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19 September 2024
Texas Couple Charged in Multimillion-Dollar Tax Refund Fraud SchemeRead the Press Release
A federal grand jury in Tyler, Texas, returned an indictment yesterday charging a Texas husband and wife with crimes related to their conspiracy to defraud the United States by seeking fraudulent tax refunds.
According to the indictment, from 2017 to 2023, Larry and Rebecca Kalmowitz filed false tax returns in the name of estates and trusts that sought $42 million in fraudulent refunds, ultimately receiving over $23 million from the IRS. The returns allegedly falsely reported interest income and large amounts of income tax withholdings to the IRS that resulted in large tax refunds to which they were not otherwise entitled. The Kalmowitzs allegedly created bank accounts in the names of the estates and trusts and deposited the fraudulently obtained tax refund checks into those accounts. They allegedly used the proceeds to purchase real property that they placed in the name of a nominee and to purchase luxury vehicles, including a Ford Mustang Shelby GT500 and a Mercedes-Benz GLS450. When the IRS attempted to recover the fraudulent funds, the Kalmowitzs allegedly took steps to obstruct the recovery by, among other things, filing false forms to support the claimed income and withholdings and a false form to release a federal lien.
Both were charged with mail fraud, money laundering, conspiracy to defraud the United States and filing a false claim against the United States. If convicted, the Kalmowitzs each face a maximum penalty of 20 years in prison for each count of mail fraud, a maximum penalty of 10 years for each count of money laundering, a maximum penalty of five years in prison for the conspiracy to defraud the United States and a maximum penalty of five years in prison for each count of filing a false claim against the United States. 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 Damien Diggs for the Eastern District of Texas made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Zachary Cobb and Daniel Lipkowitz of the Justice Department’s Tax Division and Assistant U.S. Attorney Ryan Locker for the Eastern District of Texas 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.
Ten-Time Convicted Felon Indicted for Possessing Ammunition as A Convicted FelonRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that a federal grand jury has returned an indictment charging Bryan Jermaine Davis (37, Jacksonville) with possessing ammunition as a convicted felon. If convicted, Davis faces a maximum penalty of 15 years in federal prison.
According to the indictment, on July 5, 2024, Davis, knowing that he had been previously convicted of felony offenses – including robbery, selling heroin, possession of cocaine, dealing in stolen property, and false verification of ownership on pawnbroker transaction form – was in possession of assorted rounds of ammunition. As a convicted felon, Davis is prohibited from possessing a firearm 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 Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brenna Falzetta.
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.
Taunton Man Pleads Guilty to Oxycodone ConspiracyRead the Press Release
BOSTON – A Taunton man pleaded guilty yesterday to his role in an oxycodone conspiracy.
John Campbell, age 41, pleaded guilty in federal court in Boston to conspiracy to distribute and to possess with intent to distribute oxycodone pills. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 15, 2025. Campbell was indicted by a federal grand jury in August 2023.
Between approximately July 2022 and June 2023, Campbell distributed oxycodone pills to others for further re-distribution. He also obtained oxycodone pills from his co-conspirator and co-defendant Kenneth Veiga. The quantities of oxycodone pills distributed ranged from hundreds to more than 1,000 on several occasions. Campbell also distributed oxycodone pills to an undercover agent on four occasions. Laboratory testing of pills seized as part of the conspiracy confirmed that the pills contained oxycodone. During intercepted calls, Campbell was overheard discussing oxycodone prices and quantities in telephone calls and text messages. On July 12, 2023 during a search of Campbell’s residence a digital scale; rubber bands; and oxycodone pills were seized.
Veiga pleaded guilty and in July 2024, was sentenced to 60 months in prison to be followed by three years of supervised release.
Campbell faces a up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives; United States Coast Guard Investigative Service; Barnstable County Sheriff’s Office; and the Barnstable, Dennis, Bourne, Falmouth, Mashpee, Yarmouth and Sandwich Police Departments. Assistant U.S. Attorney John T. Mulcahy of the Criminal Division is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging document are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Stowe Man Charged with Drug and Firearms Violations Related to Two HomicidesRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that on September 12, 2024, a federal grand jury returned an indictment charging Theodore Bland, 29, of Stowe, Vermont, with conspiracy to distribute cocaine base, possession of cocaine base and fentanyl with intent to distribute, using and carrying a firearm in relation to a drug trafficking crime, and discharging that firearm during the commission of the offense.
Bland is currently scheduled to be sentenced on October 21, 2024, following his March 22, 2024, guilty plea to knowingly possessing a firearm while being an unlawful user of controlled substances related to a March 17, 2023 event. The United States has filed a motion asking the Court to order Bland to remain in custody based on these new charges following the completion of any sentence imposed on October 21, 2024. Bland’s arraignment on the new charges will occur on a date to be determined by the United States District Court for the District of Vermont, at which the Court is anticipated to rule on the government’s detention motion.
According to court records, on October 12, 2023, Bland used, carried, and discharged a firearm, in relation to his drug trafficking activities. Also, according to court records, Bland’s October 12 firearm discharges caused the deaths of Jahim Solomon and Eric White. Bland used social media messaging to communicate with his co-conspirators regarding, among other topics, the procurement of controlled substances for distribution, the pricing of controlled substances for sale to drug customers, and the distribution of controlled substances to drug customers. Bland also used social media messaging to communicate with his co-conspirators following the homicides of Solomon and White on October 12, 2023, including communications about his attempts to conceal the homicides. Court documents also state that Bland induced others to help him move the bodies of Solomon and White to two wooded areas in Eden, Vermont, where the bodies were discovered by law enforcement on October 24 and 25, 2023.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Bland is presumed innocent until and unless proven guilty. Bland faces a term of imprisonment of up to life, with a mandatory minimum of ten years, if convicted. The actual sentence, however, would be determined by the Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Vermont State Police, the Federal Bureau of Investigation, the Morristown Police Department, the Drug Enforcement Administration, and the Lamoille County Sheriff’s Department.
The prosecutors are Assistant United States Attorneys Jason Turner and Paul Van de Graaf. Bland is represented by David Sleigh, Esq.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
St. Paul Man Sentenced to Prison for Illegal Possession of a Machine Gun; Crashed Stolen Vehicle Through a Restaurant During Police ChaseRead the Press Release
ST. PAUL, Minn. – A St. Paul man has been sentenced to 39 months in prison followed by two years of supervised release for the illegal possession of a machine gun, following a drive-by shooting incident that ended with the defendant crashing the stolen vehicle he was driving through an unoccupied downtown Saint Paul bar and restaurant, announced United States Attorney Andrew M. Luger.
According to court documents, on the afternoon of February 15, 2023, officers with the St. Paul Police Department responded to a shots-fired 911 call in the area of Luella Street North and Wilson Avenue, a densely populated residential neighborhood. Witnesses reported hearing automatic gunfire coming from a black Jeep that was apparently chasing another Jeep. Within a few blocks of the area, officers located a black Jeep with a rear window that appeared to have been shot up. When officers turned around in their squad car to follow the Jeep, it led officers on a high-speed chase until it eventually hit another vehicle and crashed through the entirety of a restaurant in downtown St. Paul, which was unoccupied at the time. Officers saw Moeshea Isiah Hart, 19, and two others, exit the Jeep and detained them. The key fob for the Jeep, along with Hart’s house keys, were in Hart’s pants pocket. On the floor of the restaurant, near the Jeep’s driver’s side door, officers recovered a loaded Glock model 45 9mm pistol with an inserted high-capacity magazine and an attached switch, a conversion device that turns a semiautomatic handgun into a fully automatic machine gun. Approximately 11 9mm discharged cartridge casings were located in and around the driver’s area of the Jeep, including one outside the Jeep on the floor of the restaurant. Forensic ballistics analysis determined that one randomly selected discharged cartridge casing had been fired by the recovered 9mm machinegun. Police later determined that the Jeep had been reported stolen from St. Paul in December 2022.
Hart pleaded guilty on March 27, 2024, to one count of possession of a machine gun. He was sentenced today in U.S. District Court before Judge Jerry W. Blackwell.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Paul Police Department, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Benjamin Bejar prosecuted the case.
Slidell Man Sentenced for Making False Statements to Small Business AdministrationRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that DEAN MEILLEUR (“MEILLEUR”), age 57, a resident of Slidell, Louisiana, was sentenced on September 17, 2024, for making or using false writings or documents to the United States Small Business Administration (SBA), in violation of Title 18, United States Code, Section 1001(a)(3).
According to court documents, MEILLEUR, submitted false writings and documents to the SBA to obtain Economic Impact Disaster Loans (“EIDL”). In his EIDL applications, among other things, MEILLEUR falsely represented that he was the owner of a trucking business formed in 2017 and, that he was eligible for EIDL funds. As a result of these false submissions, MEILLEUR obtained $147,400 from the SBA to which he was not entitled.
United States District Judge Brandon S. Long sentenced MEILLEUR to four (4) years of probation, payment of restitution in the amount of $147,400.00, and a $100 mandatory special assessment fee.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
U.S. Attorney Evans commended the Federal Bureau of Investigation for investigating this matter. Assistant United States Attorney Andre J. Lagarde of the Public Integrity Unit is in charge of the prosecution.
Sin City Deciples Founder Sentenced to 360 Months in PrisonRead the Press Release
HAMMOND- Kenneth Christopher McGhee a/k/a “Sonny,” “Angel,” age 75, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon after being found guilty of racketeering conspiracy, conspiracy to possess with intent to distribute cocaine, and being a drug user in possession of a firearm following an 18-day jury trial, announced United States Attorney Clifford D. Johnson.
McGhee was sentenced to 360 months in prison followed by 3 years of supervised release.
According to court documents, the Sin City Deciples, originally formed in 1967 in Gary, Indiana, is an outlaw motorcycle organization in which its members and associates engaged in acts of violence, extortion, and narcotics distribution in the Northern District of Indiana and elsewhere. McGhee served as the “Founder” of the entire club and lead the conspiracy for decades, including during the charged period between 2009-2021. As the “Founder,” McGhee commanded and oversaw multiple acts of extortion and violence, including attempted murder, conspiracy to commit murder in retaliation for the death of a fellow Sin City member, and conspiracy to distribute large amounts of cocaine. At the time of his arrest, he unlawfully possessed at least 8 firearms and hundreds of rounds of ammunition.
The agencies involved in this prosecution were: the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Griffith Police Department, the Hammond Police Department, the Internal Revenue Service-Criminal Investigation Division, the Lake County Sheriff’s Department, Indiana High Intensity Drug Trafficking Area officers and agents, the Merrillville Police Department, the Munster Police Department, and the Schererville Police Department. Also providing assistance were the Lake County Prosecutor’s Office, the U.S. Attorney’s Offices for the Eastern District of Arkansas, the Northern District of Illinois, the Southern District of Indiana, the Western District of Kentucky, and the Western District of Pennsylvania.
This case was prosecuted by Assistant United States Attorneys David J. Nozick and Michael J. Toth.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was also 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.
Seven Charged with Possessing Contraband in Seagoville PrisonRead the Press Release
In an effort to combat contraband in federal prisons, the U.S. Attorney’s Office has charged seven men with possessing of various prohibited items while behind bars.
“The Northern District of Texas will not tolerate contraband inside federal prisons, period,” said U.S. Attorney Leigha Simonton. “Inmates who handle drugs, phones, or child sexual abuse material risk having significant time tacked onto their sentences. The safety of prison guards, other inmates, and even those outside prison walls depends on our enforcement of these rules.”
"I am very pleased to work with our law enforcement partners and provide evidence that contributed to these indictments," said Dr. Scarlet Grant, Warden of the Seagoville Federal Correctional Institution. “When cell phones and narcotics are introduced into a prison, it causes significant safety and security concerns to the employees and adults in custody. Deterring contraband remains a top priority of the Federal Bureau of Prisons and these indictments send a clear message that smuggling contraband into a prison is a federal offense and it will not be tolerated."
“Contraband largely serves to facilitate criminal acts in prison and poses real and potential danger to Federal Correctional Institute Seagoville personnel, other prisoners and to the community at large,” said FBI Dallas Acting Special Agent in Charge James Godley. “We will continue to work with our federal partners to investigate contraband encounters.”
Those charged in five separate indictments include:
- Isaac Martinez, charged with possessing contraband in prison (methamphetamine)
- Nicholas Evans, charged with possessing contraband in prison (buprenorphine) and possession with intent to distribute a controlled substance
- Hugo Castaneda, charged with two counts of possession of a prohibited object (methamphetamine) and one count of possession with intent to contribute a controlled substance
- Abdullah El Hage, charged with possession of a prohibited object (methamphetamine)
- Matthew Rodriguez, charged with possession of a prohibited object (methamphetamine) and possessing contraband in prison (phone)
- Deaunte Lakeith Johunkin, charged with possession of contraband (K2) in prison and attempted possession with intent to distribute a controlled substance
- Richard King, charged with possession of child pornography (printed, black and white, sexually explicit photos of prepubescent girls)
All seven recently charged defendants are inmates at Federal Correctional Institute Seagoville, a low-security Bureau of Prisons (BOP) facility southeast of Dallas with a population of just under 1,800 male offenders.
According to BOP’s policy, prison contraband includes items that could reasonably be expected to cause physical injury or adversely affect the security, safety, or good order of the institution.
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, the inmates may have additional prison time tacked onto their sentences.
Earlier this year, two men were charged with attempting to smuggle cell phones and marijuana into the yard of a federal prison in Fort Worth via a mesh bag affixed to a drone. Prison staff found the mesh bag hanging from a parachute cord on the side of a building after being notified of a drone in their airspace.
Joseph Mora and Reza Ayari both pleaded guilty to attempt to provide contraband to a prisoner and were sentenced to 58 and 50 months, respectively, in federal prison. In Mora’s case, the Court ordered his 58-month sentence to be served consecutive to any sentence imposed in his other federal case.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigations with the cooperation of the Federal Bureau of Prisons. Assistant U.S. Attorney Luis Suarez is prosecuting the Seagoville inmates’ contraband cases and Assistant U.S. Attorney Levi Thomas prosecuted the Fort Worth drone case.
