we recently unsealed against Yahya Sinwar and other senior leaders of Hamas, the Justice Department is committed to pursuing the terrorists responsible for murdering Americans — and those who illegally provide them with material support — for the rest of their lives. We are targeting every aspect of Hamas’s operations, and our work is far from over.
We are also committed to continuing to combat the disturbing rise in the volume and frequency of threats against Jewish, Muslim, Arab, and Palestinian communities here in the United States that we saw in the wake of last year’s attacks. The Justice Department has responded forcefully to these threats, and we have no tolerance for unlawful acts fueled by hatred of any kind.
We also recognize that as we mark one year since the attacks, we do so at a time when millions of Jewish Americans are observing the High Holidays. Today, and every day, the Justice Department reaffirms its commitment to ensuring that Jews in this country feel safe and are protected. No person and no community should have to live in fear of hate-fueled violence, and the Justice Department will aggressively investigate and prosecute criminal acts and threats of hate whenever and wherever they occur.”
Armed Fayetteville Drug Trafficker Who Led Law Enforcement on Dangerous High-Speed Chase Sentenced to over 27 YearsRead the Press Release
NEW BERN, N.C. –A Fayetteville man was sentenced to 327 months in prison for armed drug trafficking and illegal firearm possession. Nathan Omar Frink, aka “Ray Nate,” age 41, pled guilty to the charges on September 13, 2023.
According to court documents and other information presented in court, on May 31, 2022, officers with the Fayetteville Police Department (FPD) attempted to initiate a traffic stop on a vehicle operated by Frink for an expired license plate tag. Frink refused to pull over and began driving recklessly by crossing over into a turning lane and passing multiple vehicles. During the pursuit, Frink reached speeds of more than 80 miles per hour (MPH) in a 45 MPH zone. Due to the dangerous speeds, the FPD called off the chase. Frink’s vehicle then collided with another occupied vehicle and Frink fled on foot but was quickly apprehended and arrested. No injuries were sustained by the occupants of the car that was struck by Frink’s car. After searching Frink and his car, law enforcement located more than $17,000 in cash, a loaded 9mm handgun, a loaded AK-47 with a high-capacity magazine, marijuana, cocaine, fentanyl, heroin and assorted drug paraphernalia. Witnesses who spoke with investigators dated Frink’s drug trafficking to starting as early as 2016 and continuing until his arrest. Frink has nine prior felony convictions, including four for drug trafficking, and three for illegal firearm possession.
This investigation was a part of Organized Crime and Drug Enforcement Task Force Operation (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Fayetteville Police Department investigated the case and Assistant U.S. Attorneys Caroline Webb and Casey Peaden prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-000248-FL.
Arizona Man Sentenced to Life in Prison for Child Exploitation CrimesRead the Press Release
BECKLEY, W.Va. – Alan J. Disomma Jr., 61, of Payson, Arizona, was sentenced today to life in prison for two counts of attempted enticement of a minor and one count of traveling in interstate commerce for the purpose of engaging in illicit sexual activity.
A federal jury found Disomma guilty on February 23, 2024, following a two-day trial. Evidence at trial proved that on December 10, 2021, Disomma began messaging a woman located in West Virginia whom he believed to be the mother of two minor girls. Disomma stated in his messages to the individual that he wished to engage in sexual relations with both girls. Disomma also brought up possibly traveling to West Virginia to meet the girls during this online conversation.
From December 21, 2021 to December 18, 2022, Disomma exchanged text messages with the woman and continued to express his interest in engaging in sexual relations with both girls. During this text messaging, Disomma asked about flying to West Virginia to visit them and also stated that he had previously engaged in sexual relations with a prepubescent girl and subjected her to bestiality. Disomma also expressed interest in having the woman and the girls move to Arizona to live with him.
On December 18, 2022, Disomma flew from Arizona to Charleston, West Virginia, where he planned to meet the individual and travel with her to her residence where he intended to engage in sexual activity with both girls. Disomma flew to West Virginia with a nearly full bottle of Viagra. Upon his arrival in Charleston, Disomma was arrested by law enforcement officers.
“This case involved horrific facts that painted a vivid picture of defendant’s intense desire to have sex with two children,” said United States Attorney Will Thompson. “The offense conduct in this case was reprehensible, and today’s sentence reflects their gravity. I commend the Federal Bureau of Investigation (FBI) West Virginia Human Trafficking and Child Exploitation Task Force and the West Virginia State Police for their investigation of this case. I also commend Assistant United States Attorneys Jennifer Rada Herrald and Lesley C. Shamblin and our trial team for their work in this case, which resulted in guilty verdicts on all three counts in the indictment.”
Chief United States District Judge Frank W. Volk imposed the sentence. Disomma was sentenced to life in prison for each of the two counts of attempted enticement of a minor, and to a concurrent 30-year term for traveling in interstate commerce for the purpose of engaging in illicit sexual activity. The Court also imposed a lifetime of supervised release.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-227.
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Arizona Felon Sentenced to 12 Years in Prison for Attempted Possession with Intent to Distribute FentanylRead the Press Release
ST. PAUL, Minn. – An Arizona man has been sentenced to 150 months in prison followed by four years of supervised release for attempted possession with intent to distribute over two kilograms of fentanyl, announced U.S. Attorney Andrew M. Luger.
According to court documents, on November 18, 2023, officers with the St. Paul Police Department (SPPD) responded to a 911 call regarding an unsolicited package containing a white powdery substance. They field tested the substance, determined it was narcotics, removed and replaced it with a GPS tracking device. Special agents from Homeland Security Investigations later observed Paris Jackson, 39, picking up the package at the residence and attempted to stop him as he returned to a waiting vehicle with the package in hand. Instead, Jackson fled and was pursued by law enforcement. He ultimately crashed into an SPPD squad car at approximately 80 miles per hour, which resulted in life threatening injuries to his passenger and minor injuries to an SPPD officer. He fled from the scene and was ultimately apprehended.
On June 20, 2024, Jackson pleaded guilty to attempted possession with the intent to distribute fentanyl. Jackson has a criminal history dating back to 2001, including multiple felony convictions for controlled substance offenses. He was sentenced today in U.S. District Court by Judge Paul A. Magnuson.
This case is the result of an investigation conducted by the St. Paul Police Department, Homeland Security Investigations, and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Carla J. Baumel and Allen A. Slaughter prosecuted the case.
Amherst woman pleads guilty to threatening a witnessRead the Press Release
BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Jessica Leyland, 37, of Amherst, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to witness retaliation, which carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Louis A. Testani, who is handling the case, stated that in July 2019, Leyland approached an individual (Victim) at a bar in Buffalo, NY, and asked if she could speak with the Victim. The Victim agreed and then Leyland accused the Victim of “talking to the feds” and threatened to “(expletive) kill” the Victim. Leyland then placed the Victim in a headlock, causing bodily injury. Leyland ultimately had to be physically separated from the Victim by employees at the bar.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia.
Sentencing will be scheduled at a later date.
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3 October 2024
West Virginia Man Sentenced for Drug ChargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – John Marshall Jones, III, 37, of Bridgeport, West Virginia, was sentenced to 136 months for possession with intent to distribute more than five grams of methamphetamine.
According to court documents and statements made in court, officers were executing an arrest warrant for Jones for a parole violation at a home in Barbour County. Jones was hiding inside the home, where officers also found an assault rifle, a handgun, and methamphetamine.
Jones will serve three years of supervised release following his prison sentence.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Mountain Region Drug Task Force, a HIDTA-funded initiative; the United States Marshals Service; and the Barbour County Sheriff’s Office investigated.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government.
Chief U.S. District Judge Thomas S. Kleeh presided.
U.S. Department of Justice Awards University of Colorado Nearly $2 Million Grant to Combat Hate CrimesRead the Press Release
DENVER – Acting United States Attorney for the District of Colorado Matt Kirsch is pleased to announce that the United States Department of Justice has awarded the University of Colorado the Matthew Shepard and James Byrd, Jr. Hate Crimes Program Grant.
The grant, totaling $1,999,939, will go to support the work of The University of Colorado Boulder’s Police Department (CUPD) and Prevention Science Program to build and deliver a comprehensive approach to hate crimes prevention, intervention, and investigation for CU locations including CU Boulder, CU Colorado Springs, and CU Denver. Funds will be used to educate audiences within the CU System and train campus officials on coordinated strategies for preventing, investigating, and addressing hate-based incidents and hate crimes in higher education. Grant funding will reach approximately 60,000 students, 23,000 faculty and staff, and 60 law enforcement officers while serving as a model for other colleges and universities around the country.
“The United States Attorney’s Office for the District of Colorado has a long-standing commitment both to investigating and prosecuting hate crimes and to engaging with the community on this topic,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “Public education on the tools available to prevent and address hate crimes is fundamental to these efforts, and we are proud to work with University of Colorado.”
“The University of Colorado and the CU Boulder Police Department is honored to receive the Matthew Shepard and Edward Byrne Hate Crimes Grant, which will help us continue the important work of building a comprehensive approach to preventing hate crimes across the CU System,” said Doreen Jokerst, Assistant Vice Chancellor for Public Safety and Chief of Police of the CU Boulder Police Department at the University of Colorado Boulder. “CUPD will continue to work collaboratively with violence prevention researchers and other experts to create an effective, broad-reaching campaign to combat targeted violence.”
This grant is part of the Office of Justice Program (OJP) and its wide-ranging efforts to improve community safety, serve victims of crime, support America’s youth, advance science, and promote equal justice. OJP is the largest grantmaking component of the Department of Justice and houses its criminal and juvenile justice related science and statistical units.
The Department of Justice (DOJ) offers funding opportunities to support law enforcement and public safety activities in state, local, and tribal jurisdictions; to assist victims of crime; to provide training and technical assistance; to conduct research; and to implement programs that improve the criminal, civil, and juvenile justice systems. DOJ grant-making components regularly engage with United States Attorneys’ offices (USAOs) to promote outreach and communication about DOJ-funded grant programs, training, and technical assistance. Such communication helps the Department increase public awareness, access, and utilization of these resources.
U.S. Attorney's Office Secures Guilty Verdict in Multi-Million Dollar Investment Fraud TrialRead the Press Release
ALBUQUERQUE – Following a week-and-a-half-long trial and less than four hours of deliberation, a federal jury convicted an Arizona man on multiple charges for orchestrating a fraudulent investment scheme. The charges included 17 counts of wire fraud, 12 counts of mail fraud, and two counts of engaging in monetary transactions involving property derived from specified unlawful activity.
According to court documents and evidence presented at trial, over an eight-year period from 2014 to 2021, John Lopez, 73, engaged in a fraudulent investment scheme through his company, Personal Money Management Company (PMMCO). Lopez claimed to have developed a sophisticated algorithm for trading stocks and bonds that had generated above-market returns and guaranteed high annual returns of 10 to 19 percent. He misled clients, many of whom live in northern New Mexico, by stating that their money was primarily invested in stocks and bonds when, in fact, he used it to purchase precious metals. Lopez even offered one investment with a purported 42% annual rate of return over 20 years.
Lopez received approximately $19.4 million from clients. Instead of investing this money as promised, he allocated about $13.3 million to buy precious metals and disbursed around $6.1 million to clients as part of a Ponzi scheme, falsely representing these payouts as investment gains. Throughout the scheme, Lopez provided clients with fake account statements indicating that their investments had grown substantially. When government agents seized PMMCO’s assets in November 2021, they found that the asset’s total value was less than $15 million, despite Lopez claiming client accounts were worth approximately $39 million.
Photo of all the bullion seized from storage unit in November 2021 Photo of placards of silver coins seized from storage unit in November 2021 Photo of silver coins from storage unit Photo of gold coins from businessAfter the asset seizure, Lopez continued to court new clients, persisted in falsely representing a history of producing above-market returns, and kept generating deceptive account statements.
Although prosecutors sought the defendant to be remanded into custody following his convictions, the Court ordered that Lopez remain on conditions of release pending sentencing, which has not been scheduled. At sentencing, Lopez faces up to 20 years in prison.
There is no parole in the federal system.
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 FBI Albuquerque Field Office and the U.S. Marshals Service investigated this case. The U.S. Attorney’s Office for the District of New Mexico is prosecuting the case.
The U.S. Attorney’s Office brought a separate civil forfeiture action on April 15, 2022, seeking to forfeit assets seized in November 2021. Litigation in the civil proceeding is ongoing.
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U.S. Attorney's Office Observes National Domestic Violence Awareness MonthRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office for the Western District of North Carolina joins the Justice Department and the Office on Violence Against Women (OVW), as well as law enforcement agencies, community organizations, victim service providers, advocates, victims, and survivors in observing October as National Domestic Violence Awareness Month (DVAM).
