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Wednesday 17 July 2024
Wisconsin Man Sentenced for Sexually Victimizing A MinorRead the Press Release
MARQUETTE, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Todd Stafford, 60, of Bailey’s Harbor, Wisconsin, was sentenced to 156 months in prison followed by five years of supervised release after being convicted of coercion and enticement of a minor and two counts of travel in interstate commerce with intent to engage in illicit sexual conduct.
“Mr. Stafford preyed on minors and today he was held accountable for his predatory actions,” said U.S. Attorney Mark Totten. “Let this be a clear message to those who seek to exploit our children and think they can hide. Protecting our most vulnerable is, and will continue to be, a top priority for our office.”
Stafford was convicted at a jury trial. The jury heard evidence that Stafford met the minor victim, who was under sixteen years of age, online. Stafford twice traveled from Wisconsin to Michigan hoping to have sex with the minor. Eventually the minor’s father found conversations and contacted law enforcement. The minor’s father and Iron Mountain Police Department took over communications with Stafford, posing as the minor and arranging to meet Stafford again. In late July 2023, Stafford again traveled to Michigan where law enforcement met and arrested him.
“Today’s sentencing of Mr. Stafford is a direct result of the hard work of the men and women of the FBI Detroit Field Office’s Marquette Resident Agent, the Iron Mountain Police Department, and the U.S. Attorney’s Office”, said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “Any criminal act and/or its attempt, especially involving minors, will not be tolerated and the FBI will investigate and arrest anyone who engages in this illegal behavior.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following website: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case was investigated by the FBI and the Iron Mountain Police Department.
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West Sacramento Man Sentenced to Ten Years in Prison for Fentanyl Pill and Cocaine TraffickingRead the Press Release
SACRAMENTO, Calif. — Christian Anthony Romero, 28, of West Sacramento, was sentenced yesterday by United States District Judge Dale A. Drozd to 10 years in prison for conspiracy distribute and possess with intent to distribute fentanyl pills and cocaine, United States Attorney Phillip A. Talbert announced.
According to court documents, Romero distributed thousands of fentanyl-laced counterfeit oxycodone M-30 pills and cocaine on behalf of a Sacramento-based drug trafficking organization. From at least May 2019 through January 2021, the organization imported fentanyl M-30 pills from Mexico and distributed them, as well as cocaine and methamphetamine, throughout northern California and in Nevada. The organization was led by Jose Lopez-Zamora in Sacramento and his Mexico-based brother and drug trafficking partner, Luis Lopez Zamora.
On Sept. 4, 2020, Romero sold approximately 1,000 fentanyl M-30 pills to an undercover officer for $9,000. During October through December 2020, evidence obtained during court-ordered wiretaps of Jose Lopez-Zamora and Luis Lopez Zamora’s cellphones revealed that Romero stored fentanyl pills and cocaine at his residence in West Sacramento and sold thousands of fentanyl pills on behalf of the organization. Evidence from the wiretap investigation also revealed that Romero contributed money to, and was kept apprised of, large loads of fentanyl M-30 pills that the organization imported from Mexico, including two loads that were seized by law enforcement on Nov. 26, 2020, (about 11,000 pills) and Dec. 5, 2020, (7,727 pills).
On Jan. 13, 2021, law enforcement executed a federal search warrant at Romero’s West Sacramento residence, where he lived with his girlfriend and two young children. During the search, agents found more than 1,000 fentanyl M-30 pills in the same room as a loaded 9 mm Ruger pistol, and 7.62 caliber rifle, and a .223 caliber rifle.
This case was the product of an investigation by the Drug Enforcement Administration, with assistance from Homeland Security Investigations, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Yuba-Sutter Narcotic and Gang Enforcement Task Force (NET-5), the California Highway Patrol, the Butte Interagency Narcotics Task Force (BINTF), the Tri-County Drug Enforcement Team (TRIDENT), the Sacramento County Sheriff’s Department, the Sacramento Police Department, the Roseville Police Department, the Manteca Police Department, the Yuba City Police Department, and the West Sacramento Police Department. Assistant United States Attorney David W. Spencer is prosecuting the case.
Seven other defendants have pleaded guilty:
- Rudi Jean Carlos pleaded guilty and, on Oct. 11, 2022, was sentenced to 10 years and one month in prison.
- Jason Lamar Lee pleaded guilty and, on Oct. 11, 2022, was sentenced to eight years and seven months in prison.
- Javier Hernandez pleaded guilty and, on Nov. 8, 2022, was sentenced to two years and eight months in prison.
- Christopher Kegan Williams pleaded guilty, and on Dec. 14, 2021, was sentenced to two and a half years in prison.
- Baudelio Vizcarra Jr., pleaded guilty, and on Jan. 24, 2023, was sentenced to two and a half years in prison.
- Mateo Elias Guerrero-Gonzales pleaded guilty and, on Oct. 11, 2022, was sentenced to two years and three months in prison.
- Alejandro Tello pleaded guilty and is scheduled to be sentenced on Sept. 3, 2024.
Charges are pending against the following defendants: Jose Guadalupe Lopez-Zamora, Luis Lopez Zamora, Leonardo Flores Beltran, Joaquin Alberto Sotelo Valdez, Erika Gabriela Zamora Rojo, Jose Luis Aguilar Saucedo, Rosario Zamora Rojo, and Sandro Escobedo. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Luis Lopez Zamora was extradited from Mexico to the United States on April 17, 2024, following his arrest by Mexican authorities on a warrant based on a U.S. extradition request.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Waterbury Teens Charged with Stealing 21 Guns from Salem Store; Gun Trafficking and Carjacking OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and James Ferguson, Special Agent in Charge, ATF Boston Field Division, today announced that a federal grand jury in New Haven has returned an indictment charging TYSSAN WOODS, also known as “Tigger,” 18, and EDUARDO CRUZ, 18, both of Waterbury, with offenses related to the theft of firearms from a licensed gun dealer in Salem, the trafficking of stolen firearms, and two armed carjackings.
As alleged in court documents and statements made in court, on March 15, 2024, Woods, Cruz, and others stole 21 firearms from Statewide Pawn Shop, a federal firearms licensee in Salem. Cruz trafficked some of the firearms before he was arrested on March 18, 2024. After the burglary, Woods, using a firearm, and another individual committed two carjackings. Woods was arrested on March 28, 2024.
To date, eight of the stolen firearms have been recovered by law enforcement.
The indictment, which was returned on June 25, 2024, charges Woods and Cruz with theft of firearms from a licensee, an offense that carries a maximum term of imprisonment of 10 years; Cruz with two counts of firearms trafficking, an offense that carries a maximum term of imprisonment of 15 years on each count; Woods with two counts of carjacking, an offense that carries a maximum term of imprisonment of 15 years on each count; and Woods with using a firearm during and in relation to a crime of violence, an offense that carries a mandatory term of imprisonment of seven years and a maximum term of imprisonment of life.
Woods and Cruz have been detained since their arrests. They each appeared yesterday in Hartford federal court and entered pleas of not guilty.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Connecticut State Police, and the Waterbury, Stamford, and Wolcott Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Sean Mahard through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
U.S. Attorney Avery noted that this case is being prosecuted, in part, under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted, and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking of firearms.
Wadesboro Man in Possession of A Stolen Firearm Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that Patrick Taylor, 26, of Wadesboro, N.C., was sentenced to 10 years in prison on Tuesday, followed by three years of supervised release for possession of a stolen firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. This sentence will be served in conjunction with related offenses for which Taylor is currently serving state terms of imprisonment.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief J. Bryan Gilliard of the Monroe Police Department (MPD), join U.S. Attorney King in making today’s announcement.
According to court documents and the sentencing hearing, on June 6, 2022, MPD officers received information that Taylor was driving a stolen vehicle in the Monroe area. MPD officers located the vehicle and attempted to conduct a vehicle stop. Court documents show that the vehicle failed to stop and instead increased its speed, driving around other vehicles and through a median. Eventually, the vehicle drove through a grassy area before crashing. When the vehicle came to a stop, Taylor jumped out and fled into a wooded area. MPD officers pursued on foot until they lost sight of Taylor.
According to court records, law enforcement located Taylor in a nearby field and the defendant was subsequently arrested. Once Taylor was apprehended, court documents show that law enforcement located a firearm near where Taylor had been located. During the investigation, law enforcement determined that Taylor had stolen the firearm from another individual a few days prior, and that the firearm had been reported stolen.
On December 20, 2023, Taylor pleaded guilty to possession of a stolen firearm. Taylor will remain in federal custody until he is transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended ATF and the Monroe Police Department for their investigation of the case and thanked the Union County Sheriff’s Office for their invaluable assistance.
Special Assistant U.S. Attorney (SAUSA) William Wiseman of the U.S. Attorney’s Office in Charlotte prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 26th Prosecutorial District and the United States Attorney’s Office.
In July 2022, the U.S. Attorney’s Office launched Think Again, an informational campaign to educate the public on how to prevent illegal firearms from getting into the wrong hands. The U.S. Attorney’s Office has partnered with the ATF in this initiative, in an effort to reduce gun-induced violence and to increase reporting of illegal firearms. The campaign encourages the public to submit an anonymous tip about illegal firearms and other criminal activity to the ATF by calling 1-888-ATF-TIPS (1-888-283-8477), via text at 63975, or online at WWW.ATF.GOV/ATF-TIPS.
For additional information about our Think Again initiative, please visit our website. You can view our Think Again Public Service Announcements here.
Virginia Man Indicted for Producing Sexually Explicit Videos of a Minor and Exploiting a Minor OnlineRead the Press Release
MINNEAPOLIS – A Virginia man has been indicted for using social media to contact and coerce a minor to create sexually explicit material, announced U.S. Attorney Andrew M. Luger.
According to court documents, between November 2023 and February 2024, Raymond Jung Woo Choi, 41, of Centreville, Virginia, used Instagram and other social media apps to engage in sexually-focused conversations with a 13–14-year-old girl. Choi, using the alias “Jason Lee,” knowingly enticed and coerced the minor victim to send him sexually explicit images and videos on Instagram. Choi also groomed and enticed the minor victim by providing gifts, which he sent via Amazon or mailed directly via the U.S. Postal Service.
According to court documents, on February 17, 2024, Choi flew from Virginia to Minnesota to attempt to meet the minor victim in person. Because of family and law enforcement intervention, Choi was unsuccessful in his meeting attempt and flew back to Virginia.
On July 13, 2024, Choi was arrested in Fairfax City, Virginia. On July 15, 2024, Choi made his initial appearance in U.S. District Court in the Eastern District of Virginia before Magistrate Judge Lindsey R. Vaala. On July 17, 2024, Choi was ordered detained and will remain in custody pending further proceedings in the District of Minnesota. The indictment charges Choi with one count of production of child pornography, one count of receipt of child pornography, and one count of coercion and enticement of a minor.
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. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by the Anoka County Sheriff’s Office and U.S. Postal Inspection Service.
Assistant U.S. Attorney Hillary A. Taylor is prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Violet, Louisiana Man Pleads Guilty to Firearms OffensesRead the Press Release
NEW ORLEANS, LA - United States Attorney Duane A. Evans announced that MALI WILLIAMS (“WILLIAMS”), age 26, of Violet, Louisiana, pled guilty on July 15, 2024 , before United States District Judge Jay C. Zainey to possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
According to court documents, on October 12, 2023, New Orleans Police Officers saw WILLIAMS selling marijuana in the Central Business District of New Orleans. While attempting to flee from police, WILLIAMS dropped his backpack. Upon searching the backpack, officers discovered marijuana and tapentadol tablets. When apprehended, WILLIAMS possessed a Taurus Model G3C, nine-millimeter semi-automatic pistol.
WILLIAMS faces a minimum of five (5) years up to a maximum of life imprisonment, a fine of up to $250,000, up to five (5) years of supervised release, and a mandatory special assessment fee of $100.00. WILLIAMS is scheduled for sentencing on October 15, 2024.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The case is being prosecuted by Special Assistant U.S. Attorney James Ollinger of the Violent Crime Unit.
U.S. Attorney’s Office Announces Guilty Plea for Felony Assault within Navajo NationRead the Press Release
ALBUQUERQUE – A Shiprock man pleaded guilty in federal court to assault charges arising from a 2020 assault and theft of a motor vehicle within the Navajo Nation.
According to publicly available court documents, on May 17, 2020, the victim, John Doe, was parked in his car at the Gulf Gas Station in Shiprock when Daryl Levi, 41, an enrolled member of the Navajo Nation, attacked Doe and took his vehicle. Doe suffered bodily injury including bruises and contusions.
In his plea agreement, Levi admitted that he participated in the assault with the intent to take John Doe’s motor vehicle. He will remain in custody pending sentencing which has not yet been set.
At sentencing, Levi faces a mandatory term of incarceration of no less than thirty-seven months up to a maximum of no more than forty-six months in prison. Upon his release from prison, Levi will be subject to up to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorney Mark A. Probasco is prosecuting the case.
View the Plea Agreement# # #
Two Men Plead Guilty to Assaulting Correctional Officer at United States Penitentiary AtwaterRead the Press Release
FRESNO, Calif. — Daniel Higgins, 39, of Morro Bay, California, and Austin Noblitt, 35, of Portland, Oregon, pleaded guilty today to Assault on a Federal Officer or Employee, United States Attorney Phillip A. Talbert announced.
According to court documents, Higgins and Noblitt assaulted a Federal Bureau of Prisons Correctional Officer at United States Penitentiary (USP) Atwater in Merced County. As a result of the assault, the Correctional Officer suffered multiple lacerations to the face and was transported to the local hospital for treatment.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Chan Hee Chu and Jeffrey A. Spivak are prosecuting the case.
Higgins and Noblitt are scheduled to be sentenced on October 7, 2024. Higgins and Noblitt face a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Three Twin Cities Men Sentenced to Prison for Trafficking Machineguns on SnapchatRead the Press Release
ST. PAUL, Minn. – Three Twin Cities men have been sentenced to prison for operating a social media-based machinegun distribution ring, announced United States Attorney Andrew M. Luger.
According to court documents, in March 2023, law enforcement learned of a Snapchat group called “BLICCS&STICCS3.” Members Rafael Carter Wesley, 19, Kyrees Darius Johnson, 22, and Avont Akira Drayton, 21, used the group to facilitate the trafficking of machineguns, firearms, and controlled substances in the Twin Cities and outlying areas. Law enforcement obtained screenshots and videos of several individuals in the group selling, promoting, and operating machinegun conversion devices (MCDs, also commonly referred to as “switches” or “auto sears”) that convert a semi-automatic firearm—either a pistol or a rifle—into a fully automatic machinegun. These devices are classified as machineguns and are regulated under the National Firearms Act (NFA).
According to court documents, on March 20, 2023, an undercover law enforcement officer began monitoring the group. The undercover officer posted a picture of a prop firearm to the BLICCS&STICCS3 group. Shortly thereafter, Wesley reached out to the undercover officer and asked if he wanted to trade the firearm for what is commonly referred to as a Glock “switch” or a “button.” On or about March 26, 2023, the undercover officer continued conversations with Wesley on Snapchat about potentially purchasing Glock “switches.” Wesley indicated “switches” would cost $700 for two or $900 for three. The undercover officer agreed to purchase three switches for $900 and indicated he would pay an extra $100 if Wesley drove up to St. Cloud to deliver the switches. On March 27, 2023, Wesley met the undercover officer in St. Cloud and sold him three switches for $1,000.