Serial Bank Robber Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A Washington State man who admitted to committing at least ten bank robberies, including five while armed, was sentenced today to more than 23 years in federal prison.
Clifford Court Uptegrove, 61, of Yakima, Washington, was sentenced to 280 months in federal prison and five years’ supervised release.
According to court documents, on December 17, 2021, approximately 14 months after being granted a compassionate release from federal prison, Uptegrove entered an Umpqua Bank branch in Hermiston, Oregon, brandished a firearm, and demanded large denomination bills from one of the bank’s tellers. After Uptegrove collected more than $13,000 in cash, he fled the bank and attempted to steal an occupied truck in nearby parking lot.
Shortly after, a Hermiston police officer spotted Uptegrove and attempted a traffic stop. Uptegrove led the officer on a brief pursuit before stopping and being placed under arrest without further incident.
On January 19, 2022, a federal grand jury in Portland returned a three-count indictment charging Uptegrove with armed bank robbery, possessing a firearm during a crime of violence, and possessing a firearm as a convicted felon. Later, on April 11, 2024, Uptegrove pleaded guilty to armed bank robbery.
This case was investigated by the FBI and Hermiston Police Department and was prosecuted by Cassady Adams and Gregory Nyhus, Assistant U.S. Attorneys for the District of Oregon.
Schenectady Man Sentenced to Twenty Years in Federal Prison for Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Richard Nejame, age 29, of Schenectady, New York, was sentenced today to serve 240 months (20 years) in federal prison, to be followed by 25 years of supervised release, for receiving and attempting to receive child pornography.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his guilty plea, Nejame admitted that between about October 2022 and May 1, 2023, he communicated with several different minor females over various social media applications to include Snapchat. Nejame further admitted that his online personas on social media claimed that he was a teenage boy. During Nejame’s online communications with the minor females, he encouraged them to take nude pictures and videos of themselves, and to then send the pictures and videos to him. Once in receipt of the nude picture and videos of the minor females, Nejame directed the females to take more sexually explicit pictures and videos of themselves, to send those sexually explicit pictures and videos of themselves to him, and that if the females did not comply with his demands, Nejame would threaten to embarrass and expose the females by publishing their pictures and videos on the Internet.
In addition to the imprisonment and supervised release terms, Nejame will be required to register as a sex offender upon release from imprisonment.
The FBI’s Albany Division Child Exploitation and Human Trafficking Task Force investigated this case. The Task Force includes members of federal, state, and local law enforcement agencies. Assistant United States Attorneys Rick Belliss and Benjamin S. Clark prosecuted the case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state, and local resources to better locates, 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 https://www.justice.gov/psc.
San Juan resident convicted of possessing grenades and firearmRead the Press Release
McALLEN, Texas – A 26-year-old man has entered a guilty plea for possessing destructive devices and utilizing a firearm in furtherance of drug trafficking activity, announced U.S. Attorney Alamdar S. Hamdani.
On Aug. 1, Jamez Aaron Sandoval bought two grenade-style destructive devices which led to his arrest. Authorities conducted a search of his residence and discovered cocaine, marijuana, drug dealing paraphernalia as well as a firearm.
Further investigation revealed Sandoval used the firearm for protection during the commission of drug trafficking activities.
Chief U.S District Judge Randy Crane accepted the plea and set sentencing for Dec. 3. At that time, Sandoval faces up to 10 years in federal prison to be immediately followed by a minimum of five additional years and a possible $250,000 maximum fine.
Sandoval has been and will remain in custody pending his sentencing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety and Alamo Police Department conducted the joint investigation.
Assistant U.S. Attorney Cahal P. McColgan is prosecuting the case as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Roma man tries to escape drug house through attic vent – lands in federal prisonRead the Press Release
McALLEN, Texas – A 35-year-old local man has been ordered to prison for trafficking $33 million in marijuana, announced U.S. Attorney Alamdar S. Hamdani.
Adan Ontiveros Jr. pleaded guilty April 24 to conspiring to possess with the intent to distribute nearly 2,500 kilograms of marijuana.
U.S. District Chief Judge Randy Crane has now ordered Ontiveros to serve 180 months in federal prison to be immediately followed by 10 years of supervised release.
On July 16, 2020, law enforcement was conducting surveillance at a suspected drug house in Roma. There, they saw a man - Ontiveros - attempting to discretely exit the residence. He was trying to escape via an attic vent. However, authorities quickly took him into custody.
They obtained a search warrant and ultimately discovered several hundred bundles of marijuana. The total weight was 2,477 kilograms with an approximate value of more than $33 million.
He admitted he was aware there was marijuana inside the stash house.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Texas Department of Public Safety and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Matthew Phelps and Roberto Lopez Jr. are prosecuting the case.
Repeat Offender Sentenced to 45 Months for Possessing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Brandon Grazioso, 24, Evansville, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 47 months in federal prison for possessing child pornography. This term of imprisonment will be followed by 20 years of supervised release. Grazioso pleaded guilty to this offense on July 11, 2024.
In December 2021, law enforcement received information that Grazioso was posting explicit images onto Kik. Using that information, officers obtained a search warrant for the defendant’s home where they seized a phone that contained numerous images of child pornography.
The defendant was previously arrested for and charged with possessing child pornography in Wisconsin state court in 2018 but entered into a deferred prosecution agreement. He was still under the terms of that agreement when he committed this federal offense. Separate from the federal sentence, Grazioso also received a prison sentence from the state for his violations of that agreement.
At sentencing, Judge Conley expressed concern that Grazioso had not demonstrated much of an ability to stay away from child pornography but remained hopeful that the defendant could address his treatment needs.
The charge against Grazioso was the result of an investigation conducted by Wisconsin Department of Justice, Division of Criminal Investigation, the Rock County Sheriff’s Department, and the Evansville Police Department. Assistant U.S. Attorney Elizabeth Altman prosecuted this case.
This investigation was a part of Project Safe Childhood (PSC), a nationwide initiative to combat child sexual exploitation and abuse. 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.
Remarks of United States Attorney Todd Gee Announcing a Pattern or Practice Investigation of the Rankin County, Mississippi Sheriff’s Department and Rankin CountyRead the Press Release
Thank you, Assistant Attorney General Clarke for your leadership. The Department of Justice’s Civil Rights Division has a long history of helping to bring change to Mississippi and this nation, and you have continued that tradition with the work we announce today.
In January of last year, five white deputies from the Rankin County, Mississippi Sheriff’s Department, some of whom were part of a unit that described itself as the “Goon Squad,” entered a home without a warrant, and then handcuffed, kicked, tased, and sexually assaulted two African-American men, Michael Jenkins and Eddie Parker, while taunting them with racial slurs. They told the victims, who both resided in Rankin County, to “go back” to Jackson or to “their side” of the Pearl River—areas with a higher concentration of African-American residents. A deputy eventually shot one of the victims in the mouth during a mock execution, and then the group tried to frame them both for crimes they did not commit. The Department of Justice obtained criminal convictions of those five deputies, along with another local officer who joined in the assault, and they were sentenced to terms in prison ranging from 10 to 40 years.
But for several reasons, this may not simply be written-off as an isolated incident in Rankin County. First, three of these same deputies pleaded guilty to participating in another brutal attack just a month earlier, in December 2022, when they punched, kicked, and tased a white victim and then fired a gun near him to try to scare him.
Second, publicly reported text communications between the members of the Goon Squad, including officers who were not present for the January 2023 assault, indicate that deputies routinely discussed extreme, unnecessary uses of force and other ways to dehumanize residents of Rankin County. For example, deputies shared a video of an officer defecating in the home of a Rankin County resident.
Third, brave residents of Rankin County have come forward to report abuse by members of the Rankin County Sheriff’s Office. Journalists have compiled harrowing accounts of beatings, taser use, and other extreme uses of force. In a listening session my office held in Rankin County, I heard first-hand accounts of alleged abuse. The accounts came from men and women, old and young alike.
Together this information indicates that there may be a pattern or practice of civil rights violations by the Rankin County Sheriff’s Department and Rankin County. The investigation we announce today will examine those alleged pattern or practices in great detail. And if the Department of Justice’s investigation determines that such a pattern or practice of discrimination has occurred, we will seek remedies that bring real change to all the residents of Rankin County.
I want to make clear that there are good law enforcement officers in Rankin County and throughout Mississippi that go to work every day and do the right thing. They answer the call when people are in need, and they treat those they encounter fairly. But the information we have learned to date about the conduct of some members of the Rankin County Sheriff’s office calls back to some of the worst periods of Mississippi’s history.
This year is the sixtieth anniversary of the “Mississippi Burning” murders of three civil rights workers that this office prosecuted. There, too, law enforcement played a role in the violence. We all want to hope that Mississippi and our nation have moved past a time when such crimes can occur, but the allegations involving the Goon Squad and others in Rankin County echo back to 1964 in ways that we must confront.
Simply put, the events in Rankin County appear to be a continuation of the violence and intimidation that for too long has defined how many African-Americans experience the justice system in Mississippi. We do not have to accept the old hatreds and abuse of the past. And we do not have to accept the false claim that safety comes at the price of illegal force and abuse of power. In Mississippi and throughout the nation we have learned over and over that real change in civil rights sometimes requires us to dig up the past, tell painful facts, and offer new ways of doing things. We intend for this investigation to do that same work in Rankin County.
Let me close by reminding anyone who has information about alleged civil rights abuses in Rankin County that they can make a report through email at [email protected] or on a telephone hotline at 888-392-8557.
Thank you all for joining us today for this important announcement.
Real Estate Executive Sentenced for Conspiracy to Falsify Financial StatementsRead the Press Release
A California real estate executive was sentenced today to one year and one day in prison, followed by two years of supervised release, and ordered to pay a fine of $200,000 for engaging in an extensive multi-year conspiracy to falsify financial statements.
According to court documents and evidence presented at sentencing, Tyler Ross, 38, of San Francisco, and formerly of Michigan, served as co-chief executive officer of ROCO Real Estate LLC and ROCO Management LLC, both of which were based in Bloomfield Hills, Michigan. The ROCO companies operated as a commercial real estate investment firm engaged in the business of purchasing, managing, and selling multi-family residential properties, such as apartment complexes, located in Michigan and elsewhere.
Between 2015 and 2019, Ross and his co-conspirators caused false financial documents, including historical operating statements that deleted or reduced actual expenses, to be submitted to mortgage lending businesses for underperforming ROCO properties, making the properties appear to be more profitable than they were in order to obtain refinancing or to avoid the exercise of certain contractual provisions by the lenders to protect themselves. Ross, who was a licensed attorney, acknowledged that he personally falsified historical operating statements during the conspiracy and directed other members of the conspiracy to assist with the creation and submission of falsified financial statements to mortgage lending businesses.
The court also found that Ross falsified financial documents in connection with the 2019 sale of 43 ROCO properties to a privately held real estate investment company. Ross supplied the false financial information to the buyer of the properties and ultimately to the financial institution that issued a $481 million loan for the transaction. Ross himself received over $2 million in proceeds from the 2019 sale.
Ross pleaded guilty in September 2023 to one count of conspiring to commit an offense against the United States.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Dawn N. Ison for the Eastern District of Michigan; Special Agent in Charge Korey Brinkman of the U.S. Federal Housing Finance Agency Office of Inspector General (FHFA OIG) Central Region; Special Agent in Charge Shawn Rice of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD OIG); and Acting Assistant Director James C. Barnacle Jr. of the FBI’s Criminal Investigative Division made the announcement.
The FHFA OIG, HUD OIG, and FBI investigated the case.
Trial Attorneys Andrew Tyler and Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew J. Yahkind for the Eastern District of Michigan prosecuted the case.
Anyone with information concerning similar fraud can report it by contacting the FHFA OIG Hotline at 800-793-7724 or via the web at www.fhfaoig.gov/ReportFraud#hotlineform.
Real Estate Developer Sentenced to Five Years for FraudRead the Press Release
WHEELING, WEST VIRGINIA – A Wheeling real estate developer was sentenced to five years in federal prison today after swindling millions of dollars from investors.
United States Attorney William Ihlenfeld announced that Jeffrey James Morris, age 37, received a 60-month sentence because of his scheme to defraud investors out of more than $5 million dollars.
Morris, managing member of Roxby Development, LLC, secured local and national funding to develop real estate in Wheeling, West Virginia. According to statements made in court, he acquired the Scottish Rite Cathedral, the McClure House Hotel, and the Mount Carmel Monastery. In soliciting funds from investors to improve those properties, Morris misrepresented how the money would be used, provided forged documents, lied about the prospects of securing tax increment financing, and falsely claimed to be on the verge of securing bank financing to repay investors. He made Ponzi-style payments, using one investor’s money to pay another instead of making improvements to real estate as promised. Morris also lied to investors about having received approval for historic tax credits.
“Jeffrey Morris preyed upon his investors, his employees, and upon the hope of Wheeling residents who believed that he was leading a downtown renaissance,” said U.S. Attorney William Ihlenfeld. “Morris was a master manipulator who left a trail of broken promises in his wake.”
U.S. District Court Judge John Preston Bailey presided and made a finding that Morris caused undue financial hardship to several investors, including a retired couple who invested their entire savings with him but did not receive repayment of any principal or interest as promised.
Morris was ordered to report to prison on October 28, 2024. The facility will be determined by the Bureau of Prisons.
Morris, who previously pleaded guilty to one count of wire fraud and one count of tax fraud, must pay $4,901,413.32 in restitution to investors and $526,476.58 in taxes, penalties, and interest to the Internal Revenue Service.
United States Attorney Ihlenfeld and Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government.
The matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-CI.
Postal carrier pleads guilty after discarding mail in a dumpsterRead the Press Release
NEWPORT NEWS, Va. – A Hampton man pled guilty today to improperly destroying mail.
According to court documents, on Dec. 9, 2023, Michael Thirkield, 31, a U.S. Postal Service (USPS) mail carrier, dumped several boxes of mail into a dumpster in the Forest Lake Court area in Newport News. Thirkield did not report to work after that day and left his USPS satchel on his porch with a handwritten note stating, “For the mail carrier.”
On Dec. 11, 2023, a USPS customer service supervisor retrieved 1,296 pieces of first-class and pre-sorted mail from the dumpster. The mail was destined for addresses along routes assigned to Thirkield for delivery.