According to OVW, domestic violence is a pattern of abusive behavior in any relationship, used by one partner to gain or maintain power and control over another intimate partner. Domestic violence can be physical, sexual, emotional, economic, psychological, or technological actions or threats of actions or other patterns of coercive behavior that influence another person within an intimate partner relationship. Domestic violence can happen to anyone regardless of race, age, sexual orientation, religion, sex, or gender identity. Domestic violence affects people of all socioeconomic backgrounds and educational levels and occurs in both opposite-sex and same-sex relationships. It can also happen to intimate partners who are married, living together, dating, or share a child.
“We have a shared responsibility to fight against domestic violence in all its forms,” said Dena J. King, U.S. Attorney for the Western District of North Carolina. “My Office is dedicated to using every tool available to ensure victims and survivors can find safety and justice, and we remain committed to working with the community year-round to address and prevent domestic violence, hold offenders accountable, and ensure that support and resources are accessible by individuals and families impacted by domestic abuse.”
In September 2024, the U.S. Attorney’s Office announced that the City of Asheville and the Eastern Band of Cherokee Indians (EBCI) were among 78 communities designated by the Department of Justice under Section 1103 of the Violence Against Women Act (VAWA), to strengthen efforts to reduce intimate partner violence through training, increased prosecutions of domestic violence offenders that illegally possess firearms, and federal resources to support local efforts.
Today, U.S. Attorney King announced the allocation of more than $1.8 million in grants administered by OVW, to combat intimate partner violence and assist victims of violence, survivors, and their families in Western North Carolina. The federal grants will be used to fund existing projects and new initiatives developed to prevent domestic violence and to support victims and survivors who have experienced domestic violence, dating violence, stalking, or sexual assault.
Specific to Asheville and EBCI, OVW will administer $500,000 toward funding Buncombe County’s Improve the Criminal Justice Response (ICJR) project, which aims to enhance the criminal justice response to incidents of domestic violence, dating violence, sexual assault, and stalking; foster victim safety; and enhance offender accountability. OVW will also administer $400,000 to the University of North Carolina at Asheville, to support its work to prevent, investigate, and reduce incidents of domestic violence, dating violence, sexual assault, and stalking on campus. In addition, OVW will administer more than $414,000 to Reflection of Inspiration, Inc. (ROI), a nonprofit organization that serves the EBCI, in support of its efforts to increase awareness about domestic violence and sexual assault against Indian women and to enhance the response, services, and assistance to victims and survivors.
This week, U.S. Attorney King and office staff also attended the annual “Breakfast of Hope” hosted by Safe Alliance, an organization that offers resources to domestic violence and sexual assault victims in the greater Charlotte area. The organization provides housing assistance, court advocacy, trauma services, counseling, and support groups for both adult and teen survivors.
DVAM serves as an important reminder to raise awareness and engage the community in efforts to end intimate partner violence. According to the National Domestic Violence Hotline, one in four women and one in seven men will experience severe domestic violence in their lifetimes. These rates are higher among American Indian and Alaska Native populations, women of color, LGBTQ+ individuals, and people with disabilities.
For more information on domestic violence, visit: https://www.justice.gov/ovw/domestic-violence#dv.
If you need help, contact the National Domestic Violence Hotline at 1-800-799-7233 or the Strong Hearts Native Helpline at 1-844-762-8483.
U.S. Attorney's Office Announces Sentencing of Colorado Man for Defrauding Federal-Funded NonprofitRead the Press Release
ALBUQUERQUE – A Colorado man was sentenced to three years of probation and ordered to pay $242,210 in restitution for defrauding a nonprofit organization funded by federal agencies, in a scheme that resulted in over $240,000 in fraudulent payments.
According to court documents, Jeffrey Ham, 47, owned Timberline Environmental, LLC, an environmental restoration company. Ham’s co-defendant James Matison worked as the Program Director at WildEarth Guardians, a nonprofit organization whose goal is to protect and restore wildlife, natural resources, and ecosystems of the American west. WildEarth Guardians relies on funding primarily through grants that it receives either directly from federal agencies, such as the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Interior (DOI), or indirectly via the State of New Mexico or other not-for-profit organizations.
Between February 2015 and April 2019, Ham conspired with Matison to generate and submit fraudulent invoices from Timberline Environmental for payment by WildEarth Guardians. These invoices were for hours not actually worked, and expenses not actually incurred.
To facilitate the scheme, Ham provided Matison with pre-signed blank checks from Timberline's account. Matison used these checks to transfer fraudulently obtained funds to accounts under his control, including an account associated with an Arizona company called Euro-American Development.
Prior to his arrest, Ham had attempted to make restitution by arranging an anonymous gift to WildEarth Guardians through his attorney.
Matison pled guilty to conspiracy to commit wire fraud and money laundering and remains on conditions of release pending sentencing, which is currently scheduled for October 31, 2024. At sentencing, Matison faces up to twenty years in prison and up to $250,000 in fines.
U.S. Attorney Alexander M.M. Uballez and the Department of the Interior (DOI) Office of Inspector General, and the Environmental Protection Agency (EPA) Office of Inspector General made the announcement today.
The Environmental Protection Agency Office of Inspector General and the Department of the Interior Office of Inspector General investigated this case. Assistant United States Attorney Jeremy Peña is prosecuting the case.
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U. S. Attorney Jesse Laslovich announces $17.4 million in Justice Department grants to state, county and organizations to support law enforcement and crime victim servicesRead the Press Release
BILLINGS — U.S. Attorney Jesse Laslovich, for the District of Montana, today announced approximately 27 grant awards totaling $17,476,734 in Department of Justice funds to help state and local government agencies and community organizations support law enforcement programs and to provide services for crime victims. The grants were awarded by the Justice Department’s Office of Justice Programs.
“This money reflects the United States Justice Department’s strong commitment to keeping our communities safe. From assisting law enforcement to helping victims of crime to keeping people from entering the criminal justice system, these funds will have a significant impact on our state. We are proud of our partnerships across the state and appreciate the important work each of partners provides to Montanans,” U.S. Attorney Laslovich said.
The awards announced are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page.
The following organizations and agencies receiving funding include:
- Montana Department of Justice: $323,742, Bureau of Justice Assistance FY24 Competitive DNA Capacity Enhancement for Backlog Reduction
- Montana Legal Services Association (Helena): $440,000, Office for Victims of Crime FY24 Services for Victims of Human Trafficking
- Montana Board of Crime Control: $411,304, Bureau of Justice Statistics FY24 National Criminal History Improvement Program Supplemental Funding under the Bipartisan Safer Communities Act.
- Missoula County: $700,000, Office on Violence Against Women FY24 Grants to Improve the Criminal Justice Response
- Haven (Bozeman): $750,000, Office on Violence Against Women FY24 Rural Domestic Violence, Dating Violence, Sexual Assault and Stalking Program
- Dawson County: $609,058, Office on Violence Against Women FY24 Rural Domestic Violence, Dating Violence, Sexual Assault and Stalking Program
- Missoula County: $750,000, Office on Violence Against Women FY24 Rural Domestic Violence, Dating Violence, Sexual Assault and Stalking Program
- Montana Legal Services Association (Helena): $500,000, Office on Violence Against Women FY 24 Rural Domestic Violence, Dating Violence, Sexual Assault and Stalking Program
- Domestic and Sexual Violence Services of Carbon County: $750,000, Office on Violence Against Women FY24 Rural Domestic Violence, Dating Violence, Sexual Assault and Stalking Program
- Montana Coalition Against Domestic and Sexual Violence (Helena): $367,379, Office on Violence Against Women FY24 State and Territory Domestic Violence and Sexual Assault Coalitions Program
- Montana Board of Crime Control: $1,053,191, Office on Violence Against Women FY24 STOP Formula Grant Program
- Montana Board of Crime Control: $223,194, Bureau of Justice Assistance FY24 Residential Substance Abuse Treatment for State Prisoners Program Formula Grant
- Montana Board of Crime Control: $1,123,798, Bureau of Justice Statistics FY24 National Criminal History Improvement Program
- Montana Board of Crime Control: $61,877, Bureau of Justice Assistance FY24 John R. Justice Formula Grant Program\
- Montana Department of Justice: $391,391, SMART FY24 Support for Adam Walsh Implementation Grant Program
- Montana Board of Crime Control, $812,352, Bureau of Justice Assistance FY24 Byrne State Crisis Intervention Program Formula Solicitation
- Haven (Bozeman): $535,974, Office of Violence Against Women FY24 Transitional Housing Assistance Grants for Victims of Domestic Violence, Dating Violence, Sexual Assault and Stalking program
- Inspire Action for Social Change Inc. (Clancy): $250,000, Office of Violence Against Women FY24 Training and Technical Assistance Initiative.
- Montana Board of Crime Control: $3,017,090, Office for Victims of Crime FY24 Victim Assistance Formula Grant
- Montana Department of Justice: $640,000, Office for Victims of Crime FY24 Victim Compensation Formula Grant
- Montana Department of Justice: $600,000, Office of Justice Assistance Formula DNA Capacity Enhancement for Backlog Reduction
- Montana Board of Crime Control: $96,208, Office of Justice Assistance Project Safe Neighborhoods Formula Grant Program
- Judiciary Courts of State of Montana: $655,496, Bureau of Justice Assistance FY24 Adult Treatment Court Program
- Montana Legal Services Association (Helena): $450,000, Bureau of Justice Assistance FY24 Invited to Apply-Law Enforcement Operations
- University of Montana: $675,000, Office of Juvenile Justice Delinquency Prevention FY24 Victims of Child Abuse Act Tribal Children’s Advocacy Centers Training and Technical Assistance
- Montana Board of Crime Control: $294,696, Bureau of Justice Assistance FY24 Paul Coverdell Forensic Science Improvement Grants Program-Formula
- City-County of Butte Silver Bow: $994,984, Bureau of Justice Assistance FY24 Veterans Treatment Court Discretionary Grant Program
About the Office of Justice Programs
The Office of Justice Programs provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime; advance equity and fairness in the administration of justice; assist victims; and uphold the rule of law. More information about OJP and its program offices – the Bureau of Justice Assistance, Bureau of Justice Statistics, National Institute of Justice, Office of Juvenile Justice and Delinquency Prevention, Office for Victims of Crime, and SMART Office – can be found at www.ojp.gov.
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U. S. Attorney Dawn N. Ison Announces over $66 Million in Justice Department Grants to Address and Support the Needs of Residents of the Eastern District of MichiganRead the Press Release
DETROIT – U.S. Attorney Dawn N. Ison today announced awards of $66,443,451 in Department of Justice grants to help support a variety of victim assistance programs, emergency management programs, and tribal governments. The grants awarded by the Department’s Office of Justice Programs also included tools to reduce violent crime in the Eastern District of Michigan.
United States Attorney Ison stated, “These awards reflect the many ways that the Department of Justice is engaged to improve the lives of the residents of this District. We are proud to support the work of our state, local, tribal, and community partners across our District and our whole state in a wide range of activities including reducing violent crime, assisting crime victims, supporting tribal governments, and protecting the rights of those who may have been wrongfully accused of crimes.”
Some of the recipients include:
Saginaw Chippewa Indian Tribe. The Saginaw Chippewa Indian Tribe of Michigan received $899,993.00. The tribe is a federally recognized tribe located in central Michigan. With this funding the tribe will implement supports for permanent supportive housing for residents in substance use disorder recovery.
County of Washtenaw, the City of Saginaw, Alternatives for Girls, Sisters Against Abuse Society, Eleven24 Inc., Human Development Commission, Underground Railroad and Sasha Center, Inc. all received awards, totaling nearly $3.8 million, to support community-based programs assisting victims of domestic violence, dating violence, sexual assault and stalking.
FORCE Detroit (Faithfully Organizing Resources for Community Empowerment). FORCE Detroit is a culmination of interfaith, grassroots, and public sector leaders committed to having hard conversations about complex community issues. FORCE Detroit received $1,999,998.00. Through this award, FORCE Detroit will implement The Keepers community violence intervention (CVI) program in Detroit. The purpose is to expand and enhance evidence-based and innovative practices that reduce and prevent gun violence in the city’s Warrendale Cody Rouge neighborhood.
Common Ground. Common Ground, nationally recognized as one of the most comprehensive crisis service agencies in the country, received $950,000.00. Through this award, Common Ground Assistance Program will implement the Multi-County Comprehensive Services for Human Trafficking Victims project. The purpose of this project is to sustain, expand, and strengthen victim services for adult and youth human trafficking victims of all genders.