On April 4, 2023, a second transaction was arranged through Wesley with a St. Paul meeting location. Johnson also arrived at the transaction with three switches, which Johnson and Wesley sold to the undercover officer for $900. At the time, Johnson had four prior felony convictions, which rendered him prohibited from possessing any firearms or ammunition. During the investigation, Johnson was observed by law enforcement posting images of large quantities of guns and MCDs to the Snapchat group and offering them for sale. Johnson also posted images and messages that showed him to be trafficking in controlled substances, including blue fentanyl pills.
On April 13, 2023, undercover officers met with Wesley in Minneapolis to purchase an unserialized Glock 17 for $700. Following the transaction, the undercover officers asked Wesley to install the switch previously purchased from Wesley onto the Glock 17. Wesley agreed and installed the switch.
That same day, Wesley separately coordinated a meeting during which undercover officers met with Drayton, another member of the BLICCS&STICCS3 Snapchat group, to purchase a 3D-printed drop-in MCD for an AR-style rifle for $550. During the transaction, Drayton showed the undercover officers a video on his phone of Drayton shooting a firearm with a drop-in MCD inserted. Drayton commented to the undercover officers that the drop-in made the firearm shoot “way too [expletive] fast.” On May 11, 2023, an undercover officer directly arranged to meet with Drayton at a location in Eagan to purchase two drop-in MCDs for $800. However, when Drayton arrived at the meeting location, he stated that he had only had one MCD and sold it to the undercover officer for $400. On June 9, 2023, undercover officers again met with Drayton and purchased a Glock pistol and a “switch” for $1,300.
According to court documents, between March and June 2023, undercover law enforcement officers conducted approximately six controlled buys with multiple members of the BLICCS&STICCS3 group.
All three defendants pleaded guilty to one count of unlawful possession of machineguns. Johnson was sentenced yesterday in U.S. District Court by Judge Donovan W. Frank to 95 months in prison followed by three years of supervised release. On July 10, 2024, Wesley was sentenced to 14 months in prison followed by three years of supervised release. On April 23, 2024, Drayton was sentenced to 24 months in prison followed by three years of supervised release.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Central Minnesota Violent Offender Task Force, the St. Paul Police Department, the Minneapolis Police Department, and the Dakota County Drug Task Force.
Assistant U.S. Attorneys Ruth S. Shnider and Jordan L. Sing prosecuted the case.
Tennessee Man Sentenced to 20 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
Benjamin Carpenter, also known as Abu Hamza, 34, of Knoxville, Tennessee, was sentenced today to 20 years in prison followed by 20 years of supervised release for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS) in connection with providing translation services to ISIS, a designated foreign terrorist organization.
“For years, this defendant led a global digital media operation to distribute pro-ISIS propaganda, promoting the group’s radical message of terror and pushing it to every corner of the world,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s sentence reflects the seriousness of this defendant’s conduct and the Justice Department’s commitment to identifying and holding accountable those who would provide material support to foreign terrorist organizations.”
“Combating terrorism and keeping our communities safe are the highest priorities of the United States Attorney’s Office,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “This case deals a serious blow to the expansion of ISIS and its broken message of hatred and senseless violence.”
“With today’s sentencing, Carpenter is being held accountable for betraying his country and helping ISIS terrorists,” said Executive Assistant Director Robert Wells of the FBI's National Security Branch. “He led a propaganda machine which called for war against U.S. and allied forces through suicide bombings and other means. The FBI and our partners will relentlessly pursue and bring to justice terrorists who devote their lives to hurting American citizens.”
According to court documents, on Oct. 19, 2023, following an eight-day trial in U.S. District Court, a jury convicted Carpenter of attempting to provide material support to ISIS. The evidence presented at trial demonstrated that Carpenter served as the leader of Ahlut-Tawhid Publications, an international organization of pro-ISIS “munasirin” (i.e., supporters), dedicated to translating, producing and distributing ISIS propaganda throughout the world. For years, Carpenter, using his alias Abu Hamza, published a large body of ISIS media, including his weekly newsletter entitled From Dabiq to Rome, a periodical that celebrated the deaths of American soldiers, glorified suicide bombers and called for open war against the United States and its Western allies, among other pro-ISIS propaganda themes. In 2020 and 2021, Carpenter contacted an individual he believed to be affiliated with ISIS’ central media bureau and provided translation services for a project intended to relaunch Al-Hayat Media Center, ISIS’ official foreign-language media arm. Unbeknownst to him, that individual was an FBI undercover employee who had infiltrated Carpenter’s group.
The FBI Knoxville Field Office is investigating the case, with assistance from FBI Field Offices from across the country.
Assistant U.S. Attorneys Kyle J. Wilson and Casey T. Arrowood for the Eastern District of Tennessee and Trial Attorney Charles J. Kovats Jr. of the National Security Division’s Counterterrorism Section prosecuted the case.
Summerville Man Sentenced to 17 Years in Federal Prison for Possession of Child Sex Abuse MaterialsRead the Press Release
CHARLESTON, S.C. — Adam Baez, 46, of Summerville, was sentenced to 17 years in federal prison after pleading guilty to possession of child sexual abuse materials.*
Evidence presented to the court showed that Baez possessed more than 600 images of prepubescent child sexual abuse materials on multiple electronic devices. In addition to the possession of the images, evidence showed that Baez exploited a minor victim over the course of several years and produced images of this minor victim.
United States District Judge David C. Norton sentenced Baez to 210 months' imprisonment, to be followed by a lifetime term of court-ordered supervision. There is no parole in the federal system. Baez was also ordered to pay $15,000.00 in restitution to the identified victims of his offense.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Amy F. Bower is prosecuting the case.
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* The term “child pornography” is currently used in federal statutes and is defined as any visual depiction of sexually explicit conduct involving a person less than 18 years old. While this phrase still appears in federal law, “child sexual abuse material” is preferred, as it better reflects the abuse that is depicted in the images and videos and the resulting trauma to the child.
Springfield, Illinois, Man Sentenced to 120 Months for Drug Trafficking Associated with Street GangRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Christopher Wallace, 32, was sentenced on July 15, 2024, to 120 months in prison, to be followed by three years of supervised release, for his role in a wide-spread drug conspiracy involving a Springfield street gang, Boss Playas, which lasted from approximately May 2020 through November 2020.
At the sentencing hearing, Senior U.S. District Judge Sue Myerscough found Wallace was accountable for over 10 kilograms of cocaine as a member of the conspiracy. During the hearing, Judge Myerscough noted that the group of conspirators were responsible for distributing large amounts of controlled substances in the Springfield area, which had a negative effect on the community.
Wallace was indicted on December 15, 2020; arrested on September 8, 2022; and pleaded guilty on February 22, 2024. He has remained in the custody of the United States Marshal since his arrest.
The statutory penalties for the most serious charge of conviction – conspiracy to distribute cocaine – include not more than twenty years’ imprisonment, up to a $1,000,000 fine, and up to a life term of supervised release.
This case was investigated by the Drug Enforcement Administration; Federal Bureau of Investigation, Springfield Field Office; Illinois State Police; and Springfield Police Department Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Wallace was part of an investigation of the Springfield based Boss Playas street gang and was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Spree of Gunpoint Pharmacy Robberies in Va. and Md. Nets District Man a 157-Month Prison SentenceRead the Press Release
WASHINGTON – Floyd Neal, 31, of Washington D.C., was sentenced today to more than 13 years in prison for his role in a rash of 2021 gunpoint robberies of pharmacies in Maryland and Virginia, announced U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office Criminal and Cyber Division.
Neal pleaded guilty on March 18, 2024, before U.S. District Judge Amy Berman Jackson to three counts of interference with commerce by robbery and aiding and abetting (also known as Hobbs Act robbery). He also pleaded guilty to using, carrying, and possessing a firearm during a drug trafficking offense.
In addition to the 157-month prison term, Judge Berman Jackson ordered Neal to serve five years of supervised release.
According to court documents, on February 14, 2021, Neal and two co-conspirators traveled from the District to a pharmacy in Henrico, Virginia. Neal approached the pharmacy counter, brandished a firearm, and ordered the pharmacist to hand over codeine, hydrocodone, and oxycodone. Neal held one employee at gunpoint while a co-conspirator demanded the pharmacist open the prescription safe. After grabbing prescription narcotics and amphetamines, they fled in a red SUV driven by another co-conspirator.
On March 25, 2021, Neal and a co-conspirator traveled from the District to a pharmacy in Alexandria, Virginia. They entered the store wearing yellow construction vests and posed as customers by grabbing beer. Then the co-conspirator shouted: “Give me all the money,” and indicted that he had a firearm. The men then ordered two employees into the store’s office before taking between $7,000 to $10,000 from the safe. The men fled in a 2005 silver sedan.
On March 31, 2021, Neal and two co-conspirators drove to a pharmacy in Beltsville, Maryland. A co-conspirator went behind the counter, grabbed a store employee, and demanded the code to the store’s safe. While the robbery was in progress, the store’s manager entered the store. Neal’s co-conspirator forced the store’s manager into the back office where Neal was watching the other employee. The co-conspirator forced the manager to open the safe and then stole the contents. Neal remained at the front of the store to empty the contents of the cash registers. The trio then fled in a dark sedan with silver trim.
On April 1, 2021, Neal and a co-conspirator traveled to a pharmacy in Manassas, Virginia. One employee locked herself in the back office. Another employee ran to the front where the co-conspirator grabbed them by the neck. Threatening the employees, Neal ordered them to give him “percocets and oxys” or else he would hurt them. Neal also ordered an employee to open the cash registers. Police arrested Neal and the co-conspirator after they fled the pharmacy. A search revealed a loaded 9mm Hipoint C9 firearm in the vicinity of the pharmacy. Each of the pharmacies robbed by Neal is part of a national chain of retailers and the robberies impacted interstate commerce.
This case was investigated by the FBI Violent Crimes Task Force with valuable assistance from local law enforcement in Virginia, Maryland, and Washington, D.C. It is being prosecuted by Assistant U.S. Attorneys Joshua Gold and Cameron Tepfer of the District of Columbia.
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South Bend Woman Sentenced to 12 Months in Prison and Ordered to Pay over Half a Million Dollars RestitutionRead the Press Release
SOUTH BEND – Robin Hood, 59 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to wire fraud, announced United States Attorney Clifford D. Johnson.
Hood was sentenced to 12 months in prison, 1 years of supervised release, and was ordered to pay $549,000 in restitution to the victim of the offense.
According to documents in the case, between 2016 and 2021, Hood embezzled at least $549,000.00 from her employer. Hood issued checks to herself and transferred money to herself from her employer’s accounts for funds to which she was not entitled.
This case was investigated by the Federal Bureau of Investigation with assistance from the LaPorte County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Luke N. Reilander.
Serial fraudster sentenced to more than two years in federal prison for scamming student insurance programRead the Press Release
ALEXANDRIA, Va. – An Alexandria woman was sentenced today to two years and two months in prison for repeatedly submitting fraudulent health insurance claims and illegally collecting $128,748 in payments to which she was not entitled.
According to court documents, in 2018, Khin Phoo Ngon, aka Karen Ngon and Kyaw Zaw Ni, 27, was a student at George Washington University and enrolled in a study-abroad program in Sydney, Australia. Ngon purchased a health insurance policy through Cultural Insurance Services International (CISI), a company that provides health insurance for study-abroad students and educational travel groups. Under CISI’s policies, when students pay out-of-pocket for health-related costs abroad, they can submit claims for reimbursement along with an image of the claim and proof of payment.
On Nov. 13, 2018, Ngon submitted a fraudulent claim for reimbursement for an appendectomy, purportedly performed at St. Vincent’s Hospital in Sydney, along with a forged invoice for $107,368.31 in Australian currency (approximately $79,715 U.S.). The claimed dates of service were Oct. 28-29, 2018, during which time Ngon was in the United States. CISI paid the claim.
In 2019, Ngon enrolled in another study-abroad program, this time in Zurich, Switzerland. Ngon traveled to Switzerland, but withdrew from the program and returned to the United States on June 10, 2019. Prior to returning, however, Ngon submitted a fraudulent claim to CISI for treatment for a “minor heart attack,” along with a forged invoice from University Hospital of Zurich for 48,670 Swiss francs (approximately $49,029 U.S.). Ngon received treatment at University Hospital of Zurich, but the actual payment was 800 Swiss francs. CISI paid the claim, and Ngon used proceeds from the second reimbursement to pay restitution in a prior criminal case in which she committed fraud and identity theft.
Ngon later purchased a second policy through CISI. On July 23, 2019, she submitted a fraudulent claim, asserting that she had had her appendix removed again at St. Vincent’s Hospital in Sydney, along with a forged invoice for $152,368.31 Australian (approximately $106,606 U.S.). The claimed dates of service were July 14-15, 2019, and, again, Ngon was in the United States on the purported dates of service. This time, CISI denied the claim.
On Dec. 18, 2019, Ngon submitted a fourth claim, this time for emergency dental care in Brussels, Belgium, along with forged records indicating she had paid €15,175 to a dentist and €3,719 to a pharmacy (approximately $21,040 U.S.). The claimed date of service was Dec. 16, 2019, on which date Ngon was in the United States. CISI denied this claim as well.
Additionally, Ngon recently pled guilty to fraud and identity theft charges in the District of Columbia in connection with a scheme she engaged in to defraud a pandemic relief program. In response to the COVID-19 pandemic, the District of Columbia implemented the STAY DC program, a means-tested program to provide financial relief to qualifying renters experiencing financial hardship. Beginning in 2021, Ngon submitted fraudulent applications for relief through the program, four times in her own name and three times in the names of others, including one person who did not live in Washington, resulting in program payouts that cost the District of Columbia more than $246,000. On April 23, Ngon pled guilty in the D.C. Superior Court to six charges related to the fraud on STAY DC. Sentencing in that case is set for Aug. 9.
After Ngon pleaded guilty to the charges in the Eastern District of Virginia and in Washington, D.C., she directed her sister to create websites in her own name with false information about her educational, professional, and philanthropic history. One of the websites purported to be for a fictitious charity founded by the defendant to provide food and other aid to the people of Myanmar, and advertised “partnership opportunities,” including the opportunity to make “financial contributions.” At sentencing, Ngon acknowledged this additional deceptive conduct.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and David J. Scott, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.
Assistant U.S. Attorney Katherine E. Rumbaugh prosecuted 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. 1:24-cr-62.
Serial Armed Robber Sentenced to 49 Years in Federal Prison for 7 Midlands Armed RobberiesRead the Press Release
COLUMBIA, S.C. — Deveon Antonio Belk, 37, of Irmo, was sentenced to 49 years in prison after being convicted for a 2020 string of Midlands armed robberies.
Belk was convicted following a multi-day trial in November of 2023. He was found guilty on 15 counts: seven counts of Hobbs Act robbery, seven counts of brandishing a firearm in furtherance of a crime of violence, and one count of felon in possession of firearm and ammunition.
Evidence presented to the court showed that in November of 2020, Belk began a spree of armed robberies across Richland and Lexington counties. The targets included gas stations, fast food restaurants, and drug stores. Belk would enter the store and often pretend as if he were going to purchase an item. When the cashier would open the cash register to finish his transaction, instead of paying, Belk would brandish a firearm and demand money. Belk would use physical force, including pressing the end of a handgun into his victims, and he would force them into locked rooms at their businesses. He also cocked the firearm at several victims, held his finger on the trigger during one robbery, and some victims reported believing they were going to be shot.