Thirkield is scheduled to be sentenced on Feb. 26, 2025, and faces up to five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Jeff Krafels, Special Agent in Charge of the Mid Atlantic Area Field Office for the U.S. Postal Service Office of Inspector General, made the announcement after U.S. District Judge Elizabeth W. Hanes accepted the plea.
Assistant U.S. Attorneys Therese O'Brien and Mack Coleman are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:24-cr-25.
Plattsmouth Man Sentenced to 15 Years for Meth and Firearm OffensesRead the Press Release
United States Attorney Susan Lehr announced that Gerald Storovich, age 44, of Plattsmouth, Nebraska, was sentenced September 19, 2024, in federal court in Omaha, Nebraska for distribution of methamphetamine, possession with intent to distribute meth, and possession of a firearm in furtherance of a drug trafficking crime. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Storovich to 180 months’ imprisonment. There is no parole in the federal system. After Storovich’s release from prison, he will begin a 5-year term of supervised release.
In February and March of 2023, an undercover agent contacted Storovich to purchase meth. The meth purchases ranged from half an ounce purchased on February 2, 2023, to a pound of meth purchased on March 2, 2023. On March 30, 2023, Storovich met the undercover agent for the purpose of selling a 9mm handgun. Storovich told the undercover agent he had stolen the handgun while in Kansas City. Officers arrested Storovich and searched his vehicle, finding approximately an ounce of meth, two ounces of cannabis, a digital scale, baggies, and $810 cash.
This case was investigated by the Omaha Police Department and the Drug Enforcement Administration.
Philadelphia Woman Sentenced to 20 Months in Prison for Conspiring to Defraud MedicaidRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Oksana Kredens, 60, of Philadelphia, Pennsylvania, was sentenced by United States District Judge Kelley Brisbon Hodge to 20 months in prison for her participation in a conspiracy to commit health care fraud. In addition to her term of incarceration, Kredens was ordered to serve a three-year period of supervised release, forfeit the sum of $81,000, and pay $66,869 in restitution, a $10,000 fine, and a $100 special assessment.
In October 2023, the defendant pleaded guilty to conspiring with various companies allegedly supplying home-based personal assistance services to certain Medicaid recipients in Philadelphia and other counties in the Eastern District of Pennsylvania. Although Medicaid managed care organizations were billed for personal assistance services, in reality, for some recipients those services were not rendered. Instead, the defendant worked out arrangements with the recipients to pay them cash instead of providing care.
Kredens then recruited people to be employed on paper by the companies allegedly providing the care. The company billed and was paid for services as though the services had been rendered by the fake employees; the recipients received cash instead of the services; and the fake employee recruits, who frequently had cash income sources, were able to earn W-2 income. The defendant collected cash from each recruited worker in the amount of his or her payroll check or deposit, paid the recipients from the collected cash and kept the difference for herself.
“Looting money from Medicaid strains the system and cheats all the taxpayers who fund it,” said U.S. Attorney Romero. “This sentence holds Oksana Kredens accountable for her criminal acts. Health care fraud costs this country billions of dollars each year. That’s why my office and are our partners are committed to fighting fraud, one case at a time.”
The case was investigated by the FBI and the Department of Health and Human Services Office of Inspector General and was prosecuted by Assistant United States Attorney Elizabeth Abrams.
Philadelphia Man Convicted at Trial of Using a Destructive Device to Start a Fire at a Northeast Philadelphia Home in 2022Read the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jason Mattis, 51, of Philadelphia, Pennsylvania, was convicted yesterday following a jury trial of possessing an unregistered destructive device.
As laid out in a December 2022 indictment, on July 1 of that year, Mattis lit an incendiary device similar to a Molotov cocktail and threw it onto the porch of a residence in the Tacony section of Northeast Philadelphia. The weapon thrown by Mattis ignited and started a fire on the porch of the residence, as well as the sidewalk and the street in front. The incident occurred in the evening while the residents of the home were inside. The Bureau of Alcohol, Tobacco, Firearms and Explosives examined the evidence left at the scene and determined that the weapon used by the defendant was an incendiary bomb as that term is defined under federal law.
The defendant faces a maximum possible sentence of 10 years’ imprisonment, a $250,000 fine, up to three years of supervised release, and a $100 special assessment.
The case was investigated by the ATF’s Arson and Explosives Task Force, the Philadelphia Fire Department, and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Robert E. Eckert.
One of the Largest Methamphetamine Distributors in New England Sentenced to 23 Years in PrisonRead the Press Release
BOSTON – The leader of a nationwide drug trafficking ring has been sentenced in federal court in Boston. During the investigation over 160 pounds of pure methamphetamine, as well as an AK-47, a Glock with no serial number, two loaded Smith & Wesson handguns and over 4,200 rounds of ammunition were seized. An illegal marijuana grow operation with hundreds of marijuana plants was also dismantled.
Reshat Alkayisi, 63, a Turkish national residing in Covington, R.I., was sentenced on Sept. 17, 2024 by U.S. District Court Judge Nathaniel M. Gorton to 23 years in prison to be followed by five years of supervised release. In April 2024, Alkayisi pleaded guilty to five counts of a second superseding indictment, charging him with conspiracy to distribute and to possess with intent to distribute 500 grams or more of methamphetamine; possession of a firearm in furtherance of a drug trafficking offense; money laundering conspiracy; and two counts of money laundering.
“This defendant was one of the largest methamphetamine distributors in New England, whose massive drug operation fueled addiction and devastation across our communities. He is now going to pay a very heavy price for the havoc he wreaked across Massachusetts. This sentencing sends a powerful message to anyone engaged in pumping deadly narcotics onto our streets,” Acting United States Attorney Joshua S. Levy. “As demonstrated by this prosecution, the dedicated prosecutors and law enforcement partners will be relentless in our efforts to disrupt and dismantle drug trafficking operations and ensure that individuals like Mr. Alkayisi are held accountable.”
“Reshat Alkayisi was the leader of a nationwide drug trafficking organization that pushed massive amounts of methamphetamine onto New England streets, and profited from the pain and misery of others,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Thankfully, this 23-year sentence officially puts his 24/7 operation, protected in part by illegal firearms, including an AK-47, out of business. Operation Ice Cats is an example of how the FBI and our partners are hard at work dismantling dangerous trafficking operations as we work to make our communities safer.”
“DEA stands committed to keeping highly addictive drugs like methamphetamine off the streets of Massachusetts,” said Acting Special Agent in Charge Stephen Belleau, Drug Enforcement Administration, New England Field Division. “This substantial sentence not only holds Mr. Alkayisi accountable for his crimes but serves as a warning to those traffickers who are contributing to the drug crisis in New England and throughout America. This investigation demonstrates the strength of collaborative law enforcement efforts and our strong partnership with the U.S. Attorney’s Office.”
In late 2020, Alkayisi was identified as a large-scale methamphetamine trafficker, who distributed multi-pound quantities to distributor customers throughout the New England area. Between October 2020 and April 2021, 12 controlled purchases of methamphetamine were made from the drug trafficking organization—two of which were delivered personally by Alkayisi and one that was negotiated with Alkayisi and delivered by a co-conspirator.
Intercepted communications revealed that Alkayisi supplied multiple distributor customers with supplier quantities of pure methamphetamine. Alkayisi also regularly bragged to these distributors about quality of his methamphetamine, saying, “You’re gonna get nice, big crystals,” and “Ur contacts should b happy with the size of product.” Alkayisi also operated a large-scale marijuana grow out of his Rhode Island residence, including while on probation for a state conviction for unlawful marijuana distribution.
Alkayisi typically charged his distributor customers $5,000 to $6,000 per pound of methamphetamine and utilized multiple methods to conceal the nature of these proceeds. These included paying the bail of his distributors, structuring cash deposits to avoid reporting requirements, utilizing peer-to-peer transfers and purchasing vehicles with cash. Alkayisi also created and utilized a shell company to launder his proceeds and recruited and directed others, including his wife, to launder his drug proceeds for him.
On June 1, 2021, four packages were seized containing a total of approximately 100 pounds of 100% pure methamphetamine that were picked up on behalf of Alkayisi from a UPS store in Rhode Island. Each of the boxes were addressed to Alkayisi’s shell company, which he used to launder his drug proceeds.
On June 25, 2021, another package was seized, destined for Alkayisi that contained approximately 30 pounds of 100% pure methamphetamine. In total, approximately 160 pounds of methamphetamine was seized throughout the investigation from controlled purchases, motor vehicle stops and package seizures.
During a search of Alkayisi’s residence in Rhode Island, an AK-47 assault rifle, a Glock handgun with no serial number, over 4,200 rounds ammunition and over $23,000 cash were also seized. Additionally, numerous electronics, including a computer that contained a ledger documenting Alkayisi’s methamphetamine sales for January through June of 2021 was seized. Based on the ledger, as well as the seizures, Alkayisi was responsible for over 660 pounds of methamphetamine over the course of six months. Law enforcement also located his large unlawful marijuana grow operation with hundreds of marijuana plants in all stages of production for distribution.
Alkayisi is the seventh defendant to be sentenced in the case. All remaining defendants have pleaded guilty and are awaiting sentencing.
Acting U.S. Attorney Levy, FBI SAC Cohen and DEA Acting SAC Belleau made the announcement. Valuable assistance was provided by the Massachusetts, Rhode Island, New Hampshire and Maine State Police; Massachusetts Department of Correction; Norfolk County Sherriff’s Office; and Concord, Hudson, Peabody, Reading, Watertown and Waltham Police Departments. Assistant U.S. Attorneys Alathea Porter and Katherine Ferguson of the Criminal Division are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
One Detroit Partnership Releases Results of Enhanced Summer Enforcement EffortsRead the Press Release
ONE DETROIT PARTNERSHIP RELEASES RESULTS OF
ENHANCED SUMMER ENFORCEMENT EFFORTS
DETROIT – Today, United States Attorney Dawn N. Ison, along with Detroit Deputy Mayor Todd Bettison, Wayne County Prosecuting Attorney Kym Worthy and Detroit Police Chief James E. White reported on the ongoing violence reduction work being done by the One Detroit Violence Reduction Partnership and announced the results of that work as of Labor Day. One Detroit is a coalition of community and law enforcement partners working together to develop and execute the best strategies to reduce violent crime.
Joining in the announcement were the One Detroit Executive Team, which includes Alvin Stokes, President, Citywide Citizens Police Community Relations, Special Agent in Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Detroit Division, Bishop Edgar Vann, II, Second Ebenezer Church, Special Agent in Charge James Deir, Bureau of Alcohol, Tobacco, Firearms and Explosives, Kenyatta Stephens, CEO Black Family Development, Special Agent in Charge Orville Greene, Drug Enforcement Administration, Detroit Division, Beverly Smith, Assistant Deputy Director, Operations Office, Michigan Department of Corrections, Bishop Daryl Harris, from Ceasefire Detroit, and Dr. Chris Melde from Michigan State University.
Results
The One Detroit Violence Reduction Partnership continues to work year-round to lower the amount of violence in the city. This work is organized into three pillars: prevention, enforcement, and reentry.
As a result of the work done throughout the city, in 2023, Detroit finished the year with the lowest number of homicides since 1957. This year, as of Labor Day, the city of Detroit has had 20% fewer homicides than last year at this time. The reduction in non-fatal shootings is even more dramatic—an almost 25% drop in non-fatal shootings. In terms of lives impacted, this means that there have been 182 fewer victims of violence in Detroit than there were at this time a year ago.
Summer Initiative
The One Detroit partners again worked together to address violence during the summer months, focusing particularly on the 8th and 9th precincts and the city’s parks. The initiative began on Memorial Day and ended on Labor Day. One part of the effort was an enforcement strategy designed to prosecute the most violent individuals in federal court when that was possible. This effort resulted in 23 cases being accepted for prosecution in federal court. All of those cases involved the illegal possession of firearms. During the investigations of these offenses, 26 guns were seized. ATF has now analyzed those guns and determined that 14 of them were crime guns linked through ballistics to 42 other crimes including non-fatal shootings and a homicide.
The One Detroit partnership also engaged in preventing crime in the targeted areas through Peacenics, a collective gathering of the community and law enforcement where we shared in food, fellowship, and fun in the name of peace. The events featured 70 vendors offering a variety of resources, including job training, literacy programs, mental health and medical screenings, utility assistance, educational and vocational opportunities, tutorial, and career development. The Peacenics allowed residents to have fun, engage with law enforcement, and obtain resources to improve the quality of their lives. Thousands of Detroit residents attended the two Peacenics held in O’Hair Park and at Heilmann Recreation Center.
Finally, the One Detroit partnership also focused on reentry as a way of preventing recidivism by empowering returning citizens to become stable, contributing members of the Detroit community. So far, more than 170 returning citizens participated in community roundtables intended to provide motivation and insight about taking advantage of second chances after a criminal conviction. At the events, family members of probationers were also invited to participate in breakout sessions to discuss barriers to stability. One Detroit partners also assisted with employment needs and helped connect attendees with resources.
United States Attorney Dawn N. Ison stated, “Make no mistake, violent crime is down. It is down dramatically. This is great news and shows that we are moving in the right direction. But please don’t mistake this for a celebration. The amount of violence in this city is still unacceptable. And we will not stop this work until we can make every neighborhood in Detroit safe from violence.”
Deputy Mayor Bettison stated, “The One Detroit Partnership continues to be effective at bringing all stakeholders to the table. U.S. Attorney Dawn Ison has led this effort at bringing federal, state, local, community, and religious organizations to address violent crime on the east and west side of Detroit. After three years of this partnership, we continue to see violent crime decrease year after year. Violent crime in the City of Detroit is at historic lows, and the numbers haven’t been this low since the 1960’s.”
“I want to thank U.S. Attorney Dawn N. Ison and our One Detroit partners for their work to make Detroit safer this summer,” said Chief James E. White. “We continue to see results from addressing violence with multiple layers of strategy and community partnership, and look forward to future work together to improve on our success.”
“There will always be people who will criticize efforts to reduce crime in Detroit,” said Prosecutor Kym Worthy. “We must be undeterred as we continue to drive down gun crime and other violent crimes. We will continue to work as partners with our local, state and federal agencies to protect our communities. We must also ensure that community prevention programs are continued and supported. This is an equally important part of what we are doing.”