Holocaust Memorial Center. The Holocaust Memorial Center received $1,100,000.00. The Center’s Security Sector and Law Enforcement Professional Education Program provides educational opportunities about the Holocaust and preventing atrocities to the specific needs of local and state security law enforcement agencies. Through this award, the Center’s program will increase outreach activities to develop new partnerships with security sector agencies resulting in at least 2,500 new participants from throughout the state.
County of Washtenaw. The Washtenaw County Prosecutor’s Office received funding to support the work of its Conviction Integrity and Expungement Unit, which investigates claims of actual innocence to determine whether new, credible, material evidence not previously addressed by any court supports those claims and supports expungement efforts in Washtenaw County.
University of Michigan. In receiving two awards totaling just under $2 million, the University of Michigan will 1) research and evaluate on firearm violence and mass shootings by conducting a study to evaluate the effectiveness of the Safe Storage Campaign in schools across Michigan, and 2) conduct a study on community perception of safety in Detroit.
Michigan State University. MSU received over $2 million for research and development in forensic science for criminal justice purposes.
City of Detroit. The Detroit Police Department received $300,000 to expand its National Integrated Ballistic Information Network (NIBIN) and Detroit Crime Gun Intelligence Center that has proven successful at establishing potential links between multiple crime scenes where the same firearm was used.
Michigan Health and Human Services (DHHS). With this award DHHS will improve engagement with youth and family members throughout the juvenile justice system.
Michigan State Police (MSP). This award will help law enforcement agencies undertake the Mid-Michigan Law Enforcement Modernization Plan by will allow to make critical upgrades to equipment, technology, patrol vehicles and vessels.
Genesee County. The Global Human Oppression Strike Team (GHOST) is a critical piece of law enforcement working to protect communities from the threat of sexual predators. Through this grant, GHOST will continue its efforts in combatting human trafficking and the opioid epidemic.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page.
For the full list of organizations receiving funding please see attached.
About the Office of Justice Programs
The Office of Justice Programs provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime; advance equity and fairness in the administration of justice; assist victims; and uphold the rule of law. More information about OJP and its program offices – the Bureau of Justice Assistance, Bureau of Justice Statistics, National Institute of Justice, Office of Juvenile Justice and Delinquency Prevention, Office for Victims of Crime, and SMART Office – can be found at www.ojp.gov.
EASTERN DISTRICT OF MICHIGAN AWARDS
County of WashtenawEnhancing Investigation and Prosecution of Domestic Violence, Dating Violence, Sexual Assault, and Stalking (EIP) Initiative$497,630.00Ann ArborMICity of SaginawEnhancing Investigation and Prosecution of Domestic Violence, Dating Violence, Sexual Assault, and Stalking (EIP) Initiative$448,723.00SaginawMICommon GroundServices for Victims of Human Trafficking$950,000.00Bloomfield HillsMICommunity Health and Social Services Center, INCLegal Assistance for Victims$749,955.00DetroitMIAvalon Healing CenterExpanding Access to Sexual Assault Forensic Examinations$500,000.00DetroitMISara's House PlaceMeeting Basic Needs of Underserved Crime Victims$199,988.00DetroitMICounty of MacombTraining and Services to End Violence and Abuse Against Women Later in Life Program$750,000.00Mount ClemensMIAlternatives for GirlsGrants to Enhance Culturally Specific Services for Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking Program$450,000.00DetroitMISisters Against Abuse SocietyGrants to Enhance Culturally Specific Services for Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking Program$450,000.00WestlandMIEleven24 Inc.Grants to Enhance Culturally Specific Services for Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking Program$475,000.00DetroitMIHuman Development CommissionTransitional Housing Assistance Grants for Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking Program$500,000.00CaroMIUnderground RailroadTransitional Housing Assistance Grants for Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking Program$460,005.00SaginawMISasha Center Inc.Grants to Enhance Culturally Specific Services for Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking Program$475,000.00DetroitMIHolocaust Memorial CenterProvide educational opportunities about the Holocaust$1,100,000.00Farmington HillsMICity Farmington HillsTraining in Emergency Vehicle Operations$65,000.00Farmington HillsMICity of UticaUpgrade current police camera systems, including body-cameras$153,000.00UticaMIVillage of MilfordEquip each officer with a body-worn camera, patrol vehicles with updated in-car cameras, establish a joint de-escalation and response to resistance program$161,000.00MilfordMIGenesee CountyCombatting human trafficking and the opioid epidemic$963,000.00FlintMISaginaw Chippewa Indian TribeImplement supports for permanent supportive housing residents in substance use disorder recovery$899,993.00Mount PleasantMIWayne CountyPostconviction Testing DNA Evidence$246,309.00DetroitMICounty of OaklandDNA Capacity Enhancement for Backlog Reduction (CEBR)$436,925.00PontiacMICounty of WashtenawUpholding the Rule of Law and Preventing Wrongful Convictions Program$600,000.00Ann ArborMIForce DetroitOffice of Justice Programs Community Based Violence Intervention and Prevention Initiative Site-Based$1,999,998.00DetroitMICity of Sterling HeightsCollaborative Crisis Response and Intervention Training Program$244,608.00Sterling HeightsMIUniversity of MichiganMeasurement of Community Perceptions$999,999.00Ann ArborMIUniversity of MichiganResearch and Evaluation on Firearm Violence and Mass Shootings$998,907.00Ann ArborMICity of JacksonProject Safe Neighborhoods Formula Grant Program$336,940.00JacksonMICity of DetroitLocal Law Enforcement Crime Gun Intelligence Cetner Integration Initiative$300,000.00DetroitMICounty of WashtenawFamily Treatment Court Program$750,000.00Ann ArborMICounty of GeneseeAdult Treatment Court Program$763,185.00FlintMISTATEWIDE GRANTS
Michigan Health and Human ServicesVOCA Victim Compensation Formula Grant$2,680,000.00LansingMIMichigan Health and Human ServicesVOCA Victim Assistance Formula Grant$22,802,629.00LansingMIMichigan Health and Human ServicesSexual Assault Services Formula Program$1,077,536.00LansingMIMichigan Health and Human ServicesSTOP Formula Grant Program$4,615,493.00LansingMIMichigan Health and Human ServicesBuilding Local Continuums of Care to Support Youth Success$825,000.00LansingMIMichigan Health and Human ServicesJuvenile Justice System Reform and Reinvestment Initiative$1,323,816.00LansingMIMichigan Department of Attorney GeneralPostconviction Testing DNA Evidence$246,275.00LansingMIMichigan State UniversityState Justice Statistics Program for Statistical Analysis Centers$41,431.00East LansingMIMichigan State UniversityResearch and Development in Forensic Science for Criminal Justice Purposes$2,062,069.00East LansingMIDepartment of State Police MichiganEmergency Federal Law Enforcement Assistance (EFLEA)$83,625.00LansingMIDepartment of State Police MichiganResidential Substance Abuse Treatment for State Prisoners Program$839,464.00LansingMIDepartment of State Police MichiganIntellectual Property Enforcement Program: Protecting Public Health, Safety, and the Economy from Counterfeit Goods and Product Piracy$323,365.00LansingMIDepartment of State Police MichiganNational Criminal History Improvement Program (NCHIP) Supplemental Funding under the Bipartisan Safer Communities Act$1,987,245.00LansingMIDepartment of State Police MichiganDNA Capacity Enhancement for Backlog Reduction (CEBR)$2,257,585.00LansingMIDepartment of State Police MichiganSupport for Adam Walsh Act Implementation Grant Program$238,061.00LansingMIDepartment of State Police MichiganMake critical upgrades to equipment, technology, patrol vehicles and vessels, to ensure the enduring efficacy of mid-Michigan’s law enforcement$963,000.00LansingMIDepartment of State Police MichiganProject Safe Neighborhoods Formula Grant Program$188,638.00LansingMIDepartment of State Police MichiganPaul Coverdell Forensic Science Improvement Grants Program$608,161.00LansingMIDepartment of State Police MichiganByrne Crisis Intervention Program Formula Solicitation$4,573,367.00LansingMITwo Foreign Nationals Sentenced for Multimillion-Dollar Scheme to Defraud Apple Inc. Out of 6,000 iPhonesRead the Press Release
Two men were sentenced yesterday for participating in a scheme to defraud Apple Inc. (Apple) out of millions of dollars worth of iPhones. Haotian Sun, 34, a Chinese citizen residing in Baltimore, was sentenced to 57 months in prison, three years of supervised release, and ordered to pay $1,072,200 in restitution to Apple and a forfeiture money judgment of $53,610. Pengfei Xue, 34, a Chinese citizen residing in Germantown, Maryland, was sentenced to 54 months in prison, three years of supervised release, and ordered to pay $397,800 in restitution to Apple and a forfeiture money judgment of $19,890.
According to court documents and evidence presented at trial, from May 2017 to September 2019, Sun and Xue, along with their co-conspirators, submitted counterfeit iPhones to Apple for repair to induce Apple to replace the counterfeit phones with genuine iPhones. As part of the scheme, Sun and Xue would receive shipments of inauthentic iPhones from Hong Kong at UPS mailboxes throughout the Washington, D.C., metropolitan area. They then submitted the fake iPhones, with spoofed serial numbers or IMEI numbers, to Apple retail stores, including an Apple Store in Washington, and other authorized Apple service providers. Members of the conspiracy submitted more than 6,000 inauthentic phones to Apple during the conspiracy, causing a loss of more than $2.5 million.
On Feb. 20, Sun and Xue were both convicted after a five-day jury trial of one count of conspiracy to commit mail fraud. Sun was also convicted of one count of mail fraud and Xue was convicted of six counts of mail fraud.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Matthew M. Graves for the District of Columbia; Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service (USPIS) Washington Division; and Special Agent in Charge Derek W. Gordon of the Homeland Security Investigations (HSI) Washington Field Office made the announcement.
USPIS and HSI investigated the case.
Trial Attorney Ryan Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Kondi Kleinman for the District of Columbia prosecuted the case.
Three Former Memphis, Tennessee, Police Officers Convicted of Federal Felonies Related to Death of Tyre NicholsRead the Press Release
Following a trial that lasted nearly four weeks, a federal jury in Memphis, Tennessee, found three former Memphis Police Department (MPD) officers guilty of federal felonies related to the death of Tyre Nichols on Jan. 7, 2023.
“All three former Memphis Police Department officers were convicted of federal felonies for their role in Tyre Nichols’ death,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “They join two additional former officers who had already pled guilty. With these convictions, all five of the former officers involved in the death of Mr. Nichols have been convicted of federal felonies. Tyre Nichols should be alive today. We extend our condolences to the family and loved ones of Mr. Nichols. We hope this prosecution provides some measure of comfort as the law enforcement officers tied to his death have been held accountable. We thank the trial team for their extraordinary dedication to prosecuting this case, and we thank the jury for their service. We will never rest in our ongoing efforts to ensure that law enforcement officers are held accountable for violating people’s civil and constitutional rights.”
“A basic principle for our system of justice is that there is — and there only can be — one rule of law,” said Acting U.S. Attorney Reagan Fondren for the Western District of Tennessee. “Law enforcement officers must be held to the same rules as the citizens they’re sworn to protect. More than a year ago, this office made a commitment to following the truth where it led in this case. Thanks to our trial team who worked tirelessly over the past 21 months to ensure that this case was properly investigated and tried and to the men and women in the jury for their service. The defendants have been found guilty of serious federal felonies and face significant penalties for those actions.”
Former MPD Officer Demetrius Haley was found to have deprived Nichols of his constitutional right to be free from an officer’s unreasonable force when he, and two other former MPD officers, Emmitt Martin III and Desmond Mills Jr., unlawfully assaulted Nichols and willfully failed to intervene to stop his co-defendants from using unreasonable force. The jury found that Haley’s conduct resulted in bodily injury to Nichols. The jury also found that Haley deprived Nichols of his constitutional right to be free from a police officer’s deliberate indifference to his serious medical needs resulting in bodily injury to Nichols. Defendants Emmitt Martin and Desmond Mills, Jr. previously pleaded guilty of using unreasonable force against Nichols, resulting in his death. The jury also convicted Haley of conspiring to commit witness tampering.
The jury also convicted Haley and former MPD officers Tadarrius Bean and Justin Smith for their effort to cover up the use of excessive force against Nichols by omitting material information and providing misleading and false statements to their MPD supervising lieutenant and an MPD detective who was tasked with writing the report documenting this incident.