During trial, 14 of the 22 identified victims testified, including a 16-year-old cashier. Every robbery, as well as Belk’s approach to and flight from many of the crime scenes, was recorded on surveillance video. Numerous people who knew Belk, including Belk’s wife, testified at trial that it was Belk on video committing the robberies. His DNA was found on clothing left near four of the seven robberies, and on the firearm used in every robbery. The Government produced evidence that Belk was responsible for at least 13 armed robberies, and law enforcement believes Belk was responsible for more, according to what was presented in court.
Belk has 13 prior criminal convictions, including strong armed robbery, in a case that involved the theft of a vehicle and money while armed with a firearm; multiple criminal domestic violence convictions, including one involving physical violence against a woman while she was holding a child; grand larceny; failure to stop for police; and drug possession. Belk was also prohibited from possessing firearms by virtue of prior felony convictions.
“Dozens of people at businesses across the Midlands waited in fear wondering if they would be the next target of Belk’s armed robbery spree,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “Thanks to the relentless work of multiple law enforcement agencies, he will spend almost 50 years in federal prison.”
“Belk’s violent crimes profoundly impacted the safety of our communities and caused long-lasting fear for his victims,” said Steve Jensen, Special Agent in Charge of the FBI Columbia Field Office. “This outcome underscores the FBI’s commitment to upholding the rule of law and taking violent offenders of the street.”
“This sentencing is the result of law enforcement collaboration that ensures Deveon Belk will face federal consequences and can no longer commit additional crimes,” said Columbia Police Chief W.H. “Skip” Holbrook.
“The resolution of this case is the direct result of strong relationships between multiple law enforcement agencies and prosecutors. This convicted robber is off the streets because we shared information and worked together to investigate at multiple offenses,” Lexington County Sheriff Jay Koon said. “Our community is safer thanks to a spirit cooperation at the local and federal level.”
United States District Judge Mary Geiger Lewis sentenced Belk to 589 months' imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. He was also ordered to pay $2,723.63 in restitution.The case was investigated by the FBI Columbia Field Office, the Richland County Sheriff’s Department, the Lexington County Sheriff’s Department, and the Columbia Police Department, with critical assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the South Carolina Law Enforcement Division (SLED).
Assistant U.S. Attorneys Elliott B. Daniels, Lamar J. Fyall and Ariyana N. Gore prosecuted the case.
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Sand Springs Couple Sentenced for Sexually Abusing Two Minor ChildrenRead the Press Release
TULSA, Okla. – Today, U.S. District Judge John D. Russell ordered Shawn William Gossett, 34, to 360 months imprisonment, followed by lifetime supervised release. Upon his release, Gossett will be required to register as a sex offender. Gossett’s wife, Amanda Nicole Bynum, 36, a member of the Choctaw Nation of Oklahoma, was sentenced in May and ordered to 120 months imprisonment, followed by five years of supervised release.
In September 2023, Gossett pled guilty to Abusive Sexual Contact with a Child Under 12 in Indian Country and Child Abuse in Indian Country. He admitted to having sexually abusive contact with two separate child victims who were under the age of 12. Gossett further admitted to physically abusing one of the child victims by kicking and choking the child.
Bynum pled guilty in August 2023 to Child Neglect in Indian Country and Enabling Child Abuse in Indian Country. She admitted to not ensuring the health, welfare, and safety of the two child victims in her care. Additionally, Bynum admitted to enabling and witnessing Gossett sexually abusing the two child victims.
Both child victims are citizens of the Choctaw Nation of Oklahoma. Gossett and Bynum will remain in custody pending transfer to the U.S. Bureau of Prisons.
The FBI and the Creek County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Nathan E. Michel and Stephanie N. Ihler prosecuted the case.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 tab on that page.
Russian International Money Launderer Sentenced to 36 Months in Prison for Illicitly Procuring Large Quantities of U.S.-Manufactured Dual-Use, Military Grade Microelectronics for Russian EntitiesRead the Press Release
Maxim Marchenko, 52, was sentenced today to three years in prison followed by three years of supervised release for his role in procuring dual-use, military grade OLED micro-displays for Russian end users.
“Today’s sentence holds Mr. Marchenko accountable for his role in a procurement syndicate that funneled U.S.-manufactured military-grade microelectronics to end users in Russia, illegally delivering controlled technologies worth hundreds of thousands of dollars,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department remains relentlessly focused on dismantling illicit procurement networks led by individuals like the defendant, who use their business skills and connections to advance the Russian war agenda.”
“The transshipment of military-grade microelectronics through Hong Kong to Russia helps fuel the engine of Russia’s war machine,” said Assistant Secretary of Commerce Matthew S. Axelrod for Export Enforcement. “Today’s sentencing is just the latest example of our unceasing efforts to target and disrupt illegal Russian procurement networks.”
“This office will stop at nothing to hold accountable those who seek to circumvent our laws to gain access to some of our most sensitive technologies,” said U.S. Attorney Damian Williams for the Southern District of New York. “Today’s sentence should be a reminder that no number of shell companies or obfuscation will stop this office in its pursuit of those who seek to illicitly gain access to controlled technologies.”
“Marchenko and his co-conspirators operated an international smuggling network of sensitive microelectronics used in military gear and other weapons systems,” said Executive Assistant Director Robert Wells of the FBI National Security Branch. “Today’s sentencing demonstrates the FBI’s resolve in doing our part to protect national security and prevent American military technology from being diverted to foreign adversaries and hostile nation states.”
According to court documents, Marchenko is a Russian national who resides in Hong Kong and operates several Hong Kong-based shell companies, including Alice Components Co. Ltd. (Alice Components), Neway Technologies Limited (Neway) and RG Solutions Limited (RG Solutions). Marchenko and two co-conspirators, who are also Russian nationals, operate an illicit procurement network in Russia, Hong Kong and elsewhere overseas. This procurement network has fraudulently obtained from U.S. distributors large quantities of dual-use, military grade microelectronics, specifically OLED micro-displays, on behalf of Russia-based end users. To carry out this scheme, Marchenko and his co-conspirators used shell companies based in Hong Kong and other deceptive means to conceal from U.S. government agencies and U.S. distributors that the OLED micro-displays were destined for Russia. The technology that Marchenko and his co-conspirators fraudulently procured have significant military applications, such as in rifle scopes, night vision goggles, thermal optics and other weapon systems.
To perpetrate the scheme, Marchenko and other members of the conspiracy acquired the dual-use OLED micro-displays from U.S.-based distributors using Marchenko’s Hong Kong-based shell companies, including Alice Components, Neway and RG Solutions. Members of the conspiracy, including Marchenko, procured these sensitive microelectronics by falsely representing to the U.S. distributors (who, in turn, are required to report to U.S. agencies) that Alice Components was sending the shipments to end users located in China, Hong Kong and other countries outside of Russia for use in electron microscopes for medical research or hunting rifles. In reality, the OLED micro-displays were destined for end users in Russia. Marchenko and other members of the conspiracy concealed the true final destination (Russia) from U.S. distributors for the purpose of causing false statements to the U.S. agencies.
To conceal the fact that these OLED micro-displays were destined for Russia, Marchenko and other members of the conspiracy worked together to transship the illicitly procured OLED micro-displays by using pass-through entities principally operated by Marchenko in third countries, such as Hong Kong. Marchenko then caused the OLED micro-displays to be shipped to the ultimate destination in Russia using, among other entities, a freight forwarder known to provide freight forwarding services to Russia. In addition, Marchenko and other members of the conspiracy used Hong Kong-based shell companies, principally operated by Marchenko, to conceal the fact that payments for the OLED micro-displays were coming from Russia. In total, between in or about May 2022 and in or about August 2023, Marchenko’s shell companies funneled more than $1.6 million to the United States in support of the procurement network’s efforts to smuggle the OLED micro-displays to Russia.
The FBI, Commerce Department’s Bureau of Industry and Security and Department of State’s Diplomatic Security Service investigated the case with assistance from the Justice Department’s Office of International Affairs.
Assistant U.S. Attorneys Jennifer N. Ong and Shiva H. Logarajah for the Southern District of New York prosecuted the case, with assistance from Trial Attorney Garrett Coyle of the National Security Division’s Counterintelligence and Export Control Section.
Today’s actions were coordinated through the Justice Department’s Task Force KleptoCapture and the Justice and Commerce Departments’ Disruptive Technology Strike Force. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.
Russian International Money Launderer Sentenced to Three Years in Prison for Illicitly Procuring Large Quantities of U.S.-Manufactured Dual-Use, Military Grade Microelectronics for Russian EntitiesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division; Matthew S. Axelrod, the Assistant Secretary of Export Enforcement for Department of Commerce’s the Bureau of Industry and Security (“BIS”); and Robert Wells, the Executive Assistant Director of the National Security Branch of the Federal Bureau of Investigation (“FBI”), announced that MAXIM MARCHENKO was sentenced today by U.S. District Judge Nelson S. Román to three years in prison for his role in procuring dual-use, military grade OLED micro-displays for Russian end users. MARCHENKO previously pled guilty to money laundering and smuggling charges before U.S. Magistrate Judge Victoria Reznik on February 29, 2024.
U.S. Attorney Damian Williams said: “This Office will stop at nothing to hold accountable those who seek to circumvent our laws to gain access to some of our most sensitive technologies. Today’s sentence should be a reminder that no number of shell companies or obfuscation will stop this Office in its pursuit of those who seek to illicitly gain access to controlled technologies.”
Assistant Attorney General Matthew G. Olsen said: “Today’s sentence holds Mr. Marchenko accountable for his role in a procurement syndicate that funneled U.S.-manufactured military-grade microelectronics to end users in Russia, illegally delivering controlled technologies worth hundreds of thousands of dollars. The Justice Department remains relentlessly focused on dismantling illicit procurement networks led by individuals like the defendant, who use their business skills and connections to advance the Russian war agenda.”
BIS Assistant Secretary of Export Enforcement Matthew S. Axelrod said: “The transshipment of military-grade microelectronics through Hong Kong to Russia helps fuel the engine of Russia’s war machine. Today’s sentencing is just the latest example of our unceasing efforts to target and disrupt illegal Russian procurement networks.”
FBI Executive Assistant Director Robert Wells said: “Marchenko and his co-conspirators operated an international smuggling network of sensitive microelectronics used in military gear and other weapons systems. Today’s sentencing demonstrates the FBI’s resolve in doing our part to protect national security and prevent American military technology from being diverted to foreign adversaries and hostile nation states.”
According to the allegations contained in the Information and other filings and statements made in court:
MAXIM MARCHENKO is a Russian national who resides in Hong Kong and operates several Hong Kong-based shell companies, including Alice Components Co. Ltd. (“Alice Components”), Neway Technologies Limited (“Neway”), and RG Solutions Limited (“RG Solutions”). MARCHENKO and two co-conspirators (“CC-1” and “CC-2”), who are also Russian nationals, operate an illicit procurement network in Russia, Hong Kong, and elsewhere overseas. This procurement network has fraudulently obtained from U.S. distributors large quantities of dual-use, military grade microelectronics, specifically OLED micro-displays, on behalf of Russia-based end users. To carry out this scheme, MARCHENKO, CC-1, and CC-2 used shell companies based in Hong Kong and other deceptive means to conceal from U.S. Government agencies and U.S. distributors that the OLED micro-displays were destined for Russia. The technology that MARCHENKO and his co-conspirators fraudulently procured have significant military applications, such as in rifle scopes, night vision goggles, thermal optics, and other weapon systems.
To perpetrate the scheme, MARCHENKO and other members of the conspiracy acquired the dual-use OLED micro-displays from U.S.-based distributors using MARCHENKO’s Hong Kong-based shell companies, including Alice Components, Neway, and RG Solutions. Members of the conspiracy, including MARCHENKO, procured these sensitive microelectronics by falsely representing to the U.S. distributors (who, in turn, are required to report to U.S. agencies) that Alice Components was sending the shipments to end users located in China, Hong Kong, and other countries outside of Russia for use in electron microscopes for medical research or hunting rifles. In reality, the OLED micro-displays were destined for end users in Russia. MARCHENKO and other members of the conspiracy concealed the true final destination (Russia) from U.S. distributors for the purpose of causing false statements to the U.S. agencies.
To conceal the fact that these OLED micro-displays were destined for Russia, MARCHENKO and other members of the conspiracy worked together to transship the illicitly procured OLED micro-displays by using pass-through entities principally operated by MARCHENKO in third countries, such as Hong Kong. MARCHENKO then caused the OLED micro-displays to be shipped to the ultimate destination in Russia using, among other entities, a freight forwarder known to provide freight forwarding services to Russia. In addition, MARCHENKO and other members of the conspiracy used Hong Kong-based shell companies, principally operated by MARCHENKO, to conceal the fact that payments for the OLED micro-displays were coming from Russia. In total, between in or about May 2022 and in or about August 2023, MARCHENKO’s shell companies funneled more than $1.6 million to the U.S. in support of the procurement network’s efforts to smuggle the OLED micro-displays to Russia.
* * *
In addition to the prison term, MARCHENKO, 52, a Russian citizen who resided in Hong Kong, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division and the New York Field Office of the BIS. Mr. Williams also thanked the FBI’s Legal Attaché office in Australia; the U.S. Department of State’s Diplomatic Security Service; the Department of Justice’s National Security Division, Counterintelligence and Export Control Section; and the Office of International Affairs of the Department of Justice’s Criminal Division for their assistance.
This case is being handled by the Office’s White Plains Division and the Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Jennifer N. Ong and Shiva H. Logarajah are in charge of the prosecution, with assistance from Trial Attorney Garrett Coyle of the Counterintelligence and Export Control Section.
Today’s actions were coordinated through the Justice Department’s Task Force KleptoCapture and the Justice and Commerce Departments’ Disruptive Technology Strike Force. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.
- Roswell Escrow Manager to Be Sentenced for Fraud Scheme
Registered Sex Offender Sentenced to 10 Years in Prison for Child Pornography OffenseRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Bradley Michael Coleman, 39, of Strausstown, Pennsylvania, was sentenced today by United States District Court Judge Joseph F. Leeson, Jr., to 10 years’ imprisonment, 10 years of supervised release, and $35,000 in restitution on a child pornography-related charge.
Coleman was charged by information and entered a plea of guilty to one count of access with intent to view child pornography, on April 22, 2024. After having been previously convicted in Berks County for possessing child pornography, Coleman used digital currency to attempt to purchase access to child sexual abuse material on the Darkweb. Forensic analysis revealed evidence of nearly 900 images of child pornography on Coleman’s electronic devices, including images depicting very young victims.
“After having been convicted and imprisoned for this vile behavior once before, Bradley Coleman again sought out horrific images of young children being sexually abused,” said U.S. Attorney Romero. “If consumers of child pornography can’t or won’t stop acquiring it, which only perpetuates the sexual exploitation of child victims, we and our law enforcement partners will gladly step in and stop them.”
“HSI’s expertise in the evolving cyber currency domain has proven crucial to investigating the exploitation of children by criminals operating online,” said Acting Special Agent in Charge of HSI Philadelphia Sara Bay. “Through our outstanding partnership with the U.S. Attorney’s Office for the Eastern District of Pennsylvania, we continue to investigate and prosecute those individuals who prey on our children.”
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 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 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 https://www.projectsafechildhood.gov/.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorneys Rebecca J. Kulik and Priya T. DeSouza.