The One Detroit Partnership will be holding Community Huddles to report these results to the residents in the 8th and 9th Precincts in the upcoming weeks. The dates of the Community Huddles are:
- 8th Precinct, September 30th, at 6:30 P.M.
- 9th Precinct, September 25th, at 6:00 P.M.
Norfolk drug dealer sentenced for his role in Tidewater drug trafficking organizationRead the Press Release
NEWPORT NEWS, Va. – A Norfolk man was sentenced today to two years and nine months in prison for distribution of cocaine.
According to court documents, Deton Dodson, 46, was a street level drug dealer in a larger drug trafficking organization centered in the Tidewater area of Virginia. The Drug Enforcement Administration (DEA), FBI, Homeland Security Investigations (HSI), Virginia Beach Police Department, and Norfolk Police Department initiated an investigation of the organization in 2020. Multiple sources, including some in California, were supplying the organization with kilogram-level quantities of cocaine, fentanyl, and heroin.
On Nov. 5, 2021, Dodson met co-defendant Edward Fonville for a hand-to-hand drug transaction. Afterward, law enforcement approached Dodson, who was in possession of a handgun. Dodson admitted that he traded cocaine to Fonville for the firearm. After his arrest, Dodson informed Fonville that law enforcement was investigating him. Fonville remains a fugitive.
Thirteen other defendants have been convicted and sentenced in this case.
Milton Artis, 41, pleaded guilty on Oct. 3, 2022, to conspiracy to possess with intent to distribute cocaine, heroin, and fentanyl. On Jan. 23, 2023, Artis was sentenced to one year in prison.
Levell Batts Sr., 60, pleaded guilty on Sept. 12, 2022, to conspiracy to possess with intent to distribute cocaine, heroin, and fentanyl. On Jan. 12, 2023, Batts was sentenced to 12 years and seven months in prison.
Emerson Brodie, 32, pleaded guilty on Jan. 30, 2023, to conspiracy to possess with intent to distribute cocaine, heroin, and fentanyl. On May 30, 2023, Brodie was sentenced to six years and three months in prison.
Charlie Chapman, 46, pleaded guilty on June 29, 2023, to possession with intent to distribute cocaine, heroin, and fentanyl. On Oct. 30, 2023, Chapman was sentenced to seven years in prison.
James Ford, 40, pleaded guilty on April 12, 2023, to conspiracy to possess with intent to distribute cocaine, heroin, and fentanyl. On Aug. 15, 2023, Ford was sentenced to three years and one month in prison.
Donald Gray, 48, pleaded guilty on Feb. 6, 2023, to possession with intent to distribute cocaine, heroin, and fentanyl and possession of a firearm in furtherance of drug trafficking. On Oct. 4, 2023, Gray was sentenced to twelve years in prison.
James Hill, 41, pleaded guilty on Oct. 3, 2022, to conspiracy to possess with intent to distribute cocaine, heroin, and fentanyl. On Feb. 13, 2023, Hill was sentenced to five years in prison.
Michael Robinson, 41, pleaded guilty on Oct. 6, 2022, to conspiracy to possess with intent to distribute cocaine, heroin, and fentanyl. On Feb. 7, 2023, Robinson was sentenced to seven years and 11 months in prison.
Michael Seay, 40, pleaded guilty on Sept. 15, 2022, to conspiracy to possess with intent to distribute cocaine, heroin, and fentanyl. On Jan. 23, 2023, Seay was sentenced to seven years in prison.
Rondell Spain, 33, pleaded guilty on Jan. 24, 2023, to conspiracy to possess with intent to distribute cocaine, heroin, and fentanyl. On May 30, 2023, Spain was sentenced to five years in prison.
Mervin Walton, 39, pleaded guilty on Sept. 22, 2022, to conspiracy to possess with intent to distribute cocaine, heroin, and fentanyl. On Jan. 30, 2023, Walton was sentenced to 15 years and eight months in prison.
Lavon Williams, 33, pleaded guilty on Oct. 6, 2022, to conspiracy to possess with intent to distribute cocaine, heroin, and fentanyl. On Feb. 8, 2023, Williams was sentenced to seven years in prison.
Terrell Williams, 37, pleaded guilty on Feb. 6, 2023, to conspiracy to possess with intent to distribute cocaine, heroin, and fentanyl. On June 27, 2023, Williams was sentenced to 14 years in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the DEA’s Washington Division; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Derek W. Gordon, Special Agent in Charge of HSI Washington, D.C.; Paul Neudigate, Chief of Virginia Beach Police; and Mark Talbot, Chief of Norfolk Police, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Assistant U.S. Attorney Eric Hurt prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:22-cr-18.
Nashville Man Charged with Federal Firearms Offense Following Gunfire Outside the Soho LoungeRead the Press Release
NASHVILLE – A federal grand jury has returned an indictment charging Erik Dewaun Williams, 25, of Nashville with being a felon in possession of a firearm, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
According to publicly available information, in the early morning hours of April 14, 2024, Metro Nashville Police TITANS (The Investigative Team Addressing Neighborhood Shootings) detectives were in the Bell Road area when a person called 911 to report that people were arguing while armed with guns. Detectives immediately went to the scene. Shortly after arrival, detectives heard gunfire and saw Williams firing a pistol. When he saw the detectives, Williams began to run away. Officers followed and Williams threw the gun down during the chase. Detectives quickly caught Williams and arrested him. At the time of his arrest, Williams had previously been convicted of felonies in Rutherford and Sumner Counties, and he was on bond on state gun charges.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Metropolitan Nashville Police Department.
Assistant United States Attorney Nicholas J. Goldin 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.
An indictment is merely an allegation. The defendant is presumed innocent until proven guilty.
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Multi-Convicted Felon Sentenced to PrisonRead the Press Release
St. George, Utah – Markeith Candler, 42, of Sterling, Colorado, was sentenced to 57 months’ imprisonment for drug crimes and possessing a firearm as a previously convicted felon.
The sentence, imposed by U.S. District Court Judge Ann Marie McIff Allen, comes after Candler pleaded guilty on June 10, 2024, to felon in possession of a firearm, and possession of cocaine with intent to distribute. In addition to his term of imprisonment, Candler was sentenced to five years of supervised release.
According to court documents and statements made at Candler’s sentencing hearing, on January 12, 2024, a Utah Highway Patrol trooper conducted a traffic stop for speeding. Inside the vehicle, Candler was the rear passenger. During a check of the vehicle, a K9 provided a positive indication to narcotics. During a search of the vehicle, troopers found a Glock 22, later identified as Candler’s. The firearm possessed a switch, that allowed for the gun to be used as an automatic weapon and was loaded with a magazine and a round in the chamber. Additional magazines, including large capacity magazines, were found next to the firearm. Troopers also found 743 grams of a white powdery substance that later tested positive for cocaine and found one pound of marijuana.
For more than 20 years, Candler has been committing violent and weapons-related offenses and serving sentences for those crimes. For example, while on probation for a prior robbery, Candler committed an armed robbery at a credit union where an employee was held at gun point. He served 120 months’ imprisonment, and five years’ supervised release for that armed bank robbery.
State Bureau of InvestigationU.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
The case was investigated jointly by the Department of Public Safety Utah Highway Patrol and the State Bureau of Investigation.
Assistant United States Attorney Chris Burton of the U.S. Attorney’s Office for the District of Utah prosecuted 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 https://www.justice.gov/psn.
More Than Two Dozen Individuals from Erie Area Indicted on Drug and Firearms ViolationsRead the Press Release
ERIE, Pa. - An Organized Crime Drug Enforcement Task Force (OCDETF) investigation has led to charges against a total of 26 defendants across nine separate but related Indictments for violations of federal narcotics and firearms laws, United States Attorney Eric G. Olshan announced today.
The Indictments charge a network of overlapping regional drug dealers based out of Erie, Pennsylvania, with trafficking multi-kilogram quantities of fentanyl powder and pills, substantial quantities of methamphetamine, and cocaine. During this long-term wiretap investigation, several firearms were seized from drug distributors who were prohibited from possessing firearms or possessed the firearms in furtherance of their drug trafficking. Investigators also seized multiple Glock conversion devices—commonly referred to as “Glock switches”—which are designed to convert a semiautomatic Glock pistol into an automatic machinegun.
The Indictments, all unsealed September 18, 2024, include: - an 11-count Indictment returned on September 10, 2024, charging 14 defendants with obtaining and redistributing fentanyl and methamphetamine in and around Erie County and other areas of the Western District of Pennsylvania; - a two-count Indictment returned on September 10, 2024, charging four defendants with conspiring to distribute and possess with intent to distribute varying quantities of fentanyl and methamphetamine; - a one-count Indictment returned on September 10, 2024, charging two defendants with conspiring to distribute and possess with intent to distribute a quantity of a mixture and substance containing cocaine, and
- six additional one-defendant Indictments charging one to three offenses involving drugs, firearms, or both. These Indictments were returned between July 30, 2024, and September 10, 2024.A list of the defendants, charges, and maximum penalties is included at the bottom of this release. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
“The combination of guns and illicit drugs—like fentanyl and methamphetamine—leads to tragic consequences for communities in the Erie area and across our district,” said U.S. Attorney Olshan. “Today’s charges against 26 defendants reinforce a core message: if you peddle deadly drugs in the Western District of Pennsylvania, you should expect a visit from law enforcement. Our office and our law enforcement partners will not sit idly by and allow drug traffickers and those who carry devices capable of turning semiautomatic firearms into fully automatic weapons to operate with impunity. Simply put, we are unrelenting in our resolve to keep ordinary citizens safe and secure in their own homes and neighborhoods.”
“The message to those who think they can continue trafficking cartel poison in our communities at will is the FBI and our partners with the EAGLE Safe Streets Task Force will not stop until we break the cycle of drug violence,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “Your operations will be dismantled, your drug-fueled profits will be seized, and you will be brought to justice. This marks the third large-scale operation in the Erie area in the last three years. The FBI’s resolve, and that of our partners, in combatting drugs on our streets will not change.”
“Operation Hot Block is the epitome of a joint investigation,” said Acting Special Agent in Charge of HSI Philadelphia Sara Bay. “Working hand in hand, HSI and FBI, along with multiple federal agencies, state, county, and city police, all contributed to the significant enforcement action today. Through these collective efforts, a dangerous criminal organization that dealt in violent crime and supplied deadly drugs like fentanyl to victims in northwestern Pennsylvania has been dismantled. Residents of northwestern Pennsylvania are safer due to the efforts of all law enforcement professionals that helped bring this investigation to fruition.”
“The Erie Police Department is proud to participate on the FBI EAGLE Task Force,” said Erie Police Department Chief Daniel Spizarny. “Working together with other law enforcement agencies in the region, we strive to prevent these deadly drugs from reaching our city. The damage these drugs do to our community, our friends, our neighbors, and our families must be stopped. A safer city for all is our goal.”
Assistant United States Attorneys Molly Anglin and Paul Sellers are prosecuting these cases on behalf of the government.
This prosecution is a part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The Federal Bureau of Investigation (FBI) Erie Resident Agency Erie Area Gang Law Enforcement (EAGLE) Safe Streets Task Force—which is comprised of investigators from the FBI, United States Customs and Border Protection, Erie Police Department, Pennsylvania State Police, Pennsylvania Office of Attorney General, Millcreek Police Department, Oil City Police Department, Franklin Police Department, and Erie School District Police Department—conducted the investigation leading to the indictments, in coordination with Homeland Security Investigations; the Internal Revenue Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; Pennsylvania State Police Vice and Drug Law Units; Erie County Detectives; and Erie County District Attorney’s Office.