Evidence presented at the trial established that, on Jan. 7, 2023, defendant Haley assaulted Nichols after a traffic stop. Martin initiated the traffic stop, and Haley and another MPD officer subsequently arrived at the stop. When Nichols was on the ground, Haley pepper-sprayed Nichols and another officer tried to tase him, at which point Nichols fled the area.
Bean and Mills responded to the location where dispatch reported that Nichols had run and saw Nichols walking down the street. Nichols ran from the officers, and Bean ran after him and tackled him to the ground. When Martin arrived at the scene he immediately kicked Nichols in the head at least twice. As officers held Nichols on the ground, Mills pepper sprayed Nichols, expanded his baton and repeatedly used the baton to strike Nichols. Martin then repeatedly punched Nichols in the head and chest. Nichols went back to the ground, and, as two officers held him down, Haley ran up to the scene and kicked Nichols. Martin then kicked Nichols again.
After the assault, the officers placed Nichols in handcuffs and walked away from him, leaving him writhing on the ground. After several minutes, the officers dragged Nichols to sit against a police vehicle. Haley failed to render any medical aid to Nichols despite his visibly bloodied and swollen face.
Memphis Fire Department (MFD) first responders and EMTs arrived on the scene. Despite knowing that Nichols had been injured by the officers’ kicks, punches and baton strikes and was at substantial risk of serious harm if those injuries went untreated, Haley willfully failed to inform responding emergency medical personnel of the blows suffered by Nichols. Nichols’ condition deteriorated, and he was unable to communicate or sit upright. Nichols was eventually transported to a hospital, where he died three days later. The Chief Medical Examiner for the West Tennessee Regional Forensic Center identified the manner of death as homicide due to blunt force trauma to the head, including rotational brain injury and brain bleeding and identified additional, extensive blunt force injuries to Nichols’ neck, arms, legs and torso.
A medical emergency responder testified that had they been told that Nichols’ injuries were caused by strikes to the head, they would have significantly altered their course of care. Nichols’ treating physicians testified that patients like Nichols who suffer from traumatic brain injury require immediate care and that a delay of even a few minutes of receiving appropriate care can cause death.
After the assault, the defendants spoke to an MPD lieutenant and an MPD detective tasked with writing the report documenting this incident where they omitted material information or provided false information. Specifically, the defendants falsely claimed that Nichols actively resisted arrest; Smith falsely stated that Nichols grabbed his vest and officers’ duty belts; and Mills and Smith falsely claimed that Nichols lifted both officers in the air. Each of the defendants also willfully omitted material information, including that they had repeatedly punched Nichols, that Martin and Haley had kicked him and that he had been repeatedly struck in the head.
The evidence at trial established that MPD policy and training require officers to use reasonable force and to intervene when they see other officers using unreasonable force. The defendants’ supervising lieutenant as well as MPD officers who trained the defendants on use of force all testified that Nichols posed little or no threat to officers and that Haley’s use of force was inconsistent with MPD training and policy. Co-defendants Martin and Mills also testified at trial that at the time of the beating, they knew that Nichols did not pose a threat during the incident and that the force used by them and Haley was contrary to their training. Martin testified that MPD officers regularly inflicted a “run tax,” which refers to the use of unjustified violence to punish anyone who runs from the police.
The evidence also established that MPD policy and training require officers to provide medical care to injured arrestees and that officers are trained that they must provide truthful and complete information to first responders and other healthcare providers.
The jury found that Haley disregarded this training and willfully violated Nichols of his constitutional rights. The jury found that Haley used excessive force, failed to intervene to stop other officers’ use of unlawful force and failed to provide aid to Nichols as he suffered a medical emergency and misled medical personnel who could have rendered life-saving aid. The jury found that the defendants also lied or omitted material information about the incident to their supervising lieutenant and an MPD detective in an effort to cover up their unlawful conduct.
Sentencing dates for the three defendants are set for January 2025. Haley faces a maximum penalty of 10 years in prison for both the violations of depriving an individual of their civil rights under color of law resulting in bodily injury and for being deliberately indifferent to the known serious medical needs of a person in his custody. Haley faces a maximum penalty of 20 years in prison for the conspiracy to witness tamper and witness tampering charges. Bean and Smith each face a maximum penalty of 20 years in prison for the witness tampering charge.
Martin and Mills previously entered guilty pleas on federal charges, admitting that they each used excessive force and failed to intervene in the unlawful assault, resulting in bodily injury to and the death of Nichols, and that they conspired with their co-defendants to cover up the officers’ use of unlawful force against Nichols. A sentencing hearing for Martin is scheduled for Dec. 5 and a sentencing hearing for Mills will be scheduled at a later date.
The FBI Nashville Field Office investigated the case with the cooperation of the Tennessee Bureau of Investigation.
Deputy Chief Forrest Christian, Special Litigation Counsel Kathryn E. Gilbert and Trial Attorney Andrew Manns of the Justice Department’s Civil Rights Division and Assistant U.S. Attorneys David Pritchard and Elizabeth Rogers for the Western District of Tennessee are prosecuting the case.
Three Former Memphis Police Officers Convicted of Federal Felonies Related to Death of Tyre NicholsRead the Press Release
Memphis, TN – Following a trial that lasted nearly four weeks, a federal jury found three former Memphis Police Department (MPD) officers guilty of federal felonies arising out of the assault on Tyre Nichols on January 7, 2023, which led to his death.
“All three former Memphis Police Department officers were convicted of federal felonies for their role in Tyre Nichols’ death,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “They join two additional former officers who had already pled guilty. With these convictions, all five of the former officers involved in the death of Mr. Nichols have been convicted of federal felonies. Tyre Nichols should be alive today. We extend our condolences to the family and loved ones of Mr. Nichols. We hope this prosecution provides some measure of comfort as the law enforcement officers tied to his death have been held accountable. We thank the trial team for their extraordinary dedication to prosecuting this case, and we thank the jury for their service. We will never rest in our ongoing efforts to ensure that law enforcement officers are held accountable for violating people’s civil and constitutional rights.”
“A basic principle for our system of justice is that there is — and there only can be — one rule of law,” said Acting U.S. Attorney Reagan Fondren for the Western District of Tennessee. “Law enforcement officers must be held to the same rules as the citizens they’re sworn to protect. More than a year ago, this office made a commitment to following the truth where it led in this case. Thanks to our trial team who worked tirelessly over the past 21 months to ensure that this case was properly investigated and tried and to the men and women in the jury for their service. The defendants have been found guilty of serious federal felonies and face significant penalties for those actions.”
“When law enforcement officers abuse their authority, it not only violates our civil rights laws, but it also undermines the criminal justice system as a whole,” said Joseph E. Carrico, Special Agent in Charge of the FBI Nashville Field Office, Memphis Resident Agency. “This verdict should send a clear message that the FBI makes it a priority to bring to justice any law enforcement officer who violates the civil rights of those they are sworn to protect.”
Former MPD Officer Demetrius Haley was found to have deprived Nichols of his constitutional right to be free from an officer’s unreasonable force when he and two other former MPD officers, Emmitt Martin III and Desmond Mills Jr., unlawfully assaulted Nichols and willfully failed to intervene to stop his co-defendants from using unreasonable force. The jury found that Haley’s conduct resulted in bodily injury to Nichols. The jury also found that Haley deprived Nichols of his constitutional right to be free from a police officer’s deliberate indifference to his serious medical needs resulting in bodily injury to Nichols. Defendants Emmitt Martin and Desmond Mills, Jr. previously pleaded guilty of using unreasonable force against Nichols, resulting in his death. The jury also convicted Haley of conspiring to commit witness tampering.
The jury also convicted Haley and former MPD officers Tadarrius Bean and Justin Smith for their effort to cover up the use of excessive force against Nichols by omitting material information and providing misleading and false statements to their MPD supervising lieutenant and an MPD detective who was tasked with writing the report documenting this incident.
Evidence presented at the trial established that, on January 7, 2023, defendant Haley assaulted Nichols after a traffic stop. Martin initiated the traffic stop, and Haley and another MPD officer subsequently arrived at the stop. When Nichols was on the ground, Haley pepper-sprayed Nichols and another officer tried to tase him, at which point Nichols fled the area.
Bean and Mills responded to the location where dispatch reported that Nichols had run and saw Nichols walking down the street. Nichols ran from the officers, and Bean ran after him and tackled him to the ground. When Martin arrived at the scene, he immediately kicked Nichols in the head at least twice. As officers held Nichols on the ground, Mills pepper sprayed Nichols, expanded his baton and repeatedly used the baton to strike Nichols. Martin then repeatedly punched Nichols in the head and chest. Nichols went back to the ground, and, as two officers held him down, Haley ran up to the scene and kicked Nichols. Martin then kicked Nichols again.
After the assault, the officers placed Nichols in handcuffs and walked away from him, leaving him writhing on the ground. After several minutes, the officers dragged Nichols to sit against a police vehicle. Haley failed to render any medical aid to Nichols despite his visibly bloodied and swollen face.
Memphis Fire Department (MFD) first responders and EMTs arrived on the scene. Despite knowing that Nichols had been injured by the officers’ kicks, punches and baton strikes and was at substantial risk of serious harm if those injuries went untreated, Haley willfully failed to inform responding emergency medical personnel of the blows suffered by Nichols. Nichols’ condition deteriorated, and he was unable to communicate or sit upright. Nichols was eventually transported to a hospital, where he died three days later. The Chief Medical Examiner for the West Tennessee Regional Forensic Center identified the manner of death as homicide due to blunt force trauma to the head, including rotational brain injury and brain bleeding and identified additional, extensive blunt force injuries to Nichols’ neck, arms, legs and torso.
A medical emergency responder testified that had they been told that Nichols’ injuries were caused by strikes to the head, they would have significantly altered their course of care. Nichols’ treating physicians testified that patients like Nichols who suffer from traumatic brain injury require immediate care and that a delay of even a few minutes of receiving appropriate care can cause death.
After the assault, the defendants spoke to an MPD lieutenant and an MPD detective tasked with writing the report documenting this incident where they omitted material information or provided false information. Specifically, the defendants falsely claimed that Nichols actively resisted arrest; Smith falsely stated that Nichols grabbed his vest and officers’ duty belts; and Mills and Smith falsely claimed that Nichols lifted both officers in the air. Each of the defendants also willfully omitted material information, including that they had repeatedly punched Nichols, that Martin and Haley had kicked him and that he had been repeatedly struck in the head.
The evidence at trial established that MPD policy and training require officers to use reasonable force and to intervene when they see other officers using unreasonable force. The defendants’ supervising lieutenant as well as MPD officers who trained the defendants on use of force all testified that Nichols posed little or no threat to officers and that Haley’s use of force was inconsistent with MPD training and policy. Co-defendants Martin and Mills also testified at trial that at the time of the beating, they knew that Nichols did not pose a threat during the incident and that the force used by them and Haley was contrary to their training. Martin testified that MPD officers regularly inflicted a “run tax,” which refers to the use of unjustified violence to punish anyone who runs from the police.
The evidence also established that MPD policy and training require officers to provide medical care to injured arrestees and that officers are trained that they must provide truthful and complete information to first responders and other healthcare providers.
The jury found that Haley disregarded this training and willfully violated Nichols of his constitutional rights. The jury found that Haley used excessive force, failed to intervene to stop other officers’ use of unlawful force and failed to provide aid to Nichols as he suffered a medical emergency and misled medical personnel who could have rendered life-saving aid. The jury found that the defendants also lied or omitted material information about the incident to their supervising lieutenant and an MPD detective in an effort to cover up their unlawful conduct.
Sentencing hearings for the three defendants are set for January 2025. Haley faces a maximum penalty of 10 years in prison for both the violations of depriving an individual of their civil rights under color of law resulting in bodily injury and for being deliberately indifferent to the known serious medical needs of a person in his custody. Haley faces a maximum penalty of 20 years in prison for the conspiracy to witness tamper and witness tampering charges. Bean and Smith each face a maximum penalty of 20 years in prison for the witness tampering charge.
Martin and Mills previously entered guilty pleas on federal charges, admitting that they each used excessive force and failed to intervene in the unlawful assault, resulting in bodily injury to and the death of Nichols, and that they conspired with their co-defendants to cover up the officers’ use of unlawful force against Nichols. A sentencing hearing for Martin is scheduled for Dec. 5 and a sentencing hearing for Mills will be scheduled at a later date.
The FBI Nashville Field Office, Memphis Resident Agency investigated the case with the cooperation of the Tennessee Bureau of Investigation.
Acting United States Attorney Reagan Fondren thanked Assistant U.S. Attorneys David Pritchard and Elizabeth Rogers and Deputy Chief Forrest Christian, Special Litigation Counsel Kathryn E. Gilbert, and Trial Attorney Andrew Manns of the Justice Department’s Civil Rights Division, who prosecuted this case, as well as law enforcement partners who investigated the case.