Rancho Cordova Man Sentenced to Fifteen Years in Prison for Drug Importation and Money Laundering OffensesRead the Press Release
SACRAMENTO, Calif. — Adan Navarro, 30, of Rancho Cordova, was sentenced yesterday by United States District Judge Dale A. Drozd to 15 years in prison for conspiracy to import heroin, methamphetamine, and fentanyl pills, conspiracy to distribute and possess with intent to distribute heroin, methamphetamine, and fentanyl pills, and conspiracy to launder money to Mexico, United States Attorney Phillip A. Talbert announced.
According to court documents, on June 2, 2020, Navarro coordinated and received a $20,000 cash payment on behalf of a Mexico-based drug trafficker in order to pay down a multi-kilogram heroin debt and to facilitate future larger shipments of heroin. On July 24, 2020, U.S. border agents seized a drug load that Navarro partially owned and coordinated. The load was seized immediately after it crossed from Mexico into the United States and contained approximately 21 pounds of pure methamphetamine, 2 kilograms of heroin, and 977 fentanyl-laced counterfeit prescription pills. Following this seizure, Navarro and an associate arranged to send additional money to a Mexico-based source of supply to coordinate a new shipment of drugs.
This case was the product of an investigation by Homeland Security Investigations, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Tri-County Drug Enforcement Team (TRIDENT), with assistance from Customs and Border Protection, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Rancho Cordova Police Department, the Citrus Heights Police Department, and the El Dorado County Sheriff’s Office. Assistant United States Attorney David W. Spencer is prosecuting the case.
Co-defendant Lionel Chavez pled guilty on March 21, 2023, and is scheduled to be sentenced on August 6, 2024.
This prosecution is part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Sacramento Strike Force is to identify, investigate, disrupt, and dismantle the most significant drug trafficking organizations (DTOs) and transnational criminal organizations (TCOs) shipping narcotics, firearms, and money through the Eastern District of California, thereby reducing the flow of these criminal resources in California and the rest of the United States. The Sacramento Strike Force leads intelligence-driven investigations targeting the leadership and support elements of these DTOs and TCOs operating within the Eastern District of California, regardless of their geographic base of operations.
Quincy Man Arrested for Making Threats Against the President of the United StatesRead the Press Release
TALLAHASSEE, FLORIDA – Jason Patrick Alday, 39, of Quincy, Florida, has been arrested on a federal criminal complaint. Jason R. Coody, United States Attorney for the Northern District of Florida, announced the charge after Alday made his initial appearance in federal court in Tallahassee.
The criminal complaint alleges that Alday engaged in sending threatening communications, making threats against the President of the United States, and threats against federal officials.
Alday was arrested by the United States Marshals Service Task Force, and the United States Secret Service on Monday. Alday was ordered detained pending trial.
The case is being investigated by the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Eric Welch.
A criminal complaint is merely an allegation by a sworn affiant that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to due process, to include a fair trial, during which it is the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Putnam County Man Sentenced to Prison for Role in Methamphetamine Trafficking OrganizationRead the Press Release
HUNTINGTON, W.Va. – Christopher Anthony O'Dell, 39, of Hurricane, was sentenced today to four years and nine months in prison, to be followed by three years of supervised release, for distribution of quantities of methamphetamine and fentanyl. O’Dell admitted to his role in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine and fentanyl in the Southern District of West Virginia.
According to court documents and statements made in court, O’Dell participated in the DTO from approximately November 2022 through November 2023. O’Dell admitted that he sold approximately 1.1 grams of fentanyl and 3.5 grams of methamphetamine for $200 to a confidential informant on August 18, 2023. O’Dell further admitted that the transaction took place at his Hurricane residence, and that he arranged it beforehand with the confidential informant by text message.
The DTO participants used a St. Albans residence to store and distribute fentanyl and methamphetamine. O’Dell conducted distributions and transported various individuals from the St. Albans residence to a Ninth Avenue residence in Huntington where they received additional amounts of fentanyl and methamphetamine before O’Dell transported them back to the St. Albans residence.
On August 28, 2023, a law enforcement officer conducted a traffic stop of a vehicle driven by O’Dell in St. Albans. The officer seized approximately 51 grams of fentanyl and two muzzleloading pistols from the vehicle during the traffic stop. O’Dell admitted that co-defendant Jashawn William Lawson was a passenger in his vehicle during the traffic stop and that he was aware that Lawson was in possession of fentanyl that Lawson was transporting to St. Albans to distribute. O’Dell further admitted to possessing the seized firearms.
O'Dell and Lawson are among 27 individuals indicted in a 53-count indictment that charges the defendants with distributing methamphetamine and fentanyl transported from Detroit, Michigan, in Huntington and other locations within the Southern District of West Virginia.
Lawson, also known as “Nitty,” 23, of Detroit, Michigan, pleaded guilty on April 16, 2024, to aiding and abetting possession with the intent to distribute 5 grams or more of methamphetamine and awaits sentencing.
O’Dell and Lawson are among 21 defendants who have pleaded guilty in the main case. One other of the 27 indicted individuals pleaded guilty to a related offense in a separate case. The indictment against the remaining defendants is pending. An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff’s Department, the Drug Enforcement Administration (DEA), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Postal Inspection Service. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-180.
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Prior Felon Sentenced to 120 Months in Federal Prison for Drug Offense and Possession of A FirearmRead the Press Release
TALLAHASSEE, FLORIDA – Adam Joseph King, 42, of Tallahassee, Florida, was sentenced to 120 months in federal prison, after previously pleading guilty for distribution of 5 grams or more of methamphetamine and possession of a firearm by a convicted felon. Jason R. Coody, United States Attorney for the Northern District of Florida, announced the sentence.
“Methamphetamine distribution is a scourge on large and small communities of our district,” said U.S. Attorney Coody. “With our dedicated law enforcement partners, we are committed to identifying and aggressively prosecuting those who threaten our citizens’ health and safety by distributing such addictive, controlled substances. This sentence acknowledges the defendant’s continued criminal conduct and sends a straightforward message that there are real and severe consequences for federal firearm and drug offenses.”
Court documents reflect that King, and others, were actively receiving and distributing pound quantities of high-purity methamphetamine in the Northern District of Florida, as well as illegally selling firearms. During targeted drug operations, between September 2022 and March 2023, King sold smaller quantities of high-purity methamphetamine and expressed his willingness to illegally obtain and sell firearms. In March 2023, King sold investigative agents approximately an ounce of methamphetamine and a semi-automatic handgun.
“Methamphetamine is a dangerous and addictive drug that destroys families and devastates communities,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “DEA remains committed to working with our local, state, and federal law enforcement partners to thoroughly investigate those who distribute this poison in our communities and hold them accountable for their actions.”
King’s prison sentence will be followed by 8 years of supervised release.
The case was investigated by the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, and Firearms, in coordination with the Tallahassee Police Department, Leon County Sheriff’s Office, and the North Florida High Intensity Drug Task Force (HIDTA). Assistant United States Attorney Eric Mountin 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 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.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Oxford Man Sentenced to Two Years in Prison for Drug ChargesRead the Press Release
BOSTON – An Oxford man was sentenced today in federal court in Boston for his role in a large-scale drug trafficking conspiracy that distributed controlled substances in and around the Quincy and Weymouth areas.
Chaasad Cyprien, 24, was sentenced by U.S. Senior District Court Judge William G. Young to two years in prison and three years of supervised release. In April 2024, Cyprien pleaded guilty to possession with intent to distribute cocaine and to conspiracy to distribute and possess with intent to distribute cocaine. Cyprien was charged in September 2022 along with Aderito Amado, Neylton Fontes and Erica Vieira.
Until at least 2021, Cyprien conspired with Amado, Vieira and Fontes to distribute certain quantities of controlled substances in and around Quincy and Weymouth. At the time of his arrest, Cyprien was with Amado and Fontes sitting inside a Jeep that contained controlled substances, including cocaine and cocaine base. Two cellular devices recovered from the Jeep were identified as belonging to Cyprien – each of which were found to contain evidence, including communications and/or images, that further connected Cyprien to the drug trafficking conspiracy.
Fontes and Vieira pleaded guilty in May 2024. Amado was convicted by a federal jury in June 2024 for his involvement in the drug conspiracy – including drug distribution and firearm-related charges. The defendants are currently awaiting sentencing.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance in the investigation was provided by the Quincy, Weymouth, Braintree, Randolph and Brockton Police Departments. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Philip A. Mallard of the Organized Crime & Gang Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Orlando Woman Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Wendy Cudemo-Gamez (47, Orlando) has pleaded guilty to one count of conspiracy to commit wire fraud. Cudemo-Gamez faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Cudemo-Gamez owned and managed a construction company which she registered with the State of Florida in May 2021. This company purported to supply construction services and labor to work for construction site contractors. In order to comply with Florida law, Cudemo-Gamez’s company was required to secure and maintain adequate worker’s compensation insurance coverage.
Providers of worker’s compensation insurance based the premiums they charged and the amount of coverage they provided on the number of employees a company had and the total annual payroll of those employees. Cudemo-Gamez’s company had agreements with contractors and subcontractors to use workers purported to be Cudemo-Gamez’s employees at construction sites, and these workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors. Cudemo-Gamez or others would then regularly receive “payroll checks” from contractors that were cashed at various financial institutions to pay Cudemo-Gamez’s purported “employees” and other related expenses.
During the time period charged in the criminal information, Cudemo-Gamez falsely and fraudulently represented in insurance applications that her company had a very limited payroll and a very limited number of employees who worked on construction jobsites. Cudemo-Gamez also falsely and fraudulently sent wire communications to numerous contractors representing that her company’s employees had full worker’s compensation coverage.
In reality, Cudemo-Gamez’s company received and cashed more than $7.8 million in checks from various construction contractors for these purported “employees.” These payroll figures far exceeded the very limited payroll figures that Cudemo-Gamez had reported to her worker’s compensation insurance company. As a result, these employees of Cudemo-Gamez’s company, in reality the employees of other entities, performed work on jobsites without adequate insurance coverage. In addition, the insurers lost premiums they would have charged had they been aware of the true number of workers their policies were thus being manipulated to cover.
As a result of these misrepresentations, Cudemo-Gamez’s company also disclaimed responsibility for ensuring that jobsite workers were legally authorized to work in the United States and that required state and federal payroll taxes were being paid for these workers. The contractors who actually paid these workers’ wages and used their services were able to avoid responsibility for those duties as well.
This case was investigated by Homeland Security Investigations and the State of Florida Department of Financial Services. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Operation Smoke and Mirrors Update: Federal Jury Finds Jackson County Man Guilty of Role in Methamphetamine Trafficking OrganizationRead the Press Release
CHARLESTON, W.Va. – After two days of trial, a federal jury convicted Mark Leslie Lively, 57, of Kenna, of conspiracy to distribute 50 grams or more of methamphetamine and possession with intent to distribute 50 grams or more of methamphetamine.
Evidence at trial proved that Lively participated in a drug trafficking organization (DTO) that operated in the Charleston area from about November 2022 to in or about March 2023. Members of the DTO conspiracy commonly obtained their controlled substances on consignment, paying their suppliers with proceeds from distributing them to customers. On February 2, 2023, law enforcement officers intercepted a series of phone calls between Lively and co-conspirator Karl Lamont Funderburk, during which the two discussed money that Lively owed Funderburk and arranged for Lively to obtain a quantity of methamphetamine from Funderburk.
Funderburk and Lively met later that day at in an alley near Washington Street West in Charleston, where Funderburk provided approximately 138 grams of methamphetamine to Lively. Funderburk received $900 from Lively, including $400 that Lively owed for a prior drug transaction that the two discussed during the intercepted phone calls. As Lively drove away from the meeting place, a law enforcement officer conducted a traffic stop of Lively’s vehicle and requested the assistance of a police K-9 unit. The police K-9 alerted to the presence of controlled substances in the vehicle. The officer searched Lively’s vehicle and seized the methamphetamine hidden underneath the dashboard.
The officer issued a citation to Lively for simple possession and allowed him to leave. Law enforcement intercepted a phone call Lively made to Funderburk following the traffic stop, relaying the details of the traffic stop and the seizure of the methamphetamine. The evidence at trial established that Lively intended to distribute the methamphetamine that he received from Funderburk.
Lively is scheduled to be sentenced on November 4, 2024, and faces a mandatory minimum of 10 years and up to life in prison, at least five years of supervised release, and a $10 million fine.
Funderburk, 38, of Charleston, pleaded guilty on December 6, 2023, to conspiracy to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, conspiracy to distribute a quantity of cocaine, and conspiracy to distribute a quantity of fentanyl. Funderburk awaits sentencing.
Lively and Funderburk are among 32 individuals indicted as a result of Operation Smoke and Mirrors, a major drug trafficking investigation that has yielded the largest methamphetamine seizure in West Virginia history. Law enforcement seized well over 400 pounds of methamphetamine as well as 40 pounds of cocaine, 3 pounds of fentanyl, 19 firearms and $935,000 in cash.
Funderburk is also among 29 of the defendants who have pleaded guilty. Indictments against the remaining defendants are pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
“I commend Assistant United States Attorneys Jeremy B. Wolfe and Joshua Hanks and our trial team for securing guilty verdicts on both counts against Lively in this case, which is the result of tremendous investigative work by a dedicated array of our law enforcement partners,” said United States Attorney Will Thompson.
Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the West Virginia National Guard Counter Drug program, the Kanawha County Sheriff’s Office, the Charleston Police Department, the Putnam County Sheriff’s Office and the Raleigh County Sheriff's Office. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
Chief United States District Judge Thomas E. Johnston presided over the jury trial.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-31.
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Northampton County Man Indicted for Distribution of Child PornographyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Wei Fu, age 38, of Northampton County, PA, was indicted on a charge of distribution of child pornography.
According to United States Attorney Gerard M. Karam, the indictment alleges that Fu distributed child pornography on January 8, 2024 and January 9, 2024.
The case was investigated by the Department of Homeland Security-RAC Allentown and the Pennsylvania Office of the Attorney General. Assistant United States Attorney Tatum R. Wilson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is 20 years, with a mandatory minimum sentence of 5 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Nigerian Man Pleads Guilty to Real Estate Phishing / Spoofing SchemeRead the Press Release
A Nigerian man pleaded guilty today to conning prospective homeowners and others out of down payments using a “man-in-the-middle” email phishing and spoofing attack, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Kolade Akinwale Ojelade, a 34-year-old Nigerian national living abroad in Leicester, was indicted in February 2023. He was extradited from the U.K. to the U.S. in April 2024 and pleaded guilty Wednesday to wire fraud affecting a financial institution and aggravated identity theft.
“Unfortunately, sophisticated phishing and spoofing attacks can ensnare even the most tech-savvy among us. They can be disastrous for companies and absolutely calamitous for individuals,” said U.S. Attorney Leigha Simonton. “We look forward to holding this defendant accountable for the financial devastation he has wrought. In the meantime, I urge the public to follow CFPB’s best practices for wiring down payments.”
“Mr. Ojelade orchestrated the theft of funds from unsuspecting homeowners and real estate companies who believed they were legitimately wiring money to a trusted party,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “The FBI successfully worked with our foreign partners to ensure he is held accountable by the U.S. judicial system.”
According to court documents, Mr. Ojelade sent phishing emails to real estate businesses, gained unauthorized access to many of their accounts, and monitored their email traffic to determine when large transactions were about to take place. He then intercepted wire payment instructions, changed the information, and resent the emails via spoofed email addresses that mimicked the original senders’ addresses.