The investigation was also conducted in association with the Northwest Pennsylvania Drug Initiative, which was formed following Erie County’s designation as a High Intensity Drug Trafficking Area (HIDTA) in 2021. The HIDTA program was created by Congress in 1988 to coordinate and assist federal, state, and local law enforcement agencies in addressing regional drug threats with the purpose of reducing drug trafficking and drug production in the United States. The Northwest Pennsylvania Drug Initiative coordinates personnel and resources between multiple agencies including the Pennsylvania State Police, Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, Erie Police Department, Erie County District Attorney’s Office, Erie County Detectives, United States Postal Inspection Service, EAGLE Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, and other participating agencies.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
List of Defendants
NameAgeCityChargesMaximum PenaltyColone Dwayne Roberts33Erie, PAConspiracy to distribute and possess with intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl and a quantity of a mixture and substance containing a detectable amount of methamphetamineLife imprisonmentPossession with the intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanylLife imprisonmentPossession of a firearm and ammunition by a convicted felon15 years imprisonmentPossession of a firearm in furtherance of a drug trafficking crimeLife imprisonmentAmajaeon Depree Moore20Erie, PAConspiracy to distribute and possess with intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanylLife imprisonmentAttempt to possess with the intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanylLife imprisonmentPossession of a firearm and ammunition by a convicted felon15 years imprisonmentPossession with the intent to distribute a quantity of a mixture and substance containing a detectable amount of fentanyl30 years imprisonmentOnyeah Lashay Roberts32Erie, PAConspiracy to distribute and possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of fentanylLife imprisonmentShaliel Dupree Wall26Erie, PAConspiracy to distribute and possess with intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl and a quantity of a mixture and substance containing a detectable amount of fluorofentanylLife imprisonmentPossession with the intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl and a quantity of a mixture and substance containing a detectable amount of cocaine40 years imprisonmentPossession of a firearm in furtherance of a drug trafficking crimeLife imprisonmentDajuwon Brown Faulkner22Erie, PAConspiracy to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl and 50 grams or more of a mixture and substance containing a detectable amount of methamphetamineLife imprisonmentPossession with the intent to distribute and distribution of 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine40 years imprisonmentOliver Deshawn Williams31Erie, PAConspiracy to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl and 50 grams or more of a mixture and substance containing a detectable amount of methamphetamineLife imprisonmentJamaine Jarrel Gambill38Erie, PAConspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamineLife imprisonmentNoah Devon Thomas35Erie, PAConspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine and a quantity of a mixture and substance containing a detectable amount of fentanylLife imprisonmentDesmar Deshawn Samson34Erie, PAConspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine and a quantity of a mixture and substance containing a detectable amount of fentanylLife imprisonmentKory Paul Durfey36Erie, PAConspiracy to distribute and possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of methamphetamine and a quantity of a mixture and substance containing a detectable amount of fentanylLife imprisonmentMichael Ray Nelson34UnknownConspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamineLife imprisonmentPossession with the intent to distribute and distribution of 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine40 years imprisonmentJohn Allen Lauver46Altoona, PAConspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamineLife imprisonmentPossession with the intent to distribute and distribution of 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine40 years imprisonmentDeborah Lea Bean43Corry, PAConspiracy to distribute and possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of methamphetamineLife imprisonmentTerrell Lamont Stonewall49Erie, PAConspiracy to distribute and possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of methamphetamineLife imprisonmentThomas Devon Moffett32Erie, PAConspiracy to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl and 50 grams or more of a mixture and substance containing a detectable amount of methamphetamineLife imprisonmentPossession of a firearm by a convicted felon15 years imprisonmentJaymil Avon Davis33Erie, PAConspiracy to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanylLife imprisonmentElisabeth Mae Burger43Erie, PAConspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamineLife imprisonmentPaul Scott Denning32Erie, PAConspiracy to distribute and possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of methamphetamine and a quantity of a mixture and substance containing a detectable amount of fentanylLife imprisonmentLee Earl McLaurin37Erie, PAConspiracy to distribute and possess with the intent to distribute a quantity of a mixture and substance containing a detectable amount of cocaine30 years imprisonmentMiciah Rashaid McLaurin35Erie, PAConspiracy to distribute and possess with the intent to distribute a quantity of a mixture and substance containing a detectable amount of cocaine30 years imprisonmentChristopher Elliott Barnes37Erie, PAPossession with the intent to distribute and distribution of 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine40 years imprisonmentDarrian M. Brooks35Farrell, PAPossession with the intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanylLife imprisonmentPossession of a firearm and ammunition by a convicted felon15 years imprisonmentUnlawful possession of a firearm in furtherance of a drug trafficking crimeLife imprisonmentOarmell Burrell Douglas46Erie, PAPossession with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine, 40 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 50 grams or more of a mixture and substance containing a detectable amount of methamphetamineLife imprisonmentOujacquan Akeem Jones41Erie, PAPossession with the intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine and a quantity of a mixture and substance containing a detectable amount of cocaine40 years imprisonmentBrendon Malone35Erie, PAPossession of a machinegun10 years imprisonmentAaquil Pacley27Erie, PAPossession with intent to distribute and distribution of a quantity of a mixture and substance containing a detectable amount of fentanyl20 years imprisonmentPossession with intent to distribute and distribution of 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine40 years imprisonmentMexican National Sentenced to Five Years’ Imprisonment for Trafficking Cocaine and Possessing FirearmsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on September 16, 2024, Senior United States District Judge William C. Griesbach sentenced Jose Resendiz-Gomez (age: 41) to a total of five years’ imprisonment after Resendiz-Gomez pled guilty to Possessing Cocaine With Intent to Distribute and Possessing Firearms as a Previously Convicted Felon and Illegal Alien, in violation of Title 21, United States Code, Section 841(a)(1), and Title 18, United States Code, Sections 922(g)(1) & 922(g)(5)(A).
According to court records, in July 2023, agents with the Manitowoc County Drug Task Force arranged to make controlled buys of cocaine from Resendiz-Gomez, a previously convicted felon and Mexican national with no lawful status in the United Sates. In August 2023, officers arrested Resendiz-Gomez after a traffic stop where he was returning from Illinois, having purchased another 600 grams of cocaine to distribute in Manitowoc. A subsequent search warrant executed at his home revealed two 9-mm pistols and 70 rounds of ammunition.
At sentencing, Judge Griesbach stressed that Resendiz-Gomez’s months’ long cocaine trafficking and unlawful firearm possession were serious offenses warranting significant punishment and deterrence. The court ultimately imposed a five-year prison term. After completing his sentence, Resendiz-Gomez will face deportation to Mexico.
The case was investigated by the Manitowoc County Drug Task Force, the Manitowoc County Sheriff’s Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Timothy Funnell.
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Medical Device Distributor to Pay $1,019,000 to Resolve False Claims Act Liability Arising from Billing of “P-Stim” DevicesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that a medical device distributor, Azon Medical, LLC (“Azon”), has agreed to pay $1,019,307.86 to resolve liability under the False Claims Act for allegedly causing improper billing of “P-Stim” devices, in this case branded as “AnSiStim.”
From approximately September 1, 2016, through October 26, 2016, Azon marketed and sold AnSiStim devices as reimbursable by Medicare under a code used for implantable neurostimulator devices, which are surgically implanted into the central nervous system or targeted peripheral nerves through procedures that are typically performed by a surgeon in an operating room. Azon’s customers applied AnSiStim devices using only an adhesive and a limited amount of needles, without any surgery or anesthesia, and without the assistance of a surgeon or an operating room.
AnSiStim is an electro-acupuncture device that, pursuant to manufacturer’s instructions, is affixed behind a patient’s ear using an adhesive. Needles are inserted into the patient’s ear and affixed using another adhesive. Once activated, the AnSiStim device then provides intermittent stimulation by electrical pulses. It is a single-use, battery-powered device designed to be worn for several days until its battery runs out, at which time the device is thrown away. Medicare does not reimburse for acupuncture or acupuncture devices like AnSiStim or other brand names of this device, including Stivax, NeuroStim, E-Pulse, and NSS-2 Bridge.
“Medicare paid Azon’s customers hundreds of thousands of dollars for improperly billed acupuncture devices,” said U.S. Attorney Romero. “Azon, through coverage advisories from Medical Contractors and communications from medical providers, was on notice that it was promoting and selling AnSiStim devices using false reimbursement advice. We will continue working with our partners to hold accountable distributors or marketers who carry out false billing schemes like this one.”
“Marketers and distributors need to provide accurate and truthful information regarding their devices’ eligibility for Medicare reimbursement,” said Special Agent in Charge Maureen Dixon for the Department of Health and Human Services, Office of Inspector General (“HHS-OIG”). “HHS-OIG and the U.S. Attorney’s Office will continue to work together to ensure the integrity of the Medicare program by persistently following up on allegations of improper billings.”
This case was investigated by HHS-OIG. It was handled by Assistant U.S. Attorney Mansi G. Shah and former Assistant U.S. Attorney Matthew E.K. Howatt.
The settled civil claims are allegations only. There has been no determination of civil liability.
McAllen man sentenced for receiving images of child pornographyRead the Press Release
McALLEN, Texas – A 27-year-old local man has been sentenced for receiving images and video files containing child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Gabriel Alejandro Morales pleaded guilty March 22, 2023.
Chief U.S. District Judge Crane has now ordered Morales to serve 120 months in federal prison. At the hearing, the court heard additional information that Morales not only received child pornography but also engaged in the distribution of child pornography. In handing down the prison term, the court noted that engaging in the consumption of child pornography increases the demand, often leading to the production of new child pornography. Morales was further ordered to pay $3,000 in restitution to a known victim and will serve five years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Morales will also be ordered to register as a sex offender.
In January 2022, law enforcement learned of a group chat on a third-party messaging application that was identified as sharing child pornography. Morales had engaged in the receipt and distribution of approximately nine videos of child pornography on that site.
Morales admitted to the use of the third-party messaging application on his cellular phone to engage in the receipt and distribution of child pornography. He further acknowledged possessing additional child pornography on other electronic devices.
The images included sadistic/masochistic content and the depiction of prepubescent children engaged in sexual acts. Authorities ultimately found a total of 77 video files of child sex abuse materials, an additional 52 video files and 11 images attributable to Morales.
Morales will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Cahal P. McColgan and Alexa D. Parcell prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Maryland Man Pleads Guilty to Federal Charge for Distribution of Fentanyl Resulting in the Death of A Minor VictimRead the Press Release
Greenbelt, Maryland – A Silver Spring, Maryland man pleaded guilty today before U.S. District Court Judge Deborah L. Boardman to distribution of fentanyl resulting in the death of a Bethesda, Maryland minor victim in January 2022.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration, Washington Division; Chief Marc R. Yamada of the Montgomery County Police Department; and Chief Victor Brito of the Rockville City Police Department.
According to court documents, Mikiyas Kefyalew, 26, knowingly and intentionally distributed to Victim 1 a quantity of a mixture and substance containing a detectable amount of fentanyl and 4-Anilino-N-phenethlpipeerdine (“despropionyl fentanyl”), each a Schedule II controlled substance, with death resulting from Victim 1’s use of such substance. At the time of Victim 1’s death, Victim 1 was 16 years old. On the evening of January 16, 2022, Victim 1 had contacted Kefyalew by Snapchat message in order to obtain “Percs.” Although originally referring to Percocets (a combination medicine containing oxycodone hydrochloride and acetaminophen), “Percs” is a common slang term used to reference pills which are circular, blue in color and imprinted with “M 30”—mimicking the markings on legitimate pills that one would receive from a manufacturer containing oxycodone hydrochloride. Victim 1 provided the address of the residence where he was spending the evening, and Kefyalew drove to that address. Victim 1 left the residence, met with Kefyalew at Kefyalew’s vehicle, and purchased two “Percs” from Kefyalew. Victim 1 later was driven home and interacted with family members before going to bed. The next morning, Victim 1 was found deceased.
With the assistance of Victim 1’s family members, law enforcement officers also located a small blue pill stamped with “M 30” near where Victim 1 was found. The pill appeared to be a 30 mg oxycodone hydrochloride pill but was tested by a forensic chemist at the Montgomery County Police Department Forensic Laboratory and produced positive results for both fentanyl and despropionyl fentanyl.
According to autopsy results, Victim 1’s cause of death was fentanyl and despropionyl fentanyl intoxication. Victim 1 was otherwise healthy.
On August 21, 2021, Kefyalew had been issued a criminal citation for possession of marijuana over 10 grams. In that case, a round blue pill stamped with “M 30” was located in the baggie of marijuana that was located in the rear passenger area of the vehicle where Kefyalew was seated. That pill was tested by a forensic chemist at the Montgomery County Police Department Forensic Laboratory and, like the similar blue pill in this case, produced positive results for both fentanyl and despropionyl fentanyl. Messages retrieved from Kefyalew’s cell phones confirmed the dangers of overdoses posed by “Percs” and Kefyalew’s knowledge that these pills contained fentanyl.
Based upon these pills’ purporting to be oxycodone hydrochloride pills, Kefyalew knowingly misrepresented or knowingly marketed the fentanyl pills as oxycodone hydrochloride, or “Percs.” The pills distributed and possessed by Kefyalew purported to be oxycodone hydrochloride in that they were small light blue pills stamped with “M” and “30” to match legitimate oxycodone hydrocholoride 30 milligram pills when, in fact, they contained fentanyl and despropionyl fentanyl instead of oxycodone hydrochloride.
Kefyalew knew that Victim 1 was a vulnerable victim based on Victim 1’s appearance, school attendance and age, i.e., that he was less than 18 years old.
Kefyalew is scheduled to be sentenced on January 28, 2025 at 10 a.m. and faces a maximum penalty of 20 years in federal prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U. S. Attorney Barron commended the DEA, the Montgomery County Police Department, and the Rockville Police Department for their work in the investigation and thanked the Metropolitan Police Department, the Prince George’s County Police Department, and the Montgomery County State's Attorney’s Office for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Elizabeth Wright and Joel Crespo, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Marion Man Sentenced to 8+ Years in Prison on Child Pornography ChargesRead the Press Release
BENTON, Ill. – A district judge sentenced a Marion man to 97 months’ imprisonment for receiving and possessing child pornography.
Michael D. Mitchell, 36, pleaded guilty in May to two counts of receipt of child pornography and one count of possession of child pornography.
“The U.S. Attorney’s Office will continue to prosecute individuals who view and upload child sexual abuse material, and a federal prison sentence is warranted for those who contribute to the online sexual exploitation of children,” said U.S. Attorney Rachelle Aud Crowe. “I commend our FBI partners for their efforts to identify and investigate child predators.”
According to court documents, federal law enforcement received an online tip from an internet platform for a user uploading child pornography. Agents tracked the IP address associated with the user to Mitchell’s Marion residence. Following a subsequent search of Mitchell’s phone, agents recovered eight items of child sexual abuse material.
“This case demonstrates the effectiveness of the FBI’s partnership with the National Center for Missing and Exploited Children,” said FBI Springfield Field Office Special Agent in Charge Christopher Johnson. “FBI Springfield opened this investigation based on a tip from NCMEC’s Cyber Tipline which allows parents and children to report child sexual abuse material and other incidents of sexual exploitation of children. Thanks to that tip, another offender is behind bars, no longer able to contribute to the spread of child sexual abuse material.”
Upon release from prison, the judge ordered Mitchell to serve five years of supervised release.
The FBI Springfield Field Office led the investigation, and Assistant U.S. Attorney David Sanders prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
Marion County Man Pleads Guilty to Filing False Tax ReturnsRead the Press Release
Ocala, FL – United States Attorney Roger B. Handberg announces that Richard Underwood has pleaded guilty to three counts of filing false tax returns. Underwood faces a maximum penalty of three years in federal prison on each count. A sentencing date has not yet been set.
According to court documents, Underwood’s tax returns from 2017 to 2019 overstated certain business expenses incurred by his company, KDG Consulting, Inc. Each year, these falsely reported expenses significantly reduced Underwood’s business income (which ranged from about $530,000 to $780,000) by hundreds of thousands of dollars. Underwood’s fraudulent conduct caused his taxable income to drop to $0 in 2017 and 2018, and $7,110 in 2019. As part of his plea agreement, Underwood has agreed to pay $680,141 (plus interest) to the Internal Revenue Service—an amount reflecting the taxes he failed to pay during those years.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Belkis H. Callaos.