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For more information, please contact the media relations team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Three Defendants Plead Guilty to Drug Trafficking and Illegal Weapons Possession ChargesRead the Press Release
SACRAMENTO, Calif. — Three co-defendants, Martin Cervantes Vasquez, 49, of Stockton; Alberto Gonzalez Salgado, 45, of Sacramento; and Isaiah Alberto Salgado, 25, of Sacramento, pleaded guilty today to various drug trafficking and illegal weapons possession charges, U.S. Attorney Phillip A. Talbert announced.
Cervantes and Alberto Salgado pleaded guilty to a fentanyl pill trafficking conspiracy. Cervantes also pleaded guilty to possession with intent to distribute methamphetamine, and Alberto Salgado also pleaded guilty to two counts of heroin distribution, to cultivating more than 100 marijuana plants, and to possession of a firearm in furtherance of a drug trafficking crime. Isaiah Salgado pleaded guilty to possession of an unregistered short-barreled rifle.
According to court documents, Alberto Salgado sold heroin and fentanyl-laced counterfeit oxycodone pills to a confidential source on multiple occasions in 2019 and 2020. Cervantes supplied fentanyl-laced counterfeit oxycodone pills to Alberto Salgado and also possessed more than a kilogram of heroin and 500 grams of methamphetamine on the day of his arrest on Oct. 8, 2020. Alberto and Isaiah Salgado sold an illegal short-barreled rifle to the same confidential source in August 2020. Alberto Salgado also maintained a stash house in Sacramento where he grew more than 100 marijuana plants and also kept a firearm to protect his drug trafficking operation.
This case is the product of an investigation by the Drug Enforcement Administration, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation; Homeland Security Investigations; the Sacramento Area Intelligence/Narcotics Task Force; and the California Highway Patrol. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
Cervantes is scheduled to be sentenced on Jan. 23, 2025, Alberto Salgado on Feb. 13, 2025, and Isaiah Salgado on Jan. 9, 2025, by U.S. District Judge Daniel J. Calabretta. Cervantes and Alberto Salgado face a maximum statutory penalty of life in prison. Isaiah Salgado faces a maximum statutory penalty of 10 years in prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 www.justice.gov/OCDETF.
Ten Pharmaceutical Distributor Executives, Sales Representatives, and Brokers Charged in Connection with Unlawful Sales of Nearly 70M Opioid PillsRead the Press Release
Remote video URLNote: View DEA Administrator Anne Milgram's remarks (YouTube).
Charges against five pharmaceutical distributor executives and five pharmaceutical sales representatives and brokers have been unsealed in the Southern District of Texas, Southern District of Florida, Eastern District of Missouri, and Eastern District of North Carolina as part of a larger enforcement action related to the unlawful distribution of nearly 70 million opioid pills and over 30 million doses of other commonly abused prescription drugs to alleged Houston-area pill-mill pharmacies. Three Houston-area pharmacy operators were also charged in the Southern District of Texas for their role in the schemes. Nine individuals have pleaded guilty.
According to court documents, the opioids allegedly distributed — oxycodone, hydrocodone, and hydromorphone — were available in numerous strengths and forms, but the distributors allegedly sold the drugs almost exclusively in their most abused, most powerful immediate-release pill forms — i.e., the ones that sold for the most money on the black market. The distributors also allegedly sold prescription drug potentiators — alprazolam, carisoprodol, and promethazine with codeine syrup — known for their reputation of enhancing the high from the opioids. The distributors allegedly charged their Houston customers far more for the drugs than what a legitimate pharmacy could or would pay.
“The defendants, including pharmaceutical drug distributors, allegedly exploited the opioid crisis for profit — selling dangerous and addictive drugs to pill-mill pharmacies at above-market prices, knowing that the drugs would end up on the black market,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The drugs had a staggering black-market value of over $1.3 billion. These charges represent the Justice Department’s largest criminal enforcement action targeting executives, brokers, and alleged pill-mill pharmacy owners for unlawfully distributing opioids and other commonly abused drugs. Our message is clear: we will not hesitate in our pursuit of those involved in dumping addictive pharmaceutical drugs onto the streets.”
As alleged in the charging documents, the defendants mostly targeted pill-mill pharmacies in and around Houston — a nationally recognized “hot zone” for diversion of pharmaceutical opioids onto the black market. The distributors sought to thwart the Drug Enforcement Administration (DEA)'s oversight function in several ways, including by following what one defendant called a “blueprint” for avoiding detection: high prices, low purchasing limits for the controlled drugs, and compliance measures that only served appearances. In addition, the distributors were all located outside Texas, far removed from their Houston-area pill-mill pharmacy customers and the communities ravaged by their alleged offenses.
“The defendants in the charges announced today are alleged to be responsible for significantly contributing to the devastation caused by the opioid crisis by knowingly supplying pill-mill pharmacies and coaching pharmacy operators on how to evade law enforcement detection. According to the charging documents, they knowingly sold bulk narcotics to drug traffickers and to pharmacies they knew were selling to drug traffickers,” said DEA Administrator Anne Milgram. “As alleged, these defendants — owners, CEOs, executives, brokers — put profits over the health and safety of the American public. No one is above the law. If you contribute to the opioid epidemic, if you profit from the devastation of communities, we will hold you accountable. I commend the collaboration between DEA’s Diversion Control Division, our field divisions in St. Louis, Miami, Atlanta, Phoenix, Louisville and Houston, and our other state and federal law enforcement partners whose dedication to this investigation led us here today.”
“The distributors that sourced pills into the Houston area may be located across the country in Arizona, Florida, Maryland, California, North Carolina, and elsewhere, but they targeted Houston, helping to make it a known ‘hot zone’ for drug diversion,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “This office will always support the prosecution of individuals who try to thwart law enforcement and oversight by operating across state lines, posing as legitimate businesses, while in reality poisoning our district by targeting pill mills with precisely the drugs at the heart of our country’s addiction crisis. While there remain others who will be held accountable in the future, these cases build on this district’s history of systematically dismantling pill-mill clinics, pharmacies, and the often-violent drug-trafficking organizations, responsible for selling these pills in our community.”
“The use of protocols outside of common industry practice has contributed to the current opioid epidemic. To boost their profits, bad actors facilitate the distribution of opioids without medical necessity, threatening the lives and health of the public and the integrity of the Medicare program,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agency, working with our law enforcement partners, will continue to thoroughly investigate such schemes.”
“The FBI is dedicated to stopping dangerous controlled drugs from ending up in the wrong hands in communities across the country,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “These charges are another example of our continued multi-prong attack on those who contribute to the opioid crisis. The FBI and our partners investigate crimes at every level from the wholesaler pharmaceutical companies supplying the local pill-mill pharmacies to those selling the dangerous drugs on the street and black-market. We will not let anyone cash in and take advantage of people dealing with a drug addiction.”
“Supplying diverted prescription drugs undermines FDA safeguards designed to protect the public, compromising public safety for personal gain,” said Assistant Commissioner Justin Green of the Food and Drug Administration's Office of Criminal Investigations (FDA-OCI). “This investigation is a clear demonstration that the FDA will not stop pursuing and bringing to justice those who put the public health at risk.”
“Today’s charges are a reminder of the continued danger of the opioid epidemic and the resolve of the investigative and legal teams,” said Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service's Office of Inspector General (USPS-OIG). “Anyone, including corporate executives, who knowingly facilitates opioid abuse will be held accountable for their greed and total disregard for safety.”
According to court documents, the following individuals were charged as part of today’s enforcement action:
- Sheldon Dounn, 71, of Plantation, Florida, was charged for allegedly brokering the sale of millions of opioid pills and other commonly abused prescription drugs, mostly to Houston-area independent pharmacies that then sold the pills on to the black market. He was indicted in the Southern District of Texas with five counts of unlawfully distributing and dispensing controlled substances; two counts of conspiracy to unlawfully distribute and dispense, and possess with intent to distribute and dispense, controlled substances; and one count of conspiracy to defraud the United States in connection with a scheme to unlawfully distribute and dispense nearly 10 million opioid pills to pharmacies in Houston and Florida. Richard “Dick” Osbourne, 78, of Memphis, Tennessee, pleaded guilty in the Southern District of Texas to one count of conspiracy to unlawfully distribute and dispense, and possess with intent to distribute and dispense, controlled substances, and Courtney Rotenberry, 45, of Savannah, Tennessee, pleaded guilty in the Southern District of Texas to one count of conspiracy to defraud the United States and one count of conspiracy to use a communications facility to further the commission of a drug felony, in connection with the same scheme. According to court documents, Osbourne was the president of Wholesale Rx, while Rotenberry served as sales manager and, for a brief period, managed day-to-day operations at the company, including purported compliance. She also handled some of the company’s pharmacy accounts. As alleged, Dounn brought Wholesale Rx what he called the “model” — a “blueprint” for staying “under the radar” of regulators and law enforcement through over-market prices, low purchasing limits, and perfunctory compliance in hopes of making a “lot of money” — which was based on Dounn’s experience as a pharmaceutical sales broker. Dounn allegedly brokered sales of commonly abused prescription drugs from Wholesale Rx to his pharmacy customers in Houston. Dounn also allegedly sold the same pills from at least two other wholesalers to his Houston-area customers and some Florida customers, often in addition to the drugs the pharmacies purchased from Wholesale Rx. Rotenberry also falsely represented to the DEA that Wholesale Rx preformed meaningful due diligence on its Houston-area pharmacy customers when Wholesale Rx did not. If convicted, Dounn faces a maximum penalty of 20 years in prison for each unlawful distribution-related count and five years in prison for conspiracy to defraud the United States. Osbourne faces a maximum penalty of 20 years in prison. Rotenberry faces a maximum penalty of five years on the conspiracy to defraud the United States count and four years on the conspiracy to use a communications facility to further the commission of a drug felony count.
- Hernan Alvarez, 52, of Phoenix, pleaded guilty in the Southern District of Texas to one count of conspiracy to unlawfully distribute and dispense controlled substances in connection with a scheme to distribute over 18.6 million commonly abused opioid units. As alleged, Alvarez, the president of DEA-registered pharmaceutical distributor Salus Medical LLC (Salus), along with his co-conspirators, aimed to generate profits by selling commonly abused opioids and other drugs into the Houston market. Despite a meeting with DEA officials in 2017, during which Alvarez and his sales manager were informed of distributors’ obligations to provide effective controls against diversion and were trained on red flags for Salus to look out for, Alvarez targeted certain Houston-area pharmacies because those pharmacies were willing to pay over-market prices for commonly abused prescription drugs. Alvarez knew that these Houston-area pharmacies were able to pay inflated prices for the drugs because the pharmacies unlawfully sold them, for cash, mainly to street-level drug dealers. Alvarez faces a maximum penalty of 20 years in prison.
- Joshua Weinstein, 50, of Miami, pleaded guilty in the Southern District of Florida to one count of conspiracy to unlawfully distribute and dispense, and possess with intent to distribute and dispense, controlled substances; and Derrick “Chad” Atkinson, 40, of Lumberton, North Carolina, was charged by information in the Eastern District of North Carolina with the same, in connection with a scheme to distribute over 7 million hydrocodone, oxycodone, and hydromorphone pills. As alleged, Weinstein was the president of a pharmaceutical drug wholesaler headquartered in Miami, and Atkinson was a sales representative who serviced many of the company’s Houston-area pharmacy accounts. Weinstein, Atkinson, and their co-conspirators allegedly sold commonly abused prescription drugs at a large markup into the Houston market, while implementing purported compliance measures that mostly facilitated, instead of prevented, diversion. According to court documents, in or around 2017, after Atkinson was hired, the company’s sales of commonly abused prescription drugs to Houston-area pharmacies dramatically increased. In addition to serving as president of the Miami wholesaler, Weinstein served as a sales representative for an alleged Houston-area pill-mill pharmacy, for which Weinstein secured an increase in the pharmacy’s purchasing limits for commonly abused prescription drugs and picked non-controlled substances the pharmacy needed to purchase to meet the wholesaler’s required controlled-to-non-controlled substance purchasing ratio. Weinstein faces a maximum penalty of 20 years in prison. If convicted, Atkinson faces the same.