Unbeknownst to the victims – including prospective homeowners wiring money to real estate companies and real estate companies wiring money to title companies – the modified wiring instructions directed them to accounts controlled by Mr. Ojelade and his co-conspirators. Once the funds hit the accounts, Mr. Ojelade and his coconspirators withdrew the money or transferred it into other bank accounts.
Mr. Ojelade now faces up to 32 years in federal prison. After serving his sentence, he will be subject to deportation.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation, with substantial assistance from FBI International Operations at Mission U.K., United Kingdom authorities, and the U.S. Marshals Service. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Mr. Ojelade from the United Kingdom. Assistant U.S. Attorney Matthew Weybrecht is prosecuting the case.
The Consumer Financial Protection Bureau advises prospective homeowners to confirm wiring instructions – including account numbers – in person or by phone, and instructs anyone who believes they may have fallen victim to a scam to call their banks as soon as possible to ask for a wire recall.
New Jersey Man Sentenced to 26 Months in Prison for Mailing Threatening CommunicationsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that NIKOLAY LEVINSON was sentenced today to 26 months in prison for mailing threatening communications. LEVINSON previously pled guilty before U.S. District Judge Edgardo Ramos, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Nikolay Levinson sent vile racist, anti-Semitic, and anti-Muslim threats for the sole purpose of instilling fear in innocent members of our community. This sentence should serve as a reminder that we will never stop protecting the community from such disturbing, hateful conduct.”
According to the Indictment, other public filings, and statements made in court:
From June through November 2022, shortly after his release from prison for similar offenses, LEVINSON mailed six threatening letters to five victims in the Bronx, Manhattan, and Brooklyn, New York, and at least 35 other anonymous, threatening, hateful, racist, anti-Semitic, and anti-Muslim letters to victims in the greater New York City area. LEVINSON sent the letters, which often contained racial epithets and Nazi imagery, to businesses, schools, synagogues, and individuals.
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In addition to the prison term, LEVINSON, 41, of Palisades Park, New Jersey, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Police Department.
The case is being prosecuted by the Office’s White Plains Division and Civil Rights Unit in the Criminal Division. Assistant U.S. Attorney Jeffrey C. Coffman is in charge of the prosecution.
New Hampshire Man Sentenced to 12 Years in Prison for Drug TraffickingRead the Press Release
BOSTON – Member of a nationwide drug trafficking ring was sentenced yesterday in federal court in Boston. Throughout 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.
Andre Watson, 47, of Nashua, N.H., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 12 years in prison, to be followed by five years of supervised release. In April 2024, Watson pleaded guilty to one count of a second superseding indictment charging him with conspiracy to distribute and to possess with intent to distribute 500 grams or more of methamphetamine.
Watson was charged in a superseding indictment in September 2021 with conspiracy to distribute and to possess with intent to distribute 500 grams or more of methamphetamine. The superseding indictment also charged 10 other defendants with controlled substance offenses, firearm offenses and money laundering offenses.
In approximately October 2020, investigators received information about drug trafficking activities of a large-scale methamphetamine supplier in the Boston area. In late 2020, Reshat Alkayisi was identified as a large-scale methamphetamine trafficker, who distributed multi-pound quantities to multiple co-conspirators throughout the New England area. Watson was identified as one of Alkayisi’s methamphetamine distributors. In May 2021, Alkayisi distributed approximately four pounds (or 1.8 kilograms) of methamphetamine to Watson. In July 2021, Watson was arrested and multiple weapons were seized from his vehicle, along with a loaded firearm from his residence.
Watson is the first defendant to be sentenced. All the defendants have pleaded guilty and are awaiting sentencing.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance was provided by the Massachusetts Department of Correction; Norfolk County Sherriff’s Office; and the Concord, Hudson, Peabody, Reading, Watertown and Waltham Police Departments. Assistance was also provided by the Massachusetts, Rhode Island, New Hampshire and Maine State Police. 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.
Missouri Man Sentenced to 8 Years in Prison for Possessing Child PornographyRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Wednesday sentenced a Warren County, Missouri man who possessed child sexual abuse material on phones and a laptop to 96 months in prison.
Judge Autrey also ordered Jacob D. Beauchamp, 46, to pay $51,000 in restitution to victims who appeared in the images and videos he collected.
Beauchamp admitted possessing 146 images containing child sexual abuse material on his Apple iPhone, about 1,800 on his Samsung phone and numerous images that were running as a screensaver on his laptop.
Beauchamp, of Wright City, pleaded guilty in April to one count of possession of child pornography.
The Wright City Police Department and the St. Charles County Cyber Crime Task Force investigated the case. Assistant U.S. Attorney Jillian Anderson 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 the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, 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.
Memphis Man Pleads Guilty to Sex Trafficking Operation That Victimized Three Minors and Two AdultsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that MACEO ROBERTS (“ROBERTS”), age 25, from Memphis, Tennessee, pleaded guilty today before United States District Judge Susie Morgan to conspiracy to commit sex trafficking of minors and others by force, fraud, and coercion, in violation of Title 18, United States Code, Sections 1594(c), 1591(a)(1), 1591(a)(2), 1591(b)(1), and 1591(b)(2).
According to court documents, in about Summer 2020, ROBERTS told his co-conspirators, Dominique Peeples and Jeremy Talbert, that he was making a lot of money acting as a pimp and offered to teach them how to be pimps, as well. After Peeples and Talbert agreed, ROBERTS “gave” Minor Victim 2, a minor female born in 2003 who had previously performed commercial sex acts under ROBERTS’s direction, to Peeples. Thereafter, Minor Victim 2 introduced Talbert to Minor Victim 3, a minor female born in 2003, who began performing commercial sex acts under Talbert’s direction.
During Summer 2020, ROBERTS, Peeples, and Talbert travelled throughout the southern United States, including the New Orleans area, with multiple females, including Minor Victim 2, Minor Victim 3, and Adult Victim 1, for the purpose of having the females engage in commercial sex acts. ROBERTS taught Peeples and Talbert techniques to oversee and advertise a prostitution operation, including the amount to charge. ROBERTS also reminded them to keep all of the proceeds. During this time period, including while in New Orleans, Adult Victim 1 performed numerous commercial sex acts at the direction and supervision of ROBERTS; Minor Victim 2 performed numerous commercial sex acts at the direction and supervision of Peeples; and Minor Victim 3 performed numerous commercial sex acts at the direction and supervision of Talbert.
In about October 2020, ROBERTS assumed control over Minor Victim 3, and required her to work approximately fifteen hours per day performing commercial sex acts and to give him all the money she earned. ROBERTS beat Adult Victim 1 in front of Minor Victim 3 to show Minor Victim 3 what would happen if she did not follow his instructions. ROBERTS also provided drugs and alcohol to Minor Victim 3 and Adult Victim 1 to control their behavior.
In about October 2020, Talbert recruited Minor Victim 1, who was a fourteen-year-old female, to engage in commercial sex acts under his direction. In about late October 2020, ROBERTS, Peeples, Talbert, Adult Victim 1, Minor Victim 1, and Minor Victim 2 travelled to New Orleans, where they stayed for several months. During this time, ROBERTS, Peeples, and Talbert supervised the commercial sex work of Adult Victim 1, Minor Victim 2, and Minor Victim 1, respectively. Additionally, ROBERTS imposed rules and quotas that Adult Victim 1 had to follow and, when she did not meet those quotas or expressed reluctance, ROBERTS threatened to beat and shoot her.
In at least January 2021, ROBERTS beat Adult Victim 1 so badly that she requited hospitalization in a New Orleans area facility. After Adult Victim 1’s hospital discharge, ROBERTS and Peeples told Adult Victim 1 and Minor Victim 2 that they would bring them home to Memphis. Instead, ROBERTS and Peeples drove them to Houston and forced them to engage in commercial sex acts until they finally escaped. ROBERTS and Peeples then returned to Memphis, found Adult Victim 1 and Minor Victim 2, and beat and threatened them.
Additionally, in about late January 2021, ROBERTS met and began recruiting Adult Victim 2 to perform commercial sex acts under his direction. Adult Victim 2 did so until about April 2022. During that time, she performed numerous commercial sex acts at ROBERTS’s direction in multiple locations, including New Orleans, Memphis, Houston, Dallas, Indianapolis, St. Louis, and Biloxi. Adult Victim 2 gave all, or most, of the money she received from the commercial sex acts she performed to ROBERTS. ROBERTS repeatedly beat, threatened, and victimized Adult Victim 2, including in November 2021 at a New Orleans area hotel, an event that was captured on a telephone recording. In about April 2022, shortly before his arrest, ROBERTS punched Adult Victim 2 so hard that he shattered her front teeth.
ROBERTS faces up to life imprisonment, supervised release after his term of imprisonment of between five years and life, a fine of up to $250,000, and a mandatory $100.00 special assessment fee. ROBERTS will also be required to participate in the sex offender registration and notification program and be ordered to pay restitution to the victims of his offenses. Sentencing before Judge Morgan has been scheduled for October 8, 2024.
Talbert and Peeples previously pleaded guilty to sex trafficking crimes. Talbert’s sentencing before Judge Africk is set for October 2, 2024 and Peeples’s sentencing is set for October 30, 2024 before Judge Vance.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, the New Orleans Police Department, and the Memphis Police Department in investigating this matter. Assistant United States Attorneys Maria Carboni of the Financial Crimes Unit and Jordan Ginsberg, Supervisor of the Public Integrity Unit, are in charge of the prosecution.
Man Sentenced for Unlawful Firearm PossessionRead the Press Release
United States Attorney Susan Lehr announced that Tesluach Gatkuoth, 27, of Grand Island, NE, was sentenced July 17, 2024, in federal court in Omaha, Nebraska for being a felon in possession of a firearm. United States District Judge Brian C. Buescher sentenced Gatkuoth to 120 months’ imprisonment. There is no parole in the federal system. After Gatkuoth’s release from prison, he will begin a 3-year term of supervised release.
On April 8, 2022, Omaha Police Department officers were on routine patrol in a marked patrol vehicle when they observed a gray 2003 Lexus driving eastbound on Lake Street approaching north 26th Street. The vehicle turned south onto north 25th Street and did not come to a complete stop at the stop sign at the intersection of north 25th and Grant Street. The Lexus continued through the intersection of Patrick Avenue and north 25th Street where it violated a second stop sign by failing to come a complete stop.
As the vehicle turned onto Patrick Avenue, officers attempted to stop the vehicle by initiating their patrol vehicle’s overhead lights and sirens. These emergency signals remained active as the Lexus turned southbound and sped away. The Lexus eventually stopped near 26th and Blondo Street, at which time the driver of the vehicle, Gatkuoth, fled on foot.
Gatkuoth fled across the front yard of a residence at the 26th block of Blondo Street before forcing his way through the home’s front door. As Gatkuoth entered the residence, he closed the door on the officer before continuing down into the basement and entering a room. Once inside the room, Gatkuoth closed the door behind him and remained concealed within.
An officer maintained a position on the stairway and yelled commands for Gatkuoth to reveal himself. Moments later Gatkuoth opened the door, yelled at the officer, and then casually began to go to the ground per officer commands. Gatkuoth was eventually secured in handcuffs and placed in the back of a patrol vehicle. A protective sweep of the basement was performed, and an adolescent child exited the room where Gatkuoth had entered and barricaded himself. Officers subsequently found a fully loaded 9mm handgun with high-capacity magazine and obliterated serial number hidden in the child’s clothes hamper.
A criminal history check revealed that Gatkuoth had been previously convicted of felony offenses, including robbery for which he served several years in the Nebraska Department of Correctional Services beginning in 2015.
This case was investigated by the Omaha Police Department.
Luzerne County Man Charged with Firearm OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Justis Shea, age 31, of Glen Lyon, PA, was indicted by a federal grand jury for unlawfully possessing a firearm as a convicted felon and for possession of that firearm in furtherance of a drug trafficking offense.
According to United States Attorney Gerard M. Karam, the indictment alleges that from on or about May 1, 2024, to on or about July 2, 2024, Shea possessed a Smith & Wesson M&P 15 rifle in Luzerne County, Pennsylvania, after having previously been convicted of a crime punishable by more than one year in prison. The indictment further alleges that Shea possessed that firearm in furtherance of a drug trafficking offense.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Kingston Police Department, the Ashley Police Department, and the Luzerne County District Attorney’s Office. Assistant United States Attorney James Buchanan is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is life imprisonment and a fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Los Angeles County Man Pleads Guilty to Identity Theft Offenses Committed While in Federal PrisonRead the Press Release
FRESNO, Calif. — Sean Lamont Wyatt, 46, of Los Angeles County, pleaded guilty today to identity theft and aggravated identity theft, United States Attorney Phillip A. Talbert announced.
According to court documents, in June 2021, 27 pages of victims’ personally identifiable information were found in Wyatt’s assigned inmate bunk at the federal prison in Atwater. Investigation revealed that while Wyatt was incarcerated, he used a contraband phone to call victims’ banks and creditors. In the phone calls, Wyatt used the victims’ names, dates of birth, addresses, and social security numbers to falsely identity himself and to add himself as an authorized user on the victims’ accounts. Wyatt did this to boost his own credit. Wyatt then used his boosted credit to apply for new credit lines.
This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant United States Attorney Brittany M. Gunter is prosecuting the case.
Wyatt is scheduled to be sentenced on October 7, 2024. Wyatt faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for identity theft and a mandatory consecutive sentence of two years in prison for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Lexington Man Sentenced for Armed Fentanyl and Methamphetamine TraffickingRead the Press Release
LEXINGTON, Ky. – A Lexington man, Khmari Smith, 21, was sentenced on Tuesday, by Chief U.S. District Judge Danny Reeves, to 32 years, for conspiracy and possession with intent to distribute methamphetamine and fentanyl and possession of firearms in furtherance of drug trafficking offenses.
In May 2023, law enforcement began investigating an individual distributing methamphetamine and fentanyl in Lexington and identified the vehicle being used to transport the drugs into the area. On July 10, 2023, law enforcement located the vehicle traveling from Detroit to Kentucky and observed the vehicle following another car and mirroring its movements, which led them to believe the vehicles were connected. Law enforcement conducted a traffic stop on both vehicles. Khmari Smith, and his brother and co-defendant, Khari Qunarll Smith, 23, were found in one vehicle, with no evidence of drugs. In the other vehicle, Smith’s co-defendant, Brianna Hanspard, 29, of Detroit, was found with 4.6 kilograms of methamphetamine and 199.7 grams of fentanyl. Hanspard admitted to entering into an agreement with Khmari Smith and others to transport drugs from Detroit to Lexington for payment.
Further investigation proved that Khari and Khmari Smith continued their drug distribution, from sources in Detroit. In August 2023, law enforcement searched their leased residences in Lexington. At the first residence they found 354.4 grams of fentanyl and 216.3 grams of methamphetamine; at the second, the found additional methamphetamine and fentanyl, as well as a drug processing room. Law enforcement also found 18 firearms at the first residence and 12 firearms at the second residence. Khmari Smith admitted that he received those firearms as payment for the drugs he distributed.
Khari Smith is scheduled to be sentenced at a date yet to be determined by the Court. Hanspard was previously sentenced to 84 months in prison.
Under federal law, Khmari Smith and Hanspard must serve 85 percent of their prison sentences. Upon their release from prison, they will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge, DEA, Louisville Field Division; Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentences.