Marion County Felon Sentenced to Federal Prison for Illegal Possession of A Firearm and AmmunitionRead the Press Release
Ocala, Florida – United States District Judge Thomas P. Barber has sentenced Jordan Karod Goodman (23, Ocala) to seven years and eight months in federal prison for possession of a firearm and ammunition by a convicted felon. Goodman entered a guilty plea on June 10, 2024.
According to court documents, on November 13, 2023, officers from the Ocala Police Department (OPD) responded to a shooting at a convenience store. An officer observed Goodman running in the area and wearing a black ski mask. When ordered to stop, Goodman refused. Goodman eventually fell and was detained by the officers. A Glock firearm with an extended magazine was recovered from the sidewalk where Goodman had fallen. When interviewed, Goodman stated that he believed someone had been shooting at him, so he had returned fire with his handgun. Goodman, who has two prior state felony convictions for possession of cannabis with intent to sell/deliver and carrying a concealed firearm, is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
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.
Lincoln Man Sentenced for Possession of Ammo and FirearmRead the Press Release
United States Attorney Susan Lehr announced that Jared Mutchie, age 35, of Lincoln, Nebraska, was sentenced September 19, 2024, in federal court in Lincoln for being a felon in possession of a firearm and ammunition. United States District Judge Susan M. Bazis sentenced Mutchie to 96 months’ imprisonment. There is no parole in the federal system. After Mutchie’s release from prison, he will begin a 3-year term of supervised release.
In March 2024, investigators with the Lincoln Police Department were conducting surveillance at a gas station on O Street. While there, investigators observed a black 2006 Pontiac with no license plates enter the parking lot. A male passenger was visible in the car, and investigators were able to identify him as Jared Mutchie. Investigators confirmed that Mutchie had an active felony arrest warrant for possession of a controlled substance and called for a marked cruiser to assist in contacting and taking Mutchie into custody. As the marked police cruiser drove past, Mutchie immediately exited the front passenger seat of the car and ran to the driver side of the vehicle. He and the driver switched seats and Mutchie began to drive the vehicle out of the parking lot, entering O Street with the cruiser behind him. The cruiser initiated emergency lights and sirens, but Mutchie failed to yield, fleeing eastbound at a high rate of speed. Speeds in the pursuit reached over 85mph. LPD called off the pursuit about the same time Mutchie lost control of the vehicle, left the roadway, and collided with a retaining wall at the intersection of 44th and O Streets.
Mutchie exited the driver seat of the vehicle and attempted to flee on foot, but officers were able to locate him a short distance from the vehicle. He ignored commands to get on the ground and was reaching into his pockets and removing items. Officers were able to physically force Mutchie to the ground and take him into custody. They located a baggie of cocaine in his pocket at the time of his arrest.
A search of the vehicle, which had been reported as stolen in February 2024, was conducted. Officers located about 4.5 grams of meth in the center cup holder, a zippered bag on the passenger floor of the vehicle which contained 119 .22 caliber bullets and a .22 caliber magazine with seven bullets.
Upon finding the bullets, officers went back and began searching for a gun in the area around Mutchie’s physical arrest. Approximately twenty feet from where Mutchie was physically seized, law enforcement located a Smith and Wesson 22 Long Rifle handgun. The gun was loaded with a magazine containing 11 bullets.
A review of Mutchie’s criminal history revealed felony convictions which resulted in prison sentences of at least a year.
In imposing the sentence, Judge Bazis emphasized the need to protect the public from Mutchie, who has a lengthy criminal history.
This case was brought as part of the Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
This case was investigated by the Lincoln Police Department.
Kris Roglieri Indicted on Five Counts of Wire FraudRead the Press Release
ALBANY, NEW YORK – Kris Roglieri, age 44, of Queensbury, New York, has been indicted on wire fraud charges.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Roglieri operated Prime Capital Ventures, LLC (“Prime Capital”) and Prime Commercial Lending, LLC (“Prime Commercial”), among other companies, that were based in Albany.
The indictment and an earlier-filed criminal complaint allege that Prime Capital held itself out as a commercial lending business. As part of contractual arrangements with its borrower clients situated across the country, Prime Capital obtained upfront interest payments from prospective borrowers while it sought to secure loans for those borrowers; these upfront interest payments were characterized by Prime Capital as the “Interest Credit Account Payment,” or “ICA” payment for short. ICA payments did not represent fees to Prime Capital. Instead, each borrower’s upfront ICA payment would be debited over time as the loan was funded and accrued more interest. An ICA payment would also be refundable if Prime Capital failed to secure a loan for the borrower client.
Roglieri is alleged to have defrauded a Minnesota company in December 2023, by committing to fund, through Prime Capital, an approximately $100 million commercial project, even though, at the time, Prime Capital had failed to fund numerous loans promised to earlier clients; failed to return tens of millions of dollars in ICA payments to earlier clients once those loans did not materialize; and had been sued multiple times by clients alleging fraud and seeking the return of ICA payments.
On December 22, 2023, Roglieri, on behalf of Prime Commercial, signed a Deposit Agreement by which he agreed to keep the Minnesota company’s ICA payment in a “separate and distinct” bank account, and to hold it as a “trust fund.” That same day, the Minnesota company wire transferred a $5 million ICA payment to a Prime Capital account controlled by Roglieri. Roglieri then transferred and spent these funds, including by transferring $950,000 in order to meet a financial obligation to another Prime Capital client; paying $84,000 for his purchase of a Rolex day-date 36 mm yellow gold diamond bezel watch; paying $101,000 to a private jet services company, for round-trip, private air travel between Albany International Airport and Anguilla, for a family vacation that Roglieri took from about December 29, 2023 to January 5, 2024; and paying $400,000 to a law firm that represented Prime Capital in court proceedings.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Roglieri faces up to 20 years in prison and a maximum $250,000 fine per count, as well as up to 3 years of supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
United States Magistrate Judge Christian F. Hummel ordered Roglieri detained after Roglieri’s May 31, 2024 arrest on the criminal complaint.
The FBI is conducting this ongoing investigation. Assistant U.S. Attorneys Joshua R. Rosenthal and Michael Barnett are prosecuting this case.
Justice Department Seeks to Bar Texas Tax Return PreparerRead the Press Release
The Justice Department filed a civil complaint today in the U.S. District Court for the Northern District of Texas to enjoin John T. Ajuma, aka John Trobisch, from preparing federal tax returns for others.
The complaint alleges Ajuma prepared nearly 11,000 federal income tax returns from 2018 through 2024 through two sole proprietorships named “Destiny Tax Service” and “Momentum Tax Express,” which Ajuma operated from the same location in Hurst, Texas. According to the complaint, in a substantial number of these tax returns, Ajuma significantly overstated customers’ tax refunds by fabricating or inflating unreimbursed employee expense deductions, falsifying child tax credits by reporting bogus child and dependent care expenses and falsely claiming energy, education and other credits to which customers were not entitled.
By repeatedly understating customers’ tax liabilities, the complaint alleges that Ajuma may have caused the United States harm of almost $20 million in lost tax revenue from 2018 through 2022.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
John Ajuma Complaint for PI.pdfJustice Department Secures Relief from Morningstar Storage to Resolve Alleged Violations of the Servicemembers Civil Relief ActRead the Press Release
WASHINGTON – The Justice Department announced today that Morningstar Storage, which manages and operates a network of self-storage facilities in the southeast area of the United States, has agreed to pay $130,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain court orders before auctioning the contents of at least three storage units owned by active-duty servicemembers.
According to the complaint, an Air Force Staff Sergeant stationed at MacDill Air Force Base rented a unit at a storage facility located in Tampa, Florida. On the storage agreement, the Staff Sergeant indicated that she was in active military service, provided contact information for her military unit and authorized rent payments to be made automatically. Shortly thereafter, before being deployed overseas to Jordan, she stored nearly all of her household goods at the Tampa facility, including her military awards and coins, and her children’s toys and keepsakes. While the Staff Sergeant was still deployed to Jordan, Morningstar acquired the Tampa facility, stopped her automatic payments and auctioned all the contents of her unit for $390.
“We all know that servicemembers endure many hardships and make great sacrifices as a result of their service to the nation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our servicemembers should never have to worry that their property, including their most prized keepsakes and personal treasures, will be sold out from under them while they are on duty. The Justice Department will continue standing up for servicemembers to ensure basic respect for their property, their rights and their dignity.”
“The U.S. Attorney’s Office for the Middle District of Florida is deeply committed to protecting the civil rights of our Nation’s servicemembers,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “The brave individuals who selflessly sacrifice to serve our country deserve the respect and peace of mind of knowing that what they leave behind during their service will be treated with the utmost care. Today’s consent decree reminds us that the companies who take on this responsibility do not always exercise the care that our servicemembers are entitled to under the SCRA, but the department remains committed to ensuring companies like Morningstar follow their obligations under the law.”
The SCRA provides financial and housing protections and benefits to military members while they are in military service. One of the SCRA’s protections requires anyone holding a lien on the property of a servicemember to obtain a court order prior to auctioning off, selling or otherwise disposing of that property. Under the consent order, which must still be approved by the U.S. District Court for the Middle District of Florida, Morningstar will pay the Air Force Staff Sergeant $80,000 in damages and will pay $5,000 each to two additional servicemembers. Morningstar has also agreed to pay a $40,000 civil penalty to the United States and must also implement new policies to prevent future violations of the SCRA.
This lawsuit resulted from a referral to the Justice Department from the U.S. Air Force. The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorneys’ Offices throughout the country. Since 2011, the department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA may have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at legalassistance.law.af.mil.
Justice Department Secures Relief from Morningstar Storage to Resolve Alleged Violations of the Servicemembers Civil Relief ActRead the Press Release
The Justice Department announced today that Morningstar Storage, which manages and operates a network of self-storage facilities in the southeast area of the United States, has agreed to pay $130,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain court orders before auctioning the contents of at least three storage units owned by active-duty servicemembers.
According to the complaint, an Air Force Staff Sergeant stationed at MacDill Air Force Base rented a unit at a storage facility located in Tampa, Florida. On the storage agreement, the Staff Sergeant indicated that she was in active military service, provided contact information for her military unit and authorized rent payments to be made automatically. Shortly thereafter, before being deployed overseas to Jordan, she stored nearly all of her household goods at the Tampa facility, including her military awards and coins, and her children’s toys and keepsakes. While the Staff Sergeant was still deployed to Jordan, Morningstar acquired the Tampa facility, stopped her automatic payments and auctioned all the contents of her unit for $390.
“We all know that servicemembers endure many hardships and make great sacrifices as a result of their service to the nation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our servicemembers should never have to worry that their property, including their most prized keepsakes and personal treasures, will be sold out from under them while they are on duty. The Justice Department will continue standing up for servicemembers to ensure basic respect for their property, their rights and their dignity.”
“The U.S. Attorney’s Office for the Middle District of Florida is deeply committed to protecting the civil rights of our Nation’s servicemembers,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “The brave individuals who selflessly sacrifice to serve our country deserve the respect and peace of mind of knowing that what they leave behind during their service will be treated with the utmost care. Today’s consent decree reminds us that the companies who take on this responsibility do not always exercise the care that our servicemembers are entitled to under the SCRA, but the department remains committed to ensuring companies like Morningstar follow their obligations under the law.”
The SCRA provides financial and housing protections and benefits to military members while they are in military service. One of the SCRA’s protections requires anyone holding a lien on the property of a servicemember to obtain a court order prior to auctioning off, selling or otherwise disposing of that property. Under the consent order, which must still be approved by the U.S. District Court for the Middle District of Florida, Morningstar will pay the Air Force Staff Sergeant $80,000 in damages and will pay $5,000 each to two additional servicemembers. Morningstar has also agreed to pay a $40,000 civil penalty to the United States and must also implement new policies to prevent future violations of the SCRA.
This lawsuit resulted from a referral to the Justice Department from the U.S. Air Force. The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorneys’ Offices throughout the country. Since 2011, the department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA may have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at legalassistance.law.af.mil.
Justice Department Designates Indianapolis for Focused Federal Efforts to Reduce Domestic Gun Violence Under the Violence Against Women ActRead the Press Release
INDIANAPOLIS – Attorney General Merrick B. Garland has approved an initial set of 78 communities across 47 states, territories, and the District of Columbia, including Indianapolis, designated for focused federal efforts to reduce intimate partner gun violence under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022.
The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with each designated jurisdiction to execute a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders who violate federal firearms laws, including unlawful possession of firearms by prohibited people and possession of prohibited weapons including Glock switches and other machinegun conversion devices. This work will include continuing outreach to increase coordination and target the most dangerous offenders.
In the Southern District of Indiana, the U.S. Attorney’s Office partners with Indianapolis Metropolitan Police Department and ATF through the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of IMPD Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. The LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms. More information about the LEATH Imitative is available at https://www.justice.gov/usao-sdin/leath.
The U.S. Attorney’s Office has also partnered with the City of Indianapolis to assign Special Assistant United States Attorneys to prosecute violent crimes in federal court, including armed domestic abusers.
“As we approach Domestic Violence Awareness month in October, it is imperative that we continue to work hand in hand with our community and law enforcement partners to halt intimate partner violence,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “We know that violent, illegally armed abusers pose a profound danger to those closest to them, police, and the entire community. I am grateful to the Department of Justice for recognizing our efforts. This designation will help further our commitment to saving lives by disarming domestic abusers and removing them from our communities.”
“Our homes should be the place where we feel most safe in the world. Unfortunately, domestic abusers use violence, and all too often firearms, to threaten and harm those closest to them and the first responders coming to render aid,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “Domestic Violence Awareness month in October provides an opportunity to reiterate our commitment to reducing intimate partner violence. ATF will continue to work with our law enforcement partners to investigate and prosecute domestic abusers who possess firearms to ensure our communities are safe from these offenders.”
“IMPD remains steadfast in our commitment to ensuring that all relationships are free from violence, as every member of our community deserves to live in safety and without fear,” said Chief Chris Bailey. “We are grateful to the Department of Justice for recognizing our efforts with this important designation and are thankful for our partnerships with other state and federal agencies. Together, we are working to ensure that domestic violence offenders who illegally possess firearms are identified, prosecuted, and brought to justice,” he added.
Chosen communities have been designated in close coordination with community stakeholders. They include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under federal firearms laws. The designation represents the partnership and coordination between the department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence.