- Jason Smith, 43, of Plantation, Florida, pleaded guilty in the Southern District of Florida to one count of conspiracy to unlawfully distribute and dispense, and possess with intent to distribute and dispense, controlled substances. Joseph Pesserillo, 38, of The Villages, Florida, and Cassandra Rivera, 40, of Ft. Lauderdale, Florida, were charged by information in the Southern District of Florida with one count of conspiracy to use a communications facility to further the commission of a drug felony. All three defendants were charged in connection with a scheme to facilitate the distribution of tens of millions of commonly abused prescription drugs from Salus and three other pharmaceutical drug wholesalers. According to court documents, Smith owned and operated Proven Rx Sales LLC (Proven), a purported pharmaceutical consulting company that helped mid-level distributors sell commonly abused prescription drugs to Houston-area pill-mill pharmacies. Smith dealt primarily with the owners and upper management for Proven’s distributors, while Proven sales representatives Pesserillo and Rivera allegedly serviced the accounts of pill-mill pharmacies in the Houston area. Smith faces a maximum penalty of 20 years in prison. If convicted, Pesserillo and Rivera each face a maximum penalty of four years in prison.
- Eric Bailey, 59, of St. Louis, pleaded guilty in the Eastern District of Missouri to one count of possession with intent to distribute hydrocodone and oxycodone, in connection with a scheme to distribute over 11 million hydrocodone and oxycodone pills. According to court documents, Bailey, the owner and operator of Emed Medical Company LLC (Emed), a pharmaceutical drug distributor, controlled Emed’s purchase and sale of controlled substances — including purchasing the commonly abused prescription drugs sold to Houston-area pharmacies — setting prices, approving new customers, and setting purported compliance protocols. In December 2021, Bailey was notified by a drug manufacturer that unless Emed implemented improved due diligence programs, the manufacturer would no longer sell Emed controlled substances. Bailey received compliance recommendations but did not implement them. Instead he purchased from a new drug manufacturer thousands of oxycodone and hydrocodone pills with the intent to distribute them to Emed’s Houston-area pharmacy customers that he knew would unlawfully distribute them. Bailey faces a maximum penalty of 20 years in prison.
- Velencia Griffin, 42, Kendal Lyons, 29, and Andre Reid, 44, of Houston, pleaded guilty in the Southern District of Texas to conspiracy to unlawfully distribute and dispense, and possess with intent to distribute, controlled substances. Griffin, Lyons, and Reid operated Houston-area pharmacies that purchased commonly abused controlled pharmaceutical drugs ordered through Sheldon Dounn. Griffin, Lyons, and Reid each face a maximum penalty of 20 years in prison.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
DEA, HHS-OIG, FBI, USPS-OIG, FDA-OCI, and MFCU investigated the case, with assistance from the Department of Homeland Security, General Services Administration Office of Inspector General, Broward Sheriff’s Office, Houston Police Department, and other federal and state law enforcement agencies.
Today’s enforcement action was led and coordinated by Trial Attorneys Drew Pennebaker and Devon Helfmeyer and Assistant Chief Aleza Remis of the Criminal Division’s Fraud Section's Health Care Fraud Unit. Trial Attorneys Drew Pennebaker and Devon Helfmeyer are prosecuting the cases, and Assistant U.S. Attorney Brandon Fyffe for the Southern District of Texas is assisting with forfeiture. The U.S. Attorneys’ Offices for the Southern District of Texas, Southern District of Florida, Eastern District of Missouri, and Eastern District of North Carolina assisted with the prosecutions.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Atkinson information
Bailey information
Smith information
Weinstein information
Tama Man Sentenced to over Two Years in Prison for Assaulting His GirlfriendRead the Press Release
A Tama man who attacked his girlfriend was sentenced today to a little over two years in federal prison.
Roeles Reyes Cavazos, age 29, from Tama, Iowa, received the prison term after a March 29, 2024, guilty plea to domestic abuse assault.
Evidence at the plea hearing and sentencing showed that in August 2022, Cavazos repeatedly punched his girlfriend in the face and stomach. She suffered significant injuries to one eye, her mouth, and stomach. She was later transported to a local hospital because of her injuries. Officers responded to Cavazos’ residence and found he was intoxicated. When officers tried to arrest Cavazos, he resisted arrest and tried to head butt one of the officers. Cavazos has over 30 criminal convictions, including multiple convictions involving battery, assault, and violating no contact orders.
Cavazos was sentenced in Cedar Rapids by Chief United States District Court Judge C.J. Williams. Cavazos was sentenced to 25 months’ and 29 days’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Meskwaki Nation Police Department and the Federal Bureau of Investigation. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 24-CR-5.
Syracuse Man Sentenced to 10 Years for Drug and Firearms OffensesRead the Press Release
SYRACUSE, NEW YORK – Mario Leslie, age 32, of Syracuse, was sentenced yesterday to serve 10 years in federal prison for his convictions for possessing with intent to distribute fentanyl and possessing a firearm in furtherance of drug trafficking, announced United States Attorney Carla B. Freedman, Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, and Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
As part of his previous guilty plea, Leslie admitted that on February 6, 2024, he possessed over 151 grams of a mixture and substance containing a detectable amount of fentanyl, a Schedule II controlled substance, inside his home and his vehicles, all of which were in Syracuse, New York. Leslie intended to distribute the fentanyl to others. Leslie also admitted that on that same date he knowingly possessed a loaded handgun in a secret compartment in his vehicle that he used to protect his drugs and drug proceeds as well as over 100 rounds of ammunition which were found in his home and vehicles.
United States District Judge David N. Hurd also yesterday sentenced Leslie to serve a 4-year term of post-release supervision and ordered him to pay a $200 special assessment.
This case was investigated by the United States Drug Enforcement Administration (DEA), with assistance from the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Onondaga County District Attorney’s Office, the Syracuse Police Department (SPD), and the Onondaga County Sheriff’s Office (OCSO) and was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
St. Louis Man Sentenced for Embezzling from EmployerRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Thursday sentenced a man from St. Louis, Missouri to a year and a day in prison and ordered him to repay $100,485 to his former employer and an insurance company.
While working as a sales engineer at a St. Louis County company, Stephen Patrick Higgins, now 32, misused his company credit card for personal purposes on multiple occasions.
Higgins pleaded guilty in July to one count of wire fraud.
The U.S. Secret Service and the Chesterfield police Department investigated the case. Assistant U.S. Attorney Jennifer Roy prosecuted the case.
St. Louis County Woman Sentenced for Obtaining $263,000 in Fraudulent Pandemic LoansRead the Press Release
ST. LOUIS – U.S. District Judge Rodney W. Sippel on Thursday sentenced a woman from St. Louis County to five years of probation and ordered her to pay $279,201 in restitution for fraudulently obtaining loans that were supposed to go to struggling businesses during the COVID-19 pandemic.
Melissa T. Stevenson, 42, of Jennings, pleaded guilty in May to one felony count of bank fraud. She admitted submitting three fraudulent applications for PPP loans from March 2021 through December 2021 that yielded a total of $263,284. The $279,201 Stevenson now owes to the U.S. Small Business Administration (SBA) includes the amount of her Paycheck Protection Program (PPP) loans plus interest.
Stevenson submitted fraudulent applications for a PPP loan for a business named “Our Love CDS” on two occasions in 2021, she admitted in her plea. Both applications contained falsely inflated information about the number of employees and the monthly payroll and included a false IRS Form 940 (Employe's Annual Federal Unemployment Tax Return).
Stevenson fraudulently sought another loan for “Drinks By Melissa,” again falsely inflating income to maximize the loan she would receive, her plea says.
Stevenson said she would use the money to retain workers and for other business expenses that were permitted under the program but used the money for personal rent payments, credit card payments, a vehicle, retail purchases and payments to others. Stevenson also submitted applications for loan forgiveness for some of the PPP loans she received, falsely stating that she had spent all of the loan proceeds on payroll costs.
Springfield Man Sentenced to More Than Three Years in Prison for Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Springfield man was sentenced today for unlawfully possessing a firearm and ammunition.
Robbie Delgado, 25, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 40 months in prison followed by three years of supervised release. In June 2024, Delgado pleaded guilty to one count of being a felon in possession of a firearm and ammunition. Delgado was indicted by a federal grand jury in March 2024.
On Feb. 8, 2024, Delgado was found in possession of a Baretta .380 caliber semi-automatic handgun. Delgado is prohibited from possessing firearms and ammunition following a 2019 state conviction in Hampden County of armed robbery and armed assault with intent to rob, for which he was sentenced to 18 months in prison followed by four years of probation.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Brian A. Kyes, United States Marshal for the District of Massachusetts; and Superintendent Lawrence Akers of the Springfield Police Department made the announcement. Assistant U.S. Attorney Todd E. Newhouse of the Springfield Branch Office prosecuted the case.
Sequoyah County Resident Pleads Guilty to Arson in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Trevor Scott McGuire, age 24, of Muldrow, Oklahoma, entered a guilty plea to one count of Arson in Indian Country.
The Indictment alleged that, on or about May 26, 2024, McGuire willfully and maliciously set fire to a dwelling. The crime occurred in Sequoyah County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The charge arose from an investigation by the Muldrow Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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. McGuire will remain in the custody of the United States Marshal Service pending sentencing.
Assistant U.S. Attorney Kevin Gross represented the United States.
Scheme to Defraud Distressed Homeowners Out of $15 Million Nets Virginia Man 60 MonthsRead the Press Release
WASHINGTON –Terrylle Blackstone, 37, of Woodbridge, Virginia, was sentenced today in U.S. District Court to 60 months in federal prison for participating in a conspiracy that fraudulently promised thousands of homeowners across the U.S. legal help in avoiding foreclosure. The scheme generated at least $15 million for the conspirators but never provided any legal services to the client-victims.
The sentence was announced U.S. Attorney Matthew M. Graves, Special Agent in Charge David Geist of the FBI Washington Field Office Criminal and Cyber Division, and Special Agent in Charge Kareem Carter of the Internal Revenue Service – Criminal Investigation (IRS-CI) Washington, D.C. Field Office.
Blackstone pleaded guilty on June 6, 2024, to a count of conspiracy to commit mail fraud and wire fraud before U.S District Court Judge Randolph D. Moss. In addition to the prison term, Judge Moss ordered Blackstone to serve three years of supervised release and pay $159,145.35 in restitution.
According to court documents, from January 2018 until February 2021, Blackstone worked with attorneys David Maresca of Virginia, Scott Marinelli of New Jersey, and Sam Babbs of Florida. The co-conspirators told homeowners that they operated a “national law firm” based in Washington, D.C.; that attorneys would review the homeowner’s file and provide legal representation to the homeowners; that an attorney in the homeowner’s local area would be assigned to assist them; that the homeowner could meet and consult with those attorneys about the case; and that attorneys in their law firm could help the homeowner, if necessary, file for bankruptcy.
From 2016 until 2019, the conspirators marketed Synergy Law with telephone, television, and internet advertising which told homeowners that attorneys at Maresca and Marinelli’s Synergy Law (Synergy) in Manassas could help them avoid foreclosure. During 2018 and 2019, bankruptcy judges, Synergy clients, and the U.S. Trustee’s Program raised concerns about Synergy’s practices in bankruptcy matters. Blackstone attended court hearings on behalf of Synergy where he made false statements to the court about the firm’s operations. In early 2019, Marinelli was incarcerated in Pennsylvania. Yet Blackstone, Maresca, Marinelli, and others continued to operate Synergy and collect monthly payments purportedly for legal services. During this time, there was no attorney who was a member of Synergy who could practice law. Synergy never had attorneys review all homeowner files and Synergy never had attorneys contact a client’s lender to discuss a mortgage resolution. They also continued to use the interstate wires to operate their “law firm” in ways that were essential to the scheme, such as soliciting clients by telephone.
From 2019 until at least 2022, the conspirators marketed another firm, Themis Law, with television and website advertising which told homeowners that attorneys with Themis could help them avoid foreclosure. Themis operated a call center at an office in Manassas, Virginia. Call center workers used scripts during their phone calls with homeowners in which Themis falsely promised that an attorney would review the homeowner’s case file; that this attorney knew their lender’s “internal guidelines” for a “mortgage resolution”; and that an assigned “legal team” would contact the homeowner’s lender to negotiate a resolution. Themis required homeowner-clients to pay an initial retainer amount followed by a monthly recurring amount for as long as the firm represented the homeowner. When Themis clients faced imminent foreclosure, Themis advised those clients to consider filing for bankruptcy to save their home and referred the clients to Babbs at the Babbs Law Firm. Those clients then signed a new retainer agreement and paid additional fees to Babbs.
During his dates of employment at Synergy Law and Themis Law, Blackstone received no less than $159,145.35 in direct payments from the companies. Judge Moss ordered that Blackstone pay a forfeiture money judgment in that amount.
This case was investigated by the FBI Washington Field Office and the Washington, D.C. Field Office of IRS-CI.