The investigation was conducted by the DEA, KSP, and Lexington Police Department. Assistant U.S. Attorney Roger West prosecuted the case on behalf of the United States.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Laurens County drug trafficker sentenced to nearly 20 years in federal prisonRead the Press Release
AUGUSTA, GA: A Laurens County man has been sentenced to federal prison after pleading guilty to drug trafficking charges.
Ricky Rich, 42, of East Dublin, Ga., was sentenced to 228 months in prison after pleading guilty to Distribution of Fentanyl, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Dudley H. Bowen also ordered Rich to pay a $2,500 fine and to serve three years of supervised release upon completion of his prison term. There is no parole in the federal system.
“Ricky Rich is a career offender with a long history of distributing illegal drugs in the middle Georgia area,” said U.S. Attorney Steinberg. “This substantial prison sentence holds him accountable while protecting the community from his criminal activity.”
As described in court documents and testimony, investigators from the Laurens County Sheriff’s Office, with assistance from the Drug Enforcement Administration and the Georgia Bureau of Investigation, identified Rich as a prolific drug distributor.
Investigators found large amounts of drugs at Rich’s home and that of a relative, including deadly fentanyl and drug paraphernalia. Rich was on parole for prior state drug trafficking charges at the time he entered federal custody.
As part of his plea agreement, Rich forfeited ownership of 19 illegally possessed firearms and ammunition seized during the searches. He also faces prosecution for related state charges.
“Last year, we lost approximately 110,757 people to drug poisonings – a majority from synthetic opioids such as fentanyl,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “DEA will continue to bring to justice drug traffickers who drive addiction and destroy communities.”
“This sentence sends a clear message: We will not tolerate any person that brings poisonous drugs, like fentanyl, into our communities,” said Georgia Bureau of Investigation Director Chris Hosey. “The GBI will continue to work with our local, state, and federal partners to remove illegal drugs from our streets.”
“As sheriff of Laurens County, it is my pleasure to work hand in hand with federal, state and local law enforcement to rid our community of dangerous drug traffickers,” said Laurens County Sheriff Larry Dean. “I commend each person involved in this investigation and thank them for a job well done. I have always said I will do everything in my power to eliminate illegal drugs in Dublin and Laurens County and I will continue to do so.”
The case was investigated by the Laurens County Sheriff’s Office, the Savannah Field Office of the Drug Enforcement Administration, and the Georgia Bureau of Investigation, and prosecuted for the United States by Assistant U.S. Attorney John P. Harper III.
Las Vegas Man Sentenced to Prison for Making Threats to Kill Family Member of Federal OfficialRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced Tuesday to 46 months in prison to be followed by three years of supervised release for leaving a threatening voicemail and text messages threatening to kill a family member of a then member of the U.S. House of Representatives.
According to court documents, in the late evening of June 1, and the early morning of June 2, 2023, Anthony Lewis Hamelin, also known as “Tony Hamelin,” 52, called the spouse of a then-member of the U.S. House of Representatives and left a voicemail threatening to kill their son. Hamelin stated that he was enroute to his intended victim. Hamelin sent text messages stating anger and frustration with the U.S. Representative for carrying out his official duties. On June 2, 2023, Las Vegas Metropolitan Police Department officers and U.S. Capitol Police agents located Hamelin and arrested him.
On March 11, 2024, Hamelin pleaded guilty to one count of influencing, impeding, or retaliating against a federal official by threatening a family member, and one count of transmitting a communication containing a threat to injure. United States District Judge Gloria M. Navarro presided over the sentencing hearing.
United States Attorney Jason M. Frierson for the District of Nevada and Chief J. Thomas Manger, Chief of the U.S. Capitol Police made the announcement.
The U.S. Capitol Police and the Las Vegas Metropolitan Police Department investigated the case. Assistant U.S. Attorney Jacob Operskalski prosecuted the case.
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Large Scale Methamphetamine Trafficker and Illegal Alien from Mexico Sentenced to 16 Years in Federal PrisonRead the Press Release
BOISE – Sergio Cisneros-Guzman, a/k/a Salomon Hernandez Medina, 49, a Mexican citizen residing in Nampa, was sentenced to 16 years in federal prison for distributing methamphetamine and maintaining a drug-involved premises, U.S. Attorney Josh Hurwit announced today.
According to court records, the FBI-led Treasure Valley Metro Violent Crimes Task Force began investigating reports that Cisneros-Guzman was trafficking large amounts of methamphetamine and firearms out of his landscaping nursery, Rolling Hills Nursery, in Nampa. Law enforcement conducted six undercover controlled buys at Cisneros-Guzman’s nursery totaling approximately 2 kilograms of methamphetamine and also purchased an AR-style rifle with a high-capacity magazine. A search of Cisneros-Guzman’s nursery resulted in the seizure of an additional 100 grams of methamphetamine, eleven firearms, and $117,264 in cash. The government presented evidence at Cisneros-Guzman’s sentencing that when he sold the AR-style rifle with a high‑capacity magazine along with a half-pound of methamphetamine, he told the undercover officer, “One thing is for sure, if you are involved in a massacre, don’t tell no one who sold it to you. If you want to use it, make sure to clean your fingerprints from the rifle and the ammo.”
U.S. District Judge Amanda K. Brailsford also ordered Cisneros-Guzman to serve five years of supervised release following his prison sentence. Cisneros-Guzman, who pleaded guilty to the offenses, agreed to forfeit to the United States the Rolling Hills Nursery, $117,264 in U.S. currency, eleven firearms, magazines and high-capacity magazines, and miscellaneous ammunition. Because Cisneros-Guzman is a Mexican citizen who was illegally present in the United States, he will be deported after serving his 16-year sentence. At sentencing, Judge Brailsford stated that Cisneros-Guzman’s criminal activity involved all the major threats currently facing the United States: illegal immigration, drug trafficking, and illegally possessed and trafficked firearms.
“Removing this defendant from our community is a win for Idaho and reflects the strong partnerships between our office and federal and local law enforcement,” said U.S. Attorney Hurwit. “We will not tolerate criminals illegally entering our country and then enriching themselves by distributing dangerous drugs and trafficking firearms in Idaho.”
“Cisneros-Guzman operated with blatant disregard for the law and for the safety of all Idahoans,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “Drugs and violence have devastated too many families in the Treasure Valley. When law enforcement combines resources and expertise, we can take back our communities from dangerous drug traffickers like Cisneros‑Guzman.”
“This is another example of the criminality happening in our community that has direct ties to Mexico and the Transcontinental Criminal Organizations that operate with impunity in Mexico and have seriously infiltrated communities throughout the United States,” said Canyon County Sheriff and National Sheriffs’ Association President Kieran Donahue. “Thankfully, here in the Treasure Valley, we have the METRO Task Force and other partnerships with local and federal law enforcement that focus on rooting out this type of criminal behavior.”
U.S. Attorney Hurwit commended the Treasure Valley Metro Violent Crimes Task Force for its efforts in this case. The Task Force is comprised of federal, state, and local agencies, including the FBI, the Caldwell Police Department, the Canyon County Sheriff’s Office, the City and County Narcotics Unit, the Canyon County Prosecutor’s Office, the Idaho Department of Correction, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO).
This case was prosecuted by Assistant U.S. Attorney Christian Nafzger and Special Assistant U.S. Attorney Kelsey Manweiler.
The Special Assistant U.S. Attorney was hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth.
This case was also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Lane County Man Who Negotiated Guns-for-Drugs Trade Sentenced to Federal PrisonRead the Press Release
EUGENE, Ore.—A Lane County, Oregon man who negotiated the trade of methamphetamine for 17 firearms was sentenced to federal prison today.
Mark Villanueva, 38, was sentenced to 120 months in federal prison and five years’ supervised release.
According to court documents, in August 2020, special agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) obtained information that Villanueva was actively involved in distributing illegal narcotics, primarily methamphetamine, in and around Lane County, Oregon, and illegally possessed firearms as a convicted felon. In October and November of 2020, Villanueva sold methamphetamine to an undercover law enforcement officer on five separate occasions. During the fifth transaction, Villanueva began discussing his interest in buying or selling ammunition and firearms.
In December 2020 and continuing into January 2021, Villanueva negotiated the trade of multiple firearms for a large quantity of methamphetamine with his Los Angeles-based source of supply. However, on January 11, 2021, before Villanueva could complete the transaction, he was arrested in Florence, Oregon on an outstanding state arrest warrant. Despite his arrest, the guns-for-drugs trade moved forward and was completed on January 13, 2021, the same day Villanueva was released from state custody. Following his release was custody, Villanueva confirmed that 17 firearms had been traded for three pounds of methamphetamine with his source of supply in Los Angeles.
On January 13, 2021, Villanueva was charged by criminal complaint with distributing methamphetamine. Later, on May 20, 2021, a federal grand jury in Eugene returned an indictment charging Villanueva and three associates, including his then-wife and Los Angeles-based source of supply, with conspiracy to distribute and possess with intent to distribute methamphetamine, conspiracy to possess a firearm in furtherance of a drug trafficking crime, and possession of a firearm in furtherance of a drug trafficking crime.
On February 16, 2023, Villanueva pleaded guilty to conspiracy to possess with intent to distribute methamphetamine.
This case was investigated by ATF with assistance from Eugene Police Department. It was prosecuted by Adam E. Delph, Assistant U.S. Attorney for the District of Oregon.
Knoxville Man Sentenced to 20 Years for Attempting to Provide Material Support to ISISRead the Press Release
KNOXVILLE, Tenn. - On July 17, 2024, Benjamin Carpenter, 34, of Knoxville, Tennessee, was sentenced to 240 months in prison by the Honorable Katherine A. Crytzer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Knoxville. Following his incarceration, Carpenter will be on supervised release for 20 years.
On October 19, 2023, following an eight-day trial in United States District Court, a jury convicted Benjamin Carpenter, also known as “Abu Hamza,” of attempting to provide material support to ISIS, a foreign terrorist organization, in violation of Title 18, U.S.C. § 2339B.
The evidence presented at trial demonstrated that Carpenter served as the leader of Ahlut-Tawhid Publications, an international organization of pro-ISIS “munasirin” (i.e., supporters), dedicated to translating, producing, and distributing ISIS propaganda throughout the world. For years, Carpenter, using his alias “Abu Hamza,” published a large body of ISIS media, including his weekly newsletter entitled From Dabiq to Rome, a periodical that, among other pro-ISIS propaganda themes, celebrated the deaths of American soldiers, glorified suicide bombers, and called for open war against the United States and its Western allies. In 2020 and 2021, Carpenter contacted an individual he believed to be affiliated with ISIS’s central media bureau and provided translation services for a project intended to relaunch Al-Hayat Media Center, ISIS’s official foreign-language media arm. Unbeknownst to him, that individual was an FBI undercover employee who had infiltrated Carpenter’s group.
“For years, this defendant led a global digital media operation to distribute pro-ISIS propaganda, promoting the group’s radical message of terror and pushing it to every corner of the world,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s sentence reflects the seriousness of this defendant’s conduct and the Justice Department’s commitment to identifying and holding accountable those who would provide material support to foreign terrorist organizations.”
“Combatting terrorism and keeping our communities safe are the highest priorities of the United States Attorney’s Office,” said United States Attorney Francis M. Hamilton III. “This case deals a serious blow to the expansion of ISIS and its broken message of hatred and senseless violence.”
“All across the country, the FBI is working fervently to identify and defeat those who support terrorist organizations. The protection of our citizens will remain a priority for our federal, state, and local law enforcement partners,” said Special Agent in Charge Joseph E. Carrico of the Federal Bureau of Investigation.
The case was investigated by the Knoxville Joint Terrorism Task Force, which is composed of federal, state, and local law enforcement agencies. It was led by the Knoxville FBI Field Office and involved the assistance of FBI offices from across the country.
Assistant U.S. Attorneys Kyle J. Wilson and Casey T. Arrowood of the Eastern District of Tennessee and Trial Attorney Charles J. Kovats, Jr. of the National Security Division’s Counterterrorism Section represented the United States at trial.
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Kindred and Related Entities Agree to Pay $19.428M to Settle Federal and State False Claims Act Lawsuits Alleging Ineligible Claims for Hospice PatientsRead the Press Release
Gentiva, successor to Kindred at Home, has agreed to pay $19.428 million to resolve allegations that Kindred at Home and related entities (Kindred) knowingly submitted false claims and knowingly retained overpayments for hospice services provided to patients who were ineligible to receive hospice benefits under various federal health care programs. Gentiva’s hospice operations, headquartered in Atlanta, include entities that previously operated Kindred at Home hospice locations under the names Avalon, Kindred, SouthernCare and SouthernCare New Beacon.
“The hospice benefit under Medicare and other federal health care programs provides critical services to some of the most vulnerable patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will ensure that this important benefit is used to assist those who need it, and not as an opportunity to line the pockets of those who seek to abuse it.”
The settlement resolves allegations made by the United States and the State of Tennessee in a consolidated complaint filed in 2021 against certain Kindred related entities alleging that, from 2010 until February 2020, the defendants knowingly submitted or caused to be submitted false claims for hospice services provided to Avalon hospice patients in Tennessee who were ineligible for the Medicare or Medicaid hospice benefit because they were not terminally ill. The settlement also resolves the complaint’s allegations that the defendants improperly concealed or avoided Avalon’s obligation to repay those hospice claims.
In addition, the settlement resolves allegations that certain Kindred, SouthernCare and SouthernCare New Beacon hospice locations knowingly submitted, or caused to be submitted, false claims for hospice services provided to patients who were ineligible for hospice benefits under Medicare and other federal health care programs because the patients were not terminally ill. Those hospice locations were Kindred’s locations in Warwick, Rhode Island; Beaumont, Texas; and Independence, Missouri; SouthernCare New Beacon’s location in Demopolis, Alabama; and SouthernCare’s locations in Daphne, Alabama; Mobile, Alabama; South Bend, Indiana; and Youngstown, Ohio. The settlement also resolves allegations that those Kindred, SouthernCare and SouthernCare New Beacon locations knowingly and improperly concealed or avoided obligations to repay the foregoing hospice claims.
Further, the settlement resolves allegations that SouthernCare New Beacon allegedly violated the Anti-Kickback Statute by willfully paying renumeration to a consulting physician, between Oct. 1, 2016, and Oct. 1, 2022, to induce hospice referrals of Medicare beneficiaries to its Gadsden, Alabama, location. The settlement of those allegations stems from a voluntary self-disclosure made by New Beacon Healthcare Group LLC doing business as SouthernCare New Beacon Hospice. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded health care programs. It is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
“Hospice provides vital care and support for terminally ill patients and their families. Medicare’s and TennCare’s eligibility requirements ensure that federal and state health care money is properly used to support hospice programs,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “We are committed to holding accountable health care companies and providers who prioritize profits over patient care by ignoring these requirements.”
“This office remains committed to safeguarding public monies,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “I commend the work of all those in the department who have made this successful settlement possible and truly appreciate the strong working relationships that exist between the United States Attorneys’ Offices, the Civil Division’s Fraud Section and our law enforcement partners.”
“My office remains determined to ensure that federal funding for essential health care, like the hospice care at issue in this investigation, goes to the patients who need it, rather than to health care companies who seek to exploit those patients for profit,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “Today’s result reflects a concerted effort by this office and U.S. Attorneys’ Offices around the country, working alongside the Fraud Section of the Justice Department’s Civil Division, and our law enforcement partners, to help to guarantee that Medicare funds are directed where they belong and that high-quality hospice care is available for patients and their families in the future.”