The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.
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Justice Department Announces Civil Rights Investigation of Rankin County, Mississippi, and Rankin County Sheriff’s DepartmentRead the Press Release
The Justice Department announced today that it has opened a civil pattern or practice investigation into Rankin County, Mississippi, and the Rankin County Sheriff’s Department (RCSD). Rankin is the state’s fourth most populous county, with a population of approximately 160,000. It is located about 30 minutes east of the state capital, Jackson, Mississippi.
The investigation will seek to determine whether RCSD engages in patterns or practices that violate the Constitution and federal law. The investigation will evaluate all types of force used by RCSD officers, including deadly force. It will also assess whether RCSD engages in unlawful stops, searches, and arrests in violation of the Fourth Amendment and whether RCSD conducts discriminatory policing in violation of the 14th Amendment, Title VI, and Safe Streets Act.
“The public is now well aware of the heinous attack inflicted on two Black men by Rankin County deputies who called themselves the ‘Goon Squad,’” said Attorney General Merrick B. Garland. “Those officers have since been convicted and sentenced, but we are launching this civil pattern or practice investigation to examine serious allegations that the Rankin County Sheriff’s Department systematically violates people’s constitutional rights through excessive use of force; unlawful stops, searches, and arrests; and discriminatory policing. These include allegations that Rankin County deputies have overused tasers, entered homes unlawfully, used racial slurs, and deployed dangerous, cruel tactics to assault people in their custody. We are committed to working with local officials, deputies, and the community to conduct a comprehensive investigation.”
“The violent, unlawful and racially charged actions of the so-called Goon Squad left lasting and damaging effects on the community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Since the Goon Squad’s sickening acts came to light, we have received reports of other instances where Rankin deputies overused tasers, entered homes unlawfully, bandied about shocking racial slurs, and deployed dangerous, cruel tactics to assault people in their custody. Based on an extensive review of publicly available information as well as complaints provided to us, we have grounds to open a pattern or practice investigation into the Rankin County Sheriff’s Department now. The Justice Department will conduct a comprehensive and fair investigation into allegations of racially discriminatory policing of Black communities, the use of excessive force, and violations of the Fourth Amendment.”
“The information we have learned to date about the conduct of some members of the Rankin County Sheriff’s office calls back to some of the worst periods of Mississippi’s history,” said U.S. Attorney Todd W. Gee for the Southern District of Mississippi. “We do not have to accept the old hatreds and abuse of the past. And we do not have to accept the false claim that safety comes at the price of illegal force and abuse of power. We will conduct an impartial and thorough review of the Rankin County Sheriff’s Office, and if we find violations, we will take necessary action to address them.”
This civil investigation is separate and independent from the federal criminal civil rights prosecutions of RCSD deputies related to the violent assaults of two Black men, Michael Jenkins and Eddie Parker, at the hands of five white deputies.
The investigation will include a comprehensive review of RCSD policies, training, and supervision. The investigation will also examine RCSD’s systems of accountability. The Justice Department will reach out to community groups and members of the public to learn about their experiences with RCSD. The Justice Department will also speak with RCSD deputies and leadership to hear their perspectives.
Before this announcement, the Justice Department notified Rankin County officials, who have pledged to cooperate with the investigation.
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The Act allows the Justice Department to remedy such misconduct through civil litigation.
The Civil Rights Division’s Special Litigation Section and U.S. Attorney’s Office for the Southern District of Mississippi will jointly conduct this investigation.
Individuals with relevant information are encouraged to contact the Justice Department via email at [email protected] or by toll free phone at (888) 392-8557. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at civilrights.justice.gov/. Individuals can also report civil rights violations to the U.S. Attorney’s Office at [email protected] or (601) 973-2825.
Today’s announcement marks the 12th pattern or practice investigation into law enforcement misconduct opened by the Justice Department during this administration. The Justice Department recently completed an investigation of the Phoenix Police Department.
Information specific to the Civil Rights Division’s police reform work can be found here.
Justice Department Announces Civil Rights Investigation of Rankin County, Mississippi, and Rankin County Sheriff’s DepartmentRead the Press Release
The Justice Department announced today that it has opened a civil pattern or practice investigation into Rankin County, Mississippi, and the Rankin County Sheriff’s Department (RCSD). Rankin is the state’s fourth most populous county, with a population of approximately 160,000. It is located about 30 minutes east of the state capital, Jackson, Mississippi.
The investigation will seek to determine whether RCSD engages in patterns or practices that violate the Constitution and federal law. The investigation will evaluate all types of force used by RCSD officers, including deadly force. It will also assess whether RCSD engages in unlawful stops, searches, and arrests in violation of the Fourth Amendment and whether RCSD conducts discriminatory policing in violation of the 14th Amendment, Title VI, and Safe Streets Act.
“The public is now well aware of the heinous attack inflicted on two Black men by Rankin County deputies who called themselves the ‘Goon Squad,’” said Attorney General Merrick B. Garland. “Those officers have since been convicted and sentenced, but we are launching this civil pattern or practice investigation to examine serious allegations that the Rankin County Sheriff’s Department systematically violates people’s constitutional rights through excessive use of force; unlawful stops, searches, and arrests; and discriminatory policing. These include allegations that Rankin County deputies have overused tasers, entered homes unlawfully, used racial slurs, and deployed dangerous, cruel tactics to assault people in their custody. We are committed to working with local officials, deputies, and the community to conduct a comprehensive investigation.”
“The violent, unlawful and racially charged actions of the so-called Goon Squad left lasting and damaging effects on the community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Since the Goon Squad’s sickening acts came to light, we have received reports of other instances where Rankin deputies overused tasers, entered homes unlawfully, bandied about shocking racial slurs, and deployed dangerous, cruel tactics to assault people in their custody. Based on an extensive review of publicly available information as well as complaints provided to us, we have grounds to open a pattern or practice investigation into the Rankin County Sheriff’s Department now. The Justice Department will conduct a comprehensive and fair investigation into allegations of racially discriminatory policing of Black communities, the use of excessive force, and violations of the Fourth Amendment.”
“The information we have learned to date about the conduct of some members of the Rankin County Sheriff’s office calls back to some of the worst periods of Mississippi’s history,” said U.S. Attorney Todd W. Gee for the Southern District of Mississippi. “We do not have to accept the old hatreds and abuse of the past. And we do not have to accept the false claim that safety comes at the price of illegal force and abuse of power. We will conduct an impartial and thorough review of the Rankin County Sheriff’s Office, and if we find violations, we will take necessary action to address them.”
This civil investigation is separate and independent from the federal criminal civil rights prosecutions of RCSD deputies related to the violent assaults of two Black men, Michael Jenkins and Eddie Parker, at the hands of five white deputies.
The investigation will include a comprehensive review of RCSD policies, training, and supervision. The investigation will also examine RCSD’s systems of accountability. The Justice Department will reach out to community groups and members of the public to learn about their experiences with RCSD. The Justice Department will also speak with RCSD deputies and leadership to hear their perspectives.
Before this announcement, the Justice Department notified Rankin County officials, who have pledged to cooperate with the investigation.
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The Act allows the Justice Department to remedy such misconduct through civil litigation.
The Civil Rights Division’s Special Litigation Section and U.S. Attorney’s Office for the Southern District of Mississippi will jointly conduct this investigation.
Individuals with relevant information are encouraged to contact the Justice Department via email at [email protected] or by toll free phone at (888) 392-8557. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at civilrights.justice.gov/. Individuals can also report civil rights violations to the U.S. Attorney’s Office at [email protected] or (601) 973-2825.
Today’s announcement marks the 12th pattern or practice investigation into law enforcement misconduct opened by the Justice Department during this administration. The Justice Department recently completed an investigation of the Phoenix Police Department.
Information specific to the Civil Rights Division’s police reform work can be found here.
Justice Department Addresses Gender-Based Pay Discrimination in Lawsuit Against Wisconsin Department of Military AffairsRead the Press Release
The Justice Department has reached a settlement agreement to resolve a gender-based pay discrimination lawsuit filed in January 2023 against the Wisconsin Department of Military Affairs (WDMA). The lawsuit alleged that the WDMA discriminated against former employee Michelle Hartness, in violation of Title VII of the Civil Rights Act, when it offered her a lower salary than similarly or less qualified men for a director position in the Wisconsin Division of Emergency Management.
Title VII is a federal statute that prohibits pay discrimination and other forms of employment discrimination on the basis of sex, race, color, national origin or religion.
“It is time to close the gender pay gap which stands as one of the most pressing problems that we face in the labor market today. This settlement agreement demonstrates the Justice Department’s strong commitment to vindicating the rights of qualified job applicants and employees who are offered or paid less simply because they are women,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue to aggressively hold state and local government employers accountable when they unlawfully deny women the right to bring home the full paycheck they have rightly earned.”
Under the settlement agreement, WDMA will pay Ms. Hartness a $175,000 monetary award. By signing the agreement, WDMA also confirms that it maintains antidiscrimination and other personnel policies to prevent compensation discrimination, including a pay-setting policy to establish consistency in setting salaries, and that it trains personnel on the pay-setting policy.
Ms. Hartness filed a charge of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Milwaukee Area Office investigated the charge and found reasonable cause to believe that Ms. Hartness was discriminated against because of her sex. After unsuccessful conciliation efforts, the EEOC referred the charge to the Justice Department.
Senior Trial Attorneys Patricia Stasco, Chrisine Dinan and Catherine Sellers and Trial Attorney Young Choi of the Civil Rights Division’s Employment Litigation Section handled the case.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division and the Employment Litigation Section is available at www.justice.gov/crt/ and www.justice.gov/crt/employment-litigation-section.
Inmate and Others Indicted for Committing More Than $550 Million in Tax FraudRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today charging Kristopher Thomas, 36, Charmane Dozier, 44, Kettisha Thompson-Dozier, 55, and Sharon Vance, 36, with conspiracy to commit tax fraud, U.S. Attorney Phillip A. Talbert announced.
Thomas is currently serving a 50-year to life sentence at the Kern Valley State Prison (KVSP) in Delano, California, for a gang-related murder that he committed in the Los Angeles area in 2010. Dozier is married to Thompson-Dozier, who is Thomas’ mother, and they live in Waldorf, Maryland. Vance is one of Thomas’ girlfriends and lives in Hawthorne, California. The defendants were previously arrested in February 2024 on a federal criminal complaint.
According to court records, in mid-2022, a DEA investigation found that Thomas was leading a drug trafficking organization operating in Delano from his prison cell at KVSP using contraband cellphones and prison-issued tablets.
Intercepted drug-related communications to and from Thomas’ cellphones and tablets showed that he was also running a multimillion-dollar tax fraud scheme with Dozier, Thompson-Dozier, and Vance. The DEA requested assistance from IRS-Criminal Investigation and the FBI on the tax fraud scheme.
The defendants’ tax fraud scheme exploited the IRS Employee Retention Credit (ERC). The ERC was enacted during the COVID-19 pandemic to encourage businesses to retain their employees by giving the businesses thousands of dollars in refundable tax credits per employee retained from March 2020 through December 2021. The amount of the ERC was determined by the number of employees the businesses had and the wages paid to those employees. The credit was claimed and paid out based on payroll tax returns that were filed quarterly.
The defendants filed fraudulent payroll tax returns for fabricated, existing, and defunct businesses that misrepresented the number of employees the businesses had, and the wages paid to those employees to increase the amount of the ERC that the businesses received to claim large tax refunds. They obtained the information for the businesses through various means, including from their family members, friends, acquaintances, and, at times, engaging in identity theft. They also solicited businesses to let them apply for the ERC on their behalf in exchange for exorbitant commissions.
Altogether, from January 2022 through July 2023, the defendants filed hundreds of fraudulent payroll tax returns claiming over $550 million in tax refunds. The refunds were sought on behalf of over 100 businesses and several million dollars was actually paid out. The money was used for personal expenditures, including jewelry and trips to Disney World and Las Vegas. For the Las Vegas trip, Thomas paid to have attendees driven to Las Vegas from Los Angeles, party for the night at a luxury penthouse, and fly back to Los Angeles on a private jet.
This case is the product of an investigation by IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Jeffrey Spivak are prosecuting the case.
If convicted, the defendants each face maximum statutory penalties of 10 years in prison. Thomas has also been indicted in a separate, federal methamphetamine trafficking case where he faces a statutory maximum penalty of life in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
thomas_et_al._tax_fraud_indictment.pdfIndictment Charges Two in $230 Million Cryptocurrency ScamRead the Press Release
lamserrano_indictment_24cr417.pdfWASHINGTON – An indictment was unsealed today charging Malone Lam, 20, of Miami, FL and Los Angeles, CA, and Jeandiel Serrano, 21, of Los Angeles, CA, with conspiracy to steal and launder over $230 million in cryptocurrency from a victim in Washington, D.C. Lam, a citizen of Singapore who goes by the online monikers “Anne Hathaway” and “$$$”, and Serrano, who uses “VersaceGod” and “@SkidStar”, were arrested last night and are appearing in U.S. District Court for the Southern District of Florida and the Central District of California, respectively, today.
The arrests and indictment were announced by U.S. Attorney Matthew M. Graves, FBI Acting Special Agent in Charge David Geist of the Washington Field Office’s Criminal and Cyber Division, and Executive Special Agent in Charge Kareem A. Carter of the Internal Revenue Service – Criminal Investigation (IRS-CI) Washington, D.C. Field Office.
According in the indictment, since at least August 2024, Lam, Serrano, and others conspired to carry out cryptocurrency thefts and to launder the stolen crypto currency through exchanges and mixing services. The conspirators would fraudulently gain access to victim cryptocurrency accounts and then transfer victim funds into their possession. They laundered the proceeds, including by moving the funds through various mixers and exchanges using “peel chains,” pass-through wallets, and virtual private networks (VPNs) to mask their true identities. Lam and Serrano then allegedly spent the laundered cryptocurrency proceeds on international travel, nightclubs, luxury automobiles, watches, jewelry, designer handbags, and rental homes in Los Angeles and Miami. In one instance, on August 18, 2024, Lam, Serrano, and their conspirators contacted a victim in D.C. and, through the communications with that victim, fraudulently obtained over 4,100 Bitcoin (worth over $230 million at the time).