It is being prosecuted by Assistant United States Attorney John Borchert.
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Sacramento Man Is 11th Defendant Sentenced in Large-Scale Cocaine and Heroin Trafficking ConspiracyRead the Press Release
SACRAMENTO, Calif. — Tyrone Anderson, 44, of Sacramento, was sentenced today to 11 years and three months in prison for conspiracy to distribute and possess with intent to distribute at least 5,000 grams of cocaine and 280 grams of cocaine base and for conspiracy to distribute and possess with intent to distribute heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Anderson is among the 15 federal defendants arrested in 2021 and charged in a 45-count indictment for trafficking narcotics as part of a DEA-led multi-agency operation targeting cocaine and heroin traffickers in North Sacramento. Anderson was intercepted during wiretaps in 2018 and 2019 trafficking kilograms of cocaine and heroin to sub‑distributors in California and from the East Coast. During the wiretap, agents seized 4 kilograms of cocaine that Anderson had sold for $118,000 to a Baltimore sub-distributor. At the time of his arrest, agents seized 567 grams of powder cocaine and 949 grams of heroin from Anderson’s stash location and two loaded firearms from his residence.
Below is the status of Anderson’s co-defendants:
On Sept. 29, 2022, Jason Tolbert, 47, of Sacramento, was sentenced to 57 months in prison for possession with intent to distribute cocaine.
On Nov. 17, 2022, Charles Carter, 36, of Sacramento, was sentenced to 70 months in prison for conspiracy to distribute and to possess with intent to distribute at least 500 grams of cocaine.
On Nov. 17, 2022, Andre Hellams, 40, of North Highlands, pleaded guilty to two counts of using a communication facility to facilitate a drug trafficking offense. Hellams is scheduled to be sentenced on Oct. 24, 2024.
On Dec. 8, 2022, Michael Hampton, 57, of Vallejo, was sentenced to 60 months in prison for to conspiracy to distribute and possess with intent to distribute at least 500 grams of cocaine.
On March 16, 2023, Arlington Caine, 50, of Rio Linda, was sentenced to 22 months in prison for two counts of using a communication facility to facilitate a drug trafficking offense.
On March 14, 2024, Bobby Conner, 53, of Sacramento, was sentenced to six months in prison for two counts of using a communication facility to facilitate a drug trafficking offense.
On March 28, 2024, Maurice Bryant, 53, of Antelope, pleaded guilty to conspiracy to distribute and to possess with intent to distribute at least 5,000 grams of cocaine and 280 grams of cocaine base. Bryant is scheduled to be sentenced on Oct. 17, 2024.
On April 25, 2024, 2023, Dwight Haney, 52, of Sacramento was sentenced to time served for two counts of using a communication facility to facilitate a drug trafficking offense.
On May 30, 2024, Jerome Adams, 56, of North Highlands, was sentenced to 60 months in prison for two counts of using a communication facility to facilitate a drug trafficking offense.
On Aug. 8, 2024, Steven Hampton, 65, of Sacramento, was sentenced to 84 months in prison for possession with intent to distribute at least 500 grams of cocaine.
On Sept. 26, 2024, Mark Martin, 63, of Sacramento was sentenced to time served for using a communication facility to facilitate a drug trafficking offense.
On Aug. 1, 2024, Alex White, 61, of North Highlands, was sentenced to a term of 38 months (time served) for distribution of cocaine base.
Charges are pending against Yovanny Ontiveros, 41, of Sacramento and Wilmer Harden, 52, of Elk Grove. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Forest Service, the U.S. Postal Inspection Service, the Bureau of Land Management, the California Department of Corrections and Rehabilitation, the California Department of Justice, the California Highway Patrol, the Sacramento County Sheriff’s Office, and the Sacramento Police Department. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.
This prosecution is part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. The Sacramento Strike Force is a co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Sacramento Strike Force is to identify, investigate, disrupt, and dismantle the most significant drug trafficking organizations (DTOs) and transnational criminal organizations (TCOs) shipping narcotics, firearms, and money through the Eastern District of California, thereby reducing the flow of these criminal resources in California and the rest of the United States. The Sacramento Strike Force leads intelligence-driven investigations targeting the leadership and support elements of these DTOs and TCOs operating within the Eastern District of California, regardless of their geographic base of operations.
Rochester business owner pleads guilty to filing a false tax returnRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that James Leonardo, 56, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford, to filing a false tax return, which carries a maximum penalty of three years in prison, and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that Leonardo is the sole member and owner of MY PI, LLC. The company owns a 110-foot yacht named “Pure Insanity,” which resulted in rental income for MY PI, LLC. Leonardo was required to report net profits or losses from the business use of the yacht on his personal federal income tax returns. For the years 2015 through 2018, Leonardo reported the rental income received by MY PI, LLC. However, to reduce the taxes owed, he falsely deducted all the losses incurred with respect to operation and maintenance by falsely claiming that the yacht was used 100% of the time for business purposes. In actuality, the yacht was only used for business purposes one-third of the time. As a result, Leonardo was only entitled to deduct one-third of the losses generated for operation and maintenance. As a result, he failed to report and pay additional income taxes totaling $872,869 for 2015 through 2018.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge, New York Field Office, and the Department of Defense, Office of Inspector General’s, Defense Criminal Investigative Service, under the direction Special Agent-in-Charge Patrick J. Hegarty, Northeast Field Office.
Sentencing is scheduled for December 17, 2024, at 11:00 a.m. before Judge Wolford.
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Readout of the Criminal Division’s Symposium on Artificial Intelligence in the Justice DepartmentRead the Press Release
The Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) co-hosted the Artificial Intelligence in the Department of Justice Symposium in Washington, D.C., at the Center for Strategic and International Studies (CSIS) on Oct. 2.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Criminal Division, kicked off the symposium by delivering a keynote speech describing the promises and perils of artificial intelligence (AI) and announcing a new Strategic Approach to Countering Cybercrime that is part of the division’s plan to combat cybercrime and other offenses enabled by emerging technology like AI. The Strategic Approach emphasizes the division’s focus on using all tools to disrupt criminal activity and hold criminal actors accountable, developing law and policy to prevent and prosecute cybercrime, and promoting cybersecurity through capacity building and public education.
As part of the Strategic Approach’s focus on developing law and policy to prevent and prosecute cybercrime, PDAAG Argentieri announced the division’s support for the UN Convention on Cybercrime, which the department negotiated along with its interagency partners to address the need for international cooperation on combatting cybercrime while protecting civil rights.
In addition, PDAAG Argentieri announced that, as part of the Strategic Approach’s focus on promoting cybersecurity, the division will engage with external stakeholders to update CCIPS’s Vulnerability Disclosure Framework to foster the responsible use of vulnerability testing and reporting and to account for the need for good-faith security research into AI systems. As PDAAG Argentieri noted, such research can help identify systems whose operations or outputs are unsafe, inaccurate, or ineffective for their intended uses and can protect against potentially serious harms to individual rights.
A newly released Fact Sheet illustrates the recent enforcement actions that CCIPS has taken in furtherance of its Strategic Approach. Since 2021, CCIPS, working with domestic and international law enforcement partners, has:
Disrupted seven of the most prolific ransomware variants, including by seizing their infrastructure and distributing their decryption keys to victims—thereby saving victims from having to pay hundreds of millions of dollars in ransom payments;
Ended the operation of a malicious proxy service, three criminal cryptocurrency money laundering or transmitting services, two major hacker forums, and two online criminal marketplaces — thereby disrupting criminals who were using those services for narcotics trafficking, computer crimes, identity theft, and child exploitation;
Liberated more than 20 million computers from botnets or other forms of malicious software; and
Publicly announced the conviction of over 100 defendants in connection with schemes involving ransomware, malware, criminal marketplaces, and cryptocurrency.
The symposium was attended by members of government, industry, academia, civil society, and the public, and a recording of the livestream is available on the symposium webpage.
PDAAG Argentieri Delivers Remarks at the Symposium on Artificial Intelligence in the Justice Department.Randolph Man Pleads Guilty to Fraud Schemes Involving Sober Home Client, Mass Save Program and Mortgage FraudRead the Press Release
BOSTON – A Randolph man pleaded guilty today in federal court in Boston to his involvement in numerous fraud schemes involving sober homes in the Greater Boston area, the Mass Save Program and mortgage fraud.
Nicholas Espinosa, 38, pleaded guilty to two counts of wire fraud conspiracy; one count of conspiracy to make false statements to a mortgage lending business (mortgage fraud conspiracy); 16 counts of wire fraud; six counts of unlawful monetary transactions (money laundering); and one count of making false statements to a mortgage lending business. U.S. Senior District Court Judge William G. Young scheduled sentencing for March 11, 2025. Espinosa was arrested and charged in March 2023 along with alleged co-conspirator Daniel Cleggett.
According to the charging documents, Cleggett was the founder of the sober home business, A Vision From God LLC (AVFG), with locations in in Boston, Wakefield, Quincy and Weymouth under trade names including Brady’s Place, Lakeshore Retreat and Lambert House. Espinosa managed the day-to-day affairs of Cleggett’s business.
Espinosa, and allegedly Cleggett, along with a sober home client entered into a conspiracy to defraud a New York-based family trust that was paying for the client’s room and board at Brady’s Place in Quincy. Specifically, Espinosa, and allegedly Cleggett, overcharged the family trust for room and board by up to $12,500 per month by submitting false and fraudulent invoices to the family trust. Espinosa, and allegedly Cleggett, would then issue “refund” checks to the client in furtherance of the fraud scheme.
According to the charging documents, from approximately October 2019 to December 2021, Cleggett personally, and through straw purchasers including Espinosa, purchased the three residential properties in Weymouth and Boston to use as sober homes. Espinosa falsely represented that one of these properties was intended to be purchased as a primary residence for himself when, in reality, it was intended to be a sober home.
In addition to the sober home business, Cleggett operated numerous insulation contracting companies that participated in the Mass Save Program: Green Save Energy Corporation; Environmental Construction Objective Inc. (ECO); Green Giants, LLC; and Insulation Situation, LLC. Mass Save is a Massachusetts public/private partnership sponsored by gas and electric utility companies that funds energy conservation projects and improvements via energy efficiency funds charged to Massachusetts residents’ utility bills.
Specifically, Green Save and ECO received millions of dollars for residential insulation work from a lead vendor company under the Mass Save program. It is alleged that, from 2018 through mid-2021, Green Save and ECO fraudulently billed the vendor company for required permits that were not actually obtained. Green Save and ECO were ultimately terminated from participating in the company’s program in June 2021, and Cleggett was banned from participating in the Mass Save program. In response to this, Espinosa, and allegedly Cleggett and others, formed Green Giants as a new lead vendor with the same company under a straw owner. As a result, Espinosa, and allegedly Cleggett, obtained a total of $509,326 in payments from the company to Green Giants, despite a ban from participating in the Mass Save program.
The charges of wire fraud and wire fraud conspiracy provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of making false statements to a mortgage lending business provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million. The charge of unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Harry Chavis, Jr., Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Valuable assistance was provided by the Kingston, Randolph and Quincy Police Departments. Assistant U.S. Attorneys John T. Mulcahy and Dustin Chao of the Public Corruption & Special Prosecutions Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pelahatchie Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Pelahatchie man pled guilty to possession of a firearm by a convicted felon.
According to court documents, Brad O’Neal Lee, 41, sold a firearm to a pawn shop in Jackson, Mississippi. The Bureau of Alcohol, Tobacco, Firearms, and Explosives was alerted to the sale. Lee is a convicted felon, and is therefore prohibited by federal law from possessing any firearms or ammunition. Lee’s previous felony convictions are for residential burglary, false pretense, and uttering a forgery, for which he served several years in state prison.
Lee will be sentenced on February 5, 2025, and faces a maximum penalty of 15 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The ATF is investigating the case.
Assistant U.S. Attorney Matt Allen is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Owatonna Sex Offender Sentenced to 30 Years in Prison for Producing Child Pornography and Threatening to Carry Out a Murder PlotRead the Press Release
MINNEAPOLIS – An Owatonna sex offender has been sentenced to 30 years in prison followed by 15 years of supervised release for producing sexually explicit images of a minor and sending graphic threats detailing a murder plot against his former child sexual abuse victim, announced U.S. Attorney Andrew M. Luger.