“Hospice care is special end-of-life care intended to provide comfort for terminally ill patients. The decision to provide hospice services should be prompted by a patient’s terminally ill medical diagnosis, not a hospice provider’s desire to increase profits,” said U.S. Attorney Todd Gee for the Southern District of Mississippi. “The continued work of the department and our law enforcement partners is critical to the integrity of these important programs. I appreciate the work of all involved in this significant case.”
“Our office is committed to protecting federal healthcare programs like the Medicare hospice benefit from false claims” said U.S. Attorney Sean Costello for the Southern District of Alabama. “We will hold accountable any providers that abuse taxpayer dollars.”
“The integrity of hospice care is critical to the millions of patients receiving these services,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We, along with our law enforcement partners, will continue to ensure that providers who focus on personal financial gain rather than providing medically necessary, high-quality hospice care will be held accountable.”
The Medicaid program is funded jointly by the state and federal governments. As a result of the settlement announced today, the federal government will receive $18,956,151.32, the State of Tennessee will receive $448,800 and the State of Ohio will receive $23,618.68.
The settlement includes the resolution of claims in nine lawsuits brought under the qui tam or whistleblower provisions of the False Claims Act by various current and former Kindred employees. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned: United States ex rel. Pence, et al. v. Curo Health Services Holdings, Inc., et al., Civil Action No. 3:13-00672 (M.D. Tenn.); United States,, et al. ex rel. Anderson et al. v. Curo Health Services, LLC d/b/a Avalon Hospice, Civil Action No. 3:20-cv-00168 (M.D. Tenn.); United States ex rel. Riar v. Kindred Healthcare, Inc., et al., Civil Action No. 3:18-CV-52 (W.D. Ky.); United States ex rel. Didde, et al. v. Kindred Healthcare Inc. et al., Civil Action No. 19-2321-JWB-JPO (D. Kan.); United States ex rel. Mut v. Gentiva Certified Healthcare Corp. D/B/A Kindred at Home, Civil Action No. 1:21-cv-00425-JJM-PAS (D.R.I.); United States ex rel. Harris v. SouthernCare, Inc., Civil Action No. 3:18-cv-643-HTW-LGI (S.D. Miss.); United States,, et al. ex rel. Roy v. Curo Health Services, LLC, et al., Civil Action No. 3:18-cv-643-HTA-LRA (S.D. Miss.); U.S. ex rel. Petrey v. Curo HealthCare Services, LLC, et al., Civil Action No. 1:19-CV-00617 (S.D. Ala.), and United States ex rel. Medved, et al. v. SouthernCare, Inc. D/B/A SouthernCare, et al., Civil Action No. 2:23-cv-3345 (S.D. Ohio). The share of the settlement to be received by the whistleblowers has not yet been determined.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division's Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the Middle District of Tennessee, Western District of Kentucky, District of Kansas, District of Rhode Island, Southern District of Mississippi, Southern District of Alabama and Southern District of Ohio, with assistance from HHS-OIG, the Defense Criminal Investigative Service, the Office of Personnel Management Office of Inspector General, the Department of Veterans Affairs Office of Inspector General, the Office of the Tennessee Attorney General and the Office of the Ohio Attorney General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorney William E. Olson of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorneys Wynn M. Shuford for the Middle District of Tennessee, Jessica R.C. Malloy and William F. Campbell for the Western District of Kentucky, Jon P. Fleenor for the District of Kansas, Kevin Love Hubbard for the District of Rhode Island, Deidre Lamppin Colson for the Southern District of Mississippi, Nina T. Herring for the Southern District of Alabama and W. Hunter West and Michael J. T. Downey for the Southern District of Ohio handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
Kindred and Related Entities Agree to Pay $19.428M to Settle Federal and State False Claims Act Lawsuits Alleging Ineligible Claims for Hospice PatientsRead the Press Release
Gentiva, successor to Kindred at Home, has agreed to pay $19.428 million to resolve allegations that Kindred at Home and related entities (Kindred) knowingly submitted false claims and knowingly retained overpayments for hospice services provided to patients who were ineligible to receive hospice benefits under various federal health care programs. Gentiva’s hospice operations, headquartered in Atlanta, include entities that previously operated Kindred at Home hospice locations under the names Avalon, Kindred, SouthernCare and SouthernCare New Beacon.
“The hospice benefit under Medicare and other federal health care programs provides critical services to some of the most vulnerable patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will ensure that this important benefit is used to assist those who need it, and not as an opportunity to line the pockets of those who seek to abuse it.”
The settlement resolves allegations made by the United States and the State of Tennessee in a consolidated complaint filed in 2021 against certain Kindred related entities alleging that, from 2010 until February 2020, the defendants knowingly submitted or caused to be submitted false claims for hospice services provided to Avalon hospice patients in Tennessee who were ineligible for the Medicare or Medicaid hospice benefit because they were not terminally ill. The settlement also resolves the complaint’s allegations that the defendants improperly concealed or avoided Avalon’s obligation to repay those hospice claims.
In addition, the settlement resolves allegations that certain Kindred, SouthernCare and SouthernCare New Beacon hospice locations knowingly submitted, or caused to be submitted, false claims for hospice services provided to patients who were ineligible for hospice benefits under Medicare and other federal health care programs because the patients were not terminally ill. Those hospice locations were Kindred’s locations in Warwick, Rhode Island; Beaumont, Texas; and Independence, Missouri; SouthernCare New Beacon’s location in Demopolis, Alabama; and SouthernCare’s locations in Daphne, Alabama; Mobile, Alabama; South Bend, Indiana; and Youngstown, Ohio. The settlement also resolves allegations that those Kindred, SouthernCare and SouthernCare New Beacon locations knowingly and improperly concealed or avoided obligations to repay the foregoing hospice claims.
Further, the settlement resolves allegations that SouthernCare New Beacon allegedly violated the Anti-Kickback Statute by willfully paying renumeration to a consulting physician, between Oct. 1, 2016, and Oct. 1, 2022, to induce hospice referrals of Medicare beneficiaries to its Gadsden, Alabama, location. The settlement of those allegations stems from a voluntary self-disclosure made by New Beacon Healthcare Group LLC doing business as SouthernCare New Beacon Hospice. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded health care programs. It is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
“Hospice provides vital care and support for terminally ill patients and their families. Medicare’s and TennCare’s eligibility requirements ensure that federal and state health care money is properly used to support hospice programs,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “We are committed to holding accountable health care companies and providers who prioritize profits over patient care by ignoring these requirements.”
“This office remains committed to safeguarding public monies,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “I commend the work of all those in the department who have made this successful settlement possible and truly appreciate the strong working relationships that exist between the United States Attorneys’ Offices, the Civil Division’s Fraud Section and our law enforcement partners.”
“My office remains determined to ensure that federal funding for essential health care, like the hospice care at issue in this investigation, goes to the patients who need it, rather than to health care companies who seek to exploit those patients for profit,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “Today’s result reflects a concerted effort by this office and U.S. Attorneys’ Offices around the country, working alongside the Fraud Section of the Justice Department’s Civil Division, and our law enforcement partners, to help to guarantee that Medicare funds are directed where they belong and that high-quality hospice care is available for patients and their families in the future.”
“Hospice care is special end-of-life care intended to provide comfort for terminally ill patients. The decision to provide hospice services should be prompted by a patient’s terminally ill medical diagnosis, not a hospice provider’s desire to increase profits,” said U.S. Attorney Todd Gee for the Southern District of Mississippi. “The continued work of the department and our law enforcement partners is critical to the integrity of these important programs. I appreciate the work of all involved in this significant case.”
“Our office is committed to protecting federal healthcare programs like the Medicare hospice benefit from false claims” said U.S. Attorney Sean Costello for the Southern District of Alabama. “We will hold accountable any providers that abuse taxpayer dollars.”
“The integrity of hospice care is critical to the millions of patients receiving these services,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We, along with our law enforcement partners, will continue to ensure that providers who focus on personal financial gain rather than providing medically necessary, high-quality hospice care will be held accountable.”
The Medicaid program is funded jointly by the state and federal governments. As a result of the settlement announced today, the federal government will receive $18,956,151.32, the State of Tennessee will receive $448,800 and the State of Ohio will receive $23,618.68.
The settlement includes the resolution of claims in nine lawsuits brought under the qui tam or whistleblower provisions of the False Claims Act by various current and former Kindred employees. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned: United States ex rel. Pence, et al. v. Curo Health Services Holdings, Inc., et al., Civil Action No. 3:13-00672 (M.D. Tenn.); United States,, et al. ex rel. Anderson et al. v. Curo Health Services, LLC d/b/a Avalon Hospice, Civil Action No. 3:20-cv-00168 (M.D. Tenn.); United States ex rel. Riar v. Kindred Healthcare, Inc., et al., Civil Action No. 3:18-CV-52 (W.D. Ky.); United States ex rel. Didde, et al. v. Kindred Healthcare Inc. et al., Civil Action No. 19-2321-JWB-JPO (D. Kan.); United States ex rel. Mut v. Gentiva Certified Healthcare Corp. D/B/A Kindred at Home, Civil Action No. 1:21-cv-00425-JJM-PAS (D.R.I.); United States ex rel. Harris v. SouthernCare, Inc., Civil Action No. 3:18-cv-643-HTW-LGI (S.D. Miss.); United States,, et al. ex rel. Roy v. Curo Health Services, LLC, et al., Civil Action No. 3:18-cv-643-HTA-LRA (S.D. Miss.); U.S. ex rel. Petrey v. Curo HealthCare Services, LLC, et al., Civil Action No. 1:19-CV-00617 (S.D. Ala.), and United States ex rel. Medved, et al. v. SouthernCare, Inc. D/B/A SouthernCare, et al., Civil Action No. 2:23-cv-3345 (S.D. Ohio). The share of the settlement to be received by the whistleblowers has not yet been determined.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division's Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the Middle District of Tennessee, Western District of Kentucky, District of Kansas, District of Rhode Island, Southern District of Mississippi, Southern District of Alabama and Southern District of Ohio, with assistance from HHS-OIG, the Defense Criminal Investigative Service, the Office of Personnel Management Office of Inspector General, the Department of Veterans Affairs Office of Inspector General, the Office of the Tennessee Attorney General and the Office of the Ohio Attorney General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorney William E. Olson of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorneys Wynn M. Shuford for the Middle District of Tennessee, Jessica R.C. Malloy and William F. Campbell for the Western District of Kentucky, Jon P. Fleenor for the District of Kansas, Kevin Love Hubbard for the District of Rhode Island, Deidre Lamppin Colson for the Southern District of Mississippi, Nina T. Herring for the Southern District of Alabama and W. Hunter West and Michael J. T. Downey for the Southern District of Ohio handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementKindred and Related Entities Agree to Pay $19.428 Million to Settle Federal and State False Claims Act Lawsuits Alleging Ineligible Claims for Hospice PatientsRead the Press Release
NASHVILLE – Gentiva, successor to Kindred at Home, has agreed to pay $19.428 million to resolve allegations that Kindred at Home and related entities (Kindred) knowingly submitted false claims and knowingly retained overpayments for hospice services provided to patients who were ineligible to receive hospice benefits under various federal health care programs. Gentiva’s hospice operations, headquartered in Atlanta, Georgia, include entities that previously operated Kindred at Home hospice locations under the names Avalon, Kindred, SouthernCare and SouthernCare New Beacon.
“Hospice provides vital care and support for terminally ill patients and their families. Medicare’s and TennCare’s eligibility requirements ensure that federal and state health care money is properly used to support hospice programs,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “We are committed to holding accountable health care companies and providers who prioritize profits over patient care by ignoring these requirements.”
“The hospice benefit under Medicare and other federal health care programs provides critical services to some of the most vulnerable patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will ensure that this important benefit is used to assist those who need it, and not as an opportunity to line the pockets of those who seek to abuse it.”
The settlement resolves allegations made by the United States and the State of Tennessee in a consolidated complaint filed in 2021 against certain Kindred related entities alleging that, from 2010 until February 2020, the defendants knowingly submitted or caused to be submitted false claims for hospice services provided to Avalon hospice patients in Tennessee who were ineligible for the Medicare or Medicaid hospice benefit because they were not terminally ill. The settlement also resolves the complaint’s allegations that the defendants improperly concealed or avoided Avalon’s obligation to repay those hospice claims.
In addition, the settlement resolves allegations that certain Kindred, SouthernCare and SouthernCare New Beacon hospice locations knowingly submitted, or caused to be submitted, false claims for hospice services provided to patients who were ineligible for hospice benefits under Medicare and other federal health care programs because the patients were not terminally ill. Those hospice locations were Kindred’s locations in Warwick, Rhode Island, Beaumont, Texas, and Independence, Missouri; SouthernCare New Beacon’s location in Demopolis, Alabama; and SouthernCare’s locations in Daphne, Alabama, Mobile, Alabama, South Bend, Indiana, and Youngstown, Ohio. The settlement also resolves allegations that those Kindred, SouthernCare and SouthernCare New Beacon locations knowingly and improperly concealed or avoided obligations to repay the foregoing hospice claims.
Further, the settlement resolves allegations that SouthernCare New Beacon allegedly violated the Anti-Kickback Statute by willfully paying renumeration to a consulting physician, between Oct. 1, 2016 and Oct. 1, 2022, to induce hospice referrals of Medicare beneficiaries to its Gadsden, Alabama location. The settlement of those allegations stems from a voluntary self-disclosure made by New Beacon Healthcare Group LLC doing business as SouthernCare New Beacon Hospice. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded health care programs. It is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
“This office remains committed to safeguarding public monies,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “I commend the work of all those in the department who have made this successful settlement possible and truly appreciate the strong working relationships that exist between the United States Attorneys’ Offices, the Civil Division’s Fraud Section, and our law enforcement partners.”
“My office remains determined to ensure that federal funding for essential health care, like the hospice care at issue in this investigation, goes to the patients who need it, rather than to health care companies who seek to exploit those patients for profit,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “Today’s result reflects a concerted effort by this Office and U.S. Attorneys’ Offices around the country, working alongside the Fraud Section of the Justice Department’s Civil Division, and our law enforcement partners, to help to guarantee that Medicare funds are directed where they belong and that high-quality hospice care is available for patients and their families in the future.”
“Hospice care is special end-of-life care intended to provide comfort for terminally ill patients. The decision to provide hospice services should be prompted by a patient’s terminally ill medical diagnosis, not a hospice provider’s desire to increase profits,” said U.S. Attorney Todd Gee for the Southern District of Mississippi. “The continued work of the department and our law enforcement partners is critical to the integrity of these important programs. I appreciate the work of all involved in this significant case.”
“Our office is committed to protecting federal healthcare programs like the Medicare hospice benefit from false claims” said U.S. Attorney Sean Costello for the Southern District of Alabama. “We will hold accountable any providers that abuse taxpayer dollars.”
“The integrity of hospice care is critical to the millions of patients receiving these services,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We, along with our law enforcement partners, will continue to ensure that providers who focus on personal financial gain rather than providing medically necessary, high-quality hospice care will be held accountable.”
The Medicaid program is funded jointly by the state and federal governments. As a result of the settlement announced today, the federal government will receive $18,956,151.32, the State of Tennessee will receive $448,800 and the State of Ohio will receive $23,618.68.