This ongoing investigation is being handled by the U.S. Attorney’s Office for the District of Columbia, the FBI’s Washington Field Office, and the IRS-Criminal Investigation Washington Field Office. Significant investigative and operational support was provided by the FBI’s Los Angeles and Miami Field Offices.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Indian National Indicted for Possessing Methamphetamine in BakersfieldRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Darmanjot Singh, 29, an Indian national residing in Ontario, California, charging him with possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Singh engaged in a high-speed pursuit with law enforcement officers that ended when Singh crashed his car. A search of Singh’s car resulted in the discovery of two packages containing approximately 5 pounds of methamphetamine.
This case is the product of an investigation by the Bakersfield Police Department and Homeland Security Investigations. Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case.
If convicted, Singh faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Illinois Bank President Sentenced to Jail for Falsifying RecordsRead the Press Release
BENTON, Ill. – The former president of a bank in southern Illinois was sentenced Thursday for his role in falsifying bank records to facilitate real estate loans.
Steven Cook was fined $6,000 and sentenced to 50 hours of community service and two weekends in the Jackson County jail.
He will also likely be banned from the banking industry for life.
Cook fraudulently facilitated three different sales of commercial real estate to Lawler and Maze Properties LLC in 2022. Cook was the president of SouthernTrust Bank at the time, and was also on the bank’s board of trustees and was a member of its loan committee. The bank has branches in Marion, Vienna and Goreville, Illinois.
Cook approved one loan that funded the sale of seven commercial rental properties in Williamson and Franklin counties from Results Home Buyers 2 to Lawler and Maze. The transaction was a new purchase of real estate, not a refinance, and the buyers were not using any cash to fund the purchase. But during an April 6, 2022, meeting with the seller and buyer, Cook and the others agreed to fraudulently make it appear as if the loan was a refinancing. Cook also agreed that the bank would supply the cash for the purchase. They agreed to backdate documents to falsely indicate the buyer purchased the properties on Feb. 1, 2022, for a falsely inflated price of $545,152. The documents also falsely indicated that the bank was refinancing 80% of that loan, with the buyers bringing 20% in cash to the sale. The bank’s loan to the buyers was approved by the bank’s loan committee based upon the false information.
Results Home Buyers 2 is partially owned by former Williamson County State’s Attorney Brandon Zanotti.
In August of 2022, Cook facilitated a second real estate transaction for the purchase of four properties by Lawler and Maze. Cook, the seller and Lawler and Maze agreed that the real estate contract would falsely list a sales price of $413,000 instead of the actual price of $330,400, and falsely state that the buyer would supply $82,600 in cash.
In November of 2022, Cook facilitated an additional loan to Lawler and Maze for the purchase of a property in Marion. Bank documents falsely stated that the borrowers would supply $21,500 cash.
Cook pleaded guilty in U.S. District Court in Benton in June to three felony counts of aiding and abetting the making of a false bank entry. Zanotti pleaded guilty in March to one count of the same crime. He was sentenced in May to two years of probation, a $5,000 fine and 20 hours of community service. His conduct we reported to the Illinois Attorney Registration and Disciplinary Commission.
Lawler and Maze, LLC is owned by Justin Maze and David Lawler, who each entered into a pretrial diversion program in which they acknowledged their involvement in the criminal conduct by aiding and abetting Zanotti and Cook. As a condition of pretrial diversion, Maze was required to resign from his position as Williamson County Circuit Clerk and agreed not to seek re-election to any public office. Lawler’s conduct was reported to the Illinois Attorney Registration and Disciplinary Commission.
“The FBI works daily to disrupt fraudulent activity and we recognize the impact it has on banking institutions,” said FBI Springfield Field Office Special Agent in Charge Christopher Johnson. “FBI Springfield will continue to dedicate investigative resources for targeting fraud in its many forms to protect the integrity of the banking process.”
“FHFA-OIG will continue to relentlessly investigate and pursue the prosecution of mortgage-related fraud, no matter who commits the crimes. Officers of financial institutions who have a duty to conduct honest business must be held accountable. We are proud to have partnered with our FBI colleagues and with Special Assistant United States Attorney Hal Goldsmith,” said Korey Brinkman, Special-Agent-in-Charge of FHFA OIG’s Midwest Regional Office.
The FBI Springfield Field Office and the Federal Housing Finance Agency Office of Inspector General investigated the case. The prosecution was handled by Special Attorney Hal Goldsmith from the Eastern District of Missouri. The U.S. Attorney’s Office for the Southern District of Illinois was recused from the case.Anyone with information about mortgage-related fraud can report it by contacting the Federal Housing Finance Agency – Office of Inspector General Hotline at 800-793-7724 or via the web at https://www.fhfaoig.gov/ReportFraud#hotlineform
Houston rapper gets life for sex trafficking teenagersRead the Press Release
HOUSTON – A 29-year-old man residing in the Houston and Austin areas has been sentenced for sex trafficking three minors and an adult, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury deliberated for less than two hours before returning the guilty verdict April 19 against Jacorey Nathaniel Anderson aka Slando Kareem following a five-day trial.
U.S. District Judge David Hittner has now sentenced Anderson to life imprisonment. At the hearing, the court heard from one of the minor victims detailing how Anderson’s actions took away her childhood and the negative impact it has had on all of her relationships. In handing down the prison term, the court noted that Anderson knowingly trafficked the teenage girls. Two of those teenage girls were only 15 years of age.
“This case exemplifies how art sometimes imitates life. Anderson, a rap musician, performed vile songs glorifying the pimp/prostitute relationship,” said Hamdani. “Unfortunately, for several young girls, he breathed life into his poorly crafted lyrics – providing drugs, starving and trafficking them for his own financial gain. Despite the trauma they suffered, the victims in this case bravely testified against him at trial which secured his convictions…and thanks to their bravery, Anderson’s glorification of commercial sex, his human trafficking and his misogyny ends, both in art and in real life.”
“Through the efforts of our special agents and law enforcement partners, Homeland Security Investigations (HSI) has taken another violent sex trafficker off our city streets,” said acting Special Agent in Charge of HSI Dallas Travis Pickard. “The victims’ this defendant abused can now began their process of healing with this criminal behind bars for the remainder of his life.”
At the trial, the jury saw two of Anderson’s rap videos. In one of the videos, a female victim’s hands and feet are bound while duct tape covers her mouth. Anderson then physically assaults the victim, slapping and choking her multiple times and warning her to close her mouth.
Anderson lured three minors and an adult to the Austin area from Houston via social media and text messages. Co-conspirator Lelonnie Stephon Jackson provided his Mercedes SUV, while another co-conspirator, Thomas Jarrett Barraza, drove the victims to an Austin-area hotel.
There, the victims received instruction to walk the “track,” an area known for prostitution, and posted sexually explicit advertisements for commercial sex online. Within another 24 hours, the adult victim escaped.
Over the course of three days, the co-conspirators transported the minor female victims to a hotel in Stafford. At that time, Jackson and Barraza left Anderson and the three minor victims at the hotel and returned to the Austin area. Anderson caused the minors to post ads and engage in commercial sex at the hotel.
Within 24 hours of arrival at the hotel in Stafford, two of the minor females were able to escape. The last minor remained with Anderson for a few more weeks while he caused her to continue to engage in commercial sex.
Throughout the process, Anderson starved the victims, provided them with drugs and took all the proceeds from the commercial sex.
At the time of the trial, evidence revealed Anderson was arrested in Dallas for attempting to traffic whom he believed was a minor. However, the individual was actually an undercover officer.
The arrest led to the examination of Anderson’s phone which allowed law enforcement to the identify the minor victims.
Additionally, Jackson, 33, Big Spring, previously pleaded guilty to his role in the criminal enterprise and received 60 months in prison. Barraza, 37, Austin, also pleaded guilty to his role and will remain on bond pending sentencing Nov. 12.
Anderson and Jackson have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI - Dallas and the Human Trafficking Rescue Alliance (HTRA) including FBI Houston and Houston Police Department (HPD) conducted the investigation.
Assistant U.S. Attorneys Sherri L. Zack and Kimberly A. Leo prosecuted the case.
HTRA law enforcement includes members of the HPD, FBI, HSI, Texas Attorney General’s Office, IRS Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Gun Supplier Convicted of Murdering 13-Year-Old Boy Gets 108 ½ Years in PrisonRead the Press Release
WASHINGTON – Stephon Nelson, 33, of Washington, D.C., was sentenced today in Superior Court to 108 ½ years in prison for first degree murder and other charges stemming from the killing of 13-year old Malachi Lukes in March of 2020. A jury found Nelson and two co-defendants--Tyiion Freeman and Koran Jackson—guilty of first-degree murder while armed, several counts of assault with intent to kill while armed, conspiracy to commit various firearms offenses and other firearms-related charges. Last week Freeman received 108 years while Jackson was sentenced to 164 years in prison.
The sentences were announced by U.S. Attorney Matthew M. Graves, FBI Acting Special Agent in Charge David Geist of the Washington Field Office’s Criminal and Cyber Division, ATF Acting Special Agent in Charge James VanVliet of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Between February 1, 2020, and May 31, 2020, the defendants, along with two other defendants (whose cases were severed pre-trial), participated in a conspiracy to illegally possess, carry, and transfer firearms for the purpose of using those firearms in the commission of dangerous and violent crimes. Jackson and Freeman, along with the severed defendants, are members and associates of neighborhood crews. Between 2019-2020, the defendants’ neighborhood crews were feuding with other crews and the feud escalated when Tahlil Byrd, also known as Slatt Goon, was killed in September 2019.
Stephon Nelson, who is a felon and approximately 10 years older than his coconspirators, supplied the firearms that were illegally possessed, carried, and transferred in the conspiracy. Over the span of nine days, February 22-March 1, 2020, the defendants engaged in a shooting spree in the Petworth, Shaw, and Stronghold neighborhoods using the firearms they illegally acquired and shared as a part of the firearms conspiracy. The first charged shooting occurred on February 22, 2020, in the Petworth neighborhood when two victims were fired upon after a mere verbal exchange with two defendants. Two days later, on February 24, 2020, the conspirators drove through rival crew territory Ninth Street where they shot three rival crew members. An innocent bystander who was sitting in her vehicle was caught in the barrage of gunfire. She fortunately escaped with little physical injury because her front windshield suffered the bulk of the damage. The spree culminated on March 1, 2020, when the defendants participated in two shootings in two separate neighborhoods over the span of ten minutes. At 2:08 p.m., the defendants, who were traveling in a stolen Kia Soul, followed 13-year-old Malachi Lukes, along with his three friends, into the Ninth Street area of the 600 block of S Street, N.W., where two defendants exited the Kia Soul and opened fire on them. Malachi Lukes was shot in the back as he fled. The bullet traveled through his heart and lung causing him to collapse to his death. The defendants then traveled to another neighborhood where members of the rival crew were known to gather and at 2:18 p.m., opened fire on individuals in that block. No injuries were reported in that shooting spree.
In announcing the sentences, U.S. Attorney Graves and Chief Smith commended the work of those investigating the case from the MPD, the FBI Washington Field Office's Violent Crimes Task Force and ATF along with the Arlington County Police Department. They also thanked the Arlington County Sheriff Department; U.S. Marshals Service; U.S. Capitol Police; D.C. Department of Forensic Sciences; DOJ Computer Crime and Intellectual Property Section; Montgomery County Police Department; D.C. Department of Corrections; and the Internal Revenue Service—Atlanta Branch.
The case was prosecuted by Assistant U.S. Attorneys Michelle Jackson, Tamara Rubb, and Nebiyu Feleke, with assistance from Lead Paralegal Sharon Newman, Supervisory Paralegal Tasha Harris, Paralegals April Urbanowski and Alyssa Schroeder, Superior Court Operations Manager Linda McDonald, and Victim Witness Advocate Jennifer Allen.
Greenbrier County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Richard Shawn Owens, 39, of Lewisburg, pleaded guilty today to possession of a firearm by a person previously convicted of a misdemeanor crime of domestic violence.
According to court documents and statements made in court, on August 10, 2023, law enforcement officers executed a search warrant at the Lewisburg residence of Owens and seized six firearms: a Glock 19X 9mm handgun, a Smith & Wesson M&P Shield .40-caliber handgun, a Smith & Wesson M&P15 .223-caliber/5.56mm rifle, a RomArm Cugir WASR-10 7.62x39mm rifle, a Winchester Super X Pump 12-gauge shotgun, and a Ruger American 30-06 bolt-action rifle. Owens admitted to possessing the firearms.
Federal law prohibits a person with a prior conviction for a misdemeanor crime of domestic violence from possessing a firearm or ammunition. Owens knew he was prohibited from possessing a firearm because of his prior conviction for assault and battery of a family member in Chesterfield County, Virginia, Circuit Court on July 16, 2013.
Owens is scheduled to be sentenced on January 16, 2025, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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. 5:23-cr-146.
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Fort Myers Man Pleads Guilty to Conspiring to Distribute Methamphetamine and Fentanyl Through the U.S. MailRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces that Durand Dijuon Demetiu Colbert (34, Fort Myers) has pleaded guilty to conspiracy with the intent to distribute methamphetamine and fentanyl, possession with intent to distribute fentanyl, and attempted possession with intent to distribute methamphetamine. Colbert faces a minimum mandatory penalty of 10 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Colbert conspired with an individual in California to distribute various controlled substances including methamphetamine and fentanyl in the Lee County area. The other individual resided in the Los Angeles area and supplied Colbert with controlled substances that would later be distributed to others. The controlled substances were sent to Colbert in Florida through the U.S. mail or other packaging carriers.
During the conspiracy, on November 17, 2023, the Lee County Sheriff’s Office executed a search warrant at Colbert’s residence. At that time, Colbert was in possession of approximately1,700 fentanyl pills. Additionally, on November 28, 2023, the U.S. Postal Inspection Service intercepted multiple packages containing various controlled substances sent from Los Angeles to Colbert in Fort Myers through the U.S. mail. The packages were intercepted in Fort Myers and contained methamphetamine.
This case was investigated by the Lee County Sheriff’s Office, the Drug Enforcement Administration, and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Mark Morgan.