According to court documents, in March 2021, law enforcement in Cumberland County, Pennsylvania, began investigating Michael Lee Kurkowski, 28, regarding the communication and exchange of sexually explicit images of a minor. The investigation revealed that Kurkowski traveled to Pennsylvania to locate the minor and to try to continue a “relationship” after the minor attempted to end the online communications. In April 2021, Kurkowski was charged with multiple felonies and convicted in Cumberland County, Pennsylvania, of corruption of a minor related to the sexual exploitation of the minor and was sentenced to 142 days in prison followed by probation. Kurkowski’s probation conditions required him to register as a sex offender, not to contact his victim, to refrain from behavior which may present a danger to others, and not to possess any weapons.
According to court documents, in November 2021, law enforcement began investigating Kurkowski’s online communications and sexual exploitation of another minor victim. Investigators reviewed several messages from Kurkowski to the minor describing in graphic detail a plan to travel to Pennsylvania where Kurkowski would murder the parents of his former victim, rape his sister, and then kill her in front of his former victim.
According to court documents, on February 4, 2022, law enforcement learned that Kurkowski had purchased a Greyhound bus ticket and was currently en route to Harrisburg, Pennsylvania, the general location of Kurkowski’s former victim and his family.
FBI investigators tracked Kurkowski to a bus stop in Toledo, Ohio, where authorities took him into custody. According to court documents, when he was arrested, Kurkowski had with him a bag containing 16 heavy flex cuffs, electrical tape, a taser, a knife, rubber gloves, handcuffs, and hooded facemasks. Kurkowski’s phone contained google search terms including “man kills family of 5,” “countries that don’t extradite to us,” “how to subdue a person,” “best knives used to kill,” and the penalties for murder in Pennsylvania.
On February 26, 2024, Kurkowski pleaded guilty to one count of threatening interstate communication and one count of production of child pornography. He was sentenced yesterday in U.S. District Court by Judge Joan N. Ericksen, who cited “the raw facts of danger” when handing down his sentence at the top of the sentencing guidelines.
This case is the result of an investigation conducted by the FBI, the Owatonna Police Department, Steele County Community Corrections, the Upper Allen Township (Pennsylvania) Police Department, the East Peoria (Illinois) Police Department, Watertown (Wisconsin) Police Department, Toledo (Ohio) Police Department, and the Cedar Falls (Iowa) Police Department.
Assistant U.S. Attorney Melinda A. Williams prosecuted the case.
Oviedo Man Indicted for Receipt and Attempted Production of Child Sex Abuse MaterialRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Marvin Fredrick Wagner, II (25, Oviedo) with one count of attempted production of child sexual abuse material (CSAM) and one count of receipt of CSAM. If convicted, Wagner faces a minimum mandatory sentence of 15 years, up to 30 years, in federal prison for the attempted production offense and a minimum mandatory sentence of 5 years, up to 20 years, in federal prison for the receipt offense.
According to the indictment, the conduct underlying the attempted production offense took place between June 23 and October 11, 2023. Wagner received CSAM on October 11, 2023.
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 and the Oviedo Police Department. It will be prosecuted by Assistant United States Attorney Kaley Austin-Aronson.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Orlando Convicted Felon Indicted for Illegal Possession of A Firearm and AmmunitionRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Elijah Noah Petit-Frere (24, Orlando) with possession of a firearm and ammunition by a convicted felon. If convicted, Petit-Frere faces a maximum penalty of 15 years in federal prison. Petit-Frere is currently detained pending the resolution of the case.
According to the indictment, on March 11, 2024, Petit-Frere possessed a firearm and ammunition. He was previously convicted of felony offenses, including carrying a concealed firearm, possession of more than 20 grams of marijuana, and fleeing or attempting to elude a police officer. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
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 Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
This case is part of the 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 for occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Oregon Man Sentenced to over 5 Years in Federal Prison for Possessing Child Sexual Abuse MaterialRead the Press Release
BOISE – Hein Fourie, 26, of Adrian, Oregon, was sentenced to 63 months in federal prison for possession of child sexual abuse material, U.S. Attorney Josh Hurwit announced today.
According to court records, an investigation began when a citizen reported to law enforcement that Fourie had child sexual abuse material (CSAM) on his cellphone. The citizen provided law enforcement with two cellphones belonging to Fourie. Law enforcement examined the cellphones pursuant to a search warrant and located over 300 files of CSAM on each cellphone. During an interview, Fourie admitted to receiving CSAM on cellphones that he had possessed while temporarily residing in Idaho.
U.S. District Judge Amanda K. Brailsford also sentenced Fourie to five years of supervised release and ordered him to pay $15,000 in restitution to victims in the images he possessed. Fourie will be required to register as a sex offender as a result of the conviction.
“We are grateful to the concerned citizen who alerted law enforcement to this defendant’s possession of CSAM,” said U.S. Attorney Hurwit. “And we are grateful to our law enforcement partners who worked together to help us bring this case. We continue to do everything in our power to bring to justice those who victimize children.”
“Reporting child predators, anywhere they may be found, gives our agents an advantage in the fight against CSAM," said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. "Quite simply, if you see something, say something. Every report matters, and with community involvement our law enforcement partnerships can protect those who need it the most.”
U.S. Attorney Hurwit commended the cooperative efforts of Homeland Security Investigations, the Wilder Police Department, and the Malheur County Sheriff’s Office, which led to the charges. Assistant U.S. Attorney Kassandra McGrady prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Oregon Man Charged with Child Exploitation Offenses, Traveling to Engage in Sexual Activity with a MinorRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that CANYON BEASLEY, 21, of Gresham, Oregon, has been charged by federal criminal complaint with child exploitation offenses, including traveling to Connecticut to engage in sexual activity with a minor.
Beasley was arrested on September 30, 2024. He appeared before U.S. Magistrate Judge Stacie F. Beckerman in Portland, Oregon, and was ordered detained. A detention hearing is scheduled for October 29 in New Haven.
As alleged in court documents and statements made in court, Beasley and a minor victim in Connecticut engaged in an online relationship, communicating through Snapchat, TikTok, and through text messaging, for more than a year, and exchanged sexually explicit images through these online platforms. In June 2024, Beasley traveled to Connecticut to engage in sexual activity with the minor victim.
The complaint charges Beasley with production of child pornography, which carries a mandatory minimum term of imprisonment of 15 years and a maximum term of 30 years of imprisonment; receipt of child pornography, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years; possession of child pornography, which carries a maximum term of imprisonment of 10 years; and traveling to engage in sexual activity with a minor, which carries a maximum term of imprisonment of 30 years.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation with the assistance of the Cheshire Police Department and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Christopher Lembo.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Operator of South Carolina Medicaid Call Center Agrees to Pay $11.3 Million to Resolve False Claims Act Liability; Two Former Employees Plead Guilty to Wire FraudRead the Press Release
COLUMBIA, S.C. —Conduent State Healthcare, LLC, headquartered in New Jersey, has agreed to pay $11,358,767 to resolve False Claims Act allegations arising from Conduent’s fraudulent reporting of call center performance metrics and false claims for payment to the South Carolina Department of Health and Human Services (SCDHHS).
Two former employees of Conduent, Richard Kirchner, 71, of Branchburg, N.J., and Brian Devanney, 66, of Lexington, S.C., pleaded guilty for their role in fabricating performance metrics and adjusting invoices to SCDHHS. In connection with the settlement, the United States acknowledged that Conduent took significant steps in cooperating with the government’s investigation, entitling it to credit.
Since 2016, Conduent has been operating the South Carolina Medicaid Member Contact Center (“call center”), which takes calls from South Carolina Medicaid recipients to resolve these individuals’ questions, requests, or concerns. Conduent’s contract with SCDHHS was performance-based and used a tiered payment structure, with Conduent receiving higher payments as completed call center contacts increased, and receiving penalties if certain metrics were not met.
Between Jan. 1, 2018, and Feb. 28, 2023, Kirchner and Devanney supplied fake reports to SCDHHS with inflated numbers for call volumes and misrepresented metrics to avoid penalties under the contract. SCDHHS paid Conduent an excess of $8,113,405 as a result of the fraudulent reports and invoices submitted by Devanney and Kirchner. Those payments benefitted Conduent.
On June 8, 2023, Conduent self-disclosed this conduct to the United States Attorney’s Office. Conduent took remedial measures, which included promptly disclosing the problem to SCDHHS within days of discovering the conduct, communicating to SCDHHS its plan for completing a more extensive investigation, suspending monthly invoices to SCDHHS until a loss amount was determined, immediately terminating Kirchner and Devanney and others, engaging independent outside forensic examiners to audit call center reports and quantify damages, returning to SCDHHS the money fraudulently received, gathering evidence and producing that evidence to the United States Attorney’s Office, and cooperating with the United States’ subsequent investigation.
“Protecting taxpayer dollars from such fraud and abuse is an important part of our work,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “This settlement highlights the importance of integrity in government contracting, the benefits of voluntary self-disclosure, and our commitment to protecting government healthcare programs.”
“Individuals who exploit government healthcare programs like Medicaid divert valuable taxpayer dollars from their intended use,” said Kelly J. Blackmon, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG’s Self-Disclosure Protocol enables providers to voluntarily report potential violations of the False Claims Act, assisting us in identifying, investigating, and addressing Medicare and Medicaid fraud.”
“There is always an opportunity for businesses to do the right thing, and doing the right thing is especially important in the healthcare context,” said Attorney General Alan Wilson. “Our office has numerous men and women who work every day to ensure the Medicaid program in South Carolina functions properly; and sometimes our most important allies are those in the industry who identify when something has gone wrong and step forward.”
Under the False Claims Act, the United States is entitled to three times the amount of actual damages plus penalties of between $13,946 and $27,894 per false claim. Damages and penalties in this case could have resulted in a judgment of up to $26,069,643. Given Conduent’s voluntary disclosure and remedial actions, it resolved this case for $11,358,767.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of South Carolina, the Department of Health and Human Services’ Office of Inspector General, and the South Carolina Attorney General’s Vulnerable Adult and Medicaid Provider Fraud Control Unit (VAMPF).
Kirchner and Devanney are awaiting sentencing for their criminal charges.
Assistant U.S. Attorneys Beth Warren and Nancy Cote handled the civil matter for the United States. Assistant U.S. Attorneys Lothrop Morris and Scott Matthews are prosecuting the criminal matters for the United States.
The claims resolved by the civil settlement are allegations only and there has been no determination of liability. The South Carolina Medicaid Fraud Control Unit, dba VAMPF, receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $2,889,252 for federal fiscal year 2025. The remaining 25 percent, totaling $963,084 for FFY 2025, is funded by South Carolina.
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Operation Smoke and Mirrors Update: Charleston Man Sentenced to More than 13 Years in Prison for Role in Methamphetamine Trafficking Organization and for Violating Supervised ReleaseRead the Press Release
CHARLESTON, W.Va. – Karl Lamont Funderburk, 38, of Charleston, was sentenced today to 13 years and six months in prison, to be followed by four years of supervised release, for conspiracy to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, conspiracy to distribute a quantity of cocaine, conspiracy to distribute a quantity of fentanyl, and for violating supervised release. Funderburk admitted to his role in a drug trafficking organization (DTO) that operated in the Charleston area.
According to court documents and statements made in court, between November 2022 and March 22, 2023, Funderburk conspired with several other people to distribute more than 50 grams of a mixture and substance containing a detectable amount of methamphetamine, and quantities of cocaine and fentanyl while living in Charleston. Funderburk had several regular customers who would purchase each controlled substance from him. Funderburk used runners who would deliver the controlled substances to these customers, collect money or other compensation from them, and return the proceeds to Funderburk. In all, Funderburk was found to be responsible for over 3 kilograms of methamphetamine, approximately 700 grams of cocaine, and over 100 grams of heroin or fentanyl.
At the time of these offenses, Funderburk was on supervised release following his conviction for use of a firearm in furtherance of a drug trafficking crime in United States District Court for the Southern District of West Virginia on February 21, 2018. Today’s sentence includes one year and six months in prison for committing a crime while on supervised release.
Funderburk is among 32 individuals indicted as a result of Operation Smoke and Mirrors, a major drug trafficking investigation that has yielded the largest methamphetamine seizure in West Virginia history. Law enforcement seized well over 400 pounds of methamphetamine as well as 40 pounds of cocaine, 3 pounds of fentanyl, 19 firearms and $935,000 in cash.
Funderburk is among 30 defendants who have pleaded guilty. Another defendant, Mark Leslie Lively, 58, of Kenna, was found guilty on July 17, 2024, by a federal jury of conspiracy to distribute 50 grams or more of methamphetamine and possession with intent to distribute 50 grams or more of methamphetamine. Indictments against the remaining defendants are pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the West Virginia National Guard Counter Drug Program, the Kanawha County Sheriff’s Office, the Charleston Police Department, the Putnam County Sheriff’s Office and the Raleigh County Sheriff's Office. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-31.
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