The settlement includes the resolution of claims in nine lawsuits brought under the qui tam or whistleblower provisions of the False Claims Act by various current and former Kindred employees. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned: United States ex rel. Pence, et al. v. Curo Health Services Holdings, Inc., et al., Civil Action No. 3:13-00672 (M.D. Tenn.); United States,, et al. ex rel. Anderson et al. v. Curo Health Services, LLC d/b/a Avalon Hospice, Civil Action No. 3:20-cv-00168 (M.D. Tenn.); United States ex rel. Riar v. Kindred Healthcare, Inc., et al., Civil Action No. 3:18-CV-52 (W.D. Ky.); United States ex rel. Didde, et al. v. Kindred Healthcare Inc. et al., Civil Action No. 19-2321-JWB-JPO (D. Kan.); United States ex rel. Mut v. Gentiva Certified Healthcare Corp. D/B/A Kindred at Home, Civil Action No. 1:21-cv-00425-JJM-PAS (D.R.I.); United States ex rel. Harris v. SouthernCare, Inc., Civil Action No. 3:18-cv-643-HTW-LGI (S.D. Miss.); United States,, et al. ex rel. Roy v. Curo Health Services, LLC, et al., Civil Action No. 3:18-cv-643-HTA-LRA (S.D. Miss.); U.S. ex rel. Petrey v. Curo HealthCare Services, LLC, et al., Civil Action No. 1:19-CV-00617 (S.D. Ala.), and United States ex rel. Medved, et al. v. SouthernCare, Inc. D/B/A SouthernCare, et al., Civil Action No. 2:23-cv-3345 (S.D. Ohio). The share of the settlement to be received by the whistleblowers has not yet been determined.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the United States Attorneys’ Offices for the Middle District of Tennessee, the Western District of Kentucky, the District of Kansas, the District of Rhode Island, the Southern District of Mississippi, the Southern District of Alabama and the Southern District of Ohio, with assistance from the HHS-OIG, the Defense Criminal Investigative Service, the Office of Personnel Management, Office of Inspector General, the Department of Veterans Affairs, Office of Inspector General, the Office of the Tennessee Attorney General and the Office of the Ohio Attorney General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorney William E. Olson in the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant United States Attorneys Wynn M. Shuford for the Middle District of Tennessee, Jessica R.C. Malloy and William F. Campbell for the Western District of Kentucky, Jon P. Fleenor for the District of Kansas, Kevin Love Hubbard for the District of Rhode Island, Deidre Lamppin Colson for the Southern District of Mississippi, Nina T. Herring for the Southern District of Alabama and W. Hunter West and Michael J. T. Downey for the Southern District of Ohio handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
# # # # #
Kindred and Related Entities Agree to Pay $19.428 Million to Settle Federal and State False Claims Act Lawsuits Alleging Ineligible Claims for Hospice PatientsRead the Press Release
PROVIDENCE, RI - Gentiva, successor to Kindred at Home, has agreed to pay $19.428 million to resolve allegations that Kindred at Home and related entities (“Kindred”) knowingly submitted false claims and knowingly retained overpayments for hospice services provided to patients who were ineligible to receive hospice benefits under various federal health care programs, announced United States Attorney Zachary A. Cunha.
Gentiva’s hospice operations, headquartered in Atlanta, Georgia, include entities that previously operated Kindred at Home hospice locations under the names Avalon, Kindred, SouthernCare, and SouthernCare New Beacon, to include a facility in Warwick, Rhode Island.
“My office remains determined to ensure that federal funding for essential health care, like the hospice care at issue in this investigation, goes to the patients who need it, rather than to health care companies who seek to exploit those patients for profit,” said Zachary A. Cunha, United States Attorney for the District of Rhode Island. “Today’s result reflects a concerted effort by this Office and U.S. Attorneys’ Offices around the country, working alongside the Fraud Section of the Justice Department’s Civil Division, and our law enforcement partners, to help to guarantee that Medicare funds are directed where they belong and that high-quality hospice care is available for patients and their families in the future.”
“The hospice benefit under Medicare and other federal health care programs provides critical services to some of the most vulnerable patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department will ensure that this important benefit is used to assist those who need it, and not as an opportunity to line the pockets of those who seek to abuse it.”
The settlement resolves allegations made by the United States and the State of Tennessee in a consolidated complaint filed in 2021 against certain Kindred related entities alleging that, from 2010 until February 2020, the defendants knowingly submitted or caused to be submitted false claims for hospice services provided to Avalon hospice patients in Tennessee who were ineligible for the Medicare or Medicaid hospice benefit because they were not terminally ill. The settlement also resolves the complaint’s allegations that the defendants improperly concealed or avoided Avalon’s obligation to repay those hospice claims.
In addition, the settlement resolves allegations that certain Kindred, SouthernCare, and SouthernCare New Beacon hospice locations knowingly submitted, or caused to be submitted, false claims for hospice services provided to patients who were ineligible for hospice benefits under Medicare and other federal health care programs because the patients were not terminally ill. Those hospice locations were Kindred’s locations in Warwick, Rhode Island, Beaumont, Texas, and Independence, Missouri; SouthernCare New Beacon’s location in Demopolis, Alabama; and SouthernCare’s locations in Daphne, Alabama, Mobile, Alabama, South Bend, Indiana, and Youngstown, Ohio. The settlement also resolves allegations that those Kindred, SouthernCare, and SouthernCare New Beacon locations knowingly and improperly concealed or avoided obligations to repay the foregoing hospice claims.
Further, the settlement resolves allegations that SouthernCare New Beacon allegedly violated the Anti-Kickback Statute by willfully paying renumeration to a consulting physician, between October 1, 2016 and October 1, 2022, to induce hospice referrals of Medicare beneficiaries to its Gadsden, Alabama location. The settlement of those allegations stems from a voluntary self-disclosure made by New Beacon Healthcare Group LLC d/b/a SouthernCare New Beacon Hospice. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded health care programs. It is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
“Hospice provides vital care and support for terminally ill patients and their families. Medicare’s and TennCare’s eligibility requirements ensure that federal and state health care money is properly used to support hospice programs,” said Henry C. Leventis, United States Attorney for the Middle District of Tennessee. “We are committed to holding accountable health care companies and providers who prioritize profits over patient care by ignoring these requirements.”
“This office remains committed to safeguarding public monies,” said Michael A. Bennett, United States Attorney for the Western District of Kentucky. “I commend the work of all those in the Department who have made this successful settlement possible and truly appreciate the strong working relationships that exist between the United States Attorneys’ Offices, the Civil Division’s Fraud Section, and our law enforcement partners.”
“Hospice care is special end-of-life care intended to provide comfort for terminally ill patients. The decision to provide hospice services should be prompted by a patient’s terminally ill medical diagnosis, not a hospice provider’s desire to increase profits,” said United States Attorney Todd Gee for the Southern District of Mississippi. “The continued work of the Department and our law enforcement partners is critical to the integrity of these important programs. I appreciate the work of all involved in this significant case.”
“Our office is committed to protecting federal healthcare programs like the Medicare hospice benefit from false claims” said U.S. Attorney Sean Costello for the Southern District of Alabama. “We will hold accountable any providers that abuse taxpayer dollars.”
“The integrity of hospice care is critical to the millions of patients receiving these services,” said Deputy Inspector General for Investigations Christian J. Schrank of the United States Department of Health and Human Services Office of Inspector General (HHS-OIG). “We, along with our law enforcement partners, will continue to ensure that providers who focus on personal financial gain rather than providing medically necessary, high-quality hospice care will be held accountable.”
The Medicaid program is funded jointly by the state and federal governments. As a result of the settlement announced today, the federal government will receive $18,956,151.32, the State of Tennessee will receive $448,800, and the State of Ohio will receive $23,618.68.
The settlement includes the resolution of claims in nine lawsuits brought under the qui tam or whistleblower provisions of the False Claims Act by various current and former Kindred employees. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The share of the settlement to be received by the whistleblowers has not yet been determined.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorneys’ Offices for the District of Rhode Island, Middle District of Tennessee, the Western District of Kentucky, the District of Kansas, the Southern District of Mississippi, the Southern District of Alabama, and the Southern District of Ohio, with assistance from the HHS-OIG, the Defense Criminal Investigative Service, the Office of Personnel Management, Office of Inspector General, the Department of Veterans Affairs, Office of Inspector General, the Office of the Tennessee Attorney General, and the Office of the Ohio Attorney General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matters were handled by Trial Attorney William E. Olson in the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant United States Attorneys Kevin Love Hubbard for the District of Rhode Island, Wynn M. Shuford for the Middle District of Tennessee, Jessica R.C. Malloy and William F. Campbell for the Western District of Kentucky, Jon P. Fleenor for the District of Kansas, Deidre Lamppin Colson for the Southern District of Mississippi, Nina T. Herring for the Southern District of Alabama, and W. Hunter West and Michael J. T. Downey for the Southern District of Ohio.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
###
KC Sex Offender Pleads Guilty to Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who is a registered sex offender pleaded guilty in federal court today to sharing child pornography over the internet and to possessing more than 1,000 images and videos of child pornography.
Dennis Bruce Bean II, 44, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of transporting child pornography across state lines and on count of possessing child pornography.
Bean has a prior felony conviction for criminal sexual conduct and has been required to register as a sex offender.
According to court documents, the National Center for Missing and Exploited Children received three CyberTipline reports associated with Bean. In one of those reports, Google reported on Jan. 31, 2024, that approximately 1,442 files of child pornography had been uploaded to Bean’s Google Photos account during the previous two months.
On April 5, 2024, law enforcement officers executed a search warrant at Bean’s residence. Bean was arrested after he was found hiding in the back yard. Officers seized two cell phones and a one terabyte thumb drive. Investigators found at least 100 images and videos of child sexual abuse or child erotica on the phones. The thumb drive had more than 1,000 images and videos of child sexual abuse and child erotica.
Under federal statutes, Bean is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing is scheduled on Dec. 3, 2024.
This case is being prosecuted by Assistant U.S. Attorney Kenneth W. Borgnino. It was investigated by the Missouri State Highway Patrol and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department and Department of Education Announce Continuing Success of Student-Loan Bankruptcy Discharge ProcessRead the Press Release
The Justice Department, in close coordination with the Department of Education, announced today the continued and growing success of a process instituted in November 2022 for handling cases in which individuals seek to discharge their federal student loans in bankruptcy. Data and information tracking the effectiveness of the process over the last year and a half demonstrate that it is achieving its goal of providing a more transparent, equitable, and streamlined mechanism for borrowers to request a discharge of their student loans in consumer bankruptcy cases. The process has translated into increasing numbers of eligible federal student loan borrowers seeking and obtaining debt relief under the Bankruptcy Code.
The Departments finalized new guidance in November 2022 that outlined a fairer, more accessible process to ensure consistent treatment of the discharge of federal student loans, reduce the burden on borrowers of pursuing such proceedings, and facilitate identifying cases where discharge is appropriate. At the time, both Departments committed to an ongoing assessment of the guidance’s effectiveness. As part of that commitment, the Justice Department surveyed all 94 U.S. Attorneys’ Offices after the first year of implementation, and it recently repeated its survey to obtain updated information about use of the guidance.
The information that the Departments have collected from these surveys indicates that the new process continues to be a success, and that an increasing number of borrowers are seeking and receiving discharges of their federal student loan debts. In particular, since the process was announced a year and a half ago, the data collected by the departments reveals that:
- As anticipated, case filings have steadily increased as consumers have learned of the new process. A total of 588 new cases were filed from October 2023 to March alone, which is a 36% increase from the prior six-month period. And a total of 1,220 cases were filed from November 2022 through March, a significant increase from recent years. The departments expect this trend to continue.
- The vast majority of borrowers seeking discharge continue to benefit from the guidance. In cases decided by the courts from November 2022 through March, 98% have provided debt relief through full or partial discharge. And the overall number of court judgments providing full or partial discharge have continued to increase, with the number of such judgments over the last six months exceeding the number of judgments for the preceding 12 months.
- Borrowers continue to embrace the new process set forth in the guidance in large numbers. In filed cases, 96% of all borrowers are voluntarily using the streamlined process, which includes a standard attestation form that allows borrowers more easily to identify and provide relevant information in support of their discharge request.
- Multiple bankruptcy courts have adopted procedures recognizing the utility of the new process, aimed at further streamlining the procedures debtors must follow to obtain discharges.
“We are now able to evaluate the success of the student loan bankruptcy discharge guidance with a robust record of empirical information,” said Acting Associate Attorney General Benjamin C. Mizer. “The results are clear: this guidance has helped make the promise of a fresh start in bankruptcy a meaningful option for individuals weighed down by student loan debt.”
“Our clear, fair, and practical standards are helping struggling borrowers find relief that was previously out of reach,” said U.S. Under Secretary of Education James Kvaal. “This data should puncture the myth that struggling borrowers cannot discharge their student loan debt through bankruptcy. We will continue to work with our partners at the Department of Justice to make it simpler and easier for borrowers to get much-needed relief in the way it was intended.”
In addition to the internal data surveys, the Justice Department has taken other measures to support and evaluate the new guidance. The Justice Department has been consulting closely with the Department of Education on the process. Since the implementation of the guidance, a dedicated group of experts within the Justice Department's Civil Division also has collected input on the new process from consumer law groups, including the National Association of Consumer Bankruptcy Attorneys. Finally, the Civil Division has conducted trainings for Justice Department attorneys as well as members of the public, including training events supported by regional bar associations and the courts. The Department of Education also participated in training events hosted by regional bar associations, the American Bankruptcy Institute and U.S. Trustee Program, as well as at the annual meeting of the National Association of Chapter 13 Trustees, which included private attorneys as well as Chapter 13 trustees.
The Departments will continue to monitor the impact of the guidance to ensure that it is appropriately implemented and meets the goals it was designed to achieve.
Jury Finds Man Guilty of Aggravated Assault While Armed in Northwest D.C. AttackRead the Press Release
WASHINGTON – Darren Buchanan, 54, of Washington, D.C., was found guilty yesterday by a Superior Court jury of aggravated assault while armed and assault with a dangerous weapon, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD). The verdict follows a four-day trial.
Superior Court Judge Michael O’Keefe has scheduled sentencing for September 20, 2024.
According to the government’s evidence, on July 2, 2019, the victim was riding on a Metrobus on Georgia Ave. NW when he kicked the defendant’s daughter. After the victim got off the bus, the defendant’s daughter called her mother—the defendant’s wife—to tell her about what happened. They all agreed to meet at a nearby establishment. Buchanan and his wife got into a taxi, and while they were on their way to meet their daughter, the defendant noticed an individual who matched the description of his daughter’s attacker. Buchanan exited the taxi, grabbed a large tree branch, and hit the victim with the tree branch multiple times. The victim —who was unarmed—began running from the defendant and eventually entered the market of a gas station located approximately ten minutes away from the location of the initial assault. Buchanan followed the victim for several blocks. As seen on video surveillance, the defendant peered through the window of the gas station market, saw the victim on the ground sweating and talking to himself, and entered. He then kicked the victim once in the chest and stomped on his head seven times. As a result, the victim was rendered unconscious, was transported to the hospital, and has been receiving treatment at a rehabilitation center, since the attack, for injuries related to the traumatic brain injury he suffered. After the defendant assaulted the victim, he boasted about his assault to law enforcement personnel during a police interview.
In announcing the verdict, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also commended the work of Assistant U.S. Attorneys Sabena Auyeung and Matthew Goldstein, who prosecuted the